Synopsis.
AIA Document A481™–2025 establishes the contractual relationship between the Construction Manager and Modular Subcontractor on volumetric modular construction projects. It sets forth the responsibilities of both parties and lists their respective obligations, which are written to parallel AIA Document A281–2025, General Conditions of the Contract for Construction, Volumetric Modular Construction. A481–2025 incorporates A281-2025 by reference.
Using A481-2025.
Cover Page
Date. This represents the date in which the Agreement becomes effective. It may be the date that an oral agreement was reached, the date the Agreement was originally submitted to the other party, the date authorizing action was taken or the date of actual execution.
Parties. Parties to this Agreement should be identified using the full legal name under which the Agreement is to be executed, including a designation of the legal status of both parties (sole proprietorship, partnership, joint venture, unincorporated association, limited partnership or corporation [general, limited liability, closed or professional], etc.). Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached. Other information may be added, such as telephone numbers and electronic addresses.
Prime Contract. The date of the Agreement between the Owner and Construction Manager should be entered here.
Owner. The name and address of the Owner should be the same as used in the Prime Contract.
Project. The proposed Project should be described in sufficient detail to identify (1) the official name or title of the facility, (2) the location of the Project Site, and (3) a brief description of the Project, including the proposed building usage, the size, and capacity or scope of the Project.
Architect. The Architect’s full legal or corporate titles should be used.
Article 6 – Mediation and Binding Dispute Resolution
§ 6.2 Select from three choices of binding dispute resolution: (1) arbitration, (2) litigation or (3) another method that the parties must identify. Other types of dispute resolution include a dispute resolution board or a mini-trial. For additional information about other methods of dispute resolution, refer to The Construction Industry’s Guide to Dispute Avoidance and Resolution or visit adr.org for more information.
Article 8 – The Modular Work
§ 8.2.6 Other Preconstruction Services. Insert a description of any other Preconstruction Services to be provided by the Modular Subcontractor.
§ 8.3.4.2 Insert the number of days prior to a scheduled inspection or test of the Modules in which the Modular Subcontractor shall notify the Construction Manager and Architect.
§ 8.3.7.5 Insert the number of days prior to a scheduled delivery of the Modules to the Project Site or Staging Site in which the Modular Subcontractor shall notify the Construction Manager.
§ 8.3.8.1 Insert the number of days from receipt of written request in which the Modular Subcontractor must provide access to the construction portion of the Modular Work to the Construction Manager, Owner, and Architect.
§ 8.3.10.1 Installation, Assembly, and Connection of the Modules. Check the appropriate box as to whether the Construction Manager or Modular Subcontractor will perform installation, assembly, and connection of the Modules at the Project Site.
§ 8.3.10.3 Describe any additional responsibilities for the party performing installation, assembly, and connection of the Modules at the Project Site.
§ 8.3.13 Describe additional Construction Phase services of the Modular Work, if any.
Article 10 – Compensation and Payments for Preconstruction Services
§ 10.1.1 Sample language is provided below for describing three methods of computing compensation.
Stipulated Sum:
Compensation shall be the stipulated sum of ________ ($__), plus the following reimbursable cost items:
Multiple of Direct Personnel Expense:
Compensation shall be based on a multiple of ________ (__) times Direct Personnel Expense of Modular Subcontractor’s personnel, plus the following reimbursable cost items:
Actual Cost:
Compensation shall be based on actual costs incurred in the performance of the Preconstruction Services. (A maximum cost may be established.)
§ 10.1.4 Insert the number of months beyond which the Modular Subcontractor’s Preconstruction Services compensation shall be adjusted.
Article 11 – Progress Payments
§ 11.3.2 Insert the time period covered by each application for payment if it differs from the one given.
§ 11.3.3 Insert the time schedule for presenting Applications for Payment. Due dates for payment should be acceptable to both the Construction Manager and Modular Subcontractor. They should allow sufficient time for the Construction Manager to prepare an Application for Payment, for the Architect to certify payment, and for the Owner to make payment. They should also be in accordance with the time limits established by this article and Article 9 of A281–2025.
§ 11.3.8.1 Insert the percentage or amount of retainage, if any, to be withheld when computing the amount of each progress payment. These percentages may vary with circumstances and localities.
§ 11.3.8.1.1 Certain items included in the Subcontract Sum may be excluded from the calculation of retainage. Where there are any limitations or exclusions from retainage, list those items.
§ 11.3.8.2 AIA Contract Documents endorse the practice of reducing retainage as rapidly as possible, consistent with the continued protection of all affected parties. A provision for reducing retainage should provide that the reduction will be made only if the Construction Manager judges that the Modular Work is progressing satisfactorily. If the Modular Subcontractor has furnished a bond, demonstration of the surety’s consent to reduction in or partial release of retainage must be provided before such reduction is effected. Use of AIA Document G707A™-1994 is recommended. Insert terms for reduction or limitation of retainage.
