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AIA A133 Explained for ARE 5.0

AIA Contract Series · ARE 5.0 Exam Prep · Updated May 2026

AIA A133 explained for ARE 5.0

A plain-language breakdown of the Owner-Contractor GMP Agreement — what it is, how the guaranteed maximum price works, and what to know for PjM.

PjM PcM AIA Contracts ARE 5.0

What is AIA A133?

The AIA A133 — formally titled Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price — is the contract used when a construction manager is hired to build the project under a guaranteed maximum price, commonly called a GMP.

Unlike A101, which is a traditional stipulated sum contract with a single general contractor, A133 is used in construction manager at-risk delivery. The construction manager takes on the role of the contractor but provides a guaranteed ceiling on costs — the GMP — above which they are responsible for costs without additional reimbursement. A133 also allows preconstruction and construction phases to overlap, supporting fast-track delivery. The 2019 edition is the version referenced on the ARE 5.0.

Why A133 appears on PjM

Project delivery methods are a core PjM topic, and construction manager at-risk is one of the most commonly used alternative delivery methods tested on the ARE. A133 is the contract that makes CM at-risk work.

PjM

Project Management

Understanding how A133 differs from A101, when CM at-risk is appropriate, and how the GMP is established and managed is directly tested in PjM — particularly around project delivery and contract structure.

PcM

Practice Management

Firms must understand which delivery method a client is using because it changes the architect’s role, responsibilities, and liability exposure under the owner-architect agreement.

What makes A133 different from A101

Delivery method

Construction manager at-risk vs. design-bid-build

A101 is used in traditional design-bid-build delivery where a general contractor bids on completed construction documents. A133 is used in CM at-risk delivery where the construction manager is brought on early — often during design — and eventually takes on full financial responsibility for construction under a GMP.

Basis of payment

Cost of the work plus a fee, with a ceiling

Under A133, the owner pays the actual cost of the work plus a contractor’s fee — but never more than the GMP. The Contract Sum equals the Cost of the Work plus the Construction Manager’s Fee, and is limited by the Guaranteed Maximum Price. If actual costs exceed the GMP, the construction manager is responsible for those costs without additional reimbursement. Savings below the GMP are only shared if explicitly provided for in the agreement.

Early involvement

Preconstruction services

One of the defining features of A133 is that the construction manager is typically engaged before construction documents are complete. Preconstruction services include cost estimating, scheduling, constructability review, procurement planning, and recommendations for phased or fast-track construction. Prior to establishment of the GMP, the Construction Manager does not guarantee cost estimates or schedules, except to the extent incorporated into the GMP. The CM ultimately proposes the GMP based on the design documents available at that time.

Key provisions to know for the exam

The GMP

Guaranteed Maximum Price — the cost ceiling

The GMP is established through a Guaranteed Maximum Price Amendment (Exhibit A), based on drawings, specifications, assumptions, and clarifications prepared at that stage of design. The GMP proposal includes a detailed basis consisting of drawings, specifications, assumptions, clarifications, and an estimated Cost of the Work organized by trade. The GMP may also include allowances and unit prices as part of its basis. It establishes the maximum amount the Owner will pay under the Contract. The GMP becomes binding upon written acceptance by the Owner and execution of the GMP Amendment. The GMP may be adjusted only by Change Order or Construction Change Directive. The GMP includes a contingency for the Construction Manager’s exclusive use to cover costs within the GMP not otherwise allocated, including construction risk.

Cost of the work

What counts as a reimbursable cost

Only costs necessarily incurred in the proper performance of the Work and permitted by the Contract are reimbursable (A133 §7.1). Reimbursable costs include labor, materials, subcontractor costs, equipment, and other direct project costs. Costs not reimbursable include home office overhead, bonuses, costs due to the CM’s negligence, and any costs that would cause the GMP to be exceeded.

Contractor’s fee

How the CM is compensated beyond costs

In addition to reimbursement of the cost of the work, the CM receives a fee — typically a percentage of the cost of the work or a fixed amount. This fee covers the CM’s overhead and profit and is agreed upon when the contract is signed.

