02 contracts and specifications

Question 1

_____ is an agreement between two or more parties to provide services in exchange for payment.

Answer 1

construction contract

Question 2

4 things needed to form a valid contract

Answer 2

1. an offer
2. acceptance
3. comsideration (i.e., money, or something of value)
4. legality

Question 3

General project information that should be included in a well-drafted contract (5)

Answer 3

1. general conditions
2. parties involved
3. general project timeline
4. detailed scope of work
5. how substantial completion is defined

Question 4

5 common types pf construction contracts

Answer 4

1. lump-sum/fixed price contracts
2. cost-plus contracts
3. time and material contracts
4. unit price contract
5. guaranteed maximum price (GMP) contracts

Question 5

____ is the simplest form of a construction contract.

Answer 5

lump-sum/fixed price contract

Question 6

____ Under these types of agreements, the customer agrees to pay a specified amount for the completion of the work. A line-item breakdown isn’t required.

Answer 6

lump-sum/fixed price contract

Question 7

____ These contracts require that a contractor be reimbursed for all costs incurred on the project (costs). In addition to that, there is a certain percentage of those costs which constitute the contractor’s profits (plus).

Answer 7

cost-plus contract

Question 8

_____ is an agreement where the contractor is paid and hourly rate for labor, the actual cost of materials snd equipment, and an additional amount to cover overhead and profit.

Answer 8

time & material contract

Question 9

____ are an arrangement where the customer pays a fixed, agreed-upon amount for completion of each unit of work. Instead of pricing the e tire project the contractor is based on individual “chunks” of work.

Answer 9

unit price contract

Question 10

____ is a cost-type contract, where there is an agreed-upon limit to how much the customer will be obligated to pay.

Answer 10

guaranteed maximum price contract

Question 11

____ These types of contracts will typically include a contingency fund as a safety value in case unforeseen costs increase the contract price.

Answer 11

guaranteed maximum price contract

Question 12

____ is a part of the construction contract. They detail the work, materials, and installation required to complete a project.

Answer 12

construction specifications

Question 13

____ The specs are the subcontractor’s field guid on what materials to use, how to install the, and the desired level of quality.

Answer 13

construction specifications

Question 14

3 types of construction specifications

Answer 14

1. prescriptive specifications
2. performance specifications
3. propriety specifications

Question 15

____ Tis type provides step-by-step details and instructions on how the types of materials to be sued and the desired installation methods.

Answer 15

prescriptive specifications

Question 16

____ This will provide all the operations requirements to complete a project. Instead of giving detailed instructions on how to achieve the desired final product, performance specs will describe the anticipated result.

Answer 16

performance specifications

Question 17

____ will invariably include extensive testing provisions to ensure that the project meets all the operational requirements.

Answer 17

performance specifications

Question 18

____ These types of specifications are the rarest.

Answer 18

propriety specifications

Question 19

____ are used when a specific type of product or material is required for installation.

Answer 19

propriety specifications

Question 20

Typically, ____ are used when doing renovation to an existing structure and the client needs to match the improvement to the completed portion.

Answer 20

propriety specifications

Question 21

15 typical parts of a contract

Answer 21

1. title and header
2. preamble/recitals
3. parties
4. agreement clause
5. conditions & contingencies
6. termination clause
7. dispute resolution
8. indemnification
9. limitation of libailtiy
10. force majeure
11. ame dment & modification
12. assignment & delegation
13. governing law & jurisdiction
14. signatures
15. schedules, appendices, or attachments

Question 22

____ A lear a d descriptive title that specifies the type pf contract.

Answer 22

title and header

Question 23

_____ Basic information such as the date and possibly the parties’ names.

Answer 23

title and header

Question 24

____ A section that provides context, background, or purpose for the agreement.

Answer 24

preamble/recitals

Question 25

____ often starts with "whereas" clauses to explain why the parties are entering into the agreement.

Answer 25

preamble/recitals

Question 26

____ Identification of the parties involved, including their legal na,es, addresses, and any relevant titles or roles.

Answer 26

parties

Question 27

____ The main body of the contract outlining obligations and promises of each party.

Answer 27

agreement clauses

Question 28

4 main agreement clauses

Answer 28

1. scope of works/services 2. duration/term 3. payment terms 4. warranties (retention sum)

Question 29

____ specifies conditions that must be met for the contract to be enforceable or for obligations to commence.

Answer 29

conditions & contingencies

Question 30

____ outlines how and under what circumstances the contract may be ended by either party.

Answer 30

termination clause

Question 31

____ describes how disputes will be handled, such as mediation, arbitration, or ligitation.

Answer 31

dispute resolution

Question 32

____ specifies if one party will compensate the other for losses or damages caused by y specific actions or events.

Answer 32

indemnification

Question 33

____ limits the amount or type of damages a party might be liable for under the contract.

Answer 33

limitation of liability

Question 34

___ addresses unexpected events (e.g., natural disasters, war) that may prevent the fulfillment of the contract.

Answer 34

force majeure

Question 35

____ explains the process for making changes to the contract after it is signed.

Answer 35

amendment & modification

Question 36

____ specifies if and how rights or obligations can be transferred to a third party.

Answer 36

assignment & delegation

Question 37

____ identifies the legal framework and location under which the contract will be interpreted and enforced.

Answer 37

governing law & jurisdiction

Question 38

____ Signature of all parties involved, along with dates, to formalize the agreement.

Answer 38

signatures

Question 39

____ Additional documents or details that are referenced in the main body and form part of the contract.

Answer 39

schedules, appendices, or attachments