Practice Management Member Conversations

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

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William Holloway AIA
Wilmington DE
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Original Message:
Sent: 2/3/2022 8:48:00 AM
From: William E. Holloway AIA
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

Original Message:
Sent: 2/4/2022 5:29:00 PM
From: David J. Brotman FAIA Member Emeritus
Subject: RE: AIA B101 Language regarding re-design to meet cost estimate

Bill, Danger, Danger!!!!

David J. Brotman, FAIA
Sunset Consultants
24350 North Whispering Ridge Way, #38
Scottsdale, AZ 85255
C:  310-409-7111
T:  480-247-2218

Original Message:
Sent: 2/3/2022 8:48:00 AM
From: William E. Holloway AIA
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

I'll share language I put into letter agreements for smaller projects. Use at your own risk, as do I - hasn't been vetted by anyone who knows more then me nor tested in a legal setting, but clients do seem to get the point and none have objected.  But probably wouldn't work for more institutional clients who have crisply defined budgets and multi-layered approval processes. Open to y'all's enhancements…
No cost estimating services are included as part of this proposal. The design will be developed and refined with sensible strategies that address both financial value and personal values, with frequent input by Owner and the Owner's contractor as the project progresses. Redesign to meet the budget or changes in scope will be performed as an Additional Service.

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Scott Knudson AIA
Knu Design, LLC
Boyds MD
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Original Message:
Sent: 02-03-2022 08:47 AM
From: William Holloway
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

Original Message:
Sent: 2/4/2022 7:43:00 PM
From: Scott D. Knudson AIA
Subject: RE: AIA B101 Language regarding re-design to meet cost estimate

I'll share language I put into letter agreements for smaller projects. Use at your own risk, as do I - hasn't been vetted by anyone who knows more then me nor tested in a legal setting, but clients do seem to get the point and none have objected.  But probably wouldn't work for more institutional clients who have crisply defined budgets and multi-layered approval processes. Open to y'all's enhancements…
No cost estimating services are included as part of this proposal. The design will be developed and refined with sensible strategies that address both financial value and personal values, with frequent input by Owner and the Owner's contractor as the project progresses. Redesign to meet the budget or changes in scope will be performed as an Additional Service.

------------------------------
Scott Knudson AIA
Knu Design, LLC
Boyds MD
------------------------------

Original Message:
Sent: 02-03-2022 08:47 AM
From: William Holloway
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

Original Message:
Sent: 2/3/2022 8:48:00 AM
From: William E. Holloway AIA
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

Alternative language is used in other AIA Owner Architect forms of Agreement. In addition to the CM variant check out the language in B104 Articles 6.6 and 6.7. They provide language where the redesign option is an additional service. You can view a sample on the AIA website.

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Forrest Lott FAIA
Lott+Naugler Architects
Savannah GA
------------------------------

Original Message:
Sent: 02-05-2022 06:05 PM
From: Michael Katzin
Subject: AIA B101 Language regarding re-design to meet cost estimate

Bill just some initial thoughts - consider one or more ideas below and discuss with your client. 

1. Do an estimate with deductive alternates.

2. Decrease the design and engineering scope/program/quality to correlate to the estimate, inform the client, if the client says okay -  the client pays for design modifications.

3. Increase the budget to meet your practices' quality norms.3

4. Client can suspend the project and client pays the Architect for work completed.

5. Get the client to get a CM@Risk onboard and have them be responsible for the cost of the design that you do that meets the clients approved program. The CM@Risk can offer deductive alternates.

If the client does not discuss with you and negotiate this issue in good faith on this topic and modify the contract language especially in this global and national financial environment with its impact on design and construction costs - walk away.

--

Michael L. Katzin, AIA

p | 470.469.5586 

e | mlkatzin@gmail.com 

Member | City of Johns Creek Planning Commission

Original Message:
Sent: 2/3/2022 8:48:00 AM
From: William E. Holloway AIA
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------

Original Message:
Sent: 2/7/2022 10:11:00 AM
From: Forrest R. Lott FAIA
Subject: RE: AIA B101 Language regarding re-design to meet cost estimate

Alternative language is used in other AIA Owner Architect forms of Agreement. In addition to the CM variant check out the language in B104 Articles 6.6 and 6.7. They provide language where the redesign option is an additional service. You can view a sample on the AIA website.

------------------------------
Forrest Lott FAIA
Lott+Naugler Architects
Savannah GA
------------------------------

Original Message:
Sent: 02-05-2022 06:05 PM
From: Michael Katzin
Subject: AIA B101 Language regarding re-design to meet cost estimate

Bill just some initial thoughts - consider one or more ideas below and discuss with your client. 

1. Do an estimate with deductive alternates.

2. Decrease the design and engineering scope/program/quality to correlate to the estimate, inform the client, if the client says okay -  the client pays for design modifications.

3. Increase the budget to meet your practices' quality norms.3

4. Client can suspend the project and client pays the Architect for work completed.

5. Get the client to get a CM@Risk onboard and have them be responsible for the cost of the design that you do that meets the clients approved program. The CM@Risk can offer deductive alternates.

If the client does not discuss with you and negotiate this issue in good faith on this topic and modify the contract language especially in this global and national financial environment with its impact on design and construction costs - walk away.

--

Michael L. Katzin, AIA

p | 470.469.5586 

e | mlkatzin@gmail.com 

Member | City of Johns Creek Planning Commission

Original Message:
Sent: 2/3/2022 8:48:00 AM
From: William E. Holloway AIA
Subject: AIA B101 Language regarding re-design to meet cost estimate

Good Morning All!
Does any one have a good solution, or alternative language, for the standard B101 language regarding project cost?  We have a client whose standard edited B101 agreement strikes the clause regarding the architect preparing the cost estimate, but retains the language to redesign for no additional fee.  In this world of wildly escalating costs, we see no way to maintain the standard language, even if we are preparing the project cost estimate.

Thank for your advice.
Bill Holloway, AIA

------------------------------
William Holloway AIA
Wilmington DE
------------------------------