4.3 Release – Talking Points This document is to assist you in understanding the latest AIA Contract Documents release (4.3) New Documents: Updated Bond Forms: 1. A312™-2010, Performance Bond and Payment Bond 2. A310™-2010, Bid Bond New IPD Agreements: 1. C198™-2010, Standard Form of Agreement Between Single Purpose Entity and Consultant for Integrated Project Delivery 2. C199™-2010, Standard Form of Agreement Between Single Purpose Entity and Contractor for Integrated Project Delivery New Pro Bono Agreement: 1. B106™–2010, Standard Form of Agreement Between Owner and Architect for Pro Bono Services New AIA Contract Document Software Capability: AIA Contract Document Software is compatible with Windows 7. We can now use the Windows 7 Compatible logo from Microsoft in our marketing efforts. Availability of new Documents: A312™-2010, Performance Bond and Payment Bond A310™-2010, Bid Bond B106™–2010, Standard Form of Agreement Between Owner and Architect for Pro Bono Services C198™-2010, Standard Form of Agreement Between Single Purpose Entity and Consultant for Integrated Project Delivery C199™-2010, Standard Form of Agreement Between Single Purpose Entity and Contractor for Integrated Project Delivery AIA Contract Document Software Yes AIA Documentson-Demand™ Yes Paper Format Yes Yes Yes Yes & Free Yes No Yes No Yes Yes No Yes Yes 1 Target Audience: Prospects – Inform them about the new release 1. Contractors 2. Architects 3. Owners/Developers Current AIA Contract Document Customers – Inform them about the new release and encourage them to download the latest version of the AIA Contract Documents software for free. Messaging Goal: Protection and Collaboration The AIA Contract Documents Committee lead an industry-wide collaboration among a broad range of key construction-related organizations such as COAA, AGC, NASBP, SFAA, EJCDC, ABA Divisions 7 and 12, and ASC to update the three standard AIA bond forms that provide the fundamental framework of most bonding agreements within the construction industry. This cross-disciplinary effort will help ensure the long term viability of project bonding as a way to manage risk and facilitate construction in an ever- changing industry. With the upcoming release of two new Integrated Project Delivery (IPD) agreements, the SPE-Consultant Agreement and the SPE-Contractor Agreement, the AIA completes the set of IPD agreements for the SPE family. The AIA now offers the design and construction industry three full sets of standard IPD agreements from which the parties can chose, including the Transitional Agreements, the SPE Agreements and the recently released Multi-Party Agreement. These documents represent the archetypal roadmap to help lead the industry to more fully embrace IPD and its emphasis on cross-discipline collaboration among architects, constructors and owners throughout the project lifecycle. This paradigm shifting approach is seen as a way to reduce inefficiencies and waste as well as effectively facilitate sustainable development by promoting shared goals and inclusive planning. With the forthcoming release of the new AIA Owner-Architect Agreement for Pro Bono Services agreement the AIA seeks to not only promote, but also better enable professionals to provide, pro bono work for the good of society. This document, which will be available free of charge from AIA Contract Documents, will facilitate successful collaboration on pro bono projects, continuing AIA Contract Documents’ leadership as the Industry Standard. Standard AIA Contract Documents Positioning: We are the Only Standard Design and Construction Contract Documents in the Industry that give you a proven standard from which to easily tailor your own contract and minimize legal tie-ups: Because: We are the Industry’s most widely accepted We are the most fair and balanced to all parties We have the most user-friendly software We give you 100+ years of the best innovative thinking from the industry’s sharpest minds Why does this release reflect our position as The Industry Standard? Collaboration as the Future of Building and Design: It shows ACD as leading the industry toward greater collaboration among architects, owners and constructors to reduce 2 inefficiencies and waste by allowing each stakeholder to provide their diverse expertise for the duration of the project, from beginning to completion. Additionally, the “shared risk and reward” compensation structure promotes a committed “all-for-one” approach among the parties. This methodology also facilitates successful sustainable design with it’s sharing of goals and integrated planning. Industry Needs Focused: Releasing the new and updated documents shows that AIA Contract Documents has a pulse on the industry trends. AIA Contract Documents recognized the need to update a set of decades old bond forms that provide the fundamental framework of most bonding agreements within the construction industry. Given the critical importance of these documents to the broader industry, the AIA Contract Documents Committee reached out to