AIA Contract Series · ARE 5.0 Exam Prep · Updated May 2026
AIA A195 explained for ARE 5.0
A plain-language breakdown of the Owner-Contractor Agreement for Integrated Project Delivery — what IPD is, how it works, and why it matters for your exam.
What is AIA A195?
The AIA A195 — formally titled Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery — is the contract used when a project is delivered using Integrated Project Delivery (IPD). The 2008 edition is the version referenced on the ARE 5.0.
A195 works alongside B195 (Owner-Architect Agreement for IPD) and A295 (General Conditions for IPD) within an integrated contractual framework that aligns the owner, architect, and contractor into a collaborative structure. Together these coordinated agreements bind the project team around shared goals and collaborative decision-making from the earliest stages of a project.
Why A195 appears on PjM
A195 is tested on Project Management because IPD represents a fundamentally different approach to project delivery — one that changes how teams are organized, how decisions are made, and how risk and reward are structured across the project.
PjM
Project Management
Covers how IPD changes project team structure, decision-making, risk allocation, and compensation — and how it compares to traditional and design-build delivery methods tested on PjM.
What is Integrated Project Delivery?
IPD is a project delivery method that integrates people, systems, business structures, and practices into a collaborative process that harnesses the talents and insights of all participants to optimize project results. It is fundamentally different from traditional delivery in several key ways:
Integrated contractual framework
Coordinated agreements align the project team
In traditional delivery, the owner holds separate bilateral contracts with the architect and contractor. In IPD, A195 works alongside B195 and A295 within an integrated contractual framework. This structure aligns the owner, architect, and contractor around shared project goals and eliminates many of the adversarial dynamics that can arise between parties in traditional delivery.
Early involvement
Contractor joins during design
In IPD, the contractor is brought onto the project team during the design phase — much earlier than in traditional delivery. This allows construction expertise to inform design decisions, reduce constructability issues, and accelerate the overall schedule.
Shared project outcomes
Compensation structures aligned around project goals
IPD compensation structures may align project participants around shared project outcomes and cost goals. Rather than strictly independent fee arrangements, compensation in the IPD framework may be tied to the project’s target cost and overall performance — creating incentives for all parties to collaborate effectively.
Collaborative decision-making
Coordinated through governance structure in A295
IPD projects are governed through the collaborative management structure established in A295. Major decisions — including design changes, budget adjustments, and schedule modifications — are coordinated through this governance structure rather than made unilaterally by any single party.
Waiver of consequential damages
Mutual protection encourages collaboration
IPD agreements commonly include mutual waivers of consequential damages between the parties. This reduces litigation risk and encourages open collaboration — parties are less likely to withhold information if they are not exposed to consequential damage claims from their team members.
IPD compared to other delivery methods
The ARE frequently tests candidates on the differences between project delivery methods. Here is how IPD compares:
Traditional (Design-Bid-Build)
Sequential, separate bilateral contracts
Owner holds separate contracts with architect and contractor. Design is completed before construction begins. Risk is allocated separately to each party. Architect acts as impartial administrator. Most common delivery method.
Design-Build (A141)
Single entity, single contract
Owner holds one contract with a design-builder who provides both design and construction. Owner gains single point of responsibility but loses independent design oversight. Architect typically works for the design-builder, not the owner.
CM at-Risk (A133)
Constructor joins early, GMP protects owner
Owner holds separate contracts with architect and CM. CM provides a guaranteed maximum price and takes on construction risk. Design and construction overlap. Owner retains an independent architect throughout.
IPD (A195 + B195 + A295)
Integrated framework, collaborative structure
Owner, architect, and contractor operate within an integrated contractual framework — A195 (Owner-Contractor), B195 (Owner-Architect), and A295 (General Conditions for IPD). All parties are aligned around collaborative project goals. Contractor involved from early design. Decisions coordinated through A295 governance structure. Most collaborative delivery method.
Common exam traps
- IPD uses an integrated contractual framework — A195, B195, and A295 work together to align the project team, but A195 itself is still an owner-contractor agreement, not a literal tri-party agreement.
- The contractor joins the project team during design — not after design is complete.
- IPD compensation structures may align participants around shared project outcomes — not strictly independent fee arrangements as in traditional delivery.
- Major decisions are coordinated through the governance structure established in A295 — no single party has unilateral authority over major project decisions.
- IPD agreements commonly include mutual waivers of consequential damages between the parties.
- A195 governs the owner-contractor relationship in IPD — B195 governs the owner-architect relationship.
- IPD is the most collaborative delivery method — more so than design-build or CM at-risk.
Exam tip
When an ARE question describes a delivery method where the contractor is involved during design, compensation is aligned around shared project outcomes, and decisions are made collaboratively through a governance structure — that is IPD. The key distinguishing features are the integrated contractual framework (A195 + B195 + A295), early contractor involvement, and collaborative decision-making. These elements separate IPD from every other delivery method tested on PjM.
How A195 relates to other AIA contracts
A195 works alongside B195 (Owner-Architect Agreement for IPD) and A295 (General Conditions for IPD) within the integrated IPD contractual framework. Understanding this three-document structure — A195, B195, A295 — alongside the traditional delivery documents (A101, B101, A201) and alternative delivery documents (A133, A141) gives you the complete picture of project delivery methods as tested across PjM and PcM.