CE Flashcards

Question

An architect is working on a library project that is under construction. The contractor notices that a sum of money has been withheld by the owner from the current progress payment and asks about the purpose of the withholding. What is this withheld sum of money called? a. payment bond b. taxes c. permit fees d. retainage

Answer 1

D ____ a. payment bond Incorrect. A payment bond would not be withheld from a progress payment. A payment bond is a bond which the contractor and the contractor’s surety guarantee to the owner that the contractor will pay for the labor and materials furnished for use in the performance of the contract. Persons entitled to the benefits of the bond are defined as claimants in the bond. A payment bond is sometimes referred to as a labor and material payment bond. If required, bonds would be determined during the bidding process and outlined in the contract. b. taxes Incorrect. Taxes would not be withheld by the owner from a progress payment. The contractor needs to properly file taxes for their business each year, and the appropriate amount would need to be reserved for this in-house. c. permit fees Incorrect. Fees for permitting would not be withheld from a progress payment, and would not necessarily be included on an application for payment. The owner would typically pay these fees directly. d. retainage Correct. Retainage is some percentage of the value of the work completed that may be deducted from the amount of each progress payment. This amount provides additional assurance that the work can be completed for the unpaid contract amount, and thus protects the owner. The amount of retainage may vary by project type and may be governed by state law. The amount of retainage and details for any reduction or release of retainage funds must be spelled out in the contract.

Answer 2

C _______ a. A specified paint manufacturer has gone out of business Incorrect. This is a typical scenario in which the construction manager would submit a substitution request to replace the paint. Because the construction manager is part of the design-build firm that designed the building, this process will likely be expedited, causing little to no impact on the construction services or schedule. b. The outlet covers for the kitchen are on backorder Incorrect. Because construction is just beginning on the project, reordering outlet covers should be a fairly simple task, as many vendors provide outlet covers and the covers will be installed late in the construction schedule. Furthermore, because the outlets are not customer-facing, the contractor can install temporary outlet covers if needed and then replace the outlets with the correct covers when they arrive, without harming the design intent of the space. c. The electrical engineer is two weeks behind schedule Correct. The order of operations when finishing a space is crucial to proper completion. The electrical engineer must perform their services before the closing of the walls, which is followed by mudding and taping the walls and adding wall and floor finishes. If the electrical engineer is two weeks behind schedule on such a small project, the construction timeline will be greatly affected.

Answer 3

B _____ a. The architect issues a change order Incorrect. The cost to correct nonconforming work shall be at the expense of the contractor. b. The contractor absorbs the cost Correct. According to AIA A201-2017 section 12.2.1, the contractor shall promptly correct work that fails to conform to the contract documents. The cost to do so shall be at the contractor's expense. c. The owner initially pays and then bills the contractor for reimbursement Incorrect. The cost to correct nonconforming work shall be at the expense of the contractor. d. The contractor draws money from the contingency fund Incorrect. The cost to correct nonconforming work shall be at the expense of the contractor. The contingency fund is for unknowns.

Answer 4

A ____ a. Owner Correct. The original liquidated damages clause requires the contractor to pay $1,500 for every day beyond the date of substantial completion, and $2,000 for every day that they miss the date of final completion. The contractor has modified the clause from $1,500 to $1,200 per day beyond the date of substantial completion. This would to be to the owner's detriment. b. Contractor Incorrect. Based on the modifications to the liquidated damages clause, the contractor would be required to pay $300 less per day beyond the date of substantial completion. It would be to the contractor's benefit to pay a lower penalty per day if they deliver the project later than agreed. c. AHJ Incorrect. The AHJ is not legally bound to a completion date by the AIA A101 document; however, they are responsible for issuing a certificate of completion (CO) or a temporary certificate of completion (TCO). Both the CO and TCO will play a role in the delivery of the project to the owner. d. Architect Incorrect. Since the liquidated damages clause is meant to penalize the contractor for a late delivery of the project, the architect would not be involved in this clause.

