Content.
Changes from the previous edition
Dispute Resolution—Mediation and Arbitration
Synopsis.
AIA Document A701-2018 is used when competitive bids are to be solicited for construction of the project. Coordinated with AIA Document A201®, General Conditions of the Contract for Construction, and its related documents, AIA Document A701-2018 provides instructions on procedures, including bonding requirements, for Bidders to follow when preparing and submitting their bids. The type and amount of bonding shall be established on AIA Document A312™, Payment Bond and Performance Bond. Additionally, Information from AIA Document G612™-2017, Owner’s Instructions to the Architect, Part B: Bidding Procedures should be used to complete A701. For use and execution of a document, see its instructions »
Purpose.
AIA Document A701–2018 is intended to be used for competitively bid projects. The Instructions to Bidders inform Bidders how to obtain documents to bid a Project; how to submit requests for clarification, interpretation, and substitutions; how addenda will be transmitted; and how to submit Bids. Other topics addressed include bid security, modifying or withdrawing Bids, and performance and payment bonds.
Related documents.
This document is complementary to, and has been prepared for use with, AIA Document A201-2017. It may also be used with AIA Document A232–2009, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition. Specific information for a particular Project must be provided in the Advertisement or Invitation to Bid, in the Supplementary Provisions provided for the Project, or in a supplement to this document.
Information from AIA Document G612-2017, Owner’s Instructions to the Architect, Part B: Bidding Procedures should be used to complete A701.
Changes from the previous edition.
A701 has been updated to address electronic bids. The following changes in content have been made in A701.
Article 1 – Definitions
§ 1.1 Because “proposed Contract Documents” is a defined term, it has now been capitalized to “Proposed Contract Documents”.
§ 1.3 The definition of Addenda has been clarified to recognize that these written or graphic instruments, which are part of the Proposed Contract Documents, are issued prior to the date for receipt of Bids and not prior to execution of the Contract.
§ 1.6 This section has been modified to account for Alternates that do not change the Base Bid.
Article 2 – Bidder’s Representations
This Article was simplified by introducing subsections to clearly identify each representation.
§ 2.6 This new section informs all project participants of the potential exposure to liquidated damages by referring to the form of Agreement between the Owner and Contractor to confirm any such provisions.
Article 3 – Bidding Documents
This Article was simplified by introducing subsections to clearly identify each representation.
§ 3.3.2.1-3.3.2.3 These subsections detail the process by which Bidders shall submit substitution requests.
Article 4 – Bidding Procedures
This Article was simplified by introducing subsections to clearly identify each representation.
§ 4.1.7 A requirement that the Bidder provide evidence of its legal authority to perform within the jurisdiction of the Work has been modified to provide evidence of its legal authority to perform the Work in the jurisdiction where the Project is located.
§ 4.1.8 This new section requires that the Bidder bear the costs of preparing its Bid.
§ 4.4.1 This section clarifies procedures for the Bidder and the party designated to receive Bids when modifying or withdrawing a Bid prior to the date and time designated for receipt of Bids.
§ 4.4.3 This new section allows a Bidder who discovers that it made a clerical error in its Bid to withdraw that Bid within two days, or a timeframe specified by the jurisdiction where the Project is located, after Bid opening. The Bidder must provide evidence of the clerical error to the reasonable satisfaction of the Architect, upon which time, the Bid shall be withdrawn and not resubmitted.
Article 6 – Post-Bid Information
§ 6.2 This section has been revised to provide a timeframe of 14 days before expiration of the time for withdrawal of Bids for the Bidder to whom award of a Contract is under consideration, to request, in writing, that the Owner furnish it with reasonable evidence of the Owner’s financial arrangements for the Project. The Owner is then allotted seven days to provide such evidence to the Bidder, which leaves seven days until the expiration of the time for withdrawal of Bids. The Bidder is not required to execute the Agreement between the Owner and Contractor if reasonable evidence is not furnished within the allotted time.
Article 7 – Performance Bond and Payment Bond
§ 7.1.3 The entity issuing surety bonds must be lawfully licensed in the jurisdiction where the Project is located to ensure that entity is subject to regulation.
Dispute Resolution—Mediation and Arbitration.
This document contains provisions for mediation and arbitration of claims and disputes. Mediation is a non-binding process but is mandatory under the terms of this agreement. Arbitration may be mandatory under the terms of this agreement. Arbitration is binding in most states and under the Federal Arbitration Act. In a minority of states, arbitration provisions relating to future disputes are not enforceable but the parties may agree to arbitrate after the dispute arises. Even in those states, under certain circumstances (for example, in a transaction involving interstate commerce), arbitration provisions may be enforceable under the Federal Arbitration Act.
The AIA does not administer dispute resolution processes. To submit disputes to mediation or arbitration or to obtain copies of the applicable mediation or arbitration rules, contact the American Arbitration Association at (800) 778-7879 or visit the website at adr.org.