Content.
Dispute Resolution—Mediation and Arbitration
Synopsis.
AIA Document G746™–2024 is a new document that provides authorization for the Design-Builder to begin Early Release Work on a design-build project. AIA Document A141®–2024 defines Early Release Work as “limited, predetermined portion of the Project or scope of the Work that the Owner authorizes the Design-Builder to commence before the parties execute the Design-Build Amendment.” G746–2024 allows the parties to describe the terms of how the Early Release Work shall proceed, including payment terms, insurance requirements, and warranty requirements, if they differ from the Agreement.
Purpose.
AIA Document G746–2024 enables the parties to commence work on a limited, predetermined portion of the Project before the parties execute the Design-Build Amendment. The provisions of G746–2024 are designed to cover any terms or requirements applicable to the Early Release Work, which differ from the terms of the Agreement.
Design-Build is a process in which the Owner contracts directly with one entity to provide both the design and construction of the project. The Design-Builder may be a design-build entity, an architect, construction contractor, real estate developer, or any other person or entity legally permitted to do business as a design-builder in the jurisdiction where the project is located. The design-builder’s organization may take a variety of legal forms, such as a sole proprietorship, a partnership, a joint venture, or a corporation. An architect or architectural firm choosing to function as a design-builder may directly contract to perform design-build services or, alternatively, may form a separate corporate entity or joint venture for design-build.
Prior to entering into this agreement, any person or entity that wishes to act as the design-builder should consult its legal counsel and insurance advisers. Some states may restrict or prohibit design-build practices under statutes that regulate architectural registration, contractor licensing, or incorporation of professionals.
Related documents.
AIA Document C441–2024 is part of the Design-Build family of documents. This family of documents is intended to govern the relationships among the parties to a design-build project, and consists of the following documents:
A141®–2024, Agreement Between Owner and Design-Builder for a Traditional Design-Build Project
A141®PDB–2024, Agreement Between Owner and Design-Builder for a Progressive Design-Build Project
A441™–2024, Agreement Between Design-Builder and Subcontractor for a Design-Build Project
B141™–2024, Agreement Between Design-Builder and Architect for a Traditional Design-Build Project
B141™PDB–2024, Agreement Between Design-Builder and Architect for a Progressive Design-Build Project
C141™–2024, Agreement Between Owner and Consultant for a Design-Build Project
C441™–2024, Agreement Between Architect and Consultant for a Design-Build Project
G744™–2024, Certificate of Substantial Completion for a Design-Build Project
G746™–2024, Authorization to Proceed with Early Release Work for a Design-Build Project
Dispute Resolution—Mediation and Arbitration.
This document contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process, but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act.
The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, contact the American Arbitration Association at (800) 778-7879 or visit the website at adr.org.