A201 para. 9.6.7

Building Section Vignette and Multiple Choice

A201 para. 9.6.7

Postby kmarie » Sun Dec 08, 2013 11:20 am

I have read AIA contract doc A201 paragraph 9.6.7 over and over again and am struggling to understand its meaning or intent. Can someone enlighten me?
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Re: A201 para. 9.6.7

Postby Sarah be » Sun Dec 08, 2013 11:31 am

Here is what I've written next to that paragraph: The money for a specific portion of work needs to go to the right subs and suppliers BUT it doesn't need to be put in a separate account. That said, I too am lost after "Nothing contained herein...shall create any fiduciary liability or tort liability..."
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Re: A201 para. 9.6.7

Postby jlawrence » Sun Dec 08, 2013 3:28 pm

I think that last part is saying that nothing in this document shall create a contractual agreement between the contractor and the subs. Any liabilities are to be spelled out in the actual contract between the contractor and his subs.
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Re: A201 para. 9.6.7

Postby ElfLocks » Sun Dec 08, 2013 9:21 pm

This is how the commentary explains it "This section gives subcontractors and suppliers a preference in the event of the contractor’s bankruptcy and thereby protects the owner from lien claims which could have been asserted by those entities had they not been furnished with this preference. As the recipient of trust funds, the contractor is under an obligation to properly apply the funds for the account of the subcontractors and suppliers.Absent the express provision, the contractor would not be able to co-mingle monies received for the benefit of subcontractors or suppliers with the contractor’s own funds. Such a result would create accounting and bookkeeping complexities unnecessary to the accomplishment of the purpose of this provision."
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Re: A201 para. 9.6.7

Postby kmarie » Sun Dec 08, 2013 9:45 pm

All, thank you!
ElfLocks, that makes sense! Hugely helpful.
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