On today’s show we are talking about the elements of negotiating a construction contract, specifically using the industry standard AIA contract forms.
I’ve heard a number of people insist on using the industry standard AIA contracts. These industry standard contracts are supposed to be a fair contract that is not one-sided favouring neither the owner nor the general contractor.
I compare the AIA contract to the standard real estate board purchase and sale agreement template. Nobody would ever use the standard real estate board contracts without alteration. They are, after all, just a blank template.
The benefit and the problem with these templates is that they are very easy to customize. Unless you are familiar with the contract in detail, it’s going to take a lot of work to close down all of the potential landmines that exist in these standard contracts.
It starts with having a clear understanding of what your goals are as a property owner.
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Host: Victor Menasce
email: [email protected]
