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Engineering and manufacturing industries

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The new B-141 agreement

Article Abstract:

The 1997 amendments to the documents of the American Institute of Architects (AIA) were designed to facilitate cooperation between design professionals, contractors and owners. Previously, the AIA agreement allowed for termination of contract for cause only. The new agreement allows the owner to terminate the services of the architect, on seven days' written notice, for the owners' convenience and without cause. Assignments without the written consent of the other party were also not allowed under the old agreement. The new documents allow the owner to assign agreements to an institutional lender providing financing for a project.

Laws, regulations and rules, Construction, Building, American Institute of Architects

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Risk reduction through indemnification contract clauses

Article Abstract:

Indemnification clauses are an instrumentality used by architects or engineers to limit the monetary hazards connected with dereliction charges. This is done by transposing accountability to another group. However, this aim is seldom achieved because of the vague argument compositions in contracts which could not hold in court. With the increasing number of states rejecting indemnification clause applications or requiring more stringent guidelines for their utilization, indemnification tactics tend to become more intricate.

Cases, Malpractice, Indemnity against liability, Liability indemnity

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Change orders and the ripple effect

Article Abstract:

Clients' request for changes in a construction plan to the contractor usually creates a succession of unexpected cost overages. Contractors' resources and schedules are spread out on different projects, such that adjustments in one would result in adjustments in the other projects. Also, clients and contractors frequently have misunderstandings on the interpretation of change orders. These result in wasted resources which clients would have to pay for.

Construction industry, Planning, Economic aspects, Finance, Architecture, Customer relations

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