According to the AIA, the 2017 document set simplifies the payment provisions found in the older documents. In order to simplify the payment provisions, the AIA merely reorganized the items to be listed in a payment application such that those that are to be included in the payment applications are listed first, followed by a list of those items that are to be deducted. The AIA also added an express retainage provision that provides an area to exclude certain common items from retainage, such as general conditions or insurance.
The revised AIA A101 language requires the Owner to pay the contract amount “allocable to the work.” The references to completed percentages of the work and a schedule of values are de-emphasized in contrast to the 2007 documents.
The A102 continues to use percentage of the work and schedule of values for billing purposes. Contractors are instructed to deduct from payment applications any amount that the Contractor does not intend to pay to a subcontractor.
W Mason is an partner with the law firm Fox Rothschild LLP. W is Board Certified in Construction Law by the Florida Bar Association. W focuses his practice on construction and business litigation. You can reach W at (561) 804-4432 or wmason@foxrothschild.com.