AIA Document A112–2021 is intended to be used for a single-family residential project when the owner hires a home builder to provide design services and construction. A112 consists of the agreement portion and Exhibit A, a Construction Phase Amendment, executed when the owner and home builder have agreed on the Contract Sum.
A112–2021 is a streamlined document developed to meet the needs of residential owners and home builders. For residential projects where a home builder will provide construction only, parties may wish to use AIA Document A111™–2021, Agreement Between Owner and Home Builder for Construction of a Single Family Home.
It is important to recognize that the home builder assumes responsibility and liability for both the design services and construction work. Prior to entering into this agreement, the home builder should consult with its legal counsel and insurance advisers. Some states may restrict or prohibit a single entity from providing both design and construction services under statutes that regulate architectural registration, contractor licensing, or incorporation of professionals.
The contractual and licensing requirements for the construction of a single-family home may vary in different jurisdictions. The owner and home builder should consult local authorities or an attorney to verify the requirements applicable to this agreement. The agreement contains fill points to provide information related to jurisdictional requirements.
This document contains a check box provision where the parties may select arbitration, litigation, or fill in some other method for binding dispute resolution. If arbitration or litigation are selected as the method for binding dispute resolution, the parties may wish to consider adding a provision for mediation prior to arbitration or litigation. Mediation is a non-binding process.
A112 provides that arbitration shall be administered by the American Arbitration Association (AAA), in accordance with the AAA Home Construction Arbitration Rules and Mediation Procedures. Disputes involving claims or counterclaims that do not fall within the AAA Home Construction Arbitration Rules and Mediation Procedures; or involving more than two parties; or with issues of joinder or consolidation, shall be administered under the AAA Construction Industry Arbitration Rules in effect on the date 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.