AIA Contract Series · ARE 5.0 Exam Prep · Updated May 2026
AIA A295 explained for ARE 5.0
A plain-language breakdown of the General Conditions for Integrated Project Delivery — what it covers, how it governs IPD projects, and why it matters for your exam.
What is AIA A295?
The AIA A295 — formally titled General Conditions of the Contract for Integrated Project Delivery — is the rulebook for IPD projects, serving the same function that A201 serves for traditional design-bid-build projects. The 2008 edition is the version referenced on the ARE 5.0.
Just as A201 is incorporated by reference into A101 and B101 for traditional projects, A295 is incorporated by reference into A195 (Owner-Contractor Agreement for IPD) and B195 (Owner-Architect Agreement for IPD). A295 establishes the rules, rights, and responsibilities that govern how all parties on an IPD project work together throughout the project lifecycle.
Why A295 appears on PjM
A295 is tested on Project Management because it defines the governance structure, decision-making process, and collaborative framework that makes IPD fundamentally different from traditional delivery. Understanding how A295 governs an IPD project — and how it differs from A201 — is a key skill tested on PjM.
PjM
Project Management
Covers how IPD projects are governed, how the Project Management Team makes decisions, how risk and reward are structured, and how disputes are handled differently than in traditional delivery.
How A295 differs from A201
A295 and A201 serve the same fundamental purpose — they are both general conditions that govern construction projects — but they reflect very different philosophies about how projects should be run:
A201 — Traditional delivery
Hierarchical and adversarial
A201 governs a project where the owner, architect, and contractor have separate contracts and potentially competing interests. The architect acts as an impartial administrator between the owner and contractor. Disputes are resolved through a formal claims process. Risk is allocated separately to each party.
A295 — IPD
Collaborative and integrated
A295 governs a project where the owner, architect, and contractor are bound together in a multi-party agreement with shared goals. There is no impartial architect — all parties collaborate as a team. Decisions are made by consensus. Risk and reward are shared. The emphasis is on problem-solving together rather than assigning blame.
Key provisions to know for the exam
Project Management Team
Governing body of the IPD project
A295 establishes the Project Management Team (PMT) as the governing body of the project. The PMT includes senior representatives from the owner, architect, and contractor. All major project decisions — design changes, budget adjustments, schedule changes — must be approved by the PMT. No single party can act unilaterally on major decisions.
Project Implementation Team
Day-to-day operations
Below the PMT, A295 establishes the Project Implementation Team (PIT) — the working-level team that manages day-to-day project operations. The PIT handles routine decisions and escalates major issues to the PMT. This two-tier governance structure is unique to IPD and frequently tested on the ARE.
Target cost and shared savings
Financial incentive structure
A295 establishes a target cost for the project. If the project is completed under the target cost, the savings are shared among the owner, architect, and contractor according to a predetermined formula. If costs exceed the target, the parties share in the overrun up to a defined threshold. This shared financial structure is one of the defining features of IPD.
Dispute resolution
Internal resolution first
A295 requires disputes to be resolved internally through the PMT before any formal dispute resolution process begins. The emphasis is on collaborative problem-solving within the team. Litigation between team members is strongly discouraged and typically waived for consequential damages. This contrasts sharply with A201’s formal claims process.
Waiver of consequential damages
Mutual protection for all parties
Like the IPD agreements it supports, A295 includes mutual waivers of consequential damages between the parties. This protects all team members from catastrophic liability claims and encourages open information sharing and collaboration throughout the project.
Building Information Modeling
Technology integration
A295 addresses the use of Building Information Modeling (BIM) on IPD projects. BIM is central to IPD because it enables real-time collaboration among all team members. A295 establishes protocols for model ownership, use, and coordination — a topic that is increasingly tested on PjM.
Common exam traps
- A295 is the general conditions for IPD — it serves the same role as A201 does for traditional delivery.
- The Project Management Team governs major decisions — no single party has unilateral authority.
- There are two governance tiers — the PMT for major decisions and the PIT for day-to-day operations.
- Disputes are resolved internally through the PMT before formal dispute resolution — unlike A201’s claims process.
- A295 includes mutual waivers of consequential damages — parties cannot sue each other for consequential losses.
- A295 is incorporated into both A195 and B195 — it governs the entire IPD project team.
- BIM protocols are addressed in A295 — model ownership and coordination are part of the IPD framework.
Exam tip
When comparing A201 and A295 on the ARE, remember the core difference: A201 assumes the parties have competing interests and creates a system to manage those conflicts. A295 assumes the parties have shared interests and creates a system to leverage that collaboration. Every key difference between the two documents flows from this fundamental distinction — governance by consensus vs. administration by an impartial architect, shared risk vs. allocated risk, internal dispute resolution vs. formal claims process.
How A295 relates to other AIA contracts
A295 is the governing document for the entire IPD contract family. It is incorporated by reference into A195 (Owner-Contractor Agreement for IPD) and B195 (Owner-Architect Agreement for IPD), just as A201 is incorporated into A101 and B101 for traditional projects. Understanding A295 alongside A195 and B195 gives you the complete picture of how IPD projects are structured and governed — one of the most important delivery method topics tested on PjM.