When To Use
Use A103™ on large projects where payment is based on the cost of the work plus a fee, and the scope is not fully defined at contract signing. It preserves flexibility and maintains cost transparency on projects where the scope is still evolving, without the constraints of a guaranteed maximum price.
What It Does
A103 establishes the owner-contractor agreement for large projects where payment is based on the cost of the work plus a fee, without a Guaranteed Maximum Price. It gives owners and contractors an open-book structure that allows the project to evolve without prematurely locking in a fixed price. A103 adopts A201 by reference and requires Exhibit A (Insurance and Bonds).
Additional Information
Exhibit A, Insurance and Bonds, is a critical component and should be discussed with legal and insurance counsel.
