A Florida contract is silent on a listed tax that was legally enacted when bids were received. Under AIA A201, who normally carries that tax for the Work?
Correct Answer
A) The Contractor pays applicable sales, consumer, use, and similar taxes legally enacted at bid time
A201 addresses taxes legally enacted when bids are received or negotiations concluded.
Why This Is the Correct Answer
A201 addresses taxes legally enacted when bids are received or negotiations concluded.
Why the Other Options Are Wrong
Option B: The Architect pays the tax because pay applications are reviewed by the architect, and use that shortcut to decide the enacted legally requirement, while treating the inspection card as a contract amendment
The Architect pays the tax because pay applications are reviewed by the architect, and use that shortcut to decide the enacted legally requirement, while treating the inspection card as a contract amendment puts the item in the wrong financial bucket, timing, base, or comparison for taxes.
Option C: The Owner's lender pays the tax separately without a contract allowance
The Owner's lender pays the tax separately without a contract allowance puts the item in the wrong financial bucket, timing, base, or comparison for taxes.
Option D: The final inspector assigns the tax to whichever trade is on site last, and treat owner occupancy as acceptance of the procedure
The final inspector assigns the tax to whichever trade is on site last, and treat owner occupancy as acceptance of the procedure puts the item in the wrong financial bucket, timing, base, or comparison for taxes.
Memory Technique
An unlabeled Reviews Whether dollar tells the wrong story.
Reference Hint
Open-book path: tab AIA A201-2017 to Article 3, §3.6 Taxes; match the contract role, notice step, and timing in the stem before choosing.
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