Answer 5

C ____ a. GMP Incorrect. Guaranteed maximum price is a variation on cost-plus where the contractor takes on the risk of providing a maximum sum for the cost of the work. b. Stipulated Sum Incorrect. Stipulated sum is the same as lump sum and fixed fee. A stipulated sum contract is often used when the project is competitively bid. c. Time and materials Correct. Cost-plus means the owner pays the contractor to complete the work plus a fee for overhead and profit. Cost-plus is also known as time and materials (T and M). d. Unit price Incorrect. Unit pricing is when a contractor is paid per a specified unit. Unit pricing is used when there are unknown quantities. For example, a common use for unit pricing is earthwork.

Answer 6

C, D, F ______ a. Public projects experience Incorrect. Since this is a privately funded job, this would have no bearing on the selection of the contractor. b. company's market value Incorrect. The company's market value would only need to be known if the company was being sold. c. insurability Correct. The insurability of the contractor is an important item to review while prequalifying bidders. Insurance information is provided by bidders in Exhibit C of AIA A305. d. required bond security Correct. The bond security will financially protect the owner if the contractor fails to uphold their end of the agreement. If the contractor can't secure the required bonding capacity, then the owner could potentially be at risk for completing the job. Bond security is addressed in Exhibit C of AIA A305. e. change order history Incorrect. Change orders are unique to a project, and they could come from the owner, architect, or contractor; this would not be relevant to the selection of the contractor. f. financial capacity Correct. Since the contractor will be paying for all of the materials up front, they will need to have a strong financial capacity in order to float themselves until the application for payment is approved and paid out. Financial capacity is the focus of Exhibit B of AIA A305.

Answer 7

A, D, E, F _____ a. Maintenance and service expenses Correct. Typically, a life cycle cost analysis is comprised of initial costs, utility costs, maintenance and service costs, and system replacement costs, studied over a 30-year period. Maintenance and service costs include non-utility operating costs, and maintenance and repair costs. These are typically more difficult to estimate than other building expenditures, but there are published estimating tools available to use as a reference. b. Property value increase Incorrect. The anticipated property value of the building is typically not included in a life cycle cost analysis. c. Rental income Incorrect. Any money made from the building occupation is considered profit and is typically not included in the life cycle cost analysis. An owner could use profit to fund building operation, but funding sources are also not typically included in the analysis. d. Utility costs Correct. Typically, a life cycle cost analysis is comprised of initial costs, utility costs, maintenance and service costs, and system replacement costs, studied over a 30-year period. Utility costs include energy, water, TV/internet/phone, and any other utility that would be paid regularly throughout the life of the building. e. System replacement expenses Correct. Typically, a life cycle cost analysis is comprised of initial costs, utility costs, maintenance and service costs, and system replacement costs, studied over a 30-year period. System replacement costs include the number and timing of capital replacements of building systems, which depend on the estimated life of the systems and the length of the study period. f. Initial costs Correct. A life cycle cost analysis is the process of evaluating the economic performance of a building over its entire life, with the aim of balancing initial monetary investment with the long-term expense of owning and operating the building. Typically, a life cycle cost analysis is comprised of initial costs, utility costs, maintenance and service costs, and system replacement costs, studied over a 30-year period. By comparing the life cycle costs of various design configurations, this analysis can explore trade-offs between low initial costs and long-term cost savings, identify the most cost-effective system for a given use, and determine how long it will take for a specific system to pay back its cost. Typically, a life cycle cost analysis focuses on features and systems most likely to impact long-term costs. Initial costs include construction costs and fees, land acquisition, permits, design fees, etc.

