Critical Elements of Contractual Agreements - Architects & Contractors

Architects

An architect is a “qualified professional who designs and supervises the construction of buildings or other structures” (What is architect, 2021, para. 1). In the United States, school boards/administrators and owners are very interested in selecting and employing architects that can fulfill the five basic services needed to complete the facility project: 1) schematic design; 2) design development; 3) construction document development; 4) bidding advisement; and 5) construction monitoring. After a comprehensive vetting process and the careful selection of the architects passes the school board, an architectural agreement is secured through a business contract that is signed by the school board/owner and the representing architectural firm. According to Earthman (2013), this legal contract

states precisely what services the architectural firm will give to the school system and the amount of money the architectural firm will receive for those services. As stated above, the school board must pass a resolution to enter into a contract with the architectural firm for a stated amount of money (p. 171).

Through this contract, all agreeing parties will understand the method of payment for the work being performed and the details surrounding the scheduled payments after the architect completes each of the five basic services/phases. 

Owner & Architect Agreements

When developing a new school facility, both owners and architects alike are responsible for being familiar with all legislative provisions that address discrimination issues associated with physical structures of the school project. As a managerial function of the facility plan, the school board/owner is responsible for ensuring that the entire school system and hired architects adhere to the ADA regulations regarding all academic facilities. Further, architects are required to be well-informed of and up-to-date with all building codes and regulations to help educational planners comply with all regulatory requirements. In fact, according to Earthman (2013), the “architect can be valuable in providing input into an alternative method of accessibility. The viability of the alternative method, however, is a decision of the school board based upon a recommendation of the educational planners and school administration” (p. 148).  Lastly, the owner and architect must work together to clarify the project work, terms & conditions, roles & responsibilities, construction costs, payment schedule, ownership of drawings & specifications, and other educational needs to establish a successful partnership. 

Contractors

A contractor is an autonomous firm that consents to provide a certain “number or quantity of goods, material, equipment, personnel, and/or services that meet or exceed stated requirements or specifications, at a mutually agreed upon price and within a specified timeframe to another independent entity called contractee, principal, or project owner” (What is a contractor, 2021, para. 1). Through a legal bidding process for the construction of a new school facility, the school owner/administrator will likely be in a better position to procure the best competitive price for the construction project by awarding the bid to the best contractor. As stated by Earthman (2013), “of course, the competitive nature of the bidding process means the estimator for the contractor must be rather precise to enable the contractor to have a good chance of being awarded the bid” (p. 191). Once the bid is awarded to the contractor, the contractor signs a legal contract that “states that the contractor will build the facility detailed in these documents adhering to the quality and quantity specified in the documents” (Earthman, 2013, p. 198). Further, the contractual agreement between the school board and the contractor

usually consist of the agreement, the conditions of the contract, the drawings, specifications, all addenda issued prior to, and all modifications issued after execution of the agreement. Specific sections in the agreement deal with the scope of the work, time of commencement and substantial completion, final payment, miscellaneous provisions, contract sum, and progress payments. Any special conditions that require additional work on the part of the contractor or that the contractor must be aware of are listed in the special section of the contract (p. 200).

When school boards/owners enter into contractual agreements with contractors, these critical elements must be clear in detailing the owner & contractor relationship, concise on the details surrounding the project to ensure that all work will be completed, and the safeguards to protect the school system if the contractor fails to perform the agreed upon tasks. 

Owner & Contractor Agreement

In the U.S. school systems, school boards/owners are responsible for facilitating a contractor bidding process to obtain the best price for the construction of a new school facility. On the surface, the appraised costs associated with the compliance of Federal Regulations may appear to be a burdensome financial responsibility; however, these costs are insignificant considering the overall total costs of the facility project. According to Earthman (2013), the “provisions incur very little cost and should be included in the educational specifications for any new construction as well as any renovation, renewal, or modernization” (p. 146). In fact, the law also states that the removal of barriers ought to be readily achievable without undue financial hardship. In defining the term “readily achievable”, Earthman (2013) states that

the removal of the barrier can be easily accomplished and carried out with little difficulty or without great expense. The nature and cost of removing a barrier are the criteria to be used in making a decision regarding whether or not a project is readily achievable. The cost of removal, the ease or difficulty with which the project can be accomplished, and the overall financial resources of the school system come into play in making the final decision (p. 146).

That said, after the bidding process, the owner & contractor enter into an agreement on the project work, contract documents, substantial completion, progress payments, and miscellaneous provisions to improve accessibility and control costs for the new DRAIN Scholars Academy facility.

D'uAndre A. Drain, Ed.D. is the Author of The Negative Perception Theory and Founder and Chief Executive Officer of Drain Corporation, LLC., a diversified services organization that provides products and services to help firms Achieve Strategic and Organizational Goals by Engaging the Talent and Passion of People?. Diversified services include, but are not limited to: Lean Six Sigma management; strategic & organizational management solutions; scholastic publication; and multi-media broadcasting.

References

Earthman, G. (2013). Planning Educational Facilities (4thEdition). Rowman and Littlefield Education. ISBN-13:978-1475801880

What is architect? definition and meaning. (n.d.). Retrieved May 19, 2021, from https://www.businessdictionary.com/definition/architect.html

What is a contractor? definition and meaning. (n.d.). Retrieved May 19, 2021, from https://www.businessdictionary.com/definition/contractor.html