assignment of construction documents

Assignment of construction documents | Practical Law

Assignment of construction documents

Practical law uk practice note 3-314-7960  (approx. 32 pages).

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Assignment, novation and construction contracts - What is your objective?

Consider a not too hypothetical situation where the parties to a construction project (employer, contractor and sub-contractor) enter into a Deed of Assignment intending that the employer, having lost confidence in the contractor, would directly engage the sub-contractor to complete the sub-contract works. But what if no assignment has taken place? What are the terms of the contract under which the sub-contractor carries out the works for the employer?

Potential risks with assignment

In construction projects, main contractors often assign the benefit of their key sub-contracts to the employer in the event of contractor default and consequent termination of the main contract. The employer can then enforce the rights in the sub-contract against the sub-contractor, including rectification of the works and the performance of particular obligations.

However, there are potential risks associated with assignment in these situations as the Technology and Construction Court’s decision in Energy Works (Hull) Ltd v MW High Tech Projects UK Ltd demonstrated. We discussed this decision in Assigning a sub-contract on termination: which rights is the contractor giving up? In this case, the nature of the assignment meant that the main contractor could not pursue claims made by the employer against its sub-contractor under the sub-contract. This limited the main contractor’s ability to ‘pass on’ any liability it had under the main contract to the sub-contractor.

But what if the Deed of Assignment does not take effect as an assignment?

Assignment v novation

Both assignment and novation are forms of transferring an interest under a contract from one party to another. However, they are very different and in their effect. An assignment transfers the benefit of a contract from one party to another, but only the benefit, not the burden. In contrast, a novation will transfer both the benefit and the burden of a contract from one party to another. A novation creates a new contractual relationship - a ‘new’ contract is entered into.

Another key difference with novation is that the consent of all parties concerned must be obtained, which is why novation is almost always effected through a tripartite agreement. In the case of an assignment, it is not always necessary to obtain consent, subject to what the specific terms of the contract provide.

When deciding whether to assign or novate, parties should consider (i) whether there is in fact a burden to novate, (ii) whether the novatee will be willing to take on the burden, (iii) whether all parties will consent to the novation and indeed enter into the agreement. If there is no burden under the contract to transfer, then an assignment is likely to be the most appropriate way to transfer the interests.

Is the Deed for an assignment or a novation?

Although a document may be labelled a Deed of Assignment, if it has references to the transfer of ‘ responsibilities and obligations ’ and is a tripartite agreement these are characteristic of a novation as opposed to an assignment.

A key issue in such circumstances is to ascertain whether making use of the words ‘ assigning ’ and ‘ assignment ’ actually affects the characteristics of the document.

There has been some consideration of this characterisation issue by the courts. In the case of Burdana v Leeds Teaching Hospitals NHS Trust [2017] EWCA Civ 1980, by majority the Court of Appeal decided that on the facts of the case, although the Deed of Assignment in question referred to an ‘ assignment ’ of the benefit and burden, on proper analysis there was indeed a novation.

Furthermore, in the case of Langston Group Corporation v Cardiff City FC [2008] EWHC 535, Briggs J made it evident that even though the variation agreement in question did not use the word ‘ novation ’ and did not describe itself as such, the circumstances and effect of the agreement was indeed a novation and a new contract had been created.

It may be the case that even if a document does not describe itself as a novation, yet has the key characteristics of one, then as a matter of interpretation the courts would accept that the document takes effect as a novation.

Key characteristics of a novation

If entering into a document that purports to be a Deed of Assignment, tread carefully as it may well take effect as a novation, particularly if the following characteristics are present:

• It is a tripartite agreement;
• All the parties give their consent;
• The novator has been released from its obligations;
• There has been an acceptance of the terms of the novation on the part of the novatee and the substituted party; and
• There is a vesting of remedies.

What is your objective?

Although a document may well be labelled as an assignment, it may have the characteristics of and take effect as novation. Parties need to be cautious and consider what they want to achieve when assessing whether to assign rights or to novate them along with obligations.

This article was written by Anna Sowerby and Eveline Strecker. For more information, please contact Anna  or your usual Charles Russell Speechlys contact.

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Contract documents, list of all current aia contract documents, aia contract documents are divided into six alphanumeric series by document use or purpose..

• A-Series:  Owner/Contractor Agreements
• B-Series:  Owner/Architect Agreements
• C-Series:  Other Agreements
• D-Series:  Miscellaneous Documents
• E-Series:  Exhibits
• G-Series:  Contract Administration and Project Management Forms

A-Series: Owner/Contractor Agreements

A101–2017,    Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

• This contract is used when project price is based on a 1sum (fixed price). It is suitable for large or complex commercial construction projects.

A102–2017,   Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

• This contract between owner and contractor can be used on large projects requiring a guaranteed maximum price when the payment to the contractor is the cost of the work plus a fee.

A103–2017 ,  Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price

• This contract is used on large projects when the basis of payment to the contractor is the cost of the work plus a fee, and the cost is not fully known at the commencement of construction

A104–2017 (formerly A107-2007),    Standard Abbreviated Form of Agreement Between Owner and Contractor

• This contract is used on construction projects of limited scope and complexity when there is a stipulated sum or cost plus.

A105–2017,   Standard Short Form of Agreement Between Owner and Contractor

• This contract is appropriate for smaller, less complex commercial or residential projects.

A110-2021 , Standard Form of Agreement Between Owner and Contractor for a Custom Residential Project

• This contact is a stand-alone agreement with its own internal general conditions and is intended for use on custom residential construction projects. A110 may be used for custom residential projects where payment is based on either a stipulated sum or the cost of the work plus a fee, with or without a guaranteed maximum price.

A111-2021 , Standard Form of Agreement Between Owner and Home Builder for Construction of a Single Family Home

• This contract is a streamlined document developed to meet the needs of residential owners and home builders for a relatively straightforward home construction project. It is not intended to be used for remodeling or renovation projects.

A112-2021 , Standard Form of Agreement Between Owner and Home Builder for Design and Construction of a Single Family Home

• This contract is intended to be used for a single family residential project when the owner hires a home builder to provide design services and construction.

A113-2022 ,  Standard Form of Agreement Between Owner and Contractor for Remodel of a Single Family Home

AIA Document A113™–2022 is an owner/contractor agreement that is intended to be used for a single family residential remodeling project. A113 does not include design phases or construction administration services provided by a third-party architect. A113 is a streamlined document developed to meet the needs of residential owners and contractors for a relatively straightforward home remodeling project, such as a kitchen or bathroom remodel.

A121–2018 , Standard Form of Master Agreement Between Owner and Contractor where Work is provided under multiple Work Orders

• This contract is used when the contractor’s scope of work will subsequently be specified through the use of one or more work orders.

A132-2019 , Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition

• This contract is used on projects where the basis of payment is either a stipulated sum (fixed price) or cost of the work plus a fee, with or without a guaranteed maximum price where construction manager is the adviser.

A133–2019 , Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

• This contract is used on projects where a construction manager, in addition to serving as adviser to the owner, assumes financial responsibility for construction of the project.

A134–2019 , Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee without a Guarantee Maximum Price

• This contract is used when the owner seeks a construction manager who will take on responsibility for providing the means and methods of construction.

A141–2014 , Standard Form of Agreement Between Owner and Design-Builder

• This contract is used on large design-build projects when the owner contracts with a single entity to provide both design and construction.

A142–2014 , Standard Form of Agreement Between Design-Builder and Contractor

• This contract is used for large design-build projects when the design-builder hires a contractor for construction.

A145-2015 , Standard Form of Agreement Between Owner and Design-Builder for a One or Two Family Residential Project

• This contract is used for a one or two family residential project and consists of the Agreement portion and Exhibit A, a Design-Build Amendment that is executed when the owner and design-builder have agreed on the Contract Sum.

A151–2019 , Standard Form of Agreement Between Owner and Vendor for Furniture, Furnishings, and Equipment (FF&E)

• This contract is used between owner and vendor for furniture, furnishings and equipment (FF&E) where the basis of payment is a stipulated sum (fixed price) agreed to at the time of contracting.

A152-2019 , Purchase Order

• This purchase order agreement is intended for situations where a Purchaser will buy goods from a Vendor.

A195–2008 , Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery

• This contract is used between owner and contractor for a large, transitional, and integrated project delivery, and provides business terms and conditions unique to the contract.

A201–2017,   General Conditions of the Contract for Construction

• This contract sets the rights, responsibilities, and relationships of the owner, contractor, and architect. Various design-bid-build agreements incorporate and reference this “umbrella” document.

A201–2007 , General Conditions of the Contract for Construction

A221–2018 , Work Order for use with Master Agreement Between Owner and Contractor

• This work order is used with the master agreement between owner and contractor.

A232-2019 , General Conditions of the Contract for Construction, Construction Manager as Adviser Edition

• This contract provides general conditions and rights, responsibilities, and relationships of the owner, contractor, construction manager, and architect when the construction manager is an adviser.

A232–2009 SP , General Conditions of the Contract for Construction, for use on a Sustainable Project, Construction Manager as Adviser Edition

• This contract provides general conditions and rights, responsibilities, and relationships of the owner, contractor, construction manager, and architect when the construction manager is an adviser on a sustainable project.

A295–2008 , General Conditions of the Contract for Integrated Project Delivery

• This contract provides general conditions for a transitional integrated project delivery.

A305–2020 , Contractor’s Qualification Statement

• This questionnaire is used to provide information about a contractor’s background.

A310–2010 , Bid Bond

• This bond ensures the selected bidder will execute the contract and provide performance and payment bonds.

A312–2010 , Performance Bond and Payment Bond

• This contract contains two bonds that cover the contractor’s performance and the contractor’s obligation to pay subcontractors and others for materials and labor.

A313-2020 , Warranty Bond

• This contract is an assurance by the contractor and the contractor’s surety that the contractor’s warranty obligations will be performed and completed in accordance with the terms of the construction contract.

A401–2017,   Standard Form of Agreement Between Contractor and Subcontractor

• This contract is used to establish the responsibilities and obligations between the contractor and subcontractor.

A421–2018,   Standard Form of Master Agreement Between Contractor and Subcontractor where Work is provided under multiple Work Orders

• This contract is used when the subcontractor’s scope of work will subsequently be specified through one or more work orders.

A422–2018,   Work Order for use with Master Agreement Between Contractor and Subcontractor

• This work order is used when a contractor and subcontractor have entered, or will enter, into a master agreement.

A441–2014 , Standard Form of Agreement Between Contractor and Subcontractor for a Design-Build Project

• This contract between contractor and subcontractor is used with any sized design-build project.

A503–2017/2019,  Guide for Supplementary Conditions (for A201-2017, 2017 Owner-Contractor and 2019 CMc agreements)

• This guide provides guidance to assist in preparing the Contract for Construction, and it provides model language that may be used to amend or supplement the Contract for Construction.

AIA Document   A521–2012 , Uniform Location of Subject Matter

A533 – 2019,  Guide for Supplementary Conditions, CMa Edition (for A232-2019, General Conditions and A132-2019, Owner-Contractor Agreement)

• This guide provides guidance to assist in preparing the Contract for Construction, and it provides model language that may be used to amend or supplement the Contract for Construction when the construction manager is the adviser.

A701–2018 , Instructions to Bidders

• This contract is used when competitive bids are to be solicited for construction of a project.

