Consensus Contract Documents Readies for Release
A diverse group of leading construction associations representing owners, contractors, subcontractors, designers, and sureties recently announced a new catalog of over 70 construction contract documents call ConsensusDOCS will be released September 28, 2007. These contracts and forms are designed to meet a wide range of project delivery mechanisms as well as address electronic communications to building information modeling (BIM).
The Associated General Contractors of America (AGC) and the Construction Owners Association of America (COAA) will fold their current contract documents programs into the ConsensusDOCS effort. Other partners in the collaborative drafting include, Construction Users Round Table (CURT), National Association of State Facilities Administrators (NASFA), Mechancial Contractors Association of America (MCAA), and more than a dozen others. Key talking points in these documents dealt with project delivery mechanisms, dispute resolutions, and bonding requirements, to name a few.
Brian Perlberg, AGC, Senior Counsel, Construction Law & Contract Documents, says, "Publication of the ConsensusDOCS will transform the industry because it is the first time the entire industry was invited to give an equal voice to create truely consensus contract documents representing the best interests of a construction project.
A new Tri-Party Collaborative Agreement is collectively signed by the Owner, Designer and Contractor and this core group convenes to make project-specific decisions. The document also leaves open the possibility to include a primary specialty contractor.
Perlberg adds, "We're taking collaboration to the next level. It is really a new way of handling project delivery and facilitates the use of building information modeling delivery programs that have emerged."
The new documents also put forth more defined language for dispute resolution. "First and foremost, a fundamental philosophy of the ConsensusDOCS is aligning parties' interest with superior project results. Importantly, direct communications among the parties to resolve potential claims before they become contentious. We require mediation before litigation or arbitration, and added innovative language to mitigation issues so they don't become claims."
As well, these documents speak to bonding requirements. Instead of one bond form, there will be a set of 20 unique documents, each designed to cover a specific type of bond, such as performance or payment.
The documents also define a standard electronic communication protocol, a methodology to determine what project communications can be relied upon, a move expected to facilitate the application of BIM.
"We know that many industry professionals modify standard contract documents to the point of not being recognizable, sometimes tripling the agreement with addendums," explains Perlberg. "Our goal is to provide these groups with a better foundation to begin contract negotiations, so parties can focus on getting better project results."
The new contract documents will be available through www.ConsensusDOCS.org September 28, 2007.