Answer 8

A, C, D, F _______ a. Separate contracts by owner Correct. Typically, the owner will contract with additional parties other than the contractor to perform portions of the work (for example, an artistic mural, or furniture placement). It is important that the contractor is apprised of the scope of these contracts, their proposed schedules, etc. It is also important for the architect to understand who is performing various portions of the work. b. Finalization of owner-contractor agreement Incorrect. The pre-construction conference should be held once a contractor is selected and is contracted to perform the work. The owner-contractor agreement should be finalized prior to this meeting. c. Payment application procedure Correct. It is important that the owner and architect understand when the contractor plans on submitting payment applications, so that time can be allotted to review them. Ideally the payment applications will be submitted on a regular schedule (typically monthly, on the same date each month). d. Scheduling of site observations Correct. Regularly scheduled site observations should be discussed and planned at an interval that is consistent with the owner-architect agreement. e. Value engineering Incorrect. While value engineering is a valid topic for discussion, it is not part of a preconstruction meeting and likely warrants its own separate meeting. f. Submittal schedule Correct. It is important that all parties are in agreement on the submittal schedule, so that the architect can appropriately staff the project in accordance with the amount of submittals that are being submitted at various times in the project schedule.

Answer 9

B (contract sum) ____ The AIA A101 Standard Form of Agreement Between Owner and Contractor is structured so that any alternates included within the contract sum should be enumerated in Article 4, Section 4.2.1.

Answer 10

B ___ a. Land disturbance permit Incorrect. This permit is required by the authority having jurisdiction (AHJ) for the contractor to begin working on the site work, but does not allow any work to begin on the buildings. Even if this permit is obtained, the contractor is not released to start the work until the owner issues a notice to proceed. b. Notice to proceed Correct. Construction typically starts with the notice to proceed, which is the owner's written authorization, usually given in letter format. This letter is typically sent by the owner as the architect does not have the authority to direct the work to proceed. c. Building permit Incorrect. This permit is required by the authority having jurisdiction (AHJ) for the contractor to begin working on the building, and is usually preceded by a land disturbance permit. Even if this permit is obtained, the contractor is not released to start the work until the owner issues a notice to proceed. d. Notice of commencement Incorrect. The notice of commencement is sometimes required at the state level in regard to filing a mechanic's lien. The state uses this date as the official start of the project. The mechanic's lien deadline is then measured off of this date.

Answer 11

A ____ a. Create a comparative spreadsheet Correct. This is the next step that should be taken. The architect can aid the owner in evaluating the bids by creating a comparison spreadsheet of the bids and comparing each cost breakdown by division. The bids can be compared line by line, and items that seem high and low can be discovered. b. Select a contractor and notify them Incorrect. The owner selects the contractor. The architect can advise, but should not make the decision. This is not the logical next step either, as the architect must review and compare the bids before a selection can be made. c. Call each contractor for an interview Incorrect. This would be done after the bids are compared, and the owner would be the one to interview the contractors and set the meetings. d. Send letters thanking the contractors for their bids Incorrect. This is not the next step that the architect should take in order to review and compare the bids. This is also not typical.

Answer 12

D ____ a. The forms are accepted as-is in all U.S. jurisdictions Incorrect. Many U.S. jurisdictions require specific language or terms which must be updated or added when using the AIA standard forms of agreement. b. The forms give greater liability protection to the architect Incorrect. This is a common misconception about the AIA standard forms of agreement. The forms were created to be unbiased toward any party and to spell out liabilities in a clear, consistent manner throughout the contracts. c. The forms are all-encompassing for each phase of design and construction Incorrect. Because technology is constantly changing and evolving, it is not reasonable to assume that the AIA standard forms of agreement will cover every phase or type of a design and construction project. These forms may be useful in building a foundation for all design and construction projects, but there is no guarantee they will cover every situation. d. The forms assist in coordination when using additional AIA forms of agreement Correct. By using AIA forms as the basis for design throughout a project, the contracts will reference each other and create a set of straightforward, coherent documents, thereby reducing risk for all parties involved on the project.

