Contractor Risks in AIA A201: Notices, Disputes and Damages

Updated September 7, 2026. An AIA form number is the starting point for contract review. The edition, completed owner-contractor agreement, supplementary conditions and project amendments determine the actual obligations. This overview discusses the standard A201–2017 framework.

Check the dispute-resolution selection

Using A201 does not, by itself, mean every dispute must be arbitrated. For example, A101–2017 § 6.2 permits the parties to select arbitration, litigation or another method. Its default is litigation if no different method is selected or subsequently agreed in writing.

Review the applicable initial-decision and mediation steps, any exceptions and the selected binding process together. Starting the wrong proceeding or missing a required preliminary step can complicate an otherwise valid claim. Kushnick Pallaci PLLC assists with construction arbitration and related contract disputes.

Do not use one notice deadline for every event

The AIA's explanation of A201–2017 distinguishes claims arising before the correction period ends from later claims. The former generally involve a 21-day notice requirement under Article 15; the latter are not subject to that same 21-day rule. Other provisions can impose different requirements: the 2017 concealed-or-unknown-condition provision uses a 14-day reporting period.

Check the specific trigger, recipient, delivery method and supporting information in the signed documents. An ordinary project email may not satisfy a formal claim-notice requirement. Do not plan on excusing a late notice through an assumed waiver or informal conversation.

Read the actual damages waiver

A201–2017 § 15.1.7 contains a mutual consequential-damages waiver. Its treatment of contractor profit expressly distinguishes anticipated profit arising directly from the work. A waiver therefore should not be summarized as eliminating every lost-profit claim or every form of delay recovery.

Review the categories waived, amendments, direct-damage claims and any liquidated-damages provision together. The AIA's consequential-damages overview and the firm's discussion of consequential damages in construction claims provide background.

Turn the contract into a working checklist

Before work begins, record the notice addresses, change-order procedure, payment requirements, insurance and bond obligations, termination provisions and claim deadlines. Keep that checklist with the complete executed contract and update it when the parties sign a modification.

Kushnick Pallaci PLLC provides construction contract drafting and review for project-specific risk allocation.

This article provides general information. An older A201 edition or amended contract may produce a different result.