 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

 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

 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

 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

 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

 General Contracting ◦ 200 series  Collaborative Documents ◦ 300 series  Design-Build ◦ 400 series  Construction Management at Risk ◦ 500 series  Subcontracting ◦ 700 series  Program Management ◦ 800series

 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

 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).

*ConsensusDOCS2000**AIA A  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

ConsensusDOCS2000**AIA A  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

*ConsensusDOCS2000**AIA A  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

*ConsensusDOCS2000**AIA A  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

*ConsensusDOCS2000**AIA A  ConsensusDOCS* ◦ Provide for a limited mutual waiver of consequential damages  AIA A201** ◦ Provide for a mutual waiver of consequential damages Consequential damages

 Consequential damages are defined as losses or injuries that do not flow directly and immediately from the act of the party, but only from some of the consequences or results of such act  May include the following: ◦ increased cost of administration or supervision ◦ impairment of security ◦ increased cost of funds for the project ◦ extended capital costs ◦ lost opportunity to work on other projects ◦ inflation costs of labor, material, or equipment

*ConsensusDOCS2000**AIA A  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

 Liquidated damages may be estimated as a the daily rate for the period of late performance based on, but not limited to, one or more of the following: ◦ Extra maintenance, operational or utility costs in continued use of an old or inefficient building or facility. ◦ Maintenance of a new building or facility before its beneficial use. ◦ Extended supervision, inspection or engineering costs. ◦ Moving costs. ◦ Wage/material cost increases.

*ConsensusDOCS2000**AIA A  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.

*ConsensusDOCS2000**AIA A  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.

ConsensusDOCS2000**AIA A  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

ConsensusDOCS2000**AIA A  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: (2009, January). Contracts Built by Consensus for Project’s Best Interest. Retrieved February 2, 2009 from Web site: (2008, July). ConsensusDOCS Momentum Builds Across the Industry. Retrieved january 28, 2009 from Web site: (2008, November 5). Leading Industry Organizations Affirm. Retrieved February 2, 2009 from Web site: (2008, September). BIM Contracting Made Easy: The ConsensusDOCS 301 BIM Addendum. Retrieved January 29, 2009 from Web site: (2008, September 23). ConsensusDOCS™ Establishes the New Consensus Standard in. Retrieved January 29, 2009 from Web site: Bales, J. (2008, November). What every design professional needs to know about CosensusDOCS. Retrieved February 13, 2009 from, Web site: b0e1-ffe9823c6208/ConsensusDOCS.pdf Beck, P. (n.d.). Tools for Tough Times. Retrieved February 3,2009 from, Web site: Cardwell, R., & Salmon, J. (n.d.). A construction industry revolution. Retrieved February 5, 2009 from, Web site: Ernstrom, B (2007, October 10). A ed. & ConsensusDOCS: what do they mean to your business. Retrieved February 13, 2009 from, Web site: Harris, L., & Perlberg, B. (n.d.). Advantages of the ConsensusDOCS Construction Contracts. Retrieved February 3, 2009 from, Website: Janes, W. (2008, September 12). NAED joins ConsensusDOCS. Retrieved january 28, 2009 from, Web site: Peartree, K. (n.d.). When Less is More: The Importance of Limited Indemnification. Retrieved February 3, 2009 from, Web site: