When To Use
Use C195™ when the owner, architect, contractor, and other key IPD participants are forming a Single Purpose Entity as a limited liability company to jointly deliver a project. This document is suitable for large-scale projects.
What It Does
C195 is a standard form single-purpose entity (SPE) agreement through which the owner, architect, construction manager, and other key project participants each become members of a limited liability company (LLC). The sole purpose of the company is to design and construct a project utilizing the principles of integrated project delivery (IPD). C195 fosters a collaborative environment in which all parties work toward shared cost and performance goals.
To obtain project funding, the company enters into a separate agreement with the owner. To design and construct the project, the company enters into separate agreements with the architect, construction manager, other non-owner members, and with non-member consultants and contractors. The compensation model in the non-owner member agreements is goal-oriented and provides incentives for collaboration in the design and construction of the project, and for the quick and effective resolution of problems as they arise.
This highly collaborative process has the potential to result in a high-quality project for the owner and substantial monetary and intangible rewards for the other members.
Additional Information
For more information on Integrated Project Delivery, please refer to this guide.