collaborate with the appropriate cross industry organizations to ensure each party’s needs were met. Protection for Pro Bono Projects: In 2007 the AIA Code of Ethics was revised to encourage architects to provide pro bono services. The AIA, then, created the Institute Guidelines to Assist AIA Members, Firms and Components in Undertaking Pro Bono Service Activities whitepaper released in February 2009 to provide the profession guiding principles for pro bono services. With the release of B106™-2010, there is now legal protection for pro bono work. Sustainability: AIA Contract Documents understand the importance of sustainable projects. The IPD approach promotes sustainability in that it drives commitment to mutual shared goals among all stakeholders as well as continuous engagement of all parties from early planning through project completion. If an owner has the goal of achieving a sustainable building, IPD is an excellent approach to ensure that all parties understand, agree to, and deliver on that goal. Industry’s Sharpest Minds: AIA Contract Documents has a devoted document development committee comprised of industry professionals representing multiple project stakeholders. This highly experienced group of architects, contractors, lawyers, owners and developers work together on a long-term basis to update documents as well as create new to meet the ever-evolving needs of the industry. Description of each document: A310™–2010, Bid Bond This simple, one-page form establishes the maximum penal amount that may be due to the owner if the selected bidder fails to execute the contract or fails to provide any required performance and payment bonds. A312™–2010, Performance Bond and Payment Bond This form incorporates two bonds—one covering the contractor’s performance, and the other covering the contractor’s obligations to pay subcontractors and others for material and labor. In addition, AIA Document A312–2010 obligates the surety to act responsively to the owner’s requests for discussions aimed at anticipating or preventing a contractor’s default. 3 B106™–2010, Standard Form of Agreement Between Owner and Architect for Pro Bono Services AIA Document B106–2010 is a new standard form of agreement between owner and architect for building design, construction contract administration, or other professional services provided on a pro bono basis. The architect’s pro bono services are professional services for which the architect receives no financial compensation other than compensation for reimbursable expenses. A table format is provided which the parties use to designate the scope of the architect’s pro bono services and the maximum number of hours to be provided by the architect for each designated pro bono service. If the architect is providing construction phase services, B106–2010 is intended to be used in conjunction with AIA Document A201™–2007, General Conditions of the Contract for Construction, which it incorporates by reference. B106-2010 is available in AIA Contract Documents software and is also available free of charge on the AIA Documents-on-Demand™ Website. C198–2010, Standard Form of Agreement Between Single Purpose Entity and Consultant for Integrated Project Delivery AIA Document C198–2010 is a standard form of agreement between a single purpose entity (“the SPE”) and a consultant. C198–2010 is intended for use on a project where the parties have formed the SPE utilizing AIA Document C195–2008, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery. C198–2010 is coordinated with C195–2008 in order to implement the principles of integrated project delivery. The specific services the consultant is required to perform are set forth within the document as well as the Integrated Scope of Services Matrix, which is part of the C195–2008 Target Cost Amendment. In addition to traditional compensation for services, C198–2010 allows for the consultant to receive additional profit through incentive compensation and goal achievement compensation. C199–2010, Standard Form of Agreement Between Single Purpose Entity and Contractor for Integrated Project Delivery AIA Document C199–2010 is a standard form of agreement between a single purpose entity (“the SPE”) and a contractor. C199–2010 is intended for use on a project where the parties have formed the SPE utilizing AIA Document C195–2008, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery. C199–2010 is intended to be a flexible document. C199–2010 can be used for a contractor that only provides construction services, or it can also be used for a contractor that will provide both pre-construction and construction services. AIA Document C199–2010 is not intended for use in competitive bidding and relies upon an agreed to contract sum, which can be either a stipulated sum (fixed price) or cost of the work plus a fee, with a guaranteed maximum price. In addition to compensation for the contract sum, C199– 2010 allows for the contractor to receive additional profit through incentive compensation and goal achievement compensation. 4