Chapter 32 - Construction and FF&E Contracts Flashcards
(35 cards)
Contract documents consist of:
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)
Are bidding documents part of the contract documents?
no (although they are often bound into the project manual)
Some provisions are common to all contracts and include:
a description of the work
the time of commencement and substantial completion
contract sum
________ 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
substantial correction
_______ are moneys paid by the contractor to the owner for every day the project is late
liquidated damages
if a particular completion date is important to the owner, provisions for ______ may be included
liquidated damages
In many cases, a liquidated damage provision is accompanied by a ______
bonus provision so the contractor receives a payment for early completion
What is the most pertinent code for designers selling furniture and accessories to clients rather than just selling them?
Uniform Commercial Code (UCC)
Furniture and accessories may be shipped by a common carrier, contract carrier, or a private carrier. What’s the difference?
common carrier- publiccontract- only provides service to some companiesprivate- companies who own and operate their own trucks and move their own merchandise
If a common carrier is used, the responsibility for the furniture during shipment is _____.
whoever has title to the furniture bear the responsibility for damage or loss
There are several ways furniture and accessories are shipped and risk to the either the seller or the buyer is assigned by _____
the UCC
What does the term FOB mean?
free on board- the manufacturer pays for loading the goods onto a truck or train
is there another method than FOB?
no- everything is always FOB
FOB is followed by the word ____ or _____ (give examples)
factory or destination Ex: FOB Factory or FOB Los Angeles
What does FOB factory mean?
that the title is transferred at the factory.
Who pays the transportation costs and who is responsible for loss or damage during shipment with FOB factory?
the buyer (vendor/client/designer) pays the transportation costs manufacturer is not responsible for loss or damage during shipping
One goods are consigned to a common carrier at a factory, who does the title pass on to?
to the buyer of the goods
What is a shipment contract?
goods are shipped “FOB Factory” and are insured by the buyer
What is FOB factory-freight prepaid?
the FF&E vendor owns the furniture, but the supplier pays the shipping charges
A _____ is anyone who sells products or services to the interior designer or the client.
vendorA vendor may be a furniture dealership, individual furniture company, drapery work room, tradesperson, or similar business.
The ____ in an FF&E contract is responsible for ordering, delivery, and installing the goods described in the contract
vendor
_____ 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.
demurrage
Does the interior designer have authority to stop the work or terminate the contract on behalf of the owner?
no
Does the designer have the authority to require special inspections or testing of the work?
yes
