Summary
Instructions for G735–2021, Authorization to Proceed with Early Release Work, allows the Construction Manager (CM) to begin a portion of the project before finalizing the Guaranteed Maximum Price (GMP) or Control Estimate. Used with AIA Documents A133™-2019 or A134™-2019, this document defines the scope, schedule, compensation, and insurance for early release work, ensuring the project can progress while final agreements are still being negotiated.
Synopsis.
AIA Document G735-2021, Authorization to Proceed with Early Release Work is an authorization, agreed upon between the Owner and Construction Manager as Constructor, that allows the construction manager to begin construction on a smaller, predetermined portion of the project before the parties come to an agreement upon the Guaranteed Maximum Price or Control Estimate for the entire work of the project. AIA Document G735-2021 is specifically tailored for use with AIA Document A133™-2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price and AIA Document A134™-2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price.
G735-2021 commences the Construction Phase of the project only for the early release work and allows the owner and CMc to define the scope, schedule, and compensation. G735-2021 also allows the parties to negotiate requirements for insurance and bonds for this early release work.
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Completing G735-2021.
Check Boxes. The parties should select the box for the applicable agreement between the owner and construction manager as the constructor. This will either be AIA Document A133-2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price or AIA Document A134-2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price.
§1.1 Scope of the Early Release Work. Insert a description of the work that is included in this authorization to proceed. You may either insert a description directly into the document or reference an attached exhibit. If specifications or drawings are used to describe the scope of the Early Release Work, list those specifications and drawings in sections §1.2 and §1.3, respectively.
§1.2 Schedule for the Early Release Work. Insert schedule requirements for the Early Release Work. This may include dates for commencement, interim milestone dates, and the time for completion.
§1.3 Compensation for the Early Release Work. The construction manager shall be compensated for the early release work as set forth in the agreement unless otherwise indicated in this section. In most instances, this means that the construction manager will be compensated on a Cost of the Work basis plus a construction manager’s fee. If the method for compensation for the early release work differs from what is set forth in the agreement, identify the compensation or describe how the compensation will be calculated, including any limitations on the price.
§1.4 Payments for the Early Release Work. Indicate all payment terms that differ from those set forth in the agreement, such as the period covered by each application for payment or the date upon which each is due.
§1.5 Retainage on the Early Release Work. Insert all retainage terms that differ from those set forth in the agreement, such as retainage amount, items not subject to retainage, terms for reduction, or limitation of retainage.
§1.6 Insurance and Bonds required for the Early Release Work. Insert any insurance requirements that differ from those stated in the agreement, such as coverage types, limits, durations for professional liability as well as other terms and conditions.
Notes.
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