Synopsis.
AIA Document B181™–2025 is intended for use with the following documents:
- AIA Document A181-2025, Standard Form of Agreement Between Owner and Construction Manager as Constructor, Volumetric Modular Construction Edition
- AIA Document A281-2025, General Conditions of the Contract for Construction, Volumetric Modular Construction Edition
- AIA Document A481-2025, Standard Form of Agreement Between Construction Manager and Modular Subcontractor, Volumetric Modular Construction Edition
This coordinated set of agreements is intended for use where the Owner employs the volumetric modular construction delivery method for the project. The agreements are designed for collaboration and coordination between the project participants, and to optimize the expertise of the Owner, Construction Manager, Modular Subcontractor, and Architect throughout all construction and design phases, to the benefit of all and the success of the project. These agreements contain enhanced provisions for preconstruction, pre-design, and design phase services to coordinate the professional design services provided by the Architect and Modular Subcontractor. Additionally, this coordinated set of agreements uses the same basic structure and compensation methods as in the standard AIA Contract Documents Construction Manager as Constructor agreements.
The agreements include a collaborative process where the Owner, Construction Manager, Modular Subcontractor, and Architect work closely to coordinate the design of the Modules with the design of the overall Project, in addition to other project goals. Further, at a time to be mutually agreed upon by the Owner and Construction Manager, and in consultation with the Architect and Modular Subcontractor, the Construction Manager prepares a Guaranteed Maximum Price proposal for the Owner’s review and acceptance. Thereafter, the Construction Manager constructs the project on a Cost of the Work Plus a Fee basis, with a Guaranteed Maximum Price, and the Architect provides contract administration services during the construction phase.
In B181–2025, the Architect does not prepare cost estimates, but agrees to design the project to meet the Owner’s budget for the Cost of the Work at the conclusion of the Design Development Phase Services. B181–2025 assumes that the Construction Manager will provide cost estimates and schedules for the project.
Using B181-2025.
Cover Page
Date. 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. Professional services should not be performed prior to the effective date of the Agreement.
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.
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, if known, (3) the proposed building usage, and (4) the size, capacity, or scope of the Project, if known.
Article 1 Purpose and Initial Information
§ 1.2 Initial Information is provided in Section 1.2. The parties should take care to be as explicit and detailed as possible with respect to the relevant Initial Information.
§ 1.2.1.4 The parties must set forth the Owner’s anticipated design and construction schedule, including design phase milestone dates, as those dates are to be incorporated into the Architect’s initial schedule for the Architect’s services.
§ 1.2.1.9 AIA Contract Documents publishes standard form Owner-Consultant Agreements, including C103™–2015, Standard Form of Agreement Between Owner and Consultant without a Predefined Scope of Consultant’s Services, which sets the terms and conditions governing the relationship between the Owner and its Consultant. C103–2015 does not include a scope of services and must be paired with another document providing a description of the required services. AIA Contract Documents also publishes several consultant’s scope of services documents, such as C201™–2015, Standard Form of Consultant’s Services: Land Survey, C202™–2015, Standard Form of Consultant’s Services: Geotechnical Engineering, and C203™-2017, Standard Form of Consultant’s Services: Commissioning.
Article 3 Scope of Architect’s Basic Services
§ 3.3 This section contains the Architect’s services that correspond to the Construction Manager’s presentation, and the Owner’s acceptance, of the Guaranteed Maximum Price proposal. The inclusion of Section 3.3 before Pre-Design Phase Services does not imply a chronological sequence of the Architect’s services. As contemplated in A181–2025 and Section 3.3.2 of this Agreement, the Owner may receive a Guaranteed Maximum Price proposal during any of the design phases.
§ 3.9 The Architect’s responsibility to provide Construction Phase Services corresponds to commencement of the Construction Phase as set forth in A181–2025 and A481-2025. The Architect may be required to provide Construction Phases Services while simultaneously completing one or more of the design phases.
Article 4 Supplemental and Additional Services
§ 4.1.1 The parties should complete the table contained at Section 4.1.1 prior to executing the Agreement. For each Supplemental Service listed, the parties should indicate the party responsible for providing the service in the appropriate column. AIA Contract Documents publish standard form scopes of services documents for a number of the Supplemental Services listed in Section 4.1.1, which can be used to describe the Architect’s responsibilities for the identified Supplemental Service. The Architect is not responsible for any listed Supplemental Service unless specifically so designated in the Responsibility column of the table.
§ 4.1.1.15 Conformed documents for construction (commonly identified as “Issued For Construction” documents) are the Construction Documents modified to include any addenda issued during the bidding or negotiation process and accepted alternates.
§ 4.1.1.16 The Architect is not required to assist with the selection of the Modular Subcontractor unless the Architect is specifically designated so here.
§ 4.1.1.17 The Architect is not required to evaluate the Modular Work at the Modular Facility or the Staging Site unless the Architect is specifically designated so here.
§ 4.1.1.19 As-designed record drawings are the record of everything the Architect designed for the project, and include the original Construction Documents plus all addenda, Architect’s Supplemental Instructions, Change Orders, Construction Change Directives and minor changes in the work.
§ 4.1.1.20 As-constructed record drawings (commonly called “As-builts”) are the record of the project as constructed based on information the Construction Manager provides to the Owner under the contract for construction. Because the As-constructed Record Drawings will be based on the Construction Manager’s mark-ups, the Architect is not responsible for the accuracy or completeness of the As-constructed Record Drawings.
