AIA Contract Series · ARE 5.0 Exam Prep
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.
Key provisions to know for the exam
Article 3
Date of commencement and substantial completion
Sets the date the contractor must begin work and the date by which substantial completion must be achieved. These dates are binding and tied to liquidated damages if missed.
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 lump sum contract, meaning the contractor bears the risk of cost overruns.
Article 5
Payments
Defines the schedule of values, how and when the contractor submits applications for payment, and the owner’s obligation to pay within the time specified. Retainage — typically 10% — is withheld from each payment until substantial completion.
Article 6
Dispute resolution
References A201 for the initial dispute process. Disputes go first to the architect for an initial decision, then to mediation, and finally to arbitration or litigation depending on what the parties have agreed to.
Article 8
Liquidated damages
If 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 amount, not a penalty, and must be reasonable and reflect actual anticipated losses.
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 every clause of A201 becomes part of the owner-contractor contract automatically.
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.
- Retainage is withheld from each progress payment and released at substantial completion, not final completion.
- Liquidated damages are not a penalty — they are a pre-agreed estimate of actual damages for delay.
- The contractor must achieve substantial completion by the contract date — not final completion.
- 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.