Does AIA Contract Documents offer an agreement between a contractor and subcontractor for repeated work?
Yes, it offers A421-2018, a standard form of Master Agreement between Contractor and Subcontractor where work is provided under multiple Work Orders. This master agreement provides only the common terms and conditions that will apply to each Work Order. Use of A421 plus a Work Order creates a contract that includes both the terms and the scope of work. Additionally, terms and conditions of the prime contract between the Owner and Contractor flow down to the subcontractor in A421.
A422 is executed after completing A421 and specifies the Subcontractor’s scope of work. Besides providing the Subcontractor’s scope of work, A422 also specifies the Subcontract time, sum, and other terms pertinent to the Work Order.
A Master Agreement plus Work Order contracting method allows multiple scopes of work to be issued quickly without renegotiating the terms and conditions of the contract. It is ideal for contractors who will hire the same subcontractor for many projects involving the same or different Owner(s).
Are A421 and A422 based on other agreements?
Yes, A421 and A422 are mostly based on A401™-2017, Standard Form of Agreement between Contractor and Subcontractor in terms of organization and content. For consistency, both also contain elements of the other master agreements and task orders published by AIA Contract Documents.
What is a task order?
A task order is the general heading for work orders and service orders. A work order contains the scope of work to be performed by the contractor or subcontractor. A service order contains the scope of design services to be provided by the architect or its consultant.
What are some important points about A421?
- It is effective for all Work Orders issued and accepted during the one-year period following the date of the Master Agreement.
- The Master Agreement renews automatically unless either party provides 60 days’ notice of its intent not to renew.
- Allows the parties to establish insurance terms that will apply to the Master Agreement generally.
- Claims and disputes that arise out of the Subcontract and relate to a dispute between the Owner and Contractor follow the dispute resolution provisions of the Prime Contract. Claims and disputes that are unrelated to a dispute between the Owner and Contractor are subject to mediation. Those that are not resolved through mediation proceed to binding dispute resolution, as selected by the parties.
What are some important points about A422?
- Neither the contractor nor the subcontractor is obligated to enter into any Work Order.
- It establishes the party representatives for each Work Order.
- Stipulates additional insurance coverages and bond requirements.
- Parties can specify payment and insurance terms that differ from those in the Master Agreement.
- It enumerates all subcontract documents.