A751–2019 , Invitation and Instructions to Vendors for Quotations for Furniture, Furnishings, and Equipment (FF&E)

• This contract is used for an invitation to bid for an interiors project.

B-Series: Owner/Architect Agreements

B101–2017,   Standard Form of Agreement Between Owner and Architect

• Contract typically used with large projects in conjunction with A201-2017. Services listed are divided into basic, supplemental, and additional services. It may be used with a variety of compensation methods, including percentage of the budget for construction cost and stipulated sum.

B102-2017,  Standard Form of Agreement Between Owner and Architect without a Predefined Scope of Architect’s Services

• This contract is a flexible agreement where the parties attach architect’s scope of service and can be used on any size project.

B103-2017,  Standard Form of Agreement Between Owner and Architect for a Complex Project

• This contract between owner and architect is used with a complex project.

B104-2017,  Standard Abbreviated Form of Agreement Between Owner and Architect

• This contract between owner and architect is used with a medium project for a project of limited scope.

B105–2017,  Standard Short Form of Agreement Between Owner and Architect

• This contract between owner and architect is used with a small project for a residential or small commercial project.

B106–2020,  Standard Form of Agreement Between Owner and Architect for Pro Bono Services

• This contract between owner and architect is used with any sized project for pro bono services.

B107–2020 ,  Standard Form of Agreement Between Developer-Builder and Architect for Prototype(s) for a One or Two Family Residential Project with Limited Architectural Services

• This contract between developer-builder and architect is used for any sized single family residential project where architect’s services are specifically for developing a prototype.

B108–2009  (formerly B181–1994), Standard Form of Agreement Between Owner and Architect for a Federally Funded or Federally Insured Project

•  This contract between owner and architect is used for a large federally-funded or federally-insured project.

B109–2020 , Standard Form of Agreement Between Owner and Architect for a Multi-Family Residential or Mixed Use Residential Project

• This contract between owner and architect is used for a large project, mixed-use, or multi-family residential project.

B110-2021 , Standard Form of Agreement Between Owner and Architect for a Custom Residential Project

• This contract is a one-part standard form of agreement between owner and architect for design and construction contract administration on a custom residential project.

B111-2022 ,  Standard Form of Agreement Between Owner and Design Architect

• This contract is is a standard form of agreement between Owner and Design Architect intended for use in situations where a Design Architect will perform services to establish the design intent of a project.

B112-2022 , Standard Form of Agreement Between Owner and Architect of Record

• This contract is a standard form of agreement between Owner and Architect of Record intended for use in situations where an Architect of Record will prepare, sign, and seal construction documents for a project and perform construction contract administration services.

B121–2018 , Standard Form of Master Agreement Between Owner and Architect for Services provided under multiple Service Orders

• This contract between owner and architect establishes a master agreement with multiple service orders.

B132-2019 , Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition

• This contract between owner and architect is used with a large project when the construction manager is the adviser.

B133–2019 , Standard Form of Agreement Between Owner and Architect, Construction Manager as Constructor Edition

• This contract between owner and architect is used with a large project where the construction manager is a constructor.

B143–2014 , Standard Form of Agreement Between Design-Builder and Architect

• This contract between design-builder and architect is used with large, design-build project when a design-builder hires an architect.

B144-ARCH-CM–1993 , Standard Form of Amendment to the Agreement Between Owner and Architect where the Architect provides Construction Management Services as an adviser to the Owner

• This amendment contract between owner and architect is used with any sized project for an architect to provide construction management services as an adviser to the owner.

B152–2019 , Standard Form of Agreement Between Owner and Architect for Interior Design and Furniture, Furnishings, and Equipment (FF&E) Design Services

• This contract between owner and architect is used with any sized interior project which includes interior design services including furniture, furnishings and equipment.

B161–2022  (formerly B161-2002), Standard Form of Agreement Between Client and Consultant for design consulting services where the Project is located outside the United States

• This contract between client and consultant is used with large international projects when the US architect is hired on a consulting basis for design services and the owner will retain a local architect in the foreign country.

B162–2002  (formerly B621INT–2002), Abbreviated Standard Form of Agreement Between Client and Consultant for use where the Project is located outside the United States

• This contract between client and consultant is used where the project is located outside the US when the US architect is hired on a consulting basis for design services and the owner will retain a local architect in the foreign country.

B171–2013 , Standard Form of Agreement Between Owner and Design Manager for use in a Multiple Project Program

• This contract between owner and design manager is used with multiple large projects.

B172–2013 , Standard Form of Agreement Between Owner and Architect for Architect of Record Services

• This contract between owner and architect is used when architect acts as a project specific architect.

B195–2008 , Standard Form of Agreement Between Owner and Architect for Integrated Project Delivery

• This contract between owner and architect is used with large, transitional integrated project delivery.

B201–2017 , Standard Form of Architect’s Services: Design and Construction Contract Administration

• This contract defines the architect’s traditional scope of services for design and construction contract administration in a standard form that the owner and architect can modify to suit the needs of the project.

B202–2020 , Standard Form of Architect’s Services: Programming

• This contract establishes duties and responsibilities where the architect provides the owner with programming services.

B203–2017 , Standard Form of Architect’s Services: Site Evaluation and Project Feasibility

• An owner can use the services provided by the architect in B203 to decide whether a site, or sites, are suitable for a project, or to determine the development potential of a site.

B204–2007 , Standard Form of Architect’s Services: Value Analysis, for use where the Owner employs a Value Analysis Consultant

• This contract is attached to an owner/architect agreement that provides the conventional scope of architect services when the owner employs a value analysis consultant.

B205–2017 , Standard Form of Architect’s Services: Historic Preservation

• B205 establishes duties and responsibilities where the architect provides services for projects that are historically sensitive.

B207–2017 , Standard Form of Architect’s Services: On-Site Project Representation

• B207 establishes the architect’s scope of services when the architect provides an on-site project representative during a project’s construction phase.

B210–2017 , Standard Form of Architect’s Services: Facility Support

• An owner can use B210 to hire an architect to assess the condition, performance and operation of an existing facility or group of facilities.

B212–2010 , Standard Form of Architect’s Services: Regional or Urban Planning

• This contract is used to establish duties and responsibilities where the architect provides the owner with regional or urban planning services.

B214–2012 , Standard Form of Architect’ Services: LEED® Certification

• This contract is used to establish duties and responsibilities when the owner seeks certification from the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) program.

B221–2018 , Service Order for use with Master Agreement Between Owner and Architect

• This service order is used to provide the architect’s scope of services, and other terms related to the specific service order and only used when the B121 Master Agreement has been established.

B252–2019 ,  Standard Form of Architect’s Services: Interior Design and Furniture, Furnishings, and Equipment (FF&E) Design Services

• This contract is used with any sized interior design project to establish duties and responsibilities when the architect provides architectural interior design services and design services for furniture, furnishings, and equipment.

B253–2019 , Standard Form of Architect’s Services: Furniture, Furnishings, and Equipment (FF&E) Design Services

• This contract is used with any sized interior design project to establish duties and responsibilities when the architect provides design services for furniture, furnishings, and equipment.

B254-2019 , Standard Form of Architect’s Services: Purchasing Agent Services for Furniture, Furnishings, and Equipment (FF&E)

• This contract is used in situations where an Architect is expected to assist an Owner in purchasing furniture, furnishings, and equipment (FF&E) and managing FF&E contracts.

B305–2021 , Architect’s Qualification Statement

• This questionnaire is used to provide information about an architect’s background.

B503–2017  (formerly B511–2001), Guide for Amendments to AIA Owner-Architect Agreements

• Free AIA guide for issues covered in owner-architect agreements.

B509–2020 , Guide for Supplementary Conditions to AIA Document B109–2020 for use on Condominium Projects

• Free AIA guide for issues on condominium construction and shows suggestions on how to modify owner-architect agreements for multi-family residential or mixed-use residential projects.

B511–2022 , Guide for Projects involving a Design Architect and Architect of Record

• Free AIA guide that examines relationships and issues that occur when two architects provide professional services on a project.

B561–2022 , Guide to International Practice and Contracting for U.S. Architects

• Free AIA guide that examines some of the key risks that U.S. architects may face when working on a Project located in a foreign jurisdiction and/or contracting with a foreign Client.

C-Series: Other Agreements

C101–2018,  Joint Venture Agreement for Professional Services

• This contract is used by two or more parties to provide for their mutual rights and obligations in forming a joint venture.

C102-2015,    Standard Form of Teaming Agreement Between Team Manager and Team Member for the Purpose of Responding to a Solicitation and Pursuing a Project

• This contract between team manager and team member allows multiple or cross-disciplinary parties to form a team to provide services necessary to submit a proposal for a shared opportunity project.

C103–2015,   Standard Form of Agreement Between Owner and Consultant without a Predefined Scope of Consultant’s Services

• This contract between owner and consultant is used for any sized project when the consultant does not have a predefined scope of services.

C106–2013,   Digital Data Licensing Agreement

• This contract is used for any sized project, digital data governance, and protecting intellectual property.

C132-2019 , Standard Form of Agreement Between Owner and Construction Manager as Adviser

• This contract between owner and construction manager is used for a large project when the construction manager is the adviser.

C141–2014 (formerly B142–2004),  Standard Form of Agreement Between Owner and Consultant for a Design-Build Project

• This contract between owner and consultant is used for a large design-build project.

C171–2013,   Standard Form of Agreement Between Owner and Program Manager, for use in a Multiple Project Program

• This contract between owner and program manager is used for a large project with multiple scopes.

C172–2014,   Standard Form of Agreement Between Owner and Program Manager for use on a Single Project

• This contract between owner and program manager is used for a medium-sized single project.

C191–2009,   Standard Form Multi-Party Agreement for Integrated Project Delivery

• This contract between multiple parties is used for large projects and intermediate level of integrated project delivery.

C195–2008,   Standard Form Single Purpose Entity Agreement for Integrated Project Delivery

• This contract is used for a large project and forms a limited liability company.

C196–2008,   Standard Form of Agreement Between Single Purpose Entity and Owner for Integrated Project Delivery

• This contract between single purpose entity and owner is used for large projects for integrated project delivery.

C197–2008,   Standard Form of Agreement Between Single Purpose Entity and Non-Owner Member for Integrated Project Delivery

• This contract between a single purpose entity and non-owner member is used for a large project and integrated project delivery.

C198–2010,   Standard Form of Agreement Between Single Purpose Entity and Consultant for Integrated Project Delivery

• This contract between a single purpose entity and consultant is  used for large project and integrated project delivery.

C199–2010,   Standard Form of Agreement Between Single Purpose Entity and Contractor for Integrated Project Delivery

• This contract between single purpose entity and contractor is used for large projects and integrated project delivery.

C201–2015 (formerly G601-1994),   Consultant’s Services, Land Survey

• This contract is used for land survey scope of consultant services.

C202–2015 (formerly G602-1993),   Standard Form of Consultant’s Services: Geotechnical Engineering

• This contract is used for geotechnical scope of consultant services.

C203-2017 (formerly B211-2007) , Standard Form of Consultant’s Service: Commissioning

• An owner can use C203 to hire an architect to perform commissioning services; however, C203 can also be used to hire commissioning professionals from other backgrounds.

C204-2020 ,  Standard Form of Consultant’s Services: Sustainable Project Services

• This contract can be used on a wide variety of sustainable projects, including those in which the sustainable objective includes obtaining a Sustainability Certification, such as LEED® (Leadership in Energy and Environmental Design), or those in which the sustainable objective is based on incorporation of performance-based sustainable design or construction elements.

C401-2017,  Standard Form of Agreement Between Architect and Consultant

• This contract is used when an architect obtains consulting services.

C402–2018 (formerly C727-1992) , Standard Form of Agreement Between Architect and Consultant for Special Services

• This contract between an architect and consultant is used for consultant’s services that are limited in scope and/or do not extend to the construction phase of the project.

C403-2021 , Standard Form of Agreement Between Client and Consultant for Design Assist Services

• This contract between client and consultant is used to perform design assist services. The terms “client” and “consultant” are intentionally flexible, as numerous parties in a project could hire someone, or be hired, to perform design assist services.

C404-2021 , Standard Form of Agreement Between Contractor and Consultant for Delegated Design Services

• This contract between contractor and consultant is used to perform delegated design services. The terms “contractor” and “consultant” are intentionally flexible, as numerous parties in a project could hire someone, or be hired, to perform delegated design services.

C421–2018,   Standard Form of Master Agreement Between Architect and Consultant for Services provided under multiple Service Orders

• This contract between an architect and consultant is used to establish a master agreement with multiple service orders.

C422–2018,   Service Order for use with Master Agreement Between Architect and Consultant

• This service order between an architect and consultant is only to be used when the C421 Master Agreement has been established.

C441–2014,   Standard Form of Agreement Between Architect and Consultant for a Design-Build

D-Series: Miscellaneous Documents

D101–1995,   Methods of Calculating Areas and Volumes of Buildings

D200–1995,  Project Checklist

D503–2020 ,  Guide for Sustainable Projects

E-Series: Exhibits

E203–2013,   Building Information Modeling and Digital Data Exhibit

• This document is used for any sized project used to establish the rights associated with building information modeling and digital data.

E204–2017,  Sustainable Projects Exhibit

• E204–2017 has been developed for use on a wide variety of sustainable projects, including those in which the Sustainable Objective includes obtaining a Sustainability Certification, such as LEED, or those in which the Sustainable Objective is based on incorporation of performance-based sustainable design or construction elements.

E205-2022,  Architects’ Scope and Responsibility Matrix

• This contract is an exhibit that is intended to be used in situations where a Design Architect and Architect of Record perform services concurrently on a project.

E234-2019 , Sustainable Projects Exhibit, Construction Manager as Constructor

• This exhibit is for use on sustainable projects when there is a construction manager as constructor as a project participant.

E235-2019 , Sustainable Projects Exhibit, construction Manager as Adviser Edition

G-Series: Contract Administration and Project Management Forms

G201–2013 , Project Digital Data Protocol Form

• This document is used for any sized project to establish protocols for digital data.

G202–2013 , Project Building Information Modeling Protocol Form

• This form is used with any sized project to establish protocols for building information modeling.

G612-2017 , Owner’s Instructions to the Architect Part A

• AIA Document G612™-2017 is a questionnaire, drafted to elicit information from the owner regarding the nature of the construction contract.

G612-2017 , Owner’s Instructions to the Architect Part B

G701–2017 , Change Order

• AIA Document G701™-2017 is used for implementing changes in the work agreed to by the owner, contractor, and architect.

G701S–2017 , Change Order, Contractor-Subcontractor Variation

• AIA Document G701S™–2017 is for implementing changes in the work agreed to by the contractor and subcontractor.

G702–1992 , Application and Certificate for Payment

• Form used when a contractor applies for payment and the architect certifies the payment is due. Shows the contract sum to date, including the total dollar amount of the work completed and stored to-date, the amount of retainage (if any), the total of previous payments, a summary of change orders, and the amount of current payment requested.

G702CW-2021 , Application for Payment for a COW Project without a GMP

• This form used when a contractor apply for payment, and an architect can certify payments are due, on a project where the basis of payment to the contractor is the cost of the work plus a fee projects without a guaranteed maximum price.

G702GMP-2021 , Application for Payment for a COW Project with a GMP

• This form used when a contractor apply for payment, and an architect can certify payments are due, on a project where the basis of payment to the contractor is the cost of the work plus a fee projects that have a guaranteed maximum price.

G702S–2017 , Application and Certificate for Payment, Contractor-Subcontractor Variation

• AIA Document G702®S–2017, Application and Certificate for Payment, and G703®S–2017, Continuation Sheet, provide convenient and complete forms on which the subcontractor can apply for payment.

G703–1992 , Continuation Sheet

• This continuation sheet should be used by the contractor when listing the portions of work and scheduled values. It is suitable for any sized project.

G703CW-2021 , Continuation Sheet for Cost of the Work Projects

• This continuation sheet should be used by the contractor when listing the portions of work and scheduled values. It is suitable for a project where the basis of payment to the contractor is the cost of the work plus a fee.

G703S–2017 , Continuation Sheet, Contractor-Subcontractor Variation

G704–2017 , Certificate of Substantial Completion

• AIA Document G704®–2017 is a standard form for recording the date of substantial completion of the work or a designated portion thereof.

G705–2001  (formerly G805–2001), List of Subcontractors

• This form contains the list of subcontractors proposed for a project.

G706–1994 , Contractor’s Affidavit of Payment of Debts and Claims

• This form contains acknowledgement that payment has been made on the project.

G706A–1994 , Contractor’s Affidavit of Release of Liens

• This form supports the G706-1994 stating that all releases or waivers of liens have been received.

G707–1994 , Consent of Surety to Final Payment

• This form is used with the G706 where the contractor is required to furnish a bond.

G709–2018 , Proposal Request

• This form is used to obtain price quotations required in the negotiation of change orders.

G710–2017 , Architect’s Supplemental Instructions

• AIA Document G710™–2017 is used by the architect to issue additional instructions or interpretations, or to order minor changes in the work.

G711–2018 , Architect’s Field Report

• This form maintains a record of site visits or daily log of construction activities.

G712–1972 , Shop Drawing and Sample Record

• This form is used for any sized project where the architect logs and monitors shop drawing and samples.

G714–2017 , Construction Change Directive

• AIA Document G714™–2017 is a directive for changes in the Work for use where the owner and contractor have not agreed on proposed changes in the contract sum or contract time.

G715–2017,   Supplemental Attachment for ACORD Certificate of Insurance 25

• AIA Document G715™–2017 is intended for use in adopting ACORD Form 25 to certify contractor insurance coverages required under standard form AIA agreements.

G716–2004 , Request for Information (RFI)

• This form is used to formally request further information from a party during construction.

G731-2019  (formerly G701™CMa-1992), Change Order, Construction Manager-Adviser Edition

G732-2019 , Application and Certificate for Payment, Construction Manager as Adviser Edition

• This form is used for a contractor to apply for progress payment to an owner.

G733-2019  (formerly G714™CMa–1992), Construction Change Directive, Construction Manager-Adviser Edition

G734-2019  (formerly G704™CMa–1992), Certificate of Substantial Completion, Construction Manager-Adviser Edition.

G735-2021 , Authorization to Proceed with Early Release Work

This is an authorization, agreed upon between the Owner and Construction Manager as Constructor, that allows the Construction Manager to begin construction on a smaller, predetermined portion of the Project before the parties come to an agreement upon the Guaranteed Maximum Price or Control Estimate for the entire Work of the Project.

G736–2009  (formerly G722CMa–1992), Project Application and Project Certificate for Payment, Construction Manager as Adviser Edition

•  This form is used for a construction manager as adviser to create a summary of contractor’s payment requests.

G737–2009  (formerly G723CMa–1992), Summary of Contractors’ Applications for Payment, Construction Manager as Adviser Edition

• This form is used for a construction manager as adviser when a contractor applies for progress payment to an owner.

G741–2015 , Change Order for a Design-Build Project

• This form is used for amends to design-build projects when parties agree to the terms of the change.

G742–2015 , Application and Certificate for Payment for a Design-Build Project

•  This form is used when a design-builder applies for progress payment to an owner.

G742C–2015 , Application and Certificate for Payment for a Design-Build Project, Contractor Variation

• This form is used when a contractor applies for progress payment to the design-builder.

G742S–2015 , Application and Certificate for Payment for a Design-Build Project, Subcontractor Variation

• This form is used when a subcontractor applies for progress payment to contractor for a design-build project.

G743–2015 , Continuation Sheet for a Design-Build Project

• This form is used when the design-builder lists the portions of the work and their scheduled values.

G743C–2015 , Continuation Sheet for a Design-Build Project, Contractor Variation

• This form is used when the contractor lists the portions of the work and their scheduled values.

G743S–2015 , Continuation Sheet for a Design-Build Project, Subcontractor Variation

• This form is used when the subcontractor lists the portions of the work and their scheduled values.

G744–2014 , Certificate of Substantial Completion for a Design-Build Project

• This form is used when parties agree that the design-build project is substantially complete.

G745–2015 , Change Directive for a Design-Build Project

• This form is used as a directive for changes that need to be done quickly and when the parties have not reached an agreement yet.

G801–2017 , Notice of Additional Services

• G801–2017 is intended to be used by an architect when notifying an owner of additional services pursuant to the AIA’s owner/architect agreements.

G802–2017 , Amendment to the Professional Services Agreement

• G802–2017 is intended to be used when amending the AIA’s owner/architect agreements to provide changes in the architect’s scope, compensation, or other terms.

G803–2017 , Amendment to the Consultant Services Agreement

• G803–2017 is intended for use when amending the AIA’s architect-consultant agreement, AIA Document C401™–2017, to provide changes in the consultant’s scope, compensation, or other terms.

G804–2001 , Register of Bid Documents

• This form is used as a log for bid documents during bidding process.

G808–2017 , Project Directory and Design Data Summary

• G808 can be used by the architect to record pertinent information about the project throughout design and construction.

G809–2001 , Project Abstract

•  This form describes an architect’s projects for architect marketing information and firm statistics.

G810–2001 , Transmittal Letter

• This form serves as a written record of parties exchanged information.

G901-2022 , Generic Conditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment.

G901AZ-2022 , Arizona Conditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment in Arizona.

G901CA-2022 , California Conditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment in California.

G901GA-2022 , Georgia Waiver and Release of Lien and Payment Bond Rights Upon Interim Payment

• This form is used when the Contractor is required to provide a waiver and release of lien and payment bond rights upon interim payment in Georgia.

G901MA-2022,  Massachusetts Partial Waiver and Subordination of Lien

• This form is used when the Contractor is required to provide a partial waiver and subordination of lien in Massachusetts.

G901MI-2022 ,  Michigan Partial Conditional Waiver

• This form is used when the Contractor is required to provide a partial conditional waiver in Michigan.

G901MS-2022,  Mississippi Interim Waiver and Release Upon Payment

• This form is used when the Contractor is required to provide an interim waiver and release upon payment in Mississippi.

G901NV-2022 , Nevada Conditional Waiver and Release Upon Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment in Nevada.

G901TX-2022 , Texas Conditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment in Texas.

G901UT-2022 , Utah Conditional Waiver and Release Upon Progress Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on progress payment in Utah.

G901WY-2022 , Wyoming Lien Waiver

• This form is used when the Contractor is required to provide a lien waiver in Wyoming.

G902-2022 , Generic Unconditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on progress payment.

G902AZ-2022 , Arizona Unconditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on progress payment in Arizona.

G902CA-2022 , California Unconditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on progress payment in California.

G902FL-2022,  Florida Waiver and Release of Lien Upon Progress Payment

• This form is used when the Contractor is required to provide a waiver and release of lien upon progress payment in Florida.

G902MI-2022,  Michigan Partial Unconditional Waiver

• This form is used when the Contractor is required to provide a partial unconditional waiver in Michigan.

G902MO-2022,  Missouri Partial Release of Mechanic’s Lien

• This form is used when the Contractor is required to provide a partial release of mechanic’s lien in Missouri.

G902NV-2022,  Nevada Unconditional Waiver and Release Upon Progress Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release upon progress payment in Nevada.

G902TX-2022 , Texas Unconditional Waiver and Release on Progress Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on progress payment in Texas.

G903-2022 , Generic Conditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on final payment.

G903AZ-2022 , Arizona Conditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on final payment in Arizona.

G903CA-2022 , California Conditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on final payment in California.

G903GA-2022 , Georgia Waiver and Release of Lien and Payment Bond Rights Upon Final Payment

• This form is used when the Contractor is required to provide a waiver and release of lien and payment bond rights upon final payment in Georgia.

G903MI-2022,  Michigan Full Conditional Waiver

• This form is used when the Contractor is required to provide a conditional waiver in Michigan.

G903MS-2022 , Mississippi Waiver and Release Upon Final Payment

• This form is used when the Contractor is required to provide a waiver and release upon final payment in Mississippi.

G903NV-2022 , Nevada Conditional Waiver and Release Upon Final Payment

• This form is used when the Contractor is required to provide a conditional waiver and release upon final payment in Nevada.

G903TX-2022 , Texas Conditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide a conditional waiver and release on final payment in Texas.

G903UT-2022 , Utah Waiver and Release Upon Final Payment

• This form is used when the Contractor is required to provide a waiver and release upon final payment in Utah.

G904-2022 , Generic Unconditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on final payment.

G904AZ-2022 , Arizona Unconditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on final payment in Arizona.

G904CA-2022 , California Unconditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on final payment in California.

G904FL-2022 , Florida Waiver and Release of Lien Upon Final Payment

• This form is used when the Contractor is required to provide a waiver and release upon final payment in Florida.

G904MI-2022 , Michigan Full Unconditional Waiver

• This form is used when the Contractor is required to provide an unconditional waiver in Michigan.

G904MO-2022 , Missouri Unconditional Final Lien Waiver for Residential Real Property

• This form is used when the Contractor is required to provide an unconditional final lien waiver for residential real property in Missouri.

G904NV-2022 , Nevada Unconditional Waiver and Release Upon Final Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release upon final payment in Nevada.

G904TX-2022 , Texas Unconditional Waiver and Release on Final Payment

• This form is used when the Contractor is required to provide an unconditional waiver and release on final payment in Texas.

G905FL-2022 , Florida Waiver of Right to Claim Against Payment Bond (Progress Payment)

• This form is used when the Contractor is required to provide a waiver of right to claim against payment bond (progress payment) in Florida.

G906FL-2022 , Florida Waiver of Right to Claim Against Payment Bond (Final Payment)

• This form is used when the Contractor is required to provide a waiver of right to claim against payment bond (final payment) in Florida.

G907-2022 , Generic Sworn Construction Statement

• This form is used when the Contractor is required to provide a sworn statement in a progress or final payment.

G907MI-2022,  Michigan Sworn Statement

• This form is used when the Contractor is required to provide a sworn statement in a progress or final payment in Michigan.

Printable list of all current AIA Contract Documents by series with description

Printable list of all current AIA Contract Documents by family with description

The Contractor’s Consent – A Trap for the Unwary

On private construction projects, the lender often requires that the owner/borrower obtain the written consent of the contractor to the collateral assignment of the construction contract by the owner to the lender. This permits the lender to step into the owner’s shoes with respect to the construction contract in the event of the owner’s default under the project loan documents. Unfortunately, the Consent forms developed by most lenders these days have many more serious implications for contractors.

Although the general form of the Consent is similar among lenders, the forms are becoming increasingly customized and include many terms other than just the consent to assignment. Whenever faced with such a document, a contractor must be alert and should watch for the following:

Notice of Default/Termination The Consent may require that the contractor provide written notice to the lender if there has been any default by the owner under the construction contract or if the contractor wishes to terminate the construction contract. If the contractor forgets (in the heat of the battle) to provide notice to the lender, it may render the declaration of default or termination ineffective. Failure to provide notice would also certainly impair any rights the contractor may wish to assert against the lender.

Change Order Approval Most lenders’ Consent forms require the contractor to obtain prior written approval of the lender to any change orders between the contractor and the owner. Given the lender’s responsiveness, at the very least this is an administrative annoyance, but at its worst, this is a detail that could impact the Project schedule or disrupt the contractor’s negotiations with the owner. Contractors should seek to eliminate this requirement in its entirety, but failing that, should limit its applicability to only change orders over a stated dollar amount.

Assignment Once a lender takes over a project from a defaulting owner, it may seek to assign the lender’s rights in the construction contract to a new entity. It will want to make that assignment without the contractor’s consent and will typically include a provision in the Consent form allowing it to do so. Contractors should be wary of these clauses and insist that no assignment can be made without the contractor’s prior written consent.

Mechanics’ Lien Rights Most lenders include in their Consent forms a provision in which the contractor either waives its mechanics’ lien rights on the Project or subordinates its mechanics’ lien rights to the lender’s mortgage rights. In Minnesota, we have a statute (Minn. Stat. § 337.10, Subd. 2) that may make a prepayment lien waiver unenforceable, but it is not settled whether it makes a lien subordination unenforceable. Although such subordination clauses seem unfair, especially considering that the lender likely has a title insurer insuring its priority, lenders will resist the well-advised efforts by contractors to remove the subordination provision.

Payment Upon Takeover One of the primary purposes of the Contractor’s Consent is to ensure that, if there is a default and the lender must take over an uncompleted Project, the contractor will complete the Project for the lender according to the terms of the construction contract. The typical form logically requires the lender to pay the contractor going forward from the time of lender takeover. Most forms, however, do not obligate the lender to pay the contractor any amounts unpaid at the time of takeover. This should not be acceptable to any contractor – especially one that has been required to subordinate its mechanics’ lien rights to the lender’s mortgage.

Lenders have lately been more sensitive to contractors’ concerns and have been willing to agree to cure pre-takeover defaults (including payment defaults) in addition to paying post-takeover costs. This is certainly something to be negotiated by the contractor at the time it is being asked to sign a consent form.

Conclusion Do not take the Contractor’s Consent lightly. Rarely should you accept the standard form you receive from the lender. Make it fair and protect your rights.

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Contract Assignment Agreement

Rating: 4.8 - 105 votes

This Contract Assignment Agreement document is used to transfer rights and responsibilities under an original contract from one Party, known as the Assignor, to another, known as the Assignee. The Assignor who was a Party to the original contract can use this document to assign their rights under the original contract to the Assignee, as well as delegating their duties under the original contract to that Assignee. For example, a nanny who as contracted with a family to watch their children but is no longer able to due to a move could assign their rights and responsibilities under the original service contract to a new childcare provider.

How to use this document

Prior to using this document, the original contract is consulted to be sure that an assignment is not prohibited and that any necessary permissions from the other Party to the original contract, known as the Obligor, have been obtained. Once this has been done, the document can be used. The Agreement contains important information such as the identities of all parties to the Agreement, the expiration date (if any) of the original contract, whether the original contract requires the Obligor's consent before assigning rights and, if so, the form of consent that the Assignor obtained and when, and which state's laws will govern the interpretation of the Agreement.

If the Agreement involves the transfer of land from one Party to another , the document will include information about where the property is located, as well as space for the document to be recorded in the county's official records, and a notary page customized for the land's location so that the document can be notarized.

Once the document has been completed, it is signed, dated, and copies are given to all concerned parties , including the Assignor, the Assignee, and the Obligor. If the Agreement concerns the transfer of land, the Agreement is then notarized and taken to be recorded so that there is an official record that the property was transferred.

Applicable law

The assignment of contracts that involve the provision of services is governed by common law in the " Second Restatement of Contracts " (the "Restatement"). The Restatement is a non-binding authority in all of U.S common law in the area of contracts and commercial transactions. Though the Restatement is non-binding, it is frequently cited by courts in explaining their reasoning in interpreting contractual disputes.

The assignment of contracts for sale of goods is governed by the Uniform Commercial Code (the "UCC") in § 2-209 Modification, Rescission and Waiver .

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Out-Law Guide 4 min. read

Assignment and novation

19 Aug 2011, 4:40 pm

Assignment involves the transfer of an interest or benefit from one person to another. However the 'burden', or obligations, under a contract cannot be transferred.

Assignment in construction contracts

As noted above only the benefits of a contract can be assigned - not the burden. In the context of a building contract:

• the employer may assign its right to have the works constructed, and its right to sue the contractor in the event that the works are defective – but not its obligation to pay for the works;
• the contractor may assign its right to payment of the contract sum - but not its obligation to construct the works in accordance with the building contract or its obligation to meet any valid claims, for example for defects.

After assignment, the assignee is entitled to the benefit of the contract and to bring proceedings against the other contracting party to enforce its rights. The assignor still owes obligations to the other contracting party, and will remain liable to perform any part of the contract that still has to be fulfilled since the burden cannot be assigned. In practice, what usually happens is that the assignee takes over the performance of the contract with effect from assignment and the assignor will generally ask to be indemnified against any breach or failure to perform by the assignee.  The assignor will remain liable for any past liabilities incurred before the assignment.

In construction contracts, the issue of assignment often arises in looking at whether collateral warranties granted to parties outside of the main construction contract can be assigned.

Funders may require the developer to assign contractual rights against the contractor and the design team as security to the funder, as well as the benefit of performance bonds and parent company guarantees. The developer may assign such rights to the purchaser either during or after completion of the construction phase.

Contractual assignment provisions

Many contracts exclude or qualify the right to assignment, and the courts have confirmed that a clause which provides that a party to a contract may not assign the benefit of that contract without the consent of the other party is legally effective and will extend to all rights and benefits arising under the contract, including the right to any remedies. Other common qualifications on the right to assign include:

• a restriction on assignment without the consent of the other party, whether or not such consent is not to be unreasonably withheld or delayed;
• only one of the parties may assign;
• only certain rights may be assigned – for example, warranties and indemnities may be excluded;
• a limit on the number of assignments - as is almost always the case in respect of collateral warranties;
• a right to assign only to a named assignee or class of assignee.

Note that in some agreements where there is a prohibition on assignment, it is sometimes possible to find the reservation of specific rights to create a trust or establish security over the subject matter of the agreement instead.

Legal and equitable assignment

The Law of Property Act creates the ability to legally assign a debt or any other chose in action where the debtor, trustee or other relevant person is notified in writing. If the assignment complied with the formalities in the Act it is a legal assignment, otherwise it will be an equitable assignment.

Some transfers can only take effect as an equitable assignment, for example:

• an oral assignment;
• an assignment by way of charge;
• an assignment of only part of the chosen in action;
• an assignment of which notice has not been given to the debtor;
• an agreement to assign.

If the assignment is equitable rather than legal, the assignor cannot enforce the assigned property in its own name and to do so must join the assignee in any action. This is designed to protect the debtor from later proceedings brought by the assignor or another assignee from enforcing the action without notice of the earlier assignment.

Security assignments

Using assignment as a way of taking security requires special care, as follows:

• if the assignment is by way of charge, the assignor retains the right to sue for any loss it suffers caused by a breach of the other contract party;
• if there is an outright assignment coupled with an entitlement to a re-assignment back once the secured obligation has been performed, it is an assignment by way of legal mortgage.

Please see our separate Out-Law guide for more information on types of security.

Restrictions on assignment

There are restrictions on the assignment of certain types of interest on public policy grounds, as follows:

• certain personal contracts – for example, a contract for the employment of a personal servant or for the benefit of a motor insurance policy cannot be assigned;
• a bare cause of action or 'right to sue' where the assignee has no commercial interest in the subject matter of the underlying transaction cannot be assigned;
• certain rights conferred by statute – for example, a liquidator's powers to bring wrongful trading proceedings against a director – cannot be assigned;
• an assignment of a contract may not necessarily transfer the benefit of an arbitration agreement contained in the contract;
• the assignment of certain rights is regulated – for example, the assignment of company shares or copyright.

If you want to transfer the burden of a contract as well as the benefits under it, you have to novate. Like assignment, novation transfers the benefits under a contract but unlike assignment, novation transfers the burden under a contract as well.

In a novation the original contract is extinguished and is replaced by a new one in which a third party takes up rights and obligations which duplicate those of one of the original parties to the contract. Novation does not cancel past rights and obligations under the original contract, although the parties can agree to novate these as well.

Novation is only possible with the consent of the original contracting parties as well as the new party. Consideration (the 'price' paid, whether financial or otherwise, by the new party in return for the contract being novated to it) must be provided for this new contract unless the novation is documented in a deed signed by all three parties.

• Construction Contracts
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• Technology, Science & Industry
• United Kingdom

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Pitfalls of Contractor’s Consents

by Michael Lilly

October 23, 2020

You’ve negotiated your Agreement with the Owner and you’ve started to mobilize.  The Owner is still trying to close on its construction financing – but they are “close.”  You receive a call from the Owner’s representative, the representative says “closing is scheduled for tomorrow, the lender just needs you to sign a document before they will fund, it’s no big deal, I’ll send it over to you right now – just sign it and get it to me as soon as possible.”  Finally!  The project is about to start!  You receive the document, a Contractor’s Consent, and you are inclined to just sign it and get to work. Should you?

What Is It Really?

In virtually every construction loan transaction with a commercial lender, the lender will require the borrower (owner) to assign the borrower’s interest in its construction contract with the general contractor, to the lender as additional collateral. This document is generally referred to simply as an Assignment of Construction Contract or Collateral Assignment of Construction Contract.  In connection with the borrower’s delivery of the Assignment of the Construction Contract, the lender will generally require that the borrower’s general contractor consent in writing to such assignment.  Thus, a Contractor’s Consent is first and foremost the general contractor’s written consent to the borrower’s collateral assignment of the construction contract.  However, lenders will ordinarily include multiple additional terms and concepts that the contractor should consider.

THE MAJOR ISSUES

If the Lender elects to assume the Construction Contract, when will it happen?

In the event of a borrower default under the loan documents, nearly every Contractor’s Consent sets forth a procedure allowing for the lender to either (i) terminate the project, or (ii) to assume the construction contract and take-over the project. Often, however, the consent will not require that the lender makes its choice, to either terminate or assume the construction contract, within a specific period of time.  Thus, should the lender declare the borrower in default, what is the general contractor to do?  The short answer is – the general contractor must stop work and wait on the lender to make a decision.  This will, in the very least, result in additional de-mobilization costs and potentially significant re-mobilization costs (should the lender elect to proceed with the contract).

What can the general contractor do?  Negotiate a specific time frame for the lender to make its election to terminate or assume the construction contract.

Lender consent to Change Orders.

Often Contractor’s Consents will include a specific obligation that the borrower and contractor obtain the Lender’s prior consent to any Change Orders.  The result – an already time consuming and often difficult change order process become infinitely more time consuming and difficult, as lenders are typically reluctant to agree to changes in cost and scope for a project.

Assignment in construction contracts

Published by a lexisnexis construction expert.

This Practice Note looks at why assignment of rights is an important issue in construction and when parties might need to assign their rights. It explains how assignment differs to novation, and sets out the steps to be taken to effect a valid assignment. It also looks at the effect of an assignment and the issues that parties should be aware of when bringing claims following assignment. It also notes the implications of the Business Contract Terms (Assignment of Receivables) Regulations 2018.

When reviewing the assignment provisions in a construction contract, see: Assignment of construction documents—checklist for details of the key issues to consider. For guidance on how assignments in construction may be restricted, see Practice Note: Restrictions on the assignment of rights in construction contracts.

What is an assignment?

This Practice Note focuses on how assignment applies in the context of construction contracts but the law relating to assignment is of relevance across many different sectors, including banking and finance (see Practice Note: Assignments by way of security), property (see: Transfers and assignments—overview—Property), and in terms of copyright (see

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Related legal acts:

• Civil Liability (Contribution) Act 1978 (1978 c 47)
• Contracts (Rights of Third Parties) Act 1999 (1999 c 31)
• Law of Property Act 1925 (1925 c 20)

Key definition:

Assignment definition, what does assignment mean.

An assignment is 'an immediate transfer of an existing proprietary right, vested or contingent from one party to another'. Assignments can occur by consent or by operation of law.

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Standard documents and drafting notes: Construction

Practical law uk help and information notes 9-383-4032  (approx. 24 pages), building and engineering contracts, building contracts and contractors, amendments to standard form contracts.

• Schedule of amendments to JCT Design and Build Contract, 2016 Edition
• Schedule of additional amendments to JCT Design and Build Contract, 2016 Edition for a higher-risk building
• Schedule of amendments to JCT Standard Building Contract, 2016 Edition
• Schedule of additional amendments to JCT Standard Building Contract, 2016 Edition for a higher-risk building
• Schedule of amendments to JCT Intermediate Building Contract, 2016 Edition

Bonds and guarantees

• ABI model form of guarantee bond
• Advance payment bond
• Bond: default performance bond for a construction project
• On demand bid bond
• On demand performance bond
• Parent company guarantee from contractor's parent company
• Parent company guarantee from employer's parent company

Contractor collateral warranties and third party rights

• Construction Manager Collateral Warranty for a Funder, 2016 Edition (CMWa/F 2016)
• Construction Manager Collateral Warranty for a Purchaser or Tenant, 2016 Edition (CMWa/P&T 2016)
• Contractor Collateral Warranty for a Funder, 2016 Edition (CWa/F 2016)
• Contractor Collateral Warranty for a Purchaser or Tenant, 2016 Edition (CWa/P&T 2016)
• Management Contractor Collateral Warranty for a Funder, 2016 Edition (MCWa/F 2016)
• Management Contractor Collateral Warranty for a Purchaser or Tenant, 2016 Edition (MCWa/P&T 2016)
• Schedule of construction documents
• Schedule of third party rights to be provided by a contractor
• Schedule of third party rights to be provided by a sub-contractor
• Sub-Contractor Collateral Warranty for a Funder, 2016 Edition (SCWa/F 2016)
• Sub-Contractor Collateral Warranty for a Purchaser or Tenant, 2016 Edition (SCWa/P&T 2016)
• Sub-Contractor Collateral Warranty for the Employer, 2016 Edition (SCWa/E 2016)
• Trade Contractor Collateral Warranty for a Funder, 2016 Edition (TCWa/F 2016)
• Trade Contractor Collateral Warranty for a Purchaser or Tenant, 2016 Edition (TCWa/P&T 2016)
• Works Contractor Collateral Warranty for a Funder, 2016 Edition (WCWa/F 2016)
• Works Contractor Collateral Warranty for a Purchaser or Tenant, 2016 Edition (WCWa/P&T 2016)

JCT specimen PDF standard forms, 2024 Editions

• JCT Contractor Collateral Warranty for a Funder, 2024 Edition (CWa/F 2024)
• JCT Contractor Collateral Warranty for a Purchaser or Tenant, 2024 Edition (CWa/P&T 2024)
• JCT Design and Build Contract Guide 2024 (DB/G 2024)
• JCT Design and Build Contract, 2024 Edition (DB 2024)
• JCT Design and Build Contract, 2024 Edition, Contract Administration Model Forms
• JCT Design and Build Sub-Contract Agreement, 2024 Edition (DBSub/A 2024)
• JCT Design and Build Sub-Contract Conditions, 2024 Edition (DBSub/C 2024)
• JCT Design and Build Sub-Contract Guide 2024 (DBSub/G 2024)
• JCT IC and ICD, 2024 Edition, Contract Administration Model Forms
• JCT Intermediate Building Contract Guide 2024 (IC/G 2024)
• JCT Intermediate Building Contract with contractor's design, 2024 Edition (ICD 2024)
• JCT Intermediate Building Contract, 2024 Edition (IC 2024)
• JCT Intermediate Named Sub-Contract Conditions, 2024 Edition (ICSub/NAM/C 2024)
• JCT Intermediate Named Sub-Contract Tender and Agreement, 2024 Edition (ICSub/NAM 2024)
• JCT Intermediate Named Sub-Contractor/Employer Agreement, 2024 Edition (ICSub/NAM/E 2024)
• JCT Intermediate Sub-Contract Agreement, 2024 Edition (ICSub/A 2024)
• JCT Intermediate Sub-Contract Conditions, 2024 Edition (ICSub/C 2024)
• JCT Intermediate Sub-Contract Guide 2024 (ICSub/G 2024)
• JCT Intermediate Sub-Contract with sub-contractor's design Agreement, 2024 Edition (ICSub/D/A 2024)
• JCT Intermediate Sub-Contract with sub-contractor's design Conditions, 2024 Edition (ICSub/D/C 2024)
• JCT Minor Works Building Contract with contractor's design, 2024 Edition (MWD 2024)
• JCT Minor Works Building Contract, 2024 Edition (MW 2024)
• JCT Minor Works Building Contract, 2024 Edition, Contract Administration Model Forms
• JCT Minor Works Sub-Contract with sub-contractor's design, 2024 Edition (MWSub/D 2024)
• JCT Short Form of Sub-Contract, 2024 Edition (ShortSub 2024)
• JCT Standard Building Contract, 2024 Edition, Contract Administration Model Forms
• JCT Standard Building Contract Guide 2024 (SBC/G 2024)
• JCT Standard Building Contract With Approximate Quantities, 2024 Edition (SBC/AQ 2024)
• JCT Standard Building Contract With Quantities, 2024 Edition (SBC/Q 2024)
• JCT Standard Building Contract Without Quantities, 2024 Edition (SBC/XQ 2024)
• JCT Standard Building Sub-Contract Agreement, 2024 Edition (SBCSub/A 2024)
• JCT Standard Building Sub-Contract Conditions, 2024 Edition (SBCSub/C 2024)
• JCT Standard Building Sub-Contract Guide 2024 (SBCSub/G 2024)
• JCT Standard Building Sub-Contract with sub-contractor's design Agreement, 2024 Edition (SBCSub/D/A 2024)
• JCT Standard Building Sub-Contract with sub-contractor's design Conditions, 2024 Edition (SBC/Sub/D/C 2024)
• JCT Sub-Contractor Collateral Warranty for a Funder, 2024 Edition (SCWa/F 2024)
• JCT Sub-Contractor Collateral Warranty for a Purchaser or Tenant, 2024 Edition (SCWa/P&T 2024)
• JCT Sub-Contractor Collateral Warranty for the Employer, 2024 Edition (SCWa/E 2024)
• JCT Sub-subcontract, 2024 Edition (SubSub 2024)

JCT specimen PDF standard forms, 2016 Editions

• Adjudication Agreement Named Adjudicator, 2016 Edition (Adj/N 2016)
• Adjudication Agreement, 2016 Edition (Adj 2016)
• Constructing Excellence Contract, 2016 Edition (CE 2016)
• Constructing Excellence Contract Guide 2016 (CE/G 2016)
• Constructing Excellence Contract Project Team Agreement, 2016 Edition (CE/P 2016)
• Construction Management Guide 2016 (CM/G 2016)
• Construction Management Trade Contract, 2016 Edition (CM/TC 2016)
• Construction Management Appointment, 2016 Edition (CM/A 2016)
• Consultancy Agreement (Public Sector), 2016 Edition (CA 2016)
• Design and Build Contract, 2016 Edition (DB 2016)
• Design and Build Sub-Contract Agreement, 2016 Edition (DBSub/A 2016)
• Design and Build Sub-Contract Conditions, 2016 Edition (DBSub/C 2016)
• Design and Build Sub-Contract Guide 2016 (DBSub/G 2016)
• Design and Build Contract Guide 2016 (DB/G 2016)
• Framework Agreement, 2016 Edition (FA 2016)
• Framework Agreement Guide 2016 (FA/G 2016)
• Intermediate Building Contract, 2016 Edition (IC 2016)
• Intermediate Building Contract Guide 2016 (IC/G 2016)
• Intermediate Building Contract with contractor's design, 2016 Edition (ICD 2016)
• Intermediate Sub-Contract Agreement, 2016 Edition (ICSub/A 2016)
• Intermediate Sub-Contract Conditions, 2016 Edition (ICSub/C 2016)
• Intermediate Sub-Contract Guide 2016 (ICSub/G 2016)
• Intermediate Sub-Contract with sub-contractor's design Agreement, 2016 Edition (ICSub/D/A 2016)
• Intermediate Sub-Contract with sub-contractor's design Conditions, 2016 Edition (ICSub/D/C 2016)
• Intermediate Named Sub-Contract Tender and Agreement, 2016 Edition (ICSub/NAM 2016)
• Intermediate Named Sub-Contract Conditions, 2016 Edition (ICSub/NAM/C 2016)
• Intermediate Named Sub-Contractor/Employer Agreement, 2016 Edition (ICSub/NAM/E 2016)
• Major Project Construction Contract, 2016 Edition (MP 2016)
• Major Project Construction Contract Guide 2016 (MP/G 2016)
• Major Project Sub-Contract, 2016 Edition (MPSub 2016)
• Major Project Sub-Contract Guide 2016 (MPSub/G 2016)
• Management Building Contract, 2016 Edition (MC 2016)
• Management Building Contract Guide 2016 (MC/G 2016)
• Management Works Contract Conditions, 2016 Edition (MCWC/C 2016)
• Management Works Contract Agreement, 2016 Edition (MCWC/A 2016)
• Management Works Contractor/Employer Agreement, 2016 Edition (MCWC/E 2016)
• Measured Term Contract, 2016 Edition (MTC 2016)
• Measured Term Contract Guide 2016 (MTC/G 2016)
• Minor Works Building Contract, 2016 Edition (MW 2016)
• Minor Works Building Contract with contractor's design, 2016 Edition (MWD 2016)
• Minor Works Sub-Contract with sub-contractor's design, 2016 Edition (MWSub/D 2016)
• Partnering Charter Non-binding, 2016 Edition (PC/N 2016)
• Pre-Construction Services Agreement (General Contractor), 2016 Edition (PCSA 2016)
• Pre-Construction Services Agreement (Specialist), 2016 Edition (PCSA/SP 2016 )
• Prime Cost Building Contract, 2016 Edition (PCC 2016)
• Prime Cost Building Contract Guide 2016 (PCC/G 2016)
• Project Bank Account Documentation, 2022 Edition (PBA 2022)
• Repair and Maintenance Contract Commercial, 2016 Edition (RM 2016)
• Short Form of Sub-Contract, 2016 Edition (ShortSub 2016)
• Standard Building Contract Guide 2016 (SBC/G)
• Standard Building Contract With Quantities, 2016 Edition (SBC/Q)
• Standard Building Contract With Approximate Quantities, 2016 Edition (SBC/AQ)
• Standard Building Contract Without Quantities, 2016 Edition (SBC/XQ)
• Standard Building Sub-Contract Agreement, 2016 Edition (SBCSub/A)
• Standard Building Sub-Contract Conditions, 2016 Edition (SBCSub/C)
• Standard Building Sub-Contract with sub-contractor's design Agreement, 2016 Edition (SBCSub/D/A)
• Standard Building Sub-Contract with sub-contractor's design Conditions, 2016 Edition (SBCSub/D/C)
• Standard Building Sub-Contract Guide 2016 (SBCSub/G 2016)
• Sub-subcontract, 2016 Edition (SubSub 2016)
• Tendering Practice Note 2017

Joint ventures

• Articles of association for joint venture company: 50:50 between corporates
• Articles of association: joint ventures: majority and minority shareholder
• Confidentiality agreement: joint ventures
• Deed of adherence: joint ventures
• Joint venture shareholders' agreement: 50:50 between corporates
• Joint venture shareholders' agreement: majority and minority shareholder
• Memorandum of understanding

Letter of intent and pre-construction agreement

• Letter of intent: construction project
• Pre-construction services agreement (PCSA)
• Novation of building contract by contractor's administrator
• Novation of professional appointment from employer to contractor

Other related documents: acceleration, Bribery Act, confidentiality, moral rights, escrow, vesting certificate

• Acceleration agreement for a construction or engineering contract
• Confidentiality letter (pre-contract advice to a contractor)
• Escrow account: bank instruction letter: construction project
• Escrow account: CLLS template escrow agreement: construction project
• Escrow account: escrow letter: construction project
• Memorandum to board of directors on the Bribery Act 2010
• Pay less notice for construction contract
• Payment notice for construction contract
• Payment notice for construction contract (contract dated before 1 October 2011)
• Vesting certificate (construction goods, plant or materials)
• Waiver of moral rights
• Withholding notice for a construction contract

Party Wall etc. Act 1996 (PWA 1996)

Terminating building contracts.

• Termination: first notice: clause 8.4.1 of the JCT SBC 2016 and JCT DB 2016
• Termination: second notice: clause 8.4.2 of the JCT SBC 2016 and JCT DB 2016

Engineering contracts

• Joint bidding agreement
• Payment notice for construction contract (contract dated before 1 October 2011) Note: for NEC4 Engineering and Construction Contract (ECC) Z clauses, see Standard clauses and drafting notes: NEC4 Z clauses .

Collateral warranties and third parties

• Assignment of construction documents

• Notice to third party of assignment
• Reliance agreement to be provided by environmental consultant
• Schedule of third party rights to be provided by a professional consultant

Dispute resolution

Adjudication.

• Adjudication Agreement Named Adjudicator, 2016 Edition (Adj/N 2016) .
• Adjudication Agreement, 2016 Edition (Adj 2016) .
• Adjudication: notice of intention to refer a dispute to adjudication
• Adjudication: referral notice
• Adjudication enforcement: application notice
• Adjudication enforcement: claim form
• Adjudication enforcement: particulars of claim
• Adjudication enforcement: witness statement
• Adjudication letter: resisting enforcement of the adjudicator's decision
• Adjudication letter: to adjudicator challenging jurisdiction
• Scott Schedule: claiming for defects
• Scott Schedule: claiming for delay and disruption
• Scott Schedule: claiming for loss and expense
• Scott Schedule: claiming for variations and extra work

Case study materials

• Notice of adjudication
• Letter appointing the adjudicator
• Responding party's letter challenging jurisdiction
• Referring party's letter responding to jurisdiction challenge
• Adjudicator's response to jurisdiction challenge
• Referral notice
• Application notice to enforce an adjudicator's decision
• Claim form to enforce an adjudicator's decision
• Particulars of claim for enforcement proceedings
• Witness statement supporting summary judgment application
• Witness statement opposing summary judgment application

Construction litigation

Adjudication enforcement.

• Adjudication enforcement: directions (Appendix F of the TCC Guide)
• Application enforcement: application notice
• Application for enforcement: claim form
• Adjudication letter: resisting enforcement of adjudicator's decision

Pre-Action Protocol

• Letter before claim complying with Pre-Action Protocol for Construction and Engineering Disputes
• Letter of response complying with Pre-Action Protocol for Construction and Engineering Disputes

Scott schedules

Tcc case management, orders and directions.

• TCC: Case management directions (Appendix B of the TCC Guide)
• Case management: letter explaining case management conference for TCC and Commercial Court cases
• TCC: ADR Order (Appendix E of the TCC Guide)
• TCC: Directions in adjudication enforcement proceedings (Appendix F of the TCC Guide)
• TCC: Court settlement order (Appendix G of the TCC Guide)
• TCC: Guidance note on procedures for public procurement cases (Appendix H to the TCC Guide)

Development documents

• Agreement for lease with landlord's works (new build) and early access for tenant's fitting out works conditional on the landlord obtaining planning permission
• Agreement for lease with landlord's refurbishment works
• Agreement for lease with landlord's refurbishment works and early access for tenant's fitting out works
• Crane oversailing licence
• Construction enquiries before contract
• Landowner's development agreement
• Licence for alterations (minor works)
• Licence for alterations (major works)
• Licence to carry out works (consent only)
• Scaffolding Licence
• PWA 1996: line of junction notice (new wall astride the boundary)
• PWA 1996: line of junction notice (new wall astride the boundary): adjoining owner response
• PWA 1996: line of junction notice (new wall wholly on own land)
• PWA 1996: line of junction notice (new wall wholly on own land): adjoining owner response
• PWA 1996: party structure notice
• PWA 1996: party structure notice: adjoining owner responds positively
• PWA 1996: party structure notice: adjoining owner responds negatively
• PWA 1996: three or six metres notice (adjacent excavations)
• PWA 1996: three or six metres notice: adjoining owner responds positively
• PWA 1996: three or six metres notice: adjoining owner responds negatively

Project finance

Real estate finance.

• Consent request: borrower to lender (variations to development documents)
• Letter before action - winding-up petition

International construction contracts

• Bribery Act 2010: sample statement of ethics

Procurement

Public procurement.

• Consultancy Agreement (Public Sector), 2016 Edition, (CA 2016)
• Invitation to participate in a dialogue (PCR 2015)
• Invitation to tender (PCR 2015)
• Invitation to tender (PCR 2015): questions for tenderers
• Invitation to tender (public sector)
• Invitation to tender (public sector): questions for tenderers
• Letter confirming that standstill period complete
• New Remedies Directive: Standstill letter to be sent to unsuccessful supplier
• Partnering Charter Non-binding, 2011 Edition (PC/N 2011)
• Pre-qualification questionnaire
• Public procurement: market consultation: questions for the supplier market

Professional appointments

• Professional consultant's letter of appointment

General contract and boilerplate

• Boilerplate agreement
• Boilerplate agreement: short form
• Power of attorney
• Public Sector Boilerplate Provisions
• Terms of reference
• General Contract and Boilerplate

Assignment Of Rights Agreement: Definition & Sample

Jump to section, what is an assignment of rights agreement.

