B101 Cost of the Work: Budget Monitoring and Redesign Triggers (Article 6)

How AIA B101 Article 6 defines the cost of the work, establishes budget monitoring responsibilities, and triggers redesign obligations when bids exceed the owner's budget.

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Overview

Article 6 of AIA B101 is where money meets design. It defines what counts as the "cost of the work," sets the rules for who watches the budget, and spells out exactly what happens when bids come in over budget.

Here is why this matters on exam day: candidates get tripped up on the distinction between the architect's cost estimating responsibility and a guarantee of construction costs. Article 6 makes clear that the architect does not guarantee costs. But the article also creates real consequences if bids exceed the owner's budget, including the possibility that the architect must redesign without additional pay.

The 2017 edition of B101 refined these provisions significantly. The definition of cost of the work now includes owner-donated labor, materials, and equipment. Detailed cost estimating became an Additional Service rather than a default responsibility. And the redesign trigger got a critical market-conditions carve-out that determines whether the architect gets paid for modifications or absorbs that work.

Understanding these provisions is directly tied to managing project risk. An architect who misreads Article 6 can end up performing unpaid redesign work or, worse, face claims for exceeding the budget. For the PjM exam, you need to know when budget overruns trigger redesign obligations, when the architect gets additional compensation for those modifications, and how cost estimating services fit into the scope framework of the agreement.

Essential

Article 6 of AIA B101 tackles one of the most friction-prone areas of the owner-architect relationship: construction cost responsibility. Getting this wrong on a real project means unpaid work or damaged client relationships. Getting it wrong on the exam means lost points on questions that test your contract literacy. ## Defining the Cost of the Work (Section 6.1) The cost of the work is not simply the contractor's bid price. Under B101, it includes the reasonable value of labor, materials, and equipment that the owner donates or otherwise furnishes for the project. So if an owner provides salvaged brick from a demolition for reuse, that value counts toward the cost of the work. Critically, the cost of the work does NOT include the architect's compensation. This distinction matters because some budget discussions conflate total project cost with cost of the work.

Professional

Consider an architect working on a $12 million community recreation center. The project moves through schematic design and design development with regular cost checks against the owner's budget. At DD completion, the architect's conceptual estimate suggests the project sits at roughly $11.8 million. Comfortable enough. Then the bids come in. The lowest responsible bid is $13.4 million, roughly 12% over budget. The owner immediately points to Article 6 and demands a redesign. What happens next depends entirely on why the costs exceeded the budget. If lumber prices spiked 22% in the months between DD and bidding because of supply chain disruptions, that qualifies as a market condition the architect could not reasonably anticipate. The architect would perform the redesign work, but the owner would compensate for it as an Additional Service under Section 11.3.

TLDR

Cost of the work includes owner-donated labor, materials, and equipment, but excludes the architect's compensation
Detailed cost estimating is an Additional Service under 2017 B101, not part of basic services
The architect exercises professional judgment about costs but does not guarantee construction pricing
When the lowest bona fide bid exceeds the owner's budget, the architect must modify the construction documents
If the overrun stems from unforeseeable market conditions, the owner pays for the redesign as an Additional Service
If the overrun results from design decisions within the architect's control, the architect redesigns without additional pay
The architect's modification of the documents is the maximum extent of liability under Article 6
Architects should qualify all estimates as conceptual tools, not price guarantees
Documenting market conditions throughout design strengthens the architect's position in disputes

ELI5

Picture this: you are helping a friend plan a birthday party. They give you $500 for food, decorations, and entertainment. You plan everything out and think it will cost about $480. Great. But when you go to actually buy everything, prices went up. The DJ costs more, the balloons are more expensive, and now the total is $600. Your friend says, "You promised it would cost $500! Fix it!" Did you actually promise? No. You gave your best guess based on what things cost when you planned it. You used your experience and judgment. But you never guaranteed the prices would stay the same. That is in simple terms what Article 6 is about, except with buildings instead of parties. The architect gives the owner an estimate of what construction should cost. But the architect is not the one buying the materials or hiring the workers. Prices change.

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B101 Cost of the Work: Budget Monitoring and Redesign Triggers (Article 6)

How AIA B101 Article 6 defines the cost of the work, establishes budget monitoring responsibilities, and triggers redesign obligations when bids exceed the owner's budget.

2 min read226 words

What Article 6 Means for Your Budget and Your Liability

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