Chapter 32 - Construction and FF&E Contracts

Question 1

Contract documents consist of:

Answer 1

Owner-Contractor Agreement
General Conditions of the Contract
Supplementary Conditions of the Contract
Drawings
Specs
Addenda
Any additional docs specifically listed in the agreement
And modifications (i.e. change orders)

Question 2

Are bidding documents part of the contract documents?

Answer 2

no (although they are often bound into the project manual)

Question 3

Some provisions are common to all contracts and include:

Answer 3

a description of the work
the time of commencement and substantial completion
contract sum

Question 4

________ is defined as the stage in the progress of the work when the work or a designated option thereof is sufficiently complete according to the contract documents so the owner can occupy or utilize the site, though a few minor items may remain to completed or corrected

Answer 4

substantial correction

Question 5

_______ are moneys paid by the contractor to the owner for every day the project is late

Answer 5

liquidated damages

Question 6

if a particular completion date is important to the owner, provisions for ______ may be included

Answer 6

liquidated damages

Question 7

In many cases, a liquidated damage provision is accompanied by a ______

Answer 7

bonus provision

so the contractor receives a payment for early completion

Question 8

What is the most pertinent code for designers selling furniture and accessories to clients rather than just selling them?

Answer 8

Uniform Commercial Code (UCC)

Question 9

Furniture and accessories may be shipped by a common carrier, contract carrier, or a private carrier. What’s the difference?

Answer 9

common carrier- public
contract- only provides service to some companies
private- companies who own and operate their own trucks and move their own merchandise

Question 10

If a common carrier is used, the responsibility for the furniture during shipment is _____.

Answer 10

whoever has title to the furniture bear the responsibility for damage or loss

Question 11

There are several ways furniture and accessories are shipped and risk to the either the seller or the buyer is assigned by _____

Answer 11

the UCC

Question 12

What does the term FOB mean?

Answer 12

free on board- the manufacturer pays for loading the goods onto a truck or train

Question 13

is there another method than FOB?

Answer 13

no- everything is always FOB

Question 14

FOB is followed by the word ____ or _____ (give examples)

Answer 14

factory or destination

Ex: FOB Factory or FOB Los Angeles

Question 15

What does FOB factory mean?

Answer 15

that the title is transferred at the factory.

Question 16

Who pays the transportation costs and who is responsible for loss or damage during shipment with FOB factory?

Answer 16

the buyer (vendor/client/designer) pays the transportation costs

manufacturer is not responsible for loss or damage during shipping

Question 17

One goods are consigned to a common carrier at a factory, who does the title pass on to?

Answer 17

to the buyer of the goods

Question 18

What is a shipment contract?

Answer 18

goods are shipped “FOB Factory” and are insured by the buyer

Question 19

What is FOB factory-freight prepaid?

Answer 19

the FF&E vendor owns the furniture, but the supplier pays the shipping charges

Question 20

A _____ is anyone who sells products or services to the interior designer or the client.

Answer 20

vendor

A vendor may be a furniture dealership, individual furniture company, drapery work room, tradesperson, or similar business.

Question 21

The ____ in an FF&E contract is responsible for ordering, delivery, and installing the goods described in the contract

Answer 21

vendor

Question 22

_____ is the detention of a ship in port by the ship owner, or of a railroad car or truck by its owner, beyond the time normally allowed or agreed upon.

Answer 22

demurrage

Question 23

Does the interior designer have authority to stop the work or terminate the contract on behalf of the owner?

Answer 23

no

Question 24

Does the designer have the authority to require special inspections or testing of the work?

Answer 24

yes

Question 25

Can the interior designer recommend that the owner reject work that does not conform to the contract documents?

Answer 25

yes

Question 26

The designer reviews shop drawings and other submittals of the limited purpose of ________.

Answer 26

checking conformance with the design concept expressed in the contract documents

Question 27

Who prepares change orders for the owner to authorize? This person may authorize minor changes in the work that do not involve adjusting either the contract sum or contract time and that are not inconsistent with the intent of the contract documents.

Answer 27

the designer

Question 28

Who conducts a final inspection to determine the dates of substantial completion and final completion?

Answer 28

the interior designer

Question 29

Who must provide surveys of the land?

Answer 29

the owner

Question 30

To _____ is to secure against loss or damage

Answer 30

indemnify

Question 31

Who does an indemnification clause protect?

Answer 31

the owner and designer

protects against situations where a person in injured due to the negligence of the contractor or the contractor’s agents. it also protects the owner and architect against claims from property damage other than to the work itself

Question 32

The contract time is the period starting ____ to the time of ______

Answer 32

starting date established in the agreement

to

the time of substantial completion

Question 33

what do change orders primarily cover?

Answer 33

contract cost AND contract TIME

Question 34

what types of items are found in supplementary conditions?

Answer 34

items that are specific to each client type and project type

ex: permission for the ID to give the contractor change orders etc electronically
- additional info and services provided by the owner
- cost for the interior designer to review the contractor’s requests for substitutions
- requirement that a contractor must employ a superintendent to coordinate mechanical and electrical work
- provisions for fast track-schedule
- reimbursements for extra site visits
- more details info on costs and overhead
- requirements for liquidated damages and bonuses
- additional requirements for bonding and insurance

Question 35

Should an ID change the general conditions or supplementary conditions on their own?

Answer 35

no- they should do so with the advice of legal counsel