Summary: C198™ – 2010, Standard Form of Agreement Between Single Purpose Entity and Consultant for Integrated Project Delivery

Content.

Synopsis

Purpose

Related documents

Dispute Resolution—Mediation and Arbitration

 

Synopsis.

AIA Document C198–2010 is a standard form of agreement between a single purpose entity (“the SPE”) and a consultant. AIA Document 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. For use and execution of a document, see its instructions  » 

 

Purpose.

Integrated Project Delivery is a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction.

AIA Document C198–2010 is a standard form of agreement between the Company and a design or other consultant (the “Consultant”) and is intended for use on a project where an owner, architect, construction manager, and perhaps other project participants (the “Members”), have formed a single purpose entity (the “Company”) to deliver a project utilizing Integrated Project Delivery and have executed AIA Document C195–2008, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery (the “SPE Agreement”).

AIA Document C198–2010 is a standard form of agreement used to establish the responsibilities of the Company and Consultant to each other and their mutual rights under the Agreement. C198–2010 is suitable for use with all types of Consultants. This document may be used with a variety of compensation methods.

In addition to traditional methods of compensation, C198–2010 establishes two additional categories of compensation that may be payable to the Consultant. The Company and Consultant may establish certain Consultant Project Goals and, if achieved, pay Consultant Goal Achievement Compensation. In addition, the Company and Consultant may agree to an amount payable as Consultant Incentive Compensation.

The Company may also enter into agreements with other consultants, specialty trade contractors, vendors and suppliers that are not Members of the Company (the “Non-Members”) to furnish design services and to construct the Project. The Company itself shall not provide any services directly but furnishes design and construction services to the Owner through contracts with Members and Non-Members.

 

C198–2010 incorporates by reference a pre-existing C195–2008, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery. Before transmitting Instruments of Service or other information in digital form, parties should establish protocols for that transmission and may use AIA Documents E203-2013, Building Information Modeling and Digital Data Protocol Exhibit; G201-2013, Project Digital Data Protocol Form; and G202-2013, Project Building Information Modeling Protocol Form for that purpose.

 

Dispute Resolution—Mediation and Arbitration.

This document contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act.

The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, contact the American Arbitration Association at (800) 778-7879 or visit the website at adr.org.

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