Contract Administration (31) Flashcards
A CM is protected from a contractor’s recovery in tort due to:
The applications of the economic loss rule
A contractor submits a payment requisition for certification by the CM. Everything seems to be in order except that the schedule of values contains a new item for a Change Order that was submitted but has not been approved by the owner. What should the CM do?
Revise pay requisition to deduct value of change order not approved
A dispute has arisen with the contractor and the owner wants to use a Dispute Review Board (DRB) to resolve the issue. Which of the following issues will not allow the owner to use the DRB approach to resolve the problem?
The DRB provisions are not included in the contract
A major change in scope, requested by the owner, will cause the project’s budget and the contract completion date to be exceeded, even though the owner has emphatically told you that no additional cost or time will be authorized. What should the CM do?
Work with the designer and contractor to try to identify cost and time saving alternatives and present the options to the owner
A partial payment on a construction project is referred to as a:
Progress payment
A structure will be built on a former brownfield site. The owner is seeking advice on the appropriate insurance coverage for the project, the CM should recommend:
That the Owner contact an insurance professional
A sum of money that a contractor agrees to pay for project delays is referred to as:
Liquidated damages
All direction that supplements or differs from the solicitation documents provided bidders resulting from the pre- bid meeting should be issued to all bidders by:
an Addendum
Claims arising out of professional negligence are typically:
EXCLUDED from commercial general liability coverage
In the event of a contract termination notice to the contractor, he should:
Stop work on the date and to the extent specified in the notice of termination
In the event of a default in construction performance, the owner has rights under what document?
Performance bond
On a public project, what is the first thing you should do when the contractor notifies you of an unforeseen condition encountered in the field during construction that will increase cost and time of performance?
Double check the contract documents (drawings and specifications) and determine if the scope is or isn’t part of the contracted scope of work
One purpose of the general conditions is to:
Provide a procedure for executing changes in the work scope in a fair and equitable manner
Owners like cost plus CM agreements with a GMP because:
Costs are limited and savings are usual shared
Public bidding statutes are designed to:
protect public funds, and to prevent fraud, collusion and favoritism
A formal demand for compensation by a contractor in accordance with the contract documents can be described as a:
a Claim
Straight time labor calculations:
Known:
- Base rate
- Union fringes
- Contract allowed burden
- Workman’s Comp
- FUI (Fed.Unempl.Ins.)
- Contract allowed mark up
(Base+Union Fringes)
x (1+(burden%))
x (1+(markup%))
The contractor is required to obtain building permits from the Building Authority. The CM believes that all the work is done. Whose responsibility is it to call for permit inspection?
The Owner
The scope of work of the contract includes coordination with other entities, public utilities etc., entities over which neither you or the owner have any control, in order to complete the project. What strategies would be helpful to facilitate getting the necessary utility work done in a timely manner to avoid delays to the contractor?
Contact utility companies early in the project life cycle; preferably during pre-design to determine all regulatory requirements, permitting, and provide all design documents and utility requirements
The start of a construction project is initiated with what type of letter
a Notice to Proceed (NTP)
Unless otherwise specified in the contract documents, all work will be performed:
during regular business hours
What does the term substantial completion mean?
The project is ready for occupancy in accordance with its intended purpose
What legal encumbrance can a contractor use to secure payment after the work has been completed?
a Lien
What is the primary function of the record drawings provided to the owner at the completion of the project?
Show revisions in materials, equipment, and the design
What is the term used for the project analysis process used to determine how best to meet the necessary function, performance, and reliability at the minimum life cycle cost?
Value engineering
What is the term used to define the detailed written description of the project requirements?
Specifications
