The specific policy terms and the law of the relevant jurisdiction will determine the success of the insurers’ denial of coverage. Whether or not CGL policies cover damage caused by construction defects is not a settled issue.ĬGL insurers have denied coverage contending, inter alia, that construction defects do not constitute an ‘occurrence’ under the policy. Under the prior AIA contract documents, if a defect allegedly caused damage to the owner’s property, the owner would likely have made a claim against the CGL policies of the contractor, subcontractor or perhaps the architect. The owner is obligated to purchase builder’s risk insurance that specifically covers losses from “error omission, or deficiency in construction methods, design, specification, workmanship, or materials.” 3 Moreover, the builder’s risk policy must insure the owner as well as contractors and subcontractors.Īrticle A2.3 could dramatically affect the risks associated with construction defects – one of the most hotly litigated areas of construction law. Revisions That Affect Owner’s Required InsuranceĪrticle 2 § 2.3.1 details the insurance which the owner must acquire. Some of the requirements go far beyond those of the 2007 version of A201 and are likely to increase insurance costs. the parties and their insurers subrogation waiver of rights against one another.Įxhibit A, titled “Insurance and Bonds,” however, includes more thorough descriptions and requirements for insurance.the contractor’s commercial general liability policy naming the owner and architect (including the architect’s consultants) as additional insureds and,.the owner’s builder’s risk property policy which insures the property on the site during construction, including property of the contractor and its subcontractors and suppliers.Article 11 still contains key insurance requirements such as: The most obvious change to A201 is that the insurance requirements of Article 11 have largely been relocated to a separate Exhibit A to the AIA contract documents. Moreover, the General Conditions portion of the AIA contract documents cover commonly litigated portions of a construction contract such as insurance, payment, change orders and claims and disputes. A201 is the most crucial section of the AIA documents since the terms of A201 are often incorporated elsewhere in the construction contract and changes in A201 will ripple through the entire AIA contract. 2 General ConditionsĪ201 addresses the General Conditions portion of construction contracts. This article will explore some of the revisions to A201 and discuss possible implications. Anyone involved in the construction project as owner, contractor or architect must consider these changes and be cautious before utilizing the new contract forms. These revisions, among other things, could lead to a significant cost increase and shifting of liability amongst the parties. While it is still too soon to gauge the effect of these revisions, their impact could be far-reaching. This analysis is particularly important in light of the recently released decennial revisions to AIA documents A101, A201 and B101. As such, prudent participants in the construction process analyze these documents in order to appreciate their legal rights and obligations. To submit an invoice for payment, please complete the payment request form.The contract documents published by the American Institute of Architects are widely utilized by the construction industry. To submit monthly invoices for pre-existing hourly contractors, use the payment request form.Will be working for a specific, extended period of time (ie multiple days with a predetermined start and end date).Please complete the contract request form if you need to hire a person or persons who: Revising the scope of work (ie adding new responsibilities or removing responsibilities).
Making updates to the payment schedule (ie increasing the payment amount, switching from hourly to monthly or vice versa, changing payment frequency).Extending the contract term (ie changing the end date of the contract).Please complete this form if you need to make changes to a contract for a person currently working for SVA, such as:
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