When To Use
Use C196™ when project participants have formed the Single Purpose Entity utilizing C195, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery, and need to form a contractual relationship between their LLC and the project owner.
What It Does
C196 is an agreement between a single-purpose entity (SPE) and a project owner (the owner member). This agreement clarifies the owner member's rights, obligations, and financial exposure within the integrated project delivery structure.
C196 provides the terms under which the owner member will fund the SPE in exchange for the design and construction of the project.
The SPE provides for the design and construction of the project through separate agreements with other members, including an architect and construction manager, utilizing C197. The SPE may also enter into agreements with non-member design consultants, specialty trade contractors, vendors, and suppliers.
