AIA Contract Series · ARE 5.0 Exam Prep · Updated May 2026
AIA A101 explained for ARE 5.0
A plain-language breakdown of the Owner-Contractor Agreement — what it covers, how it works with A201, and what to know for your exam.
What is AIA A101?
The AIA A101 — formally titled Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum — is the contract between the owner and the contractor for a construction project. The 2017 edition is the version tested on the ARE 5.0.
Think of A101 as the deal between the owner and contractor. It sets the contract sum, the project schedule, and the payment terms. But A101 does not stand alone — it incorporates A201 (General Conditions) by reference, meaning A201’s rules govern how the project is actually run. Together, A101 and A201 form the core of the owner-contractor relationship.
Why A101 appears on CE and PjM
A101 is most heavily tested on Construction & Evaluation and Project Management because it governs the financial and contractual framework of the construction phase. Here is how each division connects to it:
CE
Construction & Evaluation
Covers the contract sum, schedule of values, payment applications, substantial completion, and final payment — all core CE topics.
PjM
Project Management
Covers project scheduling, contract time, liquidated damages, and how changes to the work affect cost and schedule.
Contract relationship map
A101
A201 — incorporated
contract
B101
C401
The architect administers the A201-based construction contract but has no direct contractual relationship with the contractor. A201 is incorporated into A101 — not a separately signed document.
Key provisions to know for the exam
Article 3
Date of commencement and substantial completion
Establishes the date of commencement — which may be the date of the agreement, a notice to proceed, or another defined date — and the date by which substantial completion must be achieved. These dates are binding and may be tied to liquidated damages if included in the agreement.
Article 4
Contract sum
Establishes the stipulated sum — the fixed price the owner agrees to pay the contractor. Unit prices and alternates may also be listed here. This is a stipulated sum contract, meaning the contractor generally bears the risk of cost overruns, except for changes in scope, differing site conditions, or other adjustments permitted by the Contract Documents.
Article 5
Payments
Defines the schedule of values and how the contractor submits applications for payment. Each Application for Payment is based on the Schedule of Values, which allocates the entire Contract Sum among portions of the Work. The Owner is obligated to pay the amount certified by the Architect within the time specified in the agreement after the Application for Payment is received by the Architect. Retainage, if any, is withheld from each progress payment as defined in the agreement and may be reduced or released at substantial completion depending on contract terms.
Article 6
Dispute resolution
References A201 for the initial dispute process. Disputes are first referred to the Initial Decision Maker — typically the architect unless another party is designated in the agreement — then to mediation, and finally to binding dispute resolution (arbitration or litigation) as selected in the agreement.
Step 1
Claim filed
Within 21 days of the event
Step 2
IDM decision
Initial Decision Maker issues written decision (typically the Architect)
Step 3
Mediation
Required before binding resolution
Step 4
Binding resolution
Arbitration or litigation per the agreement
Article 8
Liquidated damages
If included in the agreement and the contractor fails to achieve substantial completion by the contract date, liquidated damages may apply. The daily rate is set in A101 — this is a pre-agreed estimate of actual losses, not a penalty.
How A101 relates to A201
A101 and A201 are designed to work together. A101 is the agreement — it names the parties, sets the price, and establishes the schedule. A201 is the rulebook — it defines rights, responsibilities, and procedures. A101 expressly incorporates A201, meaning A201 is incorporated by reference and forms part of the Contract Documents, subject to any modifications or supplementary conditions.
On the ARE, questions often test whether candidates understand which document governs a specific situation. As a rule: if it involves money, schedule, or the contract sum — look to A101. If it involves authority, process, or dispute resolution — look to A201.
Common exam traps
- A101 is a stipulated sum contract — the price is fixed. It is not a cost-plus or guaranteed maximum price contract.
- The contractor generally bears the risk of cost overruns — but not for owner-directed changes, differing site conditions, or allowance adjustments.
- Retainage is not set at a fixed rate by A101 — the amount is defined in the agreement. It may be reduced or released at substantial completion depending on contract terms, not automatically.
- Liquidated damages are not a penalty — they are a pre-agreed estimate of actual damages for delay, and only apply if included in the agreement.
- The contractor must achieve substantial completion by the contract date — not final completion.
- The Initial Decision Maker for disputes is typically the architect — but A101 allows another party to be designated.
- A101 incorporates A201 by reference — you cannot understand A101 without also knowing A201.
Exam tip
When an ARE question involves the contract price, payment schedule, or project completion date, that information lives in A101. When it involves the architect’s authority, the contractor’s responsibilities, or the dispute process, that information lives in A201. Knowing which document governs which topic is one of the most reliable ways to answer AIA contract questions correctly.
How A101 relates to other AIA contracts
A101 is one of several owner-contractor agreement forms in the AIA family. A102 covers cost-plus with a guaranteed maximum price, and A103 covers cost-plus without a GMP. For the ARE 5.0, A101 is the most tested because stipulated sum is the most common delivery method tested by NCARB. Understanding A101 alongside A201 and B101 gives you a complete picture of how the three-party AIA contract system works.