AIA A-401 Article 10.1
The General Contractor (GC) shall pay the Subcontractor
(Sub) in current funds for performance of
the Subcontract the Subcontract Sum of $_________, subject to additions and
deductions as provided in the Subcontract Documents.
AIA A401 Ė Article 10.2, 10.3, 10.4
The Subcontract Sum is based upon the following alternates, if any, which are
described in the Subcontract Documents and have been accepted by the Owner and
Unit prices, if any:
Units and Limitations
Price per Unit ($0.00)
Allowances included in the Subcontract Sum, if any:
ConsensusDOCS 750 Article 6
As full compensation for performance of this agreement, the
General Contractor (GC) agrees to pay the
Subcontractor (Sub) in current funds for the satisfactory performance of the
Subcontract Work subject to all applicable provisions of this Agreement:
(a) the fixed-price of $___ subject to additions and deductions as provided in
the Subcontract Documents; or
(b) alternates and unit prices in accordance with the attached schedule of
alternates and unit prices and estimated quantities, which is incorporated by
reference and identified as Ex. D;
(c) time and material rates and prices in accordance with the attached Schedule
of Labor and Material Costs which is incorporated by reference and identified as
The fixed-price, unit prices or time and material rates and prices are referred
to as the Subcontract Amount.
AIA A401: Article 11 Progress Payments
Based on pay apps from Sub to GC, corresponding to pay apps from GC to
Architect, and certificates of payment issued by the Architect.
GC makes progress payments on account of the Subcontract Sum to Sub.
If no payment bond, payments received by GC/Sub for work performed by others, shall
be held by them for those who performed the work/supplied materials.
Money not required to be in separate account.
Does not create any fiduciary or tort liability for breach of trust.
Does not entitle an award of punitive damages for breach of the requirements of
The period covered by each pay app shall be one calendar month ending on the
last day of the month or as follows:
Provided pay app is received by GC not later than the __ day of a month, the GC
shall include the Subís Work covered by that app in the next pay app the GC is
entitled to submit.
The GC shall pay the Sub each progress payment no later than 7 working days
after the GC receives payment from the Owner.
If Architect doesnít issue Certificate of Payment or GC does not receive
payment for any cause which is not the fault of the Sub, the GC shall pay the
Sub, on demand, a progress payment as computed in 11.7, 11.8 and 11.9.
Sub shall submit to GC a schedule of values prior to submitting the Subís first
Each pay app shall be based upon the most recent schedule of values.
The schedule of values shall allocate the entire Subcontract Sum among the
various portions of the Subís Work. To be used as a basis for reviewing the
Subís pay apps.
Pay apps shall indicate the percentage of completion of each portion of the
Subís Work as of the end of the period covered by the pay app.
Each progress payment shall be computed as follows:
Multiply the percentage complete of a portion by the share of the total
allocated to that portion, less retainage.
Add the portion properly allocable to materials delivered and stored on site
(and, if approved by GC, materials stored off site at a location agreed in
writing) less retainage.
Subtract the aggregate of prior payments.
Subtract any amounts the Architect has withheld or nullified, for a cause that is
the fault of the Sub
If the GC disapproves Subís pay app, in part or whole, the GC shall provide
written notice to the Sub. When basis for disapproval has been remedied, the Sub
shall be paid the amounts withheld.
ConsensusDOCS 750: Article 8 Payment
As a condition precedent to payment, a Schedule of Values satisfactory to GC to
be provided not more than 15 days from the execution of the Agreement. 8.1
Subs pay apps are to be itemized and supported by substantiating data as
required by the Subcontract Docs. 8.2.1
If Sub provides design services (3.8), pay app must show its design
professionalís fee and expenses as a separate cost item. 8.2.1
Pay app shall be notarized if required; and if allowed may include properly
authorized Subcontract Construction Change Directives or Interim Directed
Subs pay app for Work performed in the preceding pay period shall be submitted
for approval by the GC in accordance with the schedule of values, if required,
and subsections 8.2.2 through 8.2.4.
The GC shall incorporate the approved amount of the Subís pay app into the
GCís pay app to the Owner for the same period and submit it to the Owner in a
timely fashion. 8.2.1
GC shall notify the Sub of any changes in the amount requested on behalf of the
Rate of retainage shall be __%, which is equal to the percent of retainage held
from the GC by the Owner. 8.2.2
If Subís work is satisfactory and the prime agreement provides for reduction of
retainage, the Subís retainage shall also be reduced. 8.2.2
Sub shall submit progress pay apps to the GC no later than the __ day of each
payment period for the Subís Work performed up to and including the __ day of
the payment period indicating work completed and, if allowed, materials suitably
stored during the preceding pay period. 8.2.3
Unless otherwise provided, pay apps may include materials and equipment not
yet incorporated in the Work but delivered to and suitably stored on or off the
Worksite, including applicable insurance, storage, and costs incurred
transporting to off-site storage. Approval of pay for stored items (on or off
site) shall be conditioned on the Sub providing bills of sale and required
insurance satisfactory to Owner and GC to establish Ownerís title or protected
Progress payments shall be made to Sub for satisfactory performance of the Work
no later than 7 days after receipt by the GC of payment by the Owner for the
Subís Work. 8.2.5
If payment is not received for the Subís work, through no fault of the Sub, the
GC will make payment to the Sub within a reasonable time. 8.2.5
If GC receives payment and if the Sub does not receive payment though no fault
of its own within 7 days of the due date, or if not paid in reasonable time,
upon 7 days written notice, the Sub may stop work until full amount received.