Answer 13

D _____ a. Reducing risk Incorrect. The primary concern motivating the selection of the CMc method would be saving time. The project schedule can be streamlined when the CMc acts as both the adviser and constructor. b. Changing scope of work Incorrect. The owner would have selected the cost-plus-fixed-fee method if scope were their primary concern. The cost-plus-fixed-fee method would allow for the project to proceed with an unknown scope of work due to such things as existing conditions. c. Decreasing cost Incorrect. The primary concern motivating the selection of the CMc method would be saving time. The project schedule can be streamlined when the CMc acts as both the adviser and constructor. d. Saving time Correct. The contractor would serve as an adviser on constructability and cost during the design phase, and then transition at a predetermined moment to the traditional role of design-bid-build contractor for the remainder of the project. This would allow for a seamless transition between the design adviser and the constructor, thereby saving time on the overall schedule.

Answer 14

C ____ a. design build Incorrect. While design-build can work well with a fast-tracked schedule, the quality of the design and construction can suffer because the architect works for the contractor, not the owner, and is therefore not able to act in the best interests of the owner. Design-build is popular for projects where value is prioritized. b. multiple prime contractors Incorrect. Multiple prime is a variation on design-bid-build but with multiple general contractors. Multiple prime can work well with fast-tracking, but the job of managing multiple contractors becomes the owner's responsibility, and since this client is inexperienced with construction projects, it is not advisable. c. construction manager Correct. The construction manager can help with coordinating and packaging multiple fast-track bids, allowing the fast-track project to go smoothly. d. design bid build Incorrect. Design-bid-build projects have a linear structure that is hard to coordinate with fast-tracking, unlike hybridized approaches.

Answer 15

A ____ a. "The architect will provide as-built drawings of the existing building" Correct. The term "as-built" is an example of "absolute language" that should be avoided in contracts. As-built drawings imply that the architect will provide documents that accurately reflect all of the existing conditions, both seen and unseen, which would be above and beyond the typical standard of care. The architect should remove language asking for "as-built" drawings, and instead rephrase it as "record drawings," which leaves room for unseen conditions and/or minor discrepancies in the documents. b. "This contract shall be used in conjunction with the General Conditions for Construction" Incorrect. This is typical language found in most contracts. Coordination between the various contracts on a project is crucial to minimize risk and confusion. c. "The owner shall make progress payments to the contractor as approved by the architect" Incorrect. This is a typical fee process in which the architect acts as a third party to verify that the amount of work being charged reflects the amount of work that has been completed. This helps act as a system of checks and balances between all parties involved in the work. d. "The contract time begins upon commencement of the Work" Incorrect. This is a typical phrase found in AIA documents and other contracts which stipulates when the contract time begins.

Answer 16

B, C, D, F ____ a. AIA affiliation Incorrect. This is not considered a major factor to review when responding to a request for proposal. b. Location of the project Correct. The architecture firm must consider location when responding to an RFP. Locations in another state or jurisdiction could present licensing issues, and could also raise fees or lower profits due to travel. c. Project type Correct. Part of an architect's ethical duty is to work on project types in which they are experienced. The project type will determine the program and building type, both of which are crucial elements to consider when responding to an RFP. d. Scope of services Correct. The scope of services tells the architect what services they will provide to complete the project. For a larger firm, it may be firm policy not to accept small, unique projects with limited scope due to a perceived lack of value. The firm should be familiar and experienced with the services needed to complete the project. e. Construction type Incorrect. This is not considered a major factor to review when responding to a request for proposal, as owners rarely specify the type of construction required. f. The client Correct. Clientele can present moderate risk on projects. If the architect or firm has previously worked with a client, that risk is lowered. If they have not, important questions to ask include: What is the client's history of claims? What is their experience with projects? What is their experience with construction? Etc.

