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A contractor submits a payment application for $180,000. The owner approves $165,000, citing deficient work worth $15,000. Under AIA A201, what options does the contractor have?

Correct Answer

A) Accept the partial payment and continue with dispute resolution for the remainder

Under AIA A201, contractors should generally accept partial payments for undisputed amounts and pursue dispute resolution procedures for contested portions while continuing work.

Answer Options
A
Accept the partial payment and continue with dispute resolution for the remainder
B
Stop work immediately until full payment is received
C
Terminate the contract for non-payment
D
Automatically file a mechanics lien for the disputed amount

Why This Is the Correct Answer

Under AIA A201, contractors should generally accept partial payments for undisputed amounts and pursue dispute resolution procedures for contested portions while continuing work.

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