Amount and Time shall be adjusted for reasonable and verified cost of shutdown,
delay and startup, by Sub Change Order. 8.2.6
The GC may Subís pay app, in whole or part, or withhold amounts from a
previously approved pay app, as may reasonably be necessary to protect the GC
from loss or damage for which the GC may be liable and without incurring late
interest penalty if based upon: 8.2.7
Subís repeated failure to perform work as required.
Loss or damage arising out of or related to this Agreement and caused by the Sub
(unless accepted by insurer)
Subís failure to properly pay for labor, materials, equipment, or supplies
Rejected, nonconforming or defective Sub Work not corrected in timely fashion
Reasonable evidence of delay in performance of Work such that Work will not be
completed within the Subcontract time, and that the unpaid balance is not
sufficient to offset liquidated or actual damages that may be sustained by GC as
a result of anticipated delay caused by Sub
Reasonable evidence that the unpaid balance is insufficient to cover the cost
to complete the Subís Work
Uninsured third-party claims involving the Sub or reasonable evidence that such
claims are likely to be filed, unless and until the Sub furnishes the GC with
adequate security: surety bond, letter of credit, or other collateral or
commitment sufficient to discharge such claims if established.
No later than 7 days after receiving pay app, the GC shall give written notice
to Sub of disapproval or nullification, stating specific reasons for such, and
the remedial actions to be taken by Sub in order to receive payment. When the
reasons are removed, payment will be promptly made for the amount withheld.
AIA A401-2007: Article 11.9 Substantial Completion
When Subís Work is substantially complete and in accord with Prime Contract, the
GC shall, upon application by Sub, make prompt application for payment of such
Within 30 days of Architect issuing certificate of payment covering such Work,
the GC, to the full extent allowed in the Prime Contract, shall make payment to
the Sub, deducting any portion in accord with the certificate to cover costs of
items to be corrected/completed.
ConsensusDOCS 750: Article 8
Substantial Completion 8.2.8
Upon substantial completion of Subís Work, in part or whole, the GC assumes
responsibility for security and protection of the Work pending the achievement
of Substantial Completion of the Project. Acceptance of the Work for purpose of
allowing succeeding Work to proceed shall not start warranty period of the Subís
Work, unless otherwise provided.
Partial Owner occupancy or use of completed portions of the Subís Work shall
constitute Substantial Completion of that portion of the Subís Work and the
warranty shall commence upon the achievement of Substantial Completion of the
Project and acceptance by the Owner under the terms of the prime agreement.
AIA A-401 Article 12: Final Payment
Entire unpaid balance of the Subcontract Sum, shall be made by the GC when Subís
Work is fully performed in accord with the requirements of the Subcontract Docs,
the Architect has issued a certificate of payment and the GC has received payment
from the Owner.
If Sub not at fault and Architect doesnít issue certificate of payment, or GC
doesnít receive payment from the Owner or GC does not pay the Sub within 7 days
of receipt of payment from the Owner, final payment shall be made upon demand.
If required, Sub shall submit evidence satisfactory to the GC that all
payrolls, materials bills, and all other known indebtedness connected with the
Subís Work have been satisfied.
Acceptance of final payment constitutes a waiver of claims by the Sub, except
for those previously made in writing and identified as unsettled at the time of
final pay app.
ConsensusDOCS 750 Article 8.3 Final Payment
Upon acceptance of the Work by Owner and GC and receipt of evidence of Subís
fulfillment of requirements, the GC shall incorporate the Subís final pay app
into the GCís next pay app to the Owner without delay, or notify the Sub if and
why there is delay. 8.3.1
The Sub shall submit to the GC:
an affidavit that all payrolls, bills, and other indebtedness for which the
Owner, the GC or the surety might in any way be liable, have been
Consent of the surety, if required.
Satisfaction of required closeout
Other data, if required by GC or Owner:
receipts, releases, lien waivers to the extent required by
Written warranties, equipment manuals,
startup and testing required.
As-built drawings if required by
Subcontract Docs. 8.3.2
Final payment of the balance due shall be made within 7 days of receipt by GC
from Owner. 8.3.3
If Owner/agent does not issue a certificate of final payment or the GC does
not receive payment for any cause which is not the Subís fault, the GC shall
promptly inform the Sub in writing. 8.3.4
If final payment from the Owner is not received by the GC through no fault of
the Sub, the GC shall make payment to the Sub within a reasonable time. 8.3.4
Final payment shall constitute a waiver of all Subís claims, but does not
relieve Sub of liability under 3.21 or 3.22, or for faulty/defective work or
services discovered after final payment, nor for Subís claims made in writing by
Sub prior to final pay app.