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property insurance on an "all- risk" policy form, including builder's risk, in the amount of the ini-
<br />tial Contract Sum, plus the value of subsequent modifications and cost of materials supplied and
<br />installed by others, comprising total value for the entire Project at the site on a replacement cost
<br />basis without optional deductibles. Such property insurance shall be maintained, unless otherwise
<br />provided in the Contract Documents or otherwise agreed in writing by all persons and entities
<br />‘vho are beneficiaries of such insurance, until final payment has been made as provided in
<br />Paragraph 14.5 or until no person or entity other than the Owner has an insurable interest in the
<br />property required by this Paragraph 16.4 to be covered, whichever is later. This insurance shall
<br />include interests of the Owner, the Contractor, Subcontractors and sub- subcontractors in the
<br />Project.
<br />16.4.2 The Owner shall file a copy of each policy with the Contractor before an exposure to loss
<br />may occur. Each policy shall contain a provision that the policy will not be canceled or allowed to
<br />expire, and that its limits will not be reduced, until at least 30 days' prior written notice has been
<br />given to the Contractor.
<br />16.5 WAIVERS OF SUBROGATION
<br />16.5.1 The Owner and Contractor waive all rights against (1) each other and any of their
<br />subcontractors, sub - subcontractors, agents and employees, each of the other, and (2) the Architect,
<br />Architect's consultants, separate contractors described in Article 11, if any, and any of their
<br />subcontractors, sub- subcontractors, agents and employees for damages caused by fire or other
<br />causes of loss to the extent covered by property insurance obtained pursuant to Paragraph 16.4 or
<br />other property insurance applicable to the Work, except such rights as they have to proceeds of
<br />such insurance held by the Owner as fiduciary. The Owner or Contractor, as appropriate, shall
<br />require of the Architect, Architect's consultants, separate contractors described in Article 11, if any,
<br />and the subcontractors, sub - subcontractors, agents and employees of any of them, by appropriate
<br />agreements, written where legally required for validity, similar waivers each in favor of other
<br />parties enumerated herein. The policies shall provide such waivers of subrogation by endorsement
<br />or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that
<br />person or entity would otherwise have a duty of indemnification, contractual or otherwise, did
<br />not pay the insurance premium directly or indirectly, and whether or not the person or entity had
<br />an insurable interest in the property damaged.
<br />16.5.2 A loss insured under the Owner's property insurance shall be adjusted by the Owner as
<br />fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may
<br />appear, subject to requirements of any applicable mortgagee clause. The Contractor shall pay
<br />Subcontractors their just shares of insurance proceeds received by the Contractor, and by
<br />appropriate agreements, written where legally required for validity, shall require Subcontractors to
<br />make payments to their sub - subcontractors in similar manner.
<br />ARTICLE 17 CORRECTION OF WORK
<br />17.1 The Contractor shall promptly correct Work rejected by the Architect or failing to conform
<br />to the requirements of the Contract Documents, whether discovered before or after Substantial
<br />Completion and whether or not fabricated, installed or completed. Costs of correcting such
<br />rejected Work, including additional testing and inspections and compensation for the Architect's
<br />services and expenses made necessary thereby, shall be at the Contractor's expense.
<br />17.2 In addition to the Contractor's obligations to der Paragraph 8.4, if, within one year after
<br />t he date of Substantial Completion of the Work or designated portion thereof or after the date for
<br />,;nmencement of warranties established under Subparagraph 14.4.2, or by terms of an applicable
<br />.vecial warranty required by the Contract I)uct' menls, any of the Work is found to be not in
<br />acuml:ulcr with the requirements of the (:unl rat t Unc ii ienls, the (1011111:1C101' 9111111 correct it
<br />Unlicensed photocopying violates U.S. copyright I,
<br />Page 79
<br />,rosecution.
<br />01997 AIAO
<br />AIA DOCUMENT A107 -1997
<br />ABBREVIATED OWNER -
<br />CONTRACTOR AGREEMENT
<br />The American Institute
<br />of Architects
<br />1/35 New York Avenue, N.W.
<br />Washington, D.C. 20006 -5292
<br />
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