The legal climate has changed somewhat for architects who adopt the new contracts published by the AIA earlier this year [RECORD, July 2008, page 59]. Like previous contracts, A295-2008 requires the parties to conduct mediation efforts before moving to binding dispute resolution. But if mediation is unsuccessful, the latest version of the contract does not allow the parties to choose between litigation and arbitration, according to Suzanne Harness, an architect and the AIA’s managing director and counsel for contract documents. “In an effort to ensure that all disputes be resolved in one proceeding (as seems appropriate for an integrated project) the owner, architect, and contractor are required to proceed to arbitration,” she says.

The new AIA contract C195, for single purpose entities (SPEs), takes a different approach. It requires that all disputes be dealt with within the SPE. Harness explains: “SPE Members are required to make efforts to resolve all disputes amicably and through mutual consensus following the dispute resolution procedures set forth in C195. In the event they cannot reach a resolution, the matter is presented to the SPE’s governance board for consideration and resolution. If the governance board is unsuccessful at resolving the dispute, it will be referred to arbitration through a dispute resolution committee for full and final resolution.”