Benefits of Using an AIA Master Agreement
Architect-client relationships rely on contracts that outline the scope of work and roles and responsibilities. Although there are many contract types available, the most common are those produced by the American Institute of Architects (AIA).
AIA contracts have been around for over 100 years and have been revised to reflect industry changes and advice from building owners, architects, contractors, and legal professionals. They are considered fair for all parties, making them the benchmark for managing the transactions and relationships involved in building projects.
There are many types of AIA contracts available, including different types of Owner-Architect agreements. For recurring work, many use the AIA Master Agreement.
We have worked with multiple clients who have used this contract type, including school districts and corporate clients. This article will explain the AIA Master Agreement and its benefits, helping you determine if it fits your needs.
What is the AIA Master Agreement?
The AIA Master Agreement—called the B121—is intended for use when the architect’s scope of services will be specified using one or more Service Orders.
Generally, it is used for clients with recurring work, like businesses constructing multiple locations or an institution completing several projects within a master plan. It also fits long-term projects with multiple scope changes.
The Master Agreement outlines common terms and conditions applicable to each Service Order, including:
- The architect’s responsibilities
- The owner’s responsibilities
- Insurance requirements
- Copyright and licensing
- How claims and disputes are handled
- How to terminate or suspend services
- How late payments should be handled
- Other miscellaneous conditions
These terms and conditions stay the same in the long run. New work is outlined in a Service Order that identifies the site, construction commencement date, substantial completion date, compensation, party representation, and additional service requirements. The Service Order can also highlight changes to the procurement process if this method changes from project to project.
In short, the Master Agreement method allows you to issue a shorter document with each new project or scope change rather than creating a new contract.
What Are the Benefits of the Master Agreement?
The AIA Master Agreement allows multiple scopes of services to be issued quickly without renegotiating terms and conditions. After reviewing the Master Agreement, clients and their legal teams only need to review the individual Service Orders.
A more traditional Owner-Architect agreement, like the AIA B101, only covers a single project. For clients with multiple ongoing projects or recurring work, the Master Agreement saves time.
It also speeds up the process for your architect, allowing them to quickly create an agreement focused on the necessary scope of work. Clients with a long-standing relationship with an architect may prefer to use this method since it allows them to start work without needing to review already agreed upon items in the master document.
In some situations, the Master Agreement may not be the best fit, especially if you take on a project with a different scope that requires a reexamination of the elements in the master document. For example, a commercial client may choose to use a Master Agreement for designing multiple prototype locations. If they build a new headquarters, they may wish to change the contractual agreement for that specific project.
Ultimately, the choice is up to the client and their legal counsel.
Learn About Other AIA Contracts
The AIA Master Agreement is an effective contractual agreement for clients with recurring work and those with multiple scope changes within a larger project. It allows clients and architects to set overall terms and conditions and issue Service Orders for each new project, expediting negotiations.
AIA contracts are a part of services or interconnected documents. Agreements between owners and architects reflect agreements between owners and contractors, creating a clear understanding of everyone’s rights and responsibilities.
The type of contractual agreement you use is up to you and your legal counsel. Learn more about the different types of agreements available by reading about AIA documents and their benefits.