Generally, on construction projects, contractors provide an owner with a workmanship warranty. In addition, a contractor may supply the owner with manufacturer or material warranties after a project is completed. Although these types of warranties are provided by the contractor to the owner, the owner also provides certain warranties to the contractor during the course of construction.
The most prevalent form contracts used in the construction industry are generated by the American Institute of Architects (AIA). In November 2007, AIA made several significant changes to the key AIA documents used by owners, contractors, subcontractors and design professionals.
With increasing regularity, construction
contracts are providing for the resolution of disputes through arbitration,
rather than litigation through the court system. For example, the American
Institute of Architects (AIA) 1987 and 1997 contracts contain a provision which
requires arbitration through the American Arbitration Association (AAA).