Answer 17

A _____ a. Additional site visits can be performed for an additional fee but this does not guarantee all nonconforming work will be detected Correct. The architect shall perform site visits at intervals appropriate to the stage of construction or as stated in the services agreement. Additional visits can be performed but should be billed as a unit cost to the owner. The architect should explain to the owner that increasing the number of site visits will NOT ensure the detection of all nonconforming work. This is because the architect cannot be at the site 100% of the time, controlling the work and observing everything that is happening. The architect is responsible for their job, not the job of the contractor or the construction manager. __________ b. For insurability reasons, the only site visits that the architect should perform are those that are outlined in the owner-architect agreement Incorrect. The architect can add additional site visits but must not increase their risk, which affects insurability, by agreeing to detect all nonconforming work. __________ c. The additional site visits are not needed, as the architect is already obligated to ensure that the work is in compliance at each site visit Incorrect. Ensuring that the work is in compliance with the plans and specifications is outside the architect's standard of care. The architect must make observations appropriate to the stage and circumstances of the construction, but they are not required to perform exhaustive inspections to ensure compliance. The contractor and/or construction managers are expected to perform their jobs to provide construction that is in compliance with the plans and specifications, regardless of whether or not the architect detects nonconforming work. _________ d. All nonconforming work shall be addressed at substantial and final completion; therefore additional site observations are not needed Incorrect. These inspections are limited to what is readily observable or what is shown in test reports. The architect is not responsible for the contractor's failure to complete the project in accordance with the plans and specifications.

Answer 18

C _____ a. Require that the nonconforming work is remediated prior to issuing a certificate of substantial completion Incorrect. The owner may accept nonconforming work, and such acceptance shall not prevent the work from being considered substantially complete. b. Revise the contract documents to match the field condition prior to issuing the certificate of substantial completion Incorrect. The architect should not accept nonconforming work, but the owner may accept it at their discretion. Revising the contract documents to match the nonconforming work could be construed as the architect's acceptance of the work. c. Note the nonconforming work as an exception to the certificate of substantial completion Correct. The architect should keep track of all nonconforming work. At the time of substantial completion, any nonconformnig work that was accepted by the owner should be noted as an exception to the certificate of substantial completion. This protects the architect from liability issues resulting from the nonconforming work in the future. d. Issue a letter to the contractor accepting the nonconforming work Incorrect. The architect should not accept nonconforming work, but the owner may accept it at their discretion. The architect should assist the owner in understanding any implications of accepting the nonconforming work, and should take particular note of whether or not the nonconforming work is a life-safety or quality-of-construction issue.

Answer 19

C _______ a. Masonry and through-wall flashing on the east building appears as though it will be complete by the end of the week Incorrect. Field reports should reflect the status of the construction at the time of the visit. b. Masonry and through-wall flashing is complete Incorrect. Since the architect is only reporting on the status of the masonry and through-wall flashing on the east building, this statement should address that. c. Masonry and through-wall flashing on the east building appears to be complete Correct. The architect should only state that the work appears to be complete, to avoid misrepresenting any incomplete work that could have been missed. d. Masonry and through-wall flashing on the east building is complete Incorrect. The architect should only record the observation that the masonry and through-wall flashing appears to be complete. This is to avoid misrepresentation in case the architect missed a portion of the work that is in fact not complete.

Answer 20

D _____ a. Accept the test report as within allowable tolerances Incorrect. First, the concrete is not fully cured, so it cannot be determined whether the concrete will meet the design strength until day 28. Second, only the structural engineer should make the determination of whether or not the concrete strength achieved at 28 days is within tolerance, if it has not met the design strength. b. Take no action on the test report Incorrect. Taking no action on the test report is not conducive to a collaborative environment between the design and construction team. The architect should request a report after the concrete has fully cured. c. Reject the test report Incorrect. The specifications require concrete strength to be measured at 28 days, so rejecting this 21-day report because the concrete does not yet meet the required strength would be premature. d. Request a report at 28 days Correct. The concrete is not fully cured at day 21, so the architect should request another report after the 28th day to review the concrete's strength.

CE Flashcards

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