Sometimes owners proceed with the contract and the construction prematurely, before having in hand all such essentials as clear title to the land, lessor’s permission, legal rights of way, adequate construction financing, or all necessary governmental approvals. The lack of any of these indispensable elements at the appropriate time could result in a work stoppage. It might take weeks or months to cure the problem. Meanwhile, if the construction had already commenced it would have to be curtailed or stopped.
This situation would require the architect to make a written determination that would become binding on the parties if not appealed to mediation and arbitration within 30 days. (AIA Document A201/14.2.4.) The architect’s determination should be based on a thorough investigation of the facts and circumstances including the viewpoints of both owner and contractor. The opinion should be objective, siding with neither party.