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 so-called flaws in AIA’s SPE family of documents relate to issues of indemnity, mutual waivers of claims and insurance, says Quatman. He also takes issue with the makeup of the SPE’s governance board, not only because it guarantees the owner majority control, but because it may violate licensing law in some states.