Summary of 2011 New ConsensusDOCS 703 Purchase Order Agreement for Non Commodity Goods

The intent of the ConsensusDOCS 703 Purchase Order is to coordinate between the contractor, distributor and factory, and to assign risks and liabilities where each party has control.  Unfortunately, industry practices regarding contract terms and conditions for the sale of goods have been getting worse.  Parties attempt to push risk away, rather than to control and mitigate by assigning risk to the party in the best position to do so. This Purchase Order is now a more sophisticated and comprehensive agreement for the purchase of complex goods that meet specific project requirements (and may require specific on-site labor for installation).  The revised terms reflect extensive review, feedback and healthy dialogue of suppliers and manufacturers.   The ConsensusDOCS Guidebook contains comments to instruct users on issues that may vary based on project specific needs and conditions, as well as risk profiles.  The terms in the revised document now more closely reflect the terms and conditions that are included in the ConsensusDOCS 200 Agreement and General Conditions. This agreement may be used by owners to purchase special project equipment and then assign their interests and obligations to the general contractor or for use by the general contractor in buying such equipment directly.  The document will primarily benefit owners, general and specialty contractors and suppliers. ConsensusDOCS are the only standard construction documents written by a coalition of 32 industry associations representing designers, owners, contractors, subcontractors and sureties (DOCS), including AGC. AGC Members receive a 20% discount on all purchases. Visit www.ConsensusDOCS.org and use Partner Code “AGC” and Promotion Code “100” when prompted during the checkout process. For more information or questions, please contact Maggie Jaus at jausm@agc.org or (703) 837-5408.