​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

When you buy shares from someone else (the seller), they agree to transfer them over and give up any control they had on that share. This way, another party can take ownership without going through the trouble of trying to buy the whole company themselves.

Common Sections in Assignment Of Rights Agreements

Below is a list of common sections included in Assignment Of Rights Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Rights Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-99.(H)(7) 5 dex99h7.htm FORM OF ASSIGNMENT AGREEMENT , Viewed December 20, 2021, View Source on SEC .

Who Helps With Assignment Of Rights Agreements?

Lawyers with backgrounds working on assignment of rights agreements work with clients to help. Do you need help with an assignment of rights agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignment of rights agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Greg Fidlon has been practicing exclusively in employment law since 1998. He represents and advises clients in all aspects of the employment relationship. In addition to his litigation work, Greg regularly negotiates and drafts corporate policy handbooks, employment contracts, separation agreements and restrictive covenants. He also develops and presents training programs and has spoken and written extensively on labor and employment law topics.

Orly Boger has worked in the high tech industry and in a leading law firm before launching her law firm. Orly focuses on startup companies and technology transactions. She structures and negotiates software and technology license agreements, strategic partnerships, cloud-based/SaaS agreements, internet related transactions, OEM agreements, supply, distribution, telecommunications. In addition, Orly has experience in serving as an in-house legal counsel for start up companies at various phases of their development, providing strategic legal advise to entrepreneurs and emerging companies with a comprehensive understanding of the business and legal issues. She has been helping companies develop a legal strategy for all aspects of their operations, from commercial transactions and partnerships, scalable SaaS or services agreements, privacy policies, employment related policies, open source licensing and much more.

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32 Construction Documents (Templates Included)

Construction projects come in all shapes and sizes, but all must be monitored closely. This is why a project has many construction documents. Building a structure is a complicated job and every aspect of it requires construction drawings to plan on paper before the build begins.

The importance of construction documents and drawings have in construction project management cannot be understated. They set up the project for success by detailing everything from the site to the design and even the project administration. But what exactly are construction documents and what types of construction drawings are there?

What Are Construction Documents?

Construction documents help project managers streamline the process of planning, scheduling and tracking construction projects. There isn’t only one type of construction document and they come in many types. Construction documents can be written, graphical and pictorial.

ProjectManager is construction project management software with unlimited file storage. Our software can be accessed in the office, on the job site and even remotely so everyone on the project can share the construction documents and drawings from one centralized hub. If you need to make changes, everyone is updated to keep them on the same page. Get started with ProjectManager today for free.

In a sense, construction documents are like puzzle pieces that make up a bigger picture of the project’s design, location and physical characteristics. You can’t pull building permits without the right documents, and you can’t legally build anything without permits. This gives you an idea of the importance of construction documents.

Construction Documents

Here are some of the main documents that are created throughout the construction phases . While each of these documents serves a different purpose, they all contribute to one common goal, which is to facilitate the construction project management process.

Creating these documents can be challenging, so we’ve created free construction project management templates to help you with this process.

1. Construction Plan

A construction plan is a thorough construction document that describes all the planning details of a construction project, such as its scope of work, budget, schedule and work breakdown structure, among other important components.

2. Construction Budget

A construction budget is a document that outlines all the costs of a construction project. The main purpose of a construction budget is to help construction project managers control spending as construction projects are executed to ensure the costs won’t be exceeded and the project will be profitable. In addition, a construction budget should include a construction contingency fund to cover unexpected expenses such as the cost of responding to project risks.

3. Construction Schedule

A construction schedule is a document that coordinates the activities that take place over the execution phase of a construction project. The main purpose of a construction schedule is to ensure that everyone involved in the project such as contractors and subcontractors understands the due dates for their deliverables so the project can be completed on time.

Using construction scheduling software like ProjectManager helps create a detailed construction schedule and track the progress of your project in real time. ProjectManager is equipped with tools like Gantt charts, task lists, project calendars and project dashboards that allow you to monitor each activity in your construction schedule.

4. Construction Estimate

A construction estimate is a document that includes the direct, indirect and overhead costs of a construction project such as materials, labor and equipment rental. The construction estimate is the preliminary version of a construction budget.

Creating a construction estimate is a complex process that can be overwhelming without the right tools. That’s why it’s advisable to use construction estimating software , which helps you map the different costs of your project.

5. Scope of Work

The scope of work is a document that describes the work that will be performed in a construction project, including the estimated timeline, deliverables, costs and payment terms. It’s a critical construction document often used during the construction bidding process or as part of construction contracts.

6. Construction Proposal or Construction Bid

A construction proposal or bid is the document that contractors use to apply for construction contracts. It explains how a contractor would execute a project, including details such as the project timeline, costs, scope of work, specifications and more. Contractors typically submit this document to project owners after receiving a request for proposal (RFP) from them.

7. Punch List

A punch list is a construction form that lists any tasks that need to be completed before the construction phase can be considered complete. These are usually non-critical tasks such as doing paint touch-ups, cleaning debris or replacing defective equipment.

8. Request for Proposal (RFP)

A request for proposal (RFP) is a document that’s used to initiate the construction bidding process, as it allows owners to solicit project proposals from contractors interested in building their project. Besides this, RFPs help owners specify the details they’d like to know about the contractors’ proposals, such as their scope of work, timeline, costs and more.

9. Request for Information (RFI)

In many cases, important construction documents such as the scope of work might have omissions or mistakes such as missing tasks or unclear specifications. In these cases, you may submit a request for information (RFI) document to the project owner, architect, engineer or construction project manager to get more information on a particular matter.

10. Construction Lien Waiver

A construction lien is a legal claim that protects construction firms, contractors and subcontractors in scenarios where project owners aren’t willing to pay for the construction work they’ve performed.

On the other hand, a construction lien waiver is a document that’s exchanged between project owners and contractors once the project has been completed and the corresponding payment has been made. A lien waiver is a legal document by which a contractor gives up the right to file a construction lien.

11. Request for Quote (RFQ)

A request for quote (RFQ) is a document that’s often used in construction when contacting a supplier of goods or services such as construction materials to estimate how much project resources will cost. The vendor will then reply with a quote that will be valid for a limited time, as material prices fluctuate over time. Then, after reviewing multiple quotes and finding the best vendor for your project, you may send a purchase order and continue with the procurement process.

12. Construction Submittals

A construction submittal is a document that’s created by subcontractors and sent to general contractors, construction project managers, design teams or architects so they can approve the materials, equipment and processes that the subcontractor intends to use to execute their construction work.

Construction submittals help ensure all the construction work subcontractors are performing is aligned with the specifications outlined in construction contracts.

13. Construction Change Order

A construction change order is used whenever the initial construction plan needs to be adjusted. There’s a wide variety of reasons why this might happen. For example, project owners might add extra work to the construction plan during the execution phase. This means the initial scope of work needs to be expanded and more materials, labor and equipment are needed.

14. Bill of Quantities

A bill of quantities is an important construction planning document that describes the quantity and quality of materials that will be required to complete a construction project, along with the labor requirements. This construction form allows contractors to estimate construction costs and prepare their construction bids accordingly.

15. Schematic Design

A schematic design is a construction drawing that provides an idea of the construction project layout, how the construction site fits with its surroundings, what the actual measurements of the building will be like and whether building codes and other regulations are met. Schematic designs are created during the schematic design phase, which is one of the steps in the architectural design process.

16. Construction Specifications

Construction specifications describe the guidelines for the scope of work, materials and quality of workmanship for the activities that make up a construction project. They provide additional information that should be used with construction drawings to ensure the project is completed within the standards set by the owner and the construction design team.

The design team makes construction specifications and project owners approve them before the construction company or general contractor executes the work.

17. Construction Daily Report

A construction daily report is a document that lists the work that occurred during a day on the construction site, along with other details such as the material and equipment inventories, incidents, weather conditions and any other information that might be relevant to the construction site manager, construction project manager or general contractor.

18. Material Takeoff

A material takeoff (MTO) is a construction form that itemizes the needed materials for a construction project and describes the required quantities based on all the available construction drawings and documents. The main purpose of a material takeoff is to accurately estimate the costs of those materials.

19. Schedule of Values

A schedule of values is a construction project management document that allows contractors and subcontractors to report the work they’ve completed so far and the materials they’ve spent to the project owner. It also indicates the total labor and material costs needed to complete the project. It facilitates the payment process as it allows both parties to clearly understand what’s being paid for and what’s next.

20. Construction Timesheet

Construction timesheets are documents that help construction project managers, site supervisors, crew managers and other professionals keep track of the time construction workers spend on the job site performing project tasks. It allows them to calculate their pay based on the hours they’ve worked and their hourly rate.

21. Contractor Payment Schedule

In construction, a contractor payment schedule is a form that allows you to keep track of the payments that you’ve made to all the contractors you’ve hired for the execution of work. This document is ideal for general contractors, who usually have to hire multiple specialized subcontractors to help them with various areas of their construction projects.

Construction Drawings

The term construction drawings refers to all the architectural documentation that guides the construction phase of a project. Architectural drawings are very detailed and cover everything from codes, safety plans and sustainability standards to plumbing, mechanical and electrical systems.

There are many types of architectural drawings and for this reason, different countries have developed their nomenclature standards. In the United States, the preferred method of construction drawings nomenclature is the US National CAD standard , which was developed through a group effort from the American Institute of Architects (AIA), the Construction Specifications Institute and the National Institute of Building Sciences.

Here’s a quick overview of some architectural drawings, as defined by the US National CAD standard.

1. A0 Sheets

A0 sheets, also known as project information, have a cover sheet that summarizes the project information such as names, contact information, property details, zone use, building type, city PIN, site map, regulations, etc.

Source: Amatect , CC BY-SA 3.0 , via Wikimedia Commons

There’s also the accessibility notes and details sheet which includes door width and sizes and location of signage among other things (though not included for residential projects). The site plan shows the building as it sits on the property, landscaping, concrete work and exit safety requirements. A more detailed landscape plan is sometimes included.

2. A1 Sheets

A1 sheets are floor plans that show where every building element will be located and include detailed dimensions for these elements. There are also keynotes, door, window and wall type tags as well as other call-outs.

3. A2 Sheets

A2 sheets deal with elevations and sections. Elevations are the flat image of the outside faces of buildings. They show the height of the existing and new building elements as well as the materials that’ll be used or persevered from existing elements. Some keynotes add other important information about the construction of the exterior.

4. A3 Sheets

A3 drawings or section drawings are cut-section drawings through the center of the building. They show wall and foundation construction, floor-to-floor heights and the height relationships between the inside and the ground plane outside.

5. A4 Sheets

A4 sheets are enlarged plans or large-scale views. The main one is the reflected ceiling plan which shows the view up to the ceiling rather than down to the floor. These include ceiling material types such as drywall, plaster, wood cladding, etc. They often include the light switch locations to control the ceiling-mounted lights.

In residential construction projects , there’s also a power plan that locates the outlets and data points for cable TV or internet access. It shows the power location for appliances and personal devices. Larger projects have these details noted in the electrical plans.

The enlarged plans also include what materials will be applied to the walls and floors. This is done with finished tags that refer to a finish schedule (details further down the list) which show manufacturer, product names and other qualities.

6. A5 Sheets

A5 sheets are about details.  They show the types of walls, built-in furniture, where the power outlets will be, lights and switches as well as the height of different elements. These differ from residential and commercial spaces , but both need interior elevations charted.