§ 4.1.2.1 This Section provides space for the parties to provide a detailed description of the Architect’s Supplemental Services identified in Section 4.1.1. Alternatively, the parties can identify and reference an exhibit in this section that provides the detailed description of the Architect’s Supplemental Services. AIA Contract Documents publish a number of Standard Form of Architect’s Services documents that can be used as exhibits for this purpose.
§ 4.1.2.2 This Section provides space for the parties to provide a detailed description of the Owner’s Supplemental Services identified in Section 4.1.1. Alternatively, the parties can identify and reference an exhibit in this section that provides the detailed description of the Owner’s Supplemental Services.
§ 4.2.3 Insert an agreed-upon number in each of the spaces provided.
§ 4.2.5 Insert the number of months beyond which the Architect shall be entitled to compensation as Additional Services.
Article 8 Claims and Disputes
§ 8.2.4 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 free online at www.adr.org.
Article 11 Compensation
§ 11.1 Insert the basis of compensation for the Architect’s Basic Services.
If the parties do not intend to utilize a stipulated sum method or percentage basis method, Section 11.1 allows the parties to identify another basis of compensation. There are a number of other methods for computing compensation for Architectural services. Four of these methods are time-based, reflecting in different ways the time spent by the Architect:
Multiple of Direct Salary Expense, in which direct salaries of designated personnel are multiplied by a factor representing benefits, overhead and profit.
Multiple of Direct Personnel Expense, in which the salaries plus benefits of designated personnel are multiplied by a factor representing overhead and profit.
Professional Fee Plus Expenses, in which the salaries, benefits and overhead of designated personnel are the expense and the fee may be a multiplier, percentage or lump sum representing profit.
Hourly Billing Rates, in which salaries, benefits, overhead and profit are included in the rate for designated personnel.
Other methods, while they may be indirectly related to time expended on the project, do not use time as a factor in the calculation:
Multiple of Consultants’ Billing, in which consultants’ bills are multiplied by a factor representing the Architect’s administrative costs, overhead and profit.
Square Footage, in which the square footage of the structure is multiplied by a pricing factor.
Unit Cost, in which the number of certain units such as rooms, acres, etc., is multiplied by a pricing factor.
Royalty, in which compensation is a share in the Owner’s income or profit derived from the built facility.
AIA Contract Documents makes no recommendation as to the appropriateness of any of these methods of compensation on a particular project, nor does AIA Contract Documents suggest that the foregoing list includes all methods that are possible, practical, or in actual use. The use of any of the compensation methods described above, singly or in combination with other methods, is a business decision for the Architect and Owner. Further, AIA Contract Documents makes no recommendations and has no guidelines or schedules that specify the amount of compensation an Architect should be paid.
Sample language is provided below for several of the most widely used methods of compensation.
If a Multiple of Direct Salary Expense is used, include multipliers using words and numerals in the following insert:
Compensation for services rendered by principals and employees shall be based on a multiple of ________ (__) times Direct Salary Expense, which shall be defined as the direct salaries of the Architect’s personnel engaged on the Project excluding any costs of mandatory or customary contributions and benefits. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
If a Multiple of Direct Personnel Expense is used, include multipliers using words and numerals in the following insert:
Compensation for services rendered by principals and employees shall be based on a multiple of ________ (__) times Direct Personnel Expense. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
If a Professional Fee Plus Expenses is to be used, include the dollar figure and the appropriate multipliers (using words and numerals) in the following insert:
Compensation shall be a Fixed Fee of ________ ($__) plus a multiple of ________ (__) times Direct Personnel Expense. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
Alternatively, the fee (representing profit) may be calculated as a multiplier or percentage.
If Hourly Billing Rates are used, include the cumulative amount for salary, benefits, overhead and profit to fix each rate using words and numerals in the following insert:
Compensation for services rendered by Principals and employees shall be based upon the hourly billing rates set forth below:
1. Principals’ time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, the Principals are: (List Principals, such as Owners, partners, corporate officers, and participating associates.)
2. Supervisory time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, supervisory personnel include: (List managerial personnel by name or job title, such as general manager, department head, or project manager.)
3. Technical Level I time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level I personnel include: (List those personnel by name or job title who are highly skilled specialists, such as job captains, senior designers, senior drafters, senior planners, senior specifiers, or senior construction administrators.)
4. Technical Level II time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level II personnel include: (List those personnel by name or job title who hold intermediate-level positions relative to Technical Level I, such as professionals awaiting licensure and managers of clerical staff.)
5. Technical Level III and clerical personnel time at the fixed rate of ________ ($__) per hour. For the purposes of this Agreement, Technical Level III and clerical personnel include: (List those personnel by name or job title who occupy junior-level positions, such as word processor or office assistant.)
6. Compensation for services rendered by Consultants shall be based on a multiple of ________ (__) times the amounts billed by Consultants.
No sample language is provided for compensation based on square footage, unit cost or royalty. Parties choosing one or more of these methods should craft their own language based on the particulars of the Project.
§ 11.2 See methods of compensation shown above for Section 11.1.
§ 11.3 See methods of compensation shown above for Section 11.1.
§ 11.4 Insert terms and conditions for any bonuses or other performance incentives.
§ 11.5 See methods of compensation shown above for Section 11.1, if other than a percentage of the invoiced amount.
Article 12 Special Terms and Conditions
Insert any modifications to the standard text of the document, if the modifications are not otherwise inserted elsewhere in the document. For more information about modifying the document, refer to the Modifications section of these Instructions.
Executing the agreement.
The persons executing AIA Document B181–2025 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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