Some American Institute of Architects’ 2008 model contract documents for integrated project delivery are being challenged by at least one prominent lawyer who also is an architect and general counsel for a major A/E firm. The documents create a limited-liability company called a single-purpose entity (SPE). Do not use these model documents without “competent legal counsel review,” because they are “flawed,” says Bill Quatman, managing director for Burns & McDonnell Engineering Co., Kansas City. The single-purpose-entity agreement sets up a limited-liability company that contracts for design and construction. Under the SPE model, the owner has three managers, controlling the board.
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.