The standard contract forms published by the American Institute of Architects have gained widespread use and acceptance largely because they are perceived to be reasonably balanced in the allocation of risk and responsibility. Despite some grumbling about architect protections, the documents attempt to be fair to all parties.

A recent court opinion interpreting one AIA contract form casts things in a different light. The “construction manager as constructor” form defines the construction manager as functioning both as the contractor and the architect. A Texas court ruled that the CM, in its role as architect, may have assumed responsibility for the suitability of the project owner’s site.

Other cases this week involved a short-listing procedure used by a public project owner and the substitution of a limited liability company for a sole proprietorship. The short-listing mechanism limited competition and ran afoul of the competitive bidding statutes. The sole proprietor contractor effectively substituted the LLC, shielding himself from personal liability.