Owners Rider - Standard Form of Agreement Between Owner and Contractor (AI A Document A107 - 2007) Commentary

Sep 13, 2026

Commentary to the Owner’s Rider explains how the New York State Bar Association Real Property Law Section adapted an owner-oriented rider for use with the AIA Form A107 – 2007 abbreviated owner-contractor agreement. The introduction outlines why a construction-law attorney is recommended and why the rider improves efficiency, cost effectiveness, and practical alignment with common industry practice. It further describes relevant AIA forms and focuses on governing statutory requirements under Article 35-E, including notice, invoice review timelines, permissible invoice rejections, and payment obligations.

LanguageEnglish

CategoryLetters

FormatPDF

Pages42

Reading Time15 min

AccessFree to download

Introduction

The Owner’s Rider

AIA Forms – In General

Governing Statute

COMMENTARY TO OWNER’S RIDER TO STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONTRACTOR (AI A DOCUMENT A107 – 2007) INTRODUCTION 1. The Owner ’s Rider . Several organizations produce forms of Owner-Contractor agreements. Because the forms drafted by the American I nstitute of Architects (“AI A”) are the forms most commonly used in construction projects in New York, the NYSBA Real Property Law Section (“RPLS”) has drafted an owneroriented form rider (the “Owner ’s Rider”) for use with AI A Form A107 – 2007 form of construction contract (“AI A Form A107”) . The RPLS recommends that an attorney specializing in construction law be involved in the negotiation of agreements for major construction projects and also for small projects where the need exists. Nevertheless, real estate attorneys are often asked by their owner clients (who may include house owners, cooperative corporations, condominiums, and/or apartment owners) to review construction contracts for projects that , although significant for the owner , are not major projects. Because architect s and contractors often submit to owners AI A agreement s and those agreements are often reviewed by the owner ’s real estate lawyer , the RPL S saw a need for the development of the Owner ’s Rider in order to (a) make the review process more efficient and cost effective and (b) close some gaps in AI A form and address certain issues in a manner that more realist ically reflects common pract ice. 2. AI A Forms – In General AI A has drafted a variety of forms to govern the construction process, including several forms of architect agreements, general contractor and construction manager agreements, and other construction agreements. Forms can be accessed on-line by buying an annual license from AI A to use its forms. The license, however , may be too expensive for a small firm. Individual forms can be purchased at the AI A New York Chapter Center for Architecture. The contact information for the Chapter Center is as follows: AI A New York Chapter Center for Architecture 536 LaGuardia Place New York, NY 10012 212-358-6113 212-696-5022 fax [info@aiany.org](info@aiany.org) [www.aiany.org](www.aiany.org) With respect to owner /contractor agreements, the AIA has promulgated the following forms (among others): A105-2007 Standard Form of Agreement between Owner and Contractor for Residential or Small Commercial Project A107-2007 Abbreviated Owner-Contractor Agreement Form for Construction Projects of Limited Scope – Stipulated Sum A101 – 2007 Standard Form of Agreement for Owner and Contractor – Stipulated Sum A102 – 2007 Standard Form of Agreement for Owner and Contractor – Cost Plus fee with GMP A103 – 2007 Standard Form of Agreement for Owner and Contractor Where the Basis of Payment is Cost Plus fee without GMP A201-2007 General Conditions of Construction (for use with A101-2007, A102-2007, and A103-2007) . A105 is a bare bones agreement intended for the smallest of projects. The RPLS does not recommend its use except for very small projects and even then the Owner ’s attorney should consider attaching a rider . AI A Form A107 is commonly used for construction projects that may range up to several million dollars; and it is AIA Form A107 – 2007 to which the Owner ’s Rider is intended to be appended. A101, 102, and 103 forms are generally used for major projects, although some contractors and architects use those forms for all projects. A201 provides the so-called “General Conditions” for those form agreements. By contrast , AI A Form A107 is self-contained; that is, its General Conditions are included in t he form itself. 3. Governing Statute. Article 35-E of the General Business Law (the “ Prompt Payment Act”)(NY GBL §756 et seq) applies to construction contracts in which the aggregate cost of the project (including labor , services, materials and equipment ) equals or exceeds $150,000 . Exceptions include contracts for the alteration of a

FAQs

What is the purpose of the Owner’s Rider in relation to AIA Form A107 – 2007?

The Owner’s Rider is intended to be appended to AIA Form A107 – 2007 to make contract review more efficient and cost-effective and to address gaps and practical issues that better reflect common industry practice.

Why does the document recommend using a construction-law attorney?

It recommends involvement of an attorney specializing in construction law for major projects and also for smaller projects when needed, because owner-side real estate lawyers often review AIA agreements submitted by architects and contractors.

What key timelines and payment rules are set by Article 35-E (Prompt Payment Act)?

Notices must be given by facsimile and reputable overnight courier; if no billing cycle is specified, payments follow a calendar month cycle. After delivery of an invoice and required documentation, the Owner must approve or disapprove within 12 business days, and the Owner must pay interim or final invoices within 30 days after approval.

Sep 13, 2026

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