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Sheet G-101
PjM PcMCE

AIA Agreementsconcept

AIA B101 Owner–Architect Agreement: structure, services, cost, and dispute resolution

One-line orientation

B101 is the standard Owner–Architect Agreement; its article structure — standard of care, five Basic Service phases, cost provisions, dispute resolution, and compensation — is the most heavily tested contract document for PjM.

Key points

  • Article 1 — Initial Information: Both parties provide project assumptions at signing: site information, owner’s program, budget, schedule, key personnel.
  • Article 2 — Standard of Care: Architect performs services at the level of skill and care ordinarily provided by architects in similar locations under similar circumstances — a professional peer standard, not a guarantee of a perfect outcome.
  • Article 3 — Basic Services (five phases):
    • Schematic Design (SD): Concept, massing, initial cost estimate; must consider environmentally responsible design alternatives.
    • Design Development (DD): Develops the approved scheme; coordinates structural, mechanical, and electrical systems.
    • Construction Documents (CD): Complete drawings and specifications for permit and construction. Typically the largest phase by fee (~40% of direct labor fee).
    • Procurement / Bidding: Assists with bidding or negotiating; evaluates bids; helps award the contract.
    • Construction Administration (CA): Site visits, submittals review, RFI responses, pay application certification, substantial completion.
    • The architect is not responsible for the contractor’s means and methods, construction techniques, or safety precautions — those belong to the contractor.
  • Owner’s Responsibilities: Owner must provide a program defining objectives, schedule, constraints, space requirements, and site info. Owner-requested programming post-signing becomes an Additional Service with extra compensation.
  • Cost of the Work (§6.6): The architect does not guarantee that bids will match the owner’s budget. If the lowest valid bid exceeds the budget, the owner has five options:
    1. Increase the budget.
    2. Authorize rebidding or renegotiation.
    3. Terminate the agreement (per Section 9.5).
    4. Work with the architect to revise the program, scope, or quality to reduce cost.
    5. Implement another mutually acceptable alternative.
  • Article 4 — Supplemental and Additional Services: Services beyond the five phases (programming, BIM, LEED certification, on-site representation, post-occupancy evaluation, etc.). Supplemental Services are pre-agreed at signing; Additional Services are authorized when the need arises.
  • Article 8 — Dispute Resolution: Mediation must be tried first (typically 60 days). If unresolved, parties elect arbitration or litigation as the binding method.
  • Article 11 — Compensation: Architect compensation is generally based on a stipulated sum, a percentage of construction cost, an hourly rate, or a negotiated combination. A multiple of direct personnel expense is one way to calculate personnel-based compensation; it is not a separate official category.

Confusions / comparison

PhaseArchitect’s primary deliverableTypical fee share
SDConcept drawings, initial cost model~15%
DDDeveloped drawings, coordinated systems~20%
CDPermit/construction set~40%
Bidding / ProcurementBid documents, bid evaluation~5%
CASite visits, submittals, RFIs, pay certs~20%
ArticleSubjectKey exam point
Art. 2Standard of carePeer-level skill, not perfection
Art. 3Basic ServicesFive phases; architect not liable for contractor means/methods
Art. 4Supplemental & Additional ServicesSupplemental designated at signing (§4.1 table); Additional authorized later (§4.2)
Art. 8Dispute resolutionMediation first, then arbitration/litigation
Art. 11CompensationStipulated sum, percentage, hourly, or another negotiated method

→ pp-aia-document-families (this module): where B101 sits in the AIA series map · pp-basic-vs-additional-services (this module): how Basic, Supplemental, and Additional Services differ · pp-aia-c401-architect-consultant (this module): how C401 flows B101 terms down to consultants.