Instructions: A111™–2021, Standard Form of Agreement Between Owner and Home Builder for Construction of a Single Family Home

 

Synopsis.

AIA Document A111–2021 is intended to be used for a single-family residential project when the owner hires a home builder to perform the construction. A111 assumes that the drawings, specifications, and any other documents necessary for the construction of the project, are procured and provided by either the owner or the home builder. 

A111 does not include design phases or construction administration services provided by a third-party architect. A111 is a streamlined document developed to meet the needs of residential owners and home builders for a relatively straightforward home construction project. A11 is not intended to be used for remodeling or renovation projects. 

For residential projects where a home builder will provide both design services and construction, parties may wish to use AIA Document A112™–2021, Agreement Between Owner and Home Builder for Design and Construction of a Single Family Home.

For more document details, see the summary  »

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. 

 

Using A111-2021.

Cover Page

Date. The date represents the date the Agreement becomes effective. It may be the date an original oral agreement was reached, the date the Agreement was originally submitted to the Owner, the date authorizing action was taken, or the date of actual execution. 

Parties. Parties to the Agreement should be identified using the full address and legal name under which this 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. Other information may be added, such as telephone numbers and electronic addresses.

Project. Describe the proposed project in sufficient detail to identify: (1) the official name or title of the facility; (2) the location of the site; (3) the proposed building usage; (4) the legal description of the property or any statutorily required description of the project; and (5) the size, capacity or scope of the project.

 

Article 1 – Information Upon Which This Agreement Is Based

The parties should take care to be as explicit and detailed as possible with respect to the information requested in this article. This is especially true with respect to the identification of the drawings and specifications which, in this agreement, are provided by either the owner or the home builder.  

 

Article 2 – Statutory and Other Requirements

Many jurisdictions require that contracts for residential projects include specific language that places the owner of the project on notice of its rights with respect to the contract. These provisions are often mandatory and there may be specific statutory language, format, and font requirements that must be closely followed. Article 2 provides fill points for common topic areas where jurisdictional requirements may be included. It is important to consult with the relevant authorities having jurisdiction over the project or legal counsel to ensure that the proper information is included in the contract. Article 2 also provides a fill point at Section 2.6, in which the owner is prompted to provide additional requirements specific to a residential project, such as Homeowners’ Association requirements, or covenants or conditions specific to the property. 

 

Article 3 – Contract Time

In this article, the dates of commencement of construction and of Substantial Completion should be provided.  

 

Article 4 – Contract Sum and Payments

The AIA makes no recommendation as to the appropriateness of any methods of compensation on a particular project. The use of any compensation method is a business decision for the home builder and the owner. Further, the AIA makes no recommendations and has no guidelines or schedules that specify the amount of compensation a home builder should be paid.

§ 4.1 Contract Sum

§ 4.1.1 The method for determining the Contract Sum agreed to by the owner and home builder should be described in detail. 

§ 4.1.2 Agreed upon allowances should be identified, including a statement of their basis. Unless otherwise provided, allowance amounts do not include the costs for delivery and unloading at the project site, labor, installation, overhead and profit, or similar costs.

§ 4.1.3 Home builder’s assumptions, exclusions, and clarifications should be listed here or in an attached referenced exhibit.

§ 4.2 Payments

§ 4.2.1 A111 allows the parties to develop a payment schedule based upon construction milestones. The payment schedule should be provided in detail in this fill point or in a referenced attached exhibit. If payments are to be made in accordance with a schedule established by a construction lender, see section 4.2.3. 

§ 4.2.1.1 This section provides the opportunity for the owner to specify any requirements for payment to be made, such as lien releases or other proof of payment to subcontractors or suppliers, third-party inspection requirements, etc.

§ 4.2.2 Fill in the number of days that payment is due by the owner after notification from the home builder that a payment is due. 

 

Article 5 – Insurance

Insert specific insurance requirements for the types of insurance and dollar limits of coverage that the home builder is required to maintain for the project. 

 

Article 6 – Dispute Resolution

Select the method of binding dispute resolution. If the owner and home builder do not select a method of binding dispute resolution or do not subsequently agree in writing to a binding dispute resolution method other than litigation, claims will be resolved in a court of competent jurisdiction.

 

Article 15 – Termination of the Contract

§ 15.3.2 Insert the amount of or method for determining the fee payable to the home builder by the owner following termination for the owner’s convenience if any.

 

Article 18 – Scope of This Agreement

§ 18.2.2 List any other documents that are part of the agreement. 

 

Executing the Agreement.

The persons executing AIA Document A111–2021 should indicate the capacity in which they are acting (i.e., president, secretary, partner, etc.) and the authority under which they are executing the agreement. Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached. 

 

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 confers 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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