Savings

What happens when costs come in under the GMP

If the final cost of the work plus the CM’s fee is less than the GMP, the difference is called savings. Savings below the GMP are only shared if explicitly provided for in the agreement — the owner may keep all savings, or the CM may receive a portion as an incentive for cost management. The split is negotiated and written into the contract.

Open book accounting

Owner’s right to audit

Because the owner is paying actual costs, the owner has the right to audit the Construction Manager’s records under Article 10. This transparency — called open book accounting — is one of the defining characteristics of cost-plus contracts and distinguishes them from stipulated sum contracts where the contractor’s internal costs are irrelevant to the owner.

GMP structure

Understanding what sits inside the GMP is one of the most tested A133 concepts. Every component flows through this structure.

GMP structure diagram GMP — Guaranteed Maximum Price Maximum the Owner will pay · Adjusted only by Change Order or CCD Cost of the Work Labor Materials Subcontractors Equipment Other direct costs Only if necessarily incurred and permitted by Contract CM Fee Overhead Profit Fixed or % of Cost of Work Agreed at contract signing CM Contingency CM’s exclusive use Covers construction risk Costs not otherwise allocated in GMP NOT owner contingency Cost < GMP → Savings Shared only if explicitly in agreement Cost > GMP → CM pays overrun Owner not responsible for excess Contract Sum = Cost of the Work + CM Fee · limited by GMP

CM at-risk timeline

A133 allows phases to overlap — and at each overlap point, something important changes for cost, risk, and schedule.

CM at-risk timeline showing what changes at each phase overlap SD DD CD Bidding CA Design SD → DD → CD Preconstruction CM joins · Estimating · GMP set Construction Construction may begin before CDs are complete Cost input during design Fast-track → schedule gain, coordination risk GMP set → cost risk shifts to CM Risk transfer point In design-bid-build (A101), phases are sequential — no overlap, no early CM involvement. A133 allows construction to begin before design documents are complete.

Common exam traps

  • A133 is a CM at-risk contract — not a traditional general contractor contract. The CM takes on financial risk through the GMP.
  • The GMP is not set at contract signing — it is established through a Guaranteed Maximum Price Amendment (Exhibit A) after the design has advanced sufficiently.
  • Prior to establishment of the GMP, the Construction Manager does not guarantee cost estimates or schedules, except to the extent incorporated into the GMP.
  • If costs exceed the GMP, the construction manager is responsible for those costs without additional reimbursement — not the owner.
  • Savings below the GMP are only shared if explicitly provided for in the agreement — not automatic.
  • Only costs necessarily incurred in the proper performance of the Work are reimbursable. Home office overhead, bonuses, and costs due to the CM’s negligence are not reimbursable.
  • The Contract Sum equals the Cost of the Work plus the CM’s Fee and is limited by the GMP — the GMP is the ceiling, not the target.
  • A133 incorporates A201 by reference for general conditions — the same rules that govern A101 projects also apply.
  • A133 allows preconstruction and construction phases to overlap, supporting fast-track delivery.

Exam tip

When an ARE question describes a project where the contractor was involved before construction documents were complete, or where the contract price has a ceiling but is based on actual costs, that is a CM at-risk scenario governed by A133. The key distinction from A101 is that A133 pays actual costs up to a maximum — A101 pays a fixed price regardless of actual costs. Knowing which contract controls which risk is one of the most reliable ways to answer delivery method questions correctly.

How A133 relates to other AIA contracts

A133 is part of the CM at-risk family of AIA contracts. It incorporates A201 by reference for general conditions, meaning the same rules around the architect’s role, change orders, payments, and disputes that apply to A101 projects also apply here. The architect’s agreement — B101 — remains the same regardless of delivery method, though the architect’s role during preconstruction may expand when working alongside a CM at-risk. Understanding A133 alongside A101 and A201 gives you a complete picture of how different delivery methods change the financial structure of a project without changing the architect’s fundamental responsibilities.