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AIA B101 Contract: Article-by-Article Breakdown for the ARE PcM

A thorough walkthrough of AIA B101-2017 by article, covering architect services, compensation, and key clauses tested on the ARE Practice Management exam.

August 6, 2025

Why the AIA B101 Is the Foundation of PcM

The AIA B101 Standard Form of Agreement Between Owner and Architect governs the fundamental relationship between architects and their clients. Nearly every Practice Management question on the ARE traces back to provisions found in this document. Understanding its article structure - what each section covers and how provisions interact - is essential for passing PcM.

The current edition, B101-2017, contains 11 articles. Exam questions often test which article governs a particular situation: if the owner fails to provide required project information, Article 5 applies; if the architect wants to terminate, Article 9 controls. Learning the article framework lets you answer those questions without memorizing every clause verbatim.

Article-by-Article Summary

Article 1: Initial Information

Establishes the project baseline - program, budget, schedule, and site data. If this information proves inaccurate, the architect's reasonable reliance on it is protected. The architect is entitled to an equitable adjustment when owner-provided data turns out to be wrong.

Article 2: Architect's Responsibilities

Sets the standard of care: professional skill and care ordinarily provided by architects practicing in the same locality under similar circumstances. The architect is not a guarantor of perfection but must exercise reasonable professional judgment. This article also addresses the architect's duty to coordinate consultants it retains directly.

Article 3: Scope of Basic Services

Defines the five phases of basic services: Schematic Design, Design Development, Construction Documents, Procurement, and Construction Administration. Each phase carries specific deliverables. Services not described here are either supplemental (negotiated in advance) or additional (triggered by changed conditions).

Article 4: Supplemental and Additional Services

Supplemental services are pre-agreed at contract execution and listed in a table within this article. Additional services arise from changed conditions - owner-directed changes, contractor default, or discovery of hazardous materials. Both types require written authorization before the architect proceeds and trigger a fee adjustment.

Article 5: Owner's Responsibilities

The owner must furnish surveys, geotechnical reports, legal descriptions, existing condition documentation, and environmental assessments. Failure to provide these on schedule entitles the architect to an equitable adjustment in both schedule and compensation. Reliance on owner-furnished information is explicitly protected.

Article 6: Cost of the Work

The architect must keep the owner informed of cost estimates throughout the design process and must notify the owner promptly if estimates exceed the budget. However, the architect does not guarantee construction cost - this is a critical distinction for the exam.

Articles 7–11: Copyright, Disputes, Termination, and Compensation

Article 7 establishes that the architect retains copyright in instruments of service; the owner receives a limited license for the specific project only. Article 9 governs termination: either party may terminate for convenience with 7 days written notice, and termination for cause requires a 7-day cure period. Article 11 covers compensation structures including hourly, stipulated sum, and percentage of construction cost.

Key Exam Points

  • Copyright: Architect retains it; owner gets a project-specific license.
  • Basic vs. additional services: LEED documentation, post-occupancy evaluation, and peer review are additional unless specifically listed as basic.
  • Termination numbers: 7-day notice for convenience; 7-day cure period for cause.
  • Cost responsibility: Architect must notify, but does not guarantee construction cost.
  • Reliance protection: Architect is protected when relying on owner-furnished information in good faith.

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