§ 11.5.1 Insert any provision for earlier final payment to the Modular Subcontractor. When final payment is requested, the Construction Manager should ascertain that all claims have been settled or should define those which remain unsettled. The Construction Manager must also determine that the Architect has issued a certificate for payment covering the completed Modular Work and that the requirements of the Subcontract have been fulfilled.
§ 11.6 Payments due and unpaid under the Subcontract bear interest from the date payment is due at the legal rate prevailing from time to time at the place where the Project is located. If a different interest rate is to be paid, insert the amount here.
Article 12 – Insurance and Bonds
§ 12.1 Preconstruction Services Insurance and Bonds. Insert the policy limits for the types of coverages the Modular Subcontractor will be required to maintain for the duration of its Preconstruction Services.
Article 13 – Temporary Facilities and Working Conditions
§ 13.1 List temporary facilities and services the Construction Manager will not furnish to the Modular Subcontractor.
§ 13.2 List any of the Construction Manager’s equipment that will not be available to the Modular Subcontractor.
§ 13.3 List any specific arrangements or requirements concerning working conditions and labor matters applicable to the Modular Work.
Article 15 – Miscellaneous Provisions
§ 15.2 Identify the Construction Manager’s representative and provide contact information.
§ 15.3 Identify the Modular Subcontractor’s representative and provide contact information.
§ 15.5.3 This Section allows the Construction Manager and Modular Subcontractor to provide notice in electronic format. While notice in electronic form may be provided as set forth in this provision, other protocols for the use or transmission of digital data and BIM are established pursuant to Section 15.8.
Article 16 – Enumeration of Subcontract Documents
A detailed enumeration of all Subcontract Documents must be made in this Article.
EXHIBIT A – CONSTRUCTION PHASE AMENDMENT
This Amendment will typically be completed by the Modular Subcontractor in accordance with Section 8.2.5, prior to the conclusion of the Modular Subcontractor’s Preconstruction Services.
Cover Page. The date of the Construction Phase Amendment and the date of the accompanying A481-2025 should be inserted separately into the fill points provided. The date represents the date the Agreement becomes effective. It may be the date that an oral agreement was reached, the date the Agreement was originally submitted to the other party, the date authorizing action was taken, or the date of actual execution.
Article A.1 – Subcontract Sum
§ A.1.1 This Section is meant to be flexible for the determination of the Subcontract Sum. The method for determining the Subcontract Sum agreed to by the Construction Manager and Modular Subcontractor should be described in detail.
§ A.1.2 Insert the amount of the Advance Payment, if any, to be included in the Subcontract Sum.
Article A.2 – Subcontract Time
§ A.2.2 Insert the dates for commencement of the Construction Phase of the Modular Work and substantial completion.
§ A.2.4 If portions of the Modular Work are to be completed prior to substantial completion of the Modular Work, then list all such portions here.
Article A.3 – Information upon which this Amendment is Based
§ A.3.1.2 In order to clarify the handling of alternates on a Project, this provision clearly identifies alternates that are included in the Subcontract Sum and those alternates that may be accepted after a condition precedent has been met.
§ A.3.1.2.1 Identify any alternates described in the Subcontract Documents and accepted by the Construction Manager as included in the Subcontract Sum.
§ A.3.1.2.2 List other alternates that may be accepted subsequent to execution of the Construction Phase Amendment, including the price of each alternate and the conditions for acceptance.
§ A.3.1.3 Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.
§ A.3.1.4 Agreed-upon allowances should be identified, including a statement of their basis.
§ A.3.1.5 The Modular Subcontractor’s assumptions, exclusions, and clarifications should be listed here or in an attached referenced exhibit.
Article A.4 – Insurance and Bonds
§ A.4.1 Indicate the applicable coverage limits for the Modular Subcontractor’s Professional Liability coverage, if applicable. This insurance coverage must be effective from the earliest date that the Modular Subcontractor’s design services commence for the Project until completion of the period for correction of the Work.
§ A.4.4 Indicate the applicable coverage limits for the Modular Subcontractor’s cyber security insurance coverage for first- and third-party loss due to data security and privacy breach, and any other related conditions.
§ A.4.5 Insert types of coverage and limits of liability to be maintained by the Modular Subcontractor which may arise out of or result from the Modular Subcontractor’s operations and completed operations under the Subcontract.
§ A.4.6 Specify the penal sum of each bond that the Modular Subcontractor is required to provide.
Article A.5 – Staging Site
§ A.5.1 If required for the Project, identify the location of the Staging Site and insert any requirements of the Construction Manager to provide the Staging Site.
Executing the agreement.
The persons executing AIA Document A481–2025 should indicate the capacity in which they are acting (i.e., president, secretary, partner, etc.) and the authority under which they are executing the Agreement. Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached.
Important.
Modifications. Particularly with respect to professional or contractor licensing laws, building codes, taxes, monetary and interest charges, arbitration, indemnification, format and font size, AIA Contract Documents may require modification to comply with state or local laws. Users are encouraged to consult an attorney before completing or modifying a document.
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