The contract templates of most interest to you as the homeowner are the “Series A” AIA documents.  These are the agreements set forth between the owner and the contractor.  Remember, in the absence of having an architect perform contract and project administration for your home remodel, you should change the sections to say “Owner” instead of  “Architect” where applicable.  Here’s a brief rundown of what each document is used for…

A101-2007 - Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

This agreement is used when your bid proposals are in the form of a fixed priced bid.  This is probably the most common form of arrangement for home renovations here in the SF Bay Area for small to medium sized remodels and renovations.  Basically,  your contractor is providing a scope of work based off your plans for a fix sum of money.  Any changes arising from the owner or from the unforeseen will be handed in the form of a change order (handled by the AIA G700 series).  When negotiating a fixed price bid make sure that you have a complete understanding of what the level finishes are (usually presented in the form of an allowance) better yet if you’ve specified all finishes ahead of time you should have a much tighter handle on the project budget.

A101-2007 -  Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

This agreement is used when you select a contractor that you really want to work with and construct a negotiated bid in the form of a cost plus the contractor’s fee capped by a maximum price.  This is also a common form of arrangement for home renovations here in the SF Bay Area for small to medium sized remodels and renovations.  Basically,  you’ve picked a contractor that you really want to do the work and they are providing a scope of work based off your plans for the cost of all material and labor plus a fee.  Here in the SF Bay Area, fees are typically 20% or higher.  I’ve seen bids at 15%, but very rarely.  Again changes arising from the owner or from the unforeseen will be handed in the form of a change order (handled by the AIA G700 series) but the amount will always be understood to be cost plus the contractor’s predetermined fee.  This arrangement provides the owner with flexibility when scope and details are unknown but at a price of having everything with a set markup.  The guaranteed maximum price is an overall cap that protects the owner from having the budget run amok.

There are other agreements in the 100 series that may pertain to you, for example if you are working with a design and build “firm”, but these are the most common.

To make sure you get what you’re expecting, I highly recommend the A201-2007.  This agreement stipulates a level of quality and performance you would expect from a professional handling your home remodel.  Remember - you should take nothing or granted and spell out as much as you can and review with your contractor before proceeding.

You can get copies of these documents from your local AIA chapter.  Modifying them will be somewhat tricky given that they are in hardcopy form.  The AIA also provides softcopy versions.  For more information you can visit AIA’s website.