C402 differs from C401 in several ways and is not a short or abbreviated version of C401. On the one hand, C402 maintains C727`s approach by not referring to the main agreement and by requiring the parties to define or attach a description of the scope of the consultant`s services. A second way the C402 differs is how the flowless approach of the C727 is maintained in most areas of the agreement. However, with the 2018 update, a limited flow of the main agreement was added to two sections of C402: copyright and licensing, and payment terms. In B101, the architect is required to pass on the terms of the license to all consultants, thus granting the owner a non-exclusive license to use the consultant`s service tools for construction, use, maintenance, modification and addition to the project. The license allows the Owner to authorize all other persons who perform services or constructions for the Project to reproduce the corresponding parts of the Service Instruments. To prevent the architect from violating his contract with the owner, C402 forwards this license application to consultants. In this way, consultants also grant the owner a non-exclusive license to use their service tools. The payment language has also been updated to better fit the C401 concept that payments to the consultant are made immediately after the architect has received payment from the owner. C402 has been available as C727-1992 for many years. In 2018, it was renumbered to reflect its status as a sub-agreement within the conventional family of EAR documents.

The layout and language of C402 includes important organization and content of B101 and C401. This can be seen in the table of articles, as well as in the sections that define the protocols for the transmission and use of digital data and define the additional services of the consultant. This standard master construction contract between the construction project owner and the builder (also known as builder, general contractor, design offer builder, construction manager) easily integrates the terms and conditions and conditions of the construction contract into a single document. Suitable for design-build projects that have a flat rate, this contract document works well for construction projects that are both a competitive offer and a negotiated flat rate. Bid-build design projects are those where an owner of the construction project has a relationship with a design professional (architect or engineer) to provide planning services (basic and possibly additional services), regardless of the relationship with the builder. The terms and conditions include the responsibilities assigned to each party and address critical issues relating to construction law contracts. Contractual issues include: the relationship and responsibilities of the parties to each other, definitions of key terms, scope of work and performance obligations, design delegation, construction site conditions, different site conditions, contract price, contract documents, contract review, bids, contracts, contracts, permits and taxes, time, changes, schedule changes, payment, payment schedule, final completion and final payment, Indemnification (defend and indemnify against all losses), insurance and security deposit, termination for convenience, termination for cause, claims and termination, waiver of consequential damages, resolution and reduction of disputes, construction defects, choice of law, place of jurisdiction and much more. The construction law contract issues included are fair to project owners and designers. The parties may amend the terms of the agreement based on the individual needs of their project and the requirements of state law. This document assumes that the owner hires a design professional to provide design services.

The ConsensusDocs 240 (long) or 245 (short) agreement covers this designer-owner relationship. The owner is involved in communicating the project and maintains decision-making unless he delegates responsibility to the design professional. An update to the C402 language for dispute resolution added mediation as a condition precedent for binding dispute resolution. For binding dispute resolution, parties can now choose between arbitration, litigation or another method such as B101. Bill C727 did not arbitrate as the only form of dispute resolution. C402 follows the original intent of C727 and does not bind the consultant to the dispute resolution of the main agreement. The attached Professional Services Agreement (PSA) for the City of Chicago reflects the standard terms of this type of agreement, but the terms may vary depending on the negotiation and the type of agreement. This PPE is published for informational purposes only and cannot be interpreted as definitive terms for any particular project or contract. Although shorter than C401, C402 is still a solid agreement with sections that ensure the protection of the architect and consultant: definition of scope, responsibilities of each party, copyrights, claims and disputes, termination and compensation. C402 is suitable for consultants who offer limited scope or specialized services that do not cover all typical phases of design, such as.

B consultants who provide renderings, planning services, feasibility studies, specification writing services, material plans, elevator analysis and safety design. If an architect needs to bind a consultant to the main agreement, or if consultants are involved in a project from design to construction, C401 is appropriate. The C401 is also intended for consultants who provide the usual and usual mechanical, electrical and structural services, or consultants who hire their own sub-consultants. When choosing the form of the contract, it is important to understand all the options and choose the agreement that best suits the needs and objectives of the project. With the C402, architects now have a third useful tool that they can add to their contract tool belt. As projects become more complicated and the consultant`s expertise specializes beyond standard structural, mechanical and electrical design, not all consultants fall within the scope of the C401. This is especially true for consultants who are only involved in one phase of the project, or for consultants who act as a direct arm of the architect`s design team, e.B. as specification writers or hardware consultants.

Agreements for these consultants do not necessarily have to be bound by the terms of the main agreement between the owner and the architect. In such cases, architects should choose C402-2018, the standard form of agreement between the architect and the consultant for special services. These Terms are non-negotiable and will be updated periodically as required or required by law. The applicable terms in these documents are incorporated by reference to the negotiated commercial part of the specific project agreement. .