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It details how the rider responds to concerns about bias toward architects and contractors by narrowing gaps and improving fairness. Key modifications address cost control through change-order representations, predefined markup treatment, payment application mechanics, deposit application, lien release requirements, and consequences for improper or exaggerated mechanic’s liens. 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NYLJ.COM  \n| Volume 247—No. 118 | wedNesday, juNe 20, 2012 |\n| --- | --- |\n\nCONSTRUCTION LAW  \nOwner’s Rider to the AIA Form of General Contract  \nT  \nhe Real Estate Construction Committee (the committee) of the New York State Bar Association Real Property Law Section recently published an owner-oriented form rider (the own-  \ner’s rider) for use with The American Institute of Architects (AIA) FormA107-2007, titled Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope (the AIA Form A107) . The owner’s rider, together with commentary and relevant exhibits, is available to members of the New York State Bar Association through its website (www. [nysba.org/construction](nysba.org/construction)) .1  \nThe owner’s rider was prepared in response to concerns expressed by many attorneys that AIA forms contain inherent biases in favor of architects and contractors. In view of this, the committeesawa need for the development of the owner’s rider in order to lessen the biasinAIA FormA107 (commonly used in smaller construction projects) as well as to make thereview process more ef cient and cost effective, close some gaps in AIA Form A107, and address certain issues in a manner that more realistically re􀀞ects common practice. While the owner’s rider addresses many aspects of AIA Form A1072 we will discuss but a few in order to present some of the more signi cant modi cations.  \nIssues of Cost  \nPerhaps the paramount issue facing an owner on a construction project is controlling cost and the owner’s rider addresses  \nKeNNeth m. BlocK and johN-PatricK curraN are partners of Tannenbaum Helpern Syracuse & Hirschtritt.  \nthis issue in several aspects. First, in the case of an agreement involving a stipulated sum, the owner’s rider adds representations that the work can be completed for the contract sum and that the contract sum can be increased only by a change order effected in accordance with provisions of the agreement. The owner’s rider adds that“no claim may be made by Contractor for compensation in addition to the contract sum other than by a change order signed in advance by Owner and Contractor setting out the additional cost of a change in the work or a method of determining such cost.” The owner’s rider also establishes pre-agreed markups for change order pro t and overhead.  \nNext, the owner’s rider establishes a number of provisions relating to applications for payment and the release of liens. Owner’s rider paragraph 14 supplements Articles 4 and 15 of AIA Form A107, which governs applications for payment. For a very small job there may be simply one or two payments; however, for most jobs payments are spread over time. Under AIA FormA107, the contractor proposes a schedule of values, which allocates the contract sum to various portions of the work. When submitted by the contractor, and if the architect does not object, the schedule of values establishes a payment schedule. If appropriate, the owner can incorporate a speci c payment schedule into the owner’s rider.  \nAdditionally, paragraph 14 of the owner’s rider provides that any contract depositshall be applied against the rst payment due under the agreement, which is typically  \ndesired by owners. Conversely, contractors often ask for the deposit to be applied against their nal requisitions for payment, but such an arrangement would, as a practical matter, vitiate the utility of the retainage requirement.  \nAIA Form A107 requires the contractor to submit applications for payment to the architect, who determines whether or not payment is due. The architect is permitted to withhold approval of the payment application under speci ed conditions. In this manner, AIA Form A107 effectively makes the architect the “arbiter” of whether or not  \nThe owner’s rider was prepared in response to concerns expressed by many attorneys that AIA forms contain inherent biases in favor of architects and contractors.  \npayment is due. Owner’s rider paragraph 14 al","cbCaifublncWyclE","https://ap.wps.com/l/cbCaifublncWyclE","pdf",80769,"English","# Construction law context\n## Owner-oriented rider to AIA Form A107-2007\n## Issues of Cost\n## Issues of Time","[{\"question\":\"What is the purpose of the owner’s rider in the context of AIA Form A107-2007?\",\"answer\":\"It provides an owner-oriented set of revisions and adds commentary and exhibits to address concerns that AIA forms favor architects and contractors, reducing bias and improving the process for review, efficiency, and cost.\"},{\"question\":\"How does the owner’s rider address cost control for stipulated-sum agreements?\",\"answer\":\"It requires that work be completed for the contract sum and that any increase occur only through a change order in accordance with the agreement. It also limits additional compensation claims to a signed advance change order and establishes pre-agreed markups for change order profit and overhead.\"},{\"question\":\"What time-related mechanisms does the owner’s rider add or modify?\",\"answer\":\"It modifies the contractor’s time for performance by requiring additional shifts or manpower when the contractor falls behind schedule. It includes an acceleration-style approach and a “no damages for delay” limitation, restricting remedies to an extension of time and payment of reasonable, directly attributable costs, excluding consequential and related categories.\"}]","Owner’s Rider to the AIA Form of General Contract | PDF",1789196371]