ConsensusDOCS

A set of contract documents that, through consensus, balance interests and promote best practices among all parties involved in the construction project

Include over 70 contracts and forms Address all project delivery methods

What are ConsensusDOCS?

The idea of ConsensusDOCS proposed by Doug Pruitt, AGC senior VP & Chairman and CEO of Sundt Construction Inc.

In the past, Contract documents have shown favoritism towards certain associations.

ConsensusDOCS strive for what is in the best interest of the project

History of ConsensusDOCS

Written by construction professionals and attorneys

For an intensive 3 year process, every document, article and paragraph were put on the drafting table, and all parties had a full vote in deciding final contract terms “DOCS” stands for the Designers, Owners, Contractors,

and Sureties 22 organizations make up the

ConsensusDOCS effort

History cont.

NASFA- National Association of State Facilities Administrators CURT- The Construction Users Roundtable COAA- Construction Owners Association of America AGC- Associated General Contractors of America ASA- American Subcontractors Association, Inc ABC- Associated Builders and Contractors, Inc. LCI- Lean Construction Institute FSA- Finishing Contractors Association MCAA- Mechanical Contractors Association of America NAED- National Association of Electrical Distributors SMACNA- Sheet Metal and Air Conditioning Contractors‘

National Association

22 Endorsing Organizations

NECA- National Electrical Contractors Association ASC- Associated Specialty Contractors, Inc CIRT- Construction Industry Round Table NIA- National Insulation Association NRCA- National Roofing Contractors Association PDCA- Painting and Decorating Contractors of America PHCC- Plumbing Heating Cooling Contractors Association NSA- National Subcontractors Alliance NASBP- National Association of Surety Bond Producers SFAA- The Surety & Fidelity Association of America AWCI- Association of the Wall and Ceiling Industry

22 Endorsing Organizations

General Contracting◦200 series

Collaborative Documents◦300 series

Design-Build◦400 series

Construction Management at Risk◦500 series

Subcontracting◦700 series

Program Management◦800series

ConsensusDOCS include:

Owner expected to be an active participant Direct communication takes place between

parties and a positive relationship is established

Parties must make a conscious decision whether to use arbitration or litigation

Parties have options concerning additional insured coverage

Key Provisions

Parties must discuss issues concerning ownership and future use of design documents

Parties are provided a limited waiver of consequential damages.

Parties can rely on information that is provided in electronic format or through Building Information Modeling (BIM).

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Owner receives the

property rights to the contract documents and A/E transfers the copyright to the owner for a fee.

AIA A201**◦ Copyright in contract

documents owned by design team

ConsensusDOCS vs AIA

ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Owner is obligated to

provide evidence of project financing upon written request of the contractor

AIA A201**◦ Contractor can only

request owner financial information after work has started and under the following conditions: Owner fails to pay

contractor Changes in the Contract

Sum due to change orders Owner fails to make

payments on time

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ contractor must report

those errors discovered, and the contractor is liable only to the extent it “knowingly fails” to report a recognized problem

AIA A201**◦ the contractor must

report not only errors discovered, but also anything that is “made known” to the contractor. Failure to do so may obligate the contractor to reimburse the owner for resulting losses

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Owner and contractor

discuss and agree on disputed adjustments in contract sum and temporary relief is provided to the contractor in a specified amount.

AIA A201**◦ architect shall determine

both the method for and the adjustment of the contract sum where the Construction Change Directive is silent

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Provide for a limited

mutual waiver of consequential damages

AIA A201**◦ Provide for a mutual

waiver of consequential damages

Consequential damages

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Parties negotiate

provisions on liquidated damages before the contracted is signed.

AIA A201**◦ Architect decides if

contract time should be extended in the event of a delay and provisions on liquidated damages are not specified.

Liquidated Damages

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Owner is permitted to

pay retainage for work completed and accepted. Once project is half way complete, the owner is not allowed to withhold additional retainage.

AIA A201**◦ Owner pays retainage

once the substantial completion of the entire project is achieved.

ConsensusDOCS vs AIA

*ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ In the event of

termination by contractor, profit on work not performed can be recovered.

AIA A201**◦ In the event of

termination by contractor, profit on work not performed can not be recovered.

ConsensusDOCS vs AIA

ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ manages the risks and

responsibilities associated with BIM so that contractors, design professionals and owners can use BIM techniques and technology successfully

AIA◦ Does not address BIM

ConsensusDOCS vs AIA

ConsensusDOCS2000 **AIA A201-2007

ConsensusDOCS*◦ Owner receives

submittals from the contractor and decides which submittals the A/E should review.

AIA◦ A/E receives submittals

from the contractor and approves/disapproves them.

(April 13, 2006). Liquidated Damages . Retrieved February 16, 2009 from Web site:   http://blawg.midwestconstructionlaw.com/damages_claims/

(2009, January). Contracts Built by Consensus for Project’s Best Interest. Retrieved February 2, 2009 from Web site:http://www.consensusdocs.org/downloads/CO_0102_2009_p018.pdf

(2008, July). ConsensusDOCS Momentum Builds Across the Industry. Retrieved january 28, 2009 from Web site: http://www.consensusdocs.org/downloads/BIM%20Article%20in%20Constructor%20-%20Jul-Aug-08.pdf

(2008, November 5). Leading Industry Organizations Affirm . Retrieved February 2, 2009 from Web site: http://www.consensusdocs.org/news-and-events.html

(2008, September). BIM Contracting Made Easy: The ConsensusDOCS 301 BIM Addendum. Retrieved January 29, 2009 from Web site:http://www.consensusdocs.org/downloads/Article%20%20Legal%20BIM%20Addendum%20%20Constructor%20Sep%2008.pdf

(2008, September 23). ConsensusDOCS™ Establishes the New Consensus Standard in. Retrieved January 29, 2009 from Web site:http://www.consensusdocs.org/downloads/20080925-AnniversaryPressRelease.pdf

Bales, J. (2008, November). What every design professional needs to know about CosensusDOCS. Retrieved February 13, 2009 from , Web site: http://www.lathropgage.com/files/Publication/248ac1cbaed749ebb0dffad671224347/Presentation/PublicationAttachment/f9547a4a-93dc-4542-b0e1-ffe9823c6208/ConsensusDOCS.pdf

Beck, P. (n.d.). Tools for Tough Times. Retrieved February 3,2009 from , Web site: http://www.consensusdocs.org/downloads/_0121141149_001.pdf

Cardwell, R., & Salmon, J. (n.d.). A construction industry revolution. Retrieved February 5, 2009 from , Web site: http://www.consensusdocs.org/downloads/A%20Construction%20Industry%20Revolution.pdf

Ernstrom, B (2007, October 10). A201 2007 ed. & ConsensusDOCS: what do they mean to your business. Retrieved February 13, 2009 from , Web site: http://www.bldrs.org/resources/docs/fallmeetinga201consensusdocs_1.pdf

Harris, L., & Perlberg, B. (n.d.). Advantages of the ConsensusDOCS Construction Contracts. Retrieved February 3, 2009 from , Website:

http://www.consensusdocs.org/downloads/Perlberg%20Reprint.pdf

Janes, W. (2008, September 12). NAED joins ConsensusDOCS. Retrieved january 28, 2009 from , Web site:http://www.consensusdocs.org/downloads/NAED%20Direct_TED%20Article.pdf

Peartree, K. (n.d.). When Less is More: The Importance of Limited Indemnification. Retrieved February 3, 2009 from , Web site:http://www.consensusdocs.org/downloads/contrACT010709.pdf

Works Cited