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Court decision In its decision, the N.J. appellate court explained that A201 required the owner and contractor to procure, respectively, property and liability insurance, and required the owner and contractor and its subcontractors (and sub-subcontractors, agents, and employees) to waive all rights against each other for damages covered by the required property insurance policy. (Photo: iStock)

An appellate court in New Jersey, affirming a trial court’s decision, has ruled that the waiver-of-subrogation provisions of a widely used form construction contract — the American Institute of Architects (AIA) form A201 — 2007 General Conditions of the Contract for Construction (A201) — were intended to transfer the risk of construction-related losses to insurers and to preclude insurers’ subrogation actions against contracting parties.

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