7. A6 Sheets

A6 sheets are schedules. Schedule in this case means a spreadsheet rather than a timeline. They’re used to keep track of various detailed product information concerning finishes, types, sizes and so forth.

8. S Sheets

S sheets are structural drawings, which are standard throughout the building. The drawings are done by a licensed structural engineer and show the plan for each level, such as concrete footing, steel and wood framing and where and what size they will be, as well as any other structural details.

9. M Sheets

M sheets are the mechanical drawings for the project, such as the electrical and plumbing systems. They’re usually delivered by the engineer who provided the S sheets. These drawings show where the electrical and plumbing systems will go and what sizes they’ll be, including ductwork and types of air handling systems used.

10. P Sheets

P sheets are plumbing drawings that detail the pipe sizes that will be used in the system for both waste and potable water. There are also locations of vent risers to release sewage air out of the building safely.

11. E Sheets

E sheets are directed towards details in the electrical drawings. They have locations of outlets for all power in the building, including the switches that control them. They detail what type of wiring is required and the boxes to handle the electrical equipment.

ProjectManager Helps Manage Construction Documentation

As you can see, those are many documents to manage. Project management software can help you organize these documents and make them accessible to those who need them during the execution of the project. ProjectManager has unlimited file storage and is online, offering everyone access to the files they need whenever and wherever they work. But our construction project management software is more than a document organizer.

Use Multiple Project Views

The ability to share files is great, but if you can’t execute that work, you’re going to have to seek out other tools. That makes things complicated. We keep it simple. Our multiple project views mean that construction project managers can plan on Gantt charts, designers can visualize workflow on kanban boards, crews can check off tasks on our list view and stakeholders can make sure milestones are met on the calendar view.

Connect Everyone On the Project

Other problems occur if everyone is working on construction documents in a silo. If teams can’t collaborate effectively, issues will arise that result in delays and extra costs. Our online software takes care of that. As noted, files can be shared and users can comment on tasks and tag anyone in the project to bring them into the conversation as needed. Emails notify users of changes to the plan or comments, but there are also in-app alerts so you don’t have to leave the tool.

Our software is a great construction project management tool that is a centralized hub for your construction documents and drawings, but we also give you features that help you plan, monitor and report on the project. Get a high-level view with our real-time dashboard to keep on track. Then use customized reports to keep your stakeholders updated. We’ll help you manage expectations and deliver success.

ProjectManager is award-winning software that organizes and stores all your construction documents and construction drawings. Our collaborative platform connects everyone on the project team and lets them work with the tools they want. Plan, monitor and report on every aspect of the construction project. Get started with ProjectManager today for free.

Deliver your projects on time and on budget

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• Received a document?

Assignment of Benefits for Contractors: Pros & Cons of Accepting an AOB

22 articles

Insurance , Restoration , Slow Payment

When a property owner files an insurance claim to cover a restoration or roofing project, the owner typically deals directly with the insurance company. They may not have the funds available to pay the contractor out of pocket, so they’re counting on that insurance check to cover the construction costs.

But insurance companies often drag their feet, and payments can take even longer than normal. Contractors often wish they could simply deal with the insurance company directly through an assignment of benefits. In some circumstances, an AOB can be an effective tool that helps contractors collect payment faster — but is it worth it?

In this article, we’ll explain what an assignment of benefits is, and how the process works. More importantly, we’ll look at the pros and cons for restoration and roofing contractors to help you decide if an AOB is worth it . 

What is an assignment of benefits? 

An assignment of benefits , or AOB, is an agreement to transfer insurance claim rights to a third party. It gives the assignee authority to file and negotiate a claim directly with the insurance company, without involvement from the property owner. 

An AOB also allows the insurer to pay the contractor directly instead of funneling funds through the customer. AOBs take the homeowner out of the claims equation.

Here’s an example: A property owner’s roof is damaged in a hurricane. The owner contacts a restoration company to repair the damage, and signs an AOB to transfer their insurance rights to the contractor. The contractor, now the assignee, negotiates the claim directly with the insurance company. The insurer will pay the claim by issuing a check for the repairs directly to the restoration contractor. 

Setting up an AOB

A property owner and contractor can set up an assignment of benefits in two steps: 

• The owner and the contractor sign an AOB agreement
• The contractor sends the AOB to the insurance company

Keep in mind that many states have their own laws about what the agreement can or should include .

For example, Florida’s assignment of benefits law contains relatively strict requirements when it comes to an assignment of benefits: 

• The AOB agreements need to be in writing. The agreement must contain a bolded disclosure notifying the customer that they are relinquishing certain rights under the homeowners policy. You can’t charge administrative fees or penalties if a homeowner decides to cancel the AOB. 
• The AOB must include an itemized, per-unit breakdown of the work you plan to do. The services can only involve how you plan to make repairs or restore the home’s damage or protect the property from any further harm. A copy must be provided to the insurance company. 
• A homeowner can rescind an AOB agreement within 14 days of signing, or within 30 days if no work has begun and no start date was listed for the work. If a start date is listed, the 30-day rule still applies if substantial progress has not been made on the job. 

Before signing an AOB agreement, make sure you understand the property owner’s insurance policy, and whether the project is likely to be covered.

Learn more – Assignment of Benefits: Ultimate Guide for Contractors & Policyholders

Pros & cons for contractors

It’s smart to do a cost-benefit analysis on the practice of accepting AOBs. Listing pros and cons can help you make a logical assessment before deciding either way. 

Pro: Hiring a public adjuster

An insurance carrier’s claims adjuster will inspect property damage and arrive at a dollar figure calculated to cover the cost of repairs. Often, you might feel this adjuster may have overlooked some details that should factor into the estimate. 

If you encounter pushback from the insurer under these circumstances, a licensed, public adjuster may be warranted. These appraisers work for the homeowner, whose best interests you now represent as a result of the AOB. A public adjuster could help win the battle to complete the repairs properly. 

Pro: More control over payment

You may sink a considerable amount of time into preparing an estimate for a customer. You may even get green-lighted to order materials and get started. Once the ball starts rolling, you wouldn’t want a customer to back out on the deal. 

Klark Brown , Co-founder of The Alliance of Independent Restorers, concedes this might be one of the very situations in which an AOB construction agreement might help a contractor. “An AOB helps make sure the homeowner doesn’t take the insurance money and run,” says Brown.  

Pro: Build a better relationship with the homeowner

A homeowner suffers a substantial loss and it’s easy to understand why push and pull with an insurance company might be the last thing they want to undertake. They may desire to have another party act on their behalf. 

As an AOB recipient, the claims ball is now in your court. By taking some of the weight off a customer’s shoulders during a difficult period, it could help build good faith and further the relationship you strive to build with that client. 

Learn more : 8 Ways for Contractors to Build Trust With a Homeowner

Con: It confuses payment responsibilities

Even if you accept an AOB, the property owner still generally bears responsibility for making payment. If the insurance company is dragging their feet, a restoration contractor can still likely file a mechanics lien on the property .

A homeowner may think that by signing away their right to an insurance claim, they are also signing away their responsibility to pay for the restoration work. This typically isn’t true, and this expectation could set you up for a more contentious dispute down the line if there is a problem with the insurance claim. 

Con: Tighter margins

Insurance companies will want repairs made at the lowest cost possible. Just like you, carriers run a business and need to cut costs while boosting revenue. 

While some restoration contractors work directly with insurers and could get a steady stream of work from them, Brown emphasizes that you may be sacrificing your own margins. “Expect to accept work for less money than you’d charge independently,” he adds. 

The takeaway here suggests that any contractor accepting an AOB could subject themselves to the same bare-boned profit margins. 

Con: More administrative work

Among others, creating additional administrative busywork is another reason Brown recommends that you steer clear of accepting AOBs. You’re committing additional resources while agreeing to work for less money. 

“Administrative costs are a burden,” Brown states. Insurers may reduce and/or delay payments to help their own bottom lines. “Insurers will play the float with reserves and claims funds,” he added. So, AOBs can be detrimental to your business if you’re spending more while chasing payments. 

Con: Increase in average collection period

Every contractor should use some financial metrics to help gauge the health of the business . The average collection period for receivables measures the average time it takes you to get paid on your open accounts. 

Insurance companies aren’t known for paying claims quickly. If you do restoration work without accepting an AOB, you can often take action with the homeowner to get paid faster. When you’re depending on an insurance company to make your payment, rather than the owner, collection times will likely increase.

The literal and figurative bottom line is: If accepting assignment of benefits agreements increases the time it takes to get paid and costs you more in operational expense, these are both situations you want to avoid. 

Learn more: How to calculate your collection effectiveness 

AOBs and mechanics liens

A mechanics lien is hands down a contractor’s most effective tool to ensure they get paid for their work. Many types of restoration services are protected under lien laws in most states. But what happens to lien rights when a contractor accepts an assignment of benefits? 

An AOB generally won’t affect a contractor’s ability to file a mechanics lien on the property if they don’t receive payment. The homeowner is typically still responsible to pay for the improvements. This is especially true if the contract involves work that wasn’t covered by the insurance policy. 

However, make sure you know the laws in the state where your project is located. For example, Florida’s assignment of benefits law, perhaps the most restrictive in the country, appears to prohibit an AOB assignee from filing a lien. 

Florida AOB agreements are required to include language that waives the contractor’s rights to collect payment from the owner. The required statement takes it even further, stating that neither the contractor or any of their subs can file a mechanics lien on the owner’s property. 

On his website , Florida’s CFO says: “The third-party assignee and its subcontractors may not collect, or attempt to collect money from you, maintain any action of law against you, file a lien against your property or report you to a credit reporting agency.”

That sounds like a contractor assignee can’t file a lien if they aren’t paid . But, according to construction lawyer Alex Benarroche , it’s not so cut-and-dry.

“Florida’s AOB law has yet to be tested in court, and it’s possible that the no-lien provision would be invalid,” says Benarroche. “This is because Florida also prohibits no-lien clauses in a contract. It is not legal for a contractor to waive their right to file a lien via an agreement prior to performance.” 

Learn more about no-lien clauses and their enforceability state-by-state

Remember that every state treats AOBs differently, and conflicting laws can create additional risk. It’s important to consult with a construction lawyer in the project’s state before accepting an assignment of benefits. 

Best practices for contractors 

At the end of the day, there are advantages and disadvantages to accepting an assignment of benefits. While it’s possible in some circumstances that an AOB could help a contractor get paid faster, there are lots of other payment tools that are more effective and require less administrative costs. An AOB should never be the first option on the table . 

If you do decide to become an assignee to the property owner’s claim benefits, make sure you do your homework beforehand and adopt some best practices to effectively manage the assignment of benefits process. You’ll need to keep on top of the administrative details involved in drafting AOBs and schedule work in a timely manner to stay in compliance with the conditions of the agreement. 

Make sure you understand all the nuances of how insurance works when there’s a claim . You need to understand the owner’s policy and what it covers. Home insurance policy forms are basically standardized for easy comparisons in each state, so what you see with one company is what you get with all carriers. 

Since you’re now the point of contact for the insurance company, expect more phone calls and emails from both clients and the insurer . You’ll need to have a strategy to efficiently handle ramped-up communications since the frequency will increase. Keep homeowners and claims reps in the loop so you can build customer relationships and hopefully get paid faster by the insurer for your work.

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Assessment 3 part2 ARBE1305

• Industrial Engineering