b'-4B New Subcontract Agreement Forms The Associated General Con thethe Contrac NRCA has expressed its supSubcontractor, tractorsofAmerica(AGhastor wi11make payment to theport of theendorsement of C)ASC recently published two new sub Subcontractor within an Form 650. NRCA\'s support is in reasocontract agreement forms, AGCable time for the Subcontractpart because the formthe contains Document No. 650 andDoc Work satisfactorily pe ."pay when paid" provision, in part AGCrformedument No. 655.TheAmericanbe ASC was successfulin cause Institute of Architects (AIA) hasForm655,paragraph8.2.5negotiatingneededchangesin updated its subcontract form.eTIME OF PAYMENT. Receipt ofdrafts ofform and inbased Th thepart new edition is A40i-1997.payment by the Contractor fromupon a from N Ansel. dviceRC couthe Owner for the SubcontractQu from an NRCA memo otingto I. AGC Forms 650 and 655.Work is anecedentitsBill G edt: conditio pr members,ood stat thaItismyunderstandingthattontthe Contractor to"Our counsel concluded that the payme by these forms are essentially itheS actor. TheSub n stand formfar supedenti ubcontr ewardis cal except as to the payment pro con herebyacknowl rior to the existing AGC stantractor visions. AGC Form 650 containsedges that itlies on the creditdard contract, and whileis re itnot awhen paid" provision. AGCof the Owner, not the Contractorperfect from a\'s "paysubcontractorForm 655 contains aif paid"for paymentofSubcontractpoint of view,is significantly "payit clause. From your standpoint, thisWork.P paymentsbetter than contractsthat are rogress Under aifdifferenceis enormous. With areceived from the Owner for theroutinely being offered to sub"pay paid" clause, yon"pay when paid" clause, the riskSubcontractor for satisfactorycontractors by general contracof non-payment by the owner isperformance of the Subcontracttors." share the risk ofon the generalwho isWork shallbemade nolater contractor, non-payment by theobligated to pay you for work sat than seven (7) days after receiptII. Comparison ofFonn 650 to isfactorily done, even if he doesby the Contractor of paymentPrior Form 640 and to New owner with thenot get paid by the Owner. Underfrom the Owner for the Subcon AIAFormA40I. aif paid" clause, you sharetract Work.Length. Formis considergeneral contractor."pay650 therisk of non-payment by theFrom AGC\'sndpoint, F mablymoredetailedth either sta or an owner with the general contr A401 as actor. Ifhe doesn\'t get paid,650 replaces AGC Document No.Form 640 or Form,eviIfhe doesn\'t get paid, you don\'t6 , aformdevel dencedby its length, 29 p40 subcontractages yon don\'t get paid.get paid.oped through thee rtsversus 19 pages for Formand jointffo of640 Totrate the wording differ the AGC, the American Subcon 16 pages for Form A401. However, illusence, the payment clauses of AGCtractors Association, Inc. (ASA)Forms 640 andreferen the A401ce Form 650 and AGC Form 655 areand the Associated Specialty Con p sions ofm A201 rovi AIA Docu ent quoted hereafter:tractors (ASC).- General Con tions of thedi ConForm650,paragraph8.2.5ASA has expressed its opposi tractforConstruction,sotheir TIME OF PAYMENT. Progresstion tonew AGC subcontractlength is considerably bothextended. paymen to the Subcontractorforms and has indicated its intentDesignDelegation.Form ts for satisfactory performance ofto prepare addenda to the forms650andAIADocumentA201-the Subcontract Work shall be"that will negate provisions that1 (hereafter A201) provide for .997 made no later than seven (7)are unfair to subcontractors."thepossibility that you maybe days after receipt by the Con ASC has e dC F required todesign services ndorse AG ormfurnish tractorofpaymentfromthe650afternegotiatingvariouscertifiedtobya professional. Ownerfor suchSubc twording changes inof theUnlikeA201whichstatesthat ontrac drafts Work.Ifpaymentfromthedocument. Aryfor"(t)he Contractorshallnotbe prima reason OwnerforsuchSubcontractthe ASC endorsement isFormresponsibler theof thatfo adequacy work isnotreceivedbythe650 contains the "pay when paid"the performance or d ign criteria esContractor, through no fault ofprovision.C tinued on page 6 onbyJ i mWh ittier ,MRCAL ega lCo u nsel'