New Version of ConsensusDOCS® Addresses Contractual Topics Important for Contract Glaziers
April 18, 2011
Several updates to the latest ConsensusDOCS edition, a library of model contracts for building design and construction, relate specifically to contract language that would affect the contract glazier. In addition, the new version focuses on helping those in the construction industry in writing fair contracts to foster better project results with less litigation. Carrie L. Ciliberto, Esq., director of contracts and construction law for the Associated General Contractors of America and deputy executive director for ConsensusDOCS LLC, also points out that the new version “was written with an overall eye toward keeping subcontractors up to speed on best practices.”
Section 750 focuses on the subcontract agreement and reflects a number of revisions that would be of interest to contract glaziers. For example, Section 5.4.1 of the new version notes that consequential damages flowed to the subcontractor have been explicitly limited to damages for which an owner is entitled to collect. The document now reads, “Except for any (a) liquidated, consequential, or other damages that the Owner is entitled to recover against the Constructor under the prime agreement, and (b) losses covered by insurance required by the Subcontract Documents, the Constructor and the subcontractor mutually waive all claims against each other for consequential damages, including damages for loss of business, loss of financing related to the Project, loss of profits not related to this Project, loss of bonding capacity, loss of reputation, or insolvency …”
There is also a section on owner information (4.2.1) that was revised to read, “Unless expressly prohibited by the prime agreement, the Constructor shall promptly provide to the Subcontractor the following information received from the Owner (a) upon the Subcontractor’s request, information regarding the Owner's financial ability to pay for the Work, and (b) notice of any material variation in the Owner’s financial ability to pay. The Constructor, however, does not warrant the accuracy or completeness …”
The new version includes updates to the retainage section (8.2.2) as well, noting that “When an Owner reduces the retainage held from the Constructor, the Constructor must similarly reduce its retainage for [the] Subcontractor. The revised language benefits early finishing trades whose subcontract work has been accepted.”
In addition, the “subcontractor’s review of contract document[s] has been changed from ‘careful analysis and comparison’ to ‘examine and compare.’ This revised language provides consistent terminology throughout the ConsensusDOCS library. Language similar to the ConsensusDOCS 200 has been added to clarify that the Subcontractor does not have an affirmative duty to discover errors.”
Overall, ConsensusDOCS revisions also reflect many current construction and design trends. For example, Ciliberto points out that Building Information Modeling, Integrated Project Delivery and green building were all incorporated into the revisions.
Ciliberto adds that there is also a new 703 purchase agreement for non-commodity goods. This, she explains, could be used for specialty/custom glass and glazing materials.
“Each construction project is different and the parties’ involved needs and expectations are different,” she says. “So, these documents can all be modified to meet the needs of each project’s specific requirements.”