Instructions: B107™ – 2020, Standard Form of Agreement Between Developer-Builder and Architect for Prototype(s) for a One- or Two-Family Residential Project with Limited Architectural Services

Synopsis.

AIA Document B107–2020 replaces B107-2010, a standard form of agreement between developer-builder and architect for design of one or more prototype(s) for a one- or two-family residential project. AIA Document B107–2020 is intended for use in situations where the architect will provide limited architectural services in connection with a prototype one- or two- family residential project. Under B107–2020, the architect’s services consist of development of a permit set of documents and limited construction phase services for the first residence of each prototype design constructed by the developer-builder. This document anticipates that the developer-builder will have extensive control over the management of the project, acting in a capacity similar to that of a developer or speculative builder of a housing project, and that the developer-builder is an entity that has experience with applicable residential building codes, selection of materials and systems, and methods of installation and construction.For all document details and a record of changes, see the summary  »

 

Using B107-2020.

Cover Page

Date. The date represents the date the agreement becomes effective. It may be 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, close 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 the prototype(s) to be designed by the architect, including (1) the official name or title of the facility; (2) the location of the site, if known; (3) the proposed building usage; and (4) the size, capacity or scope of the project, if known.

Article 1 – Initial Information

§ 1.3 The parties should provide initial information in Section 1.3, as applicable. The parties should take care to be as explicit and detailed as possible.

§ 1.5 Use of Digital Data. This section requires the development of protocols for the transmission of instruments of service or other data in digital form through use of AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit.

§ 1.5.1 This new section requires the parties to develop protocols for the use of, and reliance on, a building information model or portion thereof. Use of, or reliance on, a building information model without established protocols will be at the using or relying parties’ sole risk. This provision requires the use of AIA Document E203–2013 and AIA Document G202™–2013, Project Building Information Modeling Protocol Form, for the establishment of these protocols. For more information on using the AIA’s Digital Practice Documents, including E203–2013 and G202–2013, download Guide, Instructions, and Commentary to the 2013 AIA Digital Practice Documents.

 

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. The AIA publishes standard form scope 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.

§ 4.1.2.1 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. The AIA publishes 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 developer-builder’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 developer-builder’s supplemental services.

§ 4.2.3 Insert the number of months beyond which the architect shall be entitled to compensation as additional services.

 

Article 7 – Copyrights and Licenses

§ 7.4.2.1 Insert the maximum number of subsequent residences the developer-builder may build using the architect’s instruments of service. 

§ 7.4.2.2 Identify the geographic area where the developer-builder may reuse the architects instruments of service to construct subsequent residences. 

§ 7.4.2.3 Identify the date after which the developer-builder may not reuse the architect’s instruments of service on subsequent residences.   

 

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 or visit adr.org for more information.

 

Article 9 – Termination or Suspension

§ 9.7.1 Insert the termination fee the developer-builder will pay the architect if the developer-builder terminates the agreement in accordance with Section 9.7.  

§ 9.7.2 Insert the licensing fee the developer-builder will pay the Architect if the developer-builder terminates the agreement in accordance with Section 9.7. This licensing fee only allows the developer-builder to continue using the instruments of service for this project only, as the term project is defined on the cover page. 

 

Article 11 – Compensation

§ 11.1 Insert the compensation for the architect’s basic services for each phase of the project. 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 on the project:

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 developer-builder’s income or profit derived from the built facility.

The AIA makes no recommendation as to the appropriateness of any of these methods of compensation on a particular project, nor does the AIA 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 the developer-builder. Further, the AIA 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 See methods of compensation shown above for Section 11.1, if other than a percentage of the invoiced amount.

§ 11.9.1 Insert the architect’s compensation for reuse of the architect’s instruments of service under Section 7.4.  

 

Article 12 – Insurance 

§ 12.1 Architect’s Insurance 

§ 12.1.1.1 Indicate the applicable coverage limits for the architect’s commercial general liability coverage.

§ 12.1.1.2 Indicate the applicable coverage limits for the architect’s automobile liability coverage.

§ 12.1.1.3 Indicate the applicable coverage limits for the architect’s workers’ compensation coverage.

§ 12.1.1.4 Indicate the applicable coverage limits for the architect’s professional liability coverage.

§ 12.2 Developer-Builder’s Insurance 

§ 12.2.1 Where the developer-builder is required to maintain required insurance for a duration other than the period listed in Section 12.2.1, indicate the duration of required coverages in the fill point provided. 

§ 12.2.2 Indicate the applicable coverage limits for the developer-builder’s commercial general liability coverage.

§ 12.2.3 Indicate the applicable coverage limits for the developer-builder’s automobile liability coverage. 

§ 12.2.4 Some insurers have written excess policies which expressly state that they apply only in the event the underlying policies are exhausted through payments made by the underlying insurers (sometimes referred to as “actual exhaustion”). Policies that do not expressly require actual exhaustion are interpreted to permit exhaustion of the underlying policies through payments or contributions made by any combination of underlying insurers, insureds or third parties (sometimes referred to “functional exhaustion”). Policies that only permit actual exhaustion are counterproductive to settlement whereas policies that permit functional exhaustion encourage settlement. The intent of this section is to facilitate settlement by requiring that any excess policies allow for functional exhaustion.

§ 12.2.6 Indicate the applicable coverage limits for the developer-builder’s employer’s liability coverage.

§ 12.2.7 Indicate the applicable coverage limits for the developer-builder’s professional liability coverage, if applicable.

§ 12.2.8 Indicate the applicable coverage limits for the developer-builder’s pollution liability coverage, if applicable.

§ 12.2.9 Where the developer-builder will provide professional liability and pollution liability coverage under a combined policy, indicate the applicable coverage limits.

§ 12.2.13 If the developer-builder will be required to purchase and maintain other insurance, list the type of coverage and any applicable coverage limits.

 

Article 13 – 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 below. 

 

Notes.

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.

Reproductions. This document is a copyrighted work and may not be reproduced or excerpted from without the express written permission of the AIA. There is no implied permission to reproduce this document, nor does membership in The American Institute of Architects confer any further rights to reproduce this document. For more information, see the document footer and the AIA Contract Documents® Terms of Service.

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