AIA A201 General Conditions of the Contract for Construction § - Initial Decision Maker



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    Christopher Hopstock

    Hi Kirill - 

    To understand this clause, it's important to consider it in conjunction with 15.2.6, which states that either party may file for mediation of an initial decision at any time.

    Given the open-endedness of the above, exists so that parties can gain closure on a situation that was resolved via initial decision.  To continue your example - the owner, satisfied with the initial decision, would send a letter to the contractor stating that if they disagree, they should file for mediation within 60 days per  Then, if the contractor does not file for mediation, the matter is officially closed.

    If this clause didn't exist, the owner would have to worry that the contractor may file for mediation at any time, and the owner would never have a sense of closure with respect to the dispute.

    Chris Hopstock RA
    Black Spectacles
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    Kirill Ryadchenko (Edited )

    Oh, thanks Christopher Hopstock
    I got it now. "... mediation of initial decision at any time..." means that either party can dispute the decision made on Claim by Initial Decision Maker bringing it to the next level of dispute resolution i.e. Mediation.

    If the winning party is confident that the decision made by Initial Decision Maker in his favor was fair and will stand the resolution through Mediation he would send the losing party a demand per § saying. "If you are dissatisfied with the decision we can keep arguing in Mediation". But if the winning party will not send such a demand the losing party can pursue Mediation later " any time...". So if the decision by Initial Decision Maker was iffy and not convincing, if the winning party won the dispute not due to concrete arguments but due to conflict of interest or pure luck, then not sending the losing party a demand to move forward to Mediation will keep the final resolution pending.

    That phrase "Either party may, demand ... the other party file for mediation..." got me confused. If the winning party won't demand such a thing per § it might bite them later 🐱‍🐉. Hence there is an incentive to forward such demand to the losing party. It is a kind of "Are we good?" resolution.
    Now I understand the infinite wisdom of AIA lawers.🧐

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