Flashcards in CONSTRUCTION AND CONTRACT ADMINISTRATION Deck (31):
Which two AIA forms do you need to memorize for your career, for this exam, and to be a good architect?
AIA Document B141 owner-architect agreement
AIA Document A201 General conditions of the contract for construction
What is… Someone who is authorized to act on behalf of another party, the principal?
A contract between owner and architect spells out the scope of the architect's…
What terms do you AVOID when describing what an architect does during the construction phase in order to avoid potential professional liability problems? What professions do they dovetail with?
Supervision (the contractor does this), inspection (Government agencies)
Which contract defines the scope of the architect's agency to the owner?
AIA Document B141
Who can stop work on construction?
Only the owner
A legal claim against someone's property.
A mechanics lien
How does retainage protect against liens?
By withholding retainage of money owed to the contractor, the owner has funds to pay for labor materials if the contractor fails to make payment to subcontractors. Retainage can also be used to pay for correction of work.
What needs to be done before retainage is released?
A surety company that issued the performance bond gives written permission
What else provides protection from liens?
And I for David from the contractor before he is entitled to receive final payment
What are documents AIA G706 and AIA G706A?
G706: Contractors affidavit of payment of debts and claims
G706A: contractors affidavit of release of liens
What are the 4 reasons the AIA says that arbitration is preferred over litigation?
2. Less costly
3. Matter can be heard by someone with construction expertise
4. It is private
Name the protection: an embankment gives way endocrine plunges into an excavation, causing injury and property damage.
Contractor has liability insurance and workers compensation insurance
Name the protection: a subcontractor goes bankrupt causing workers and material suppliers to go unpaid
The owner is protected by the contractors labor and material payment bond
Name the protection: material shipped from overseas is mishandled, causing breakage in shortage of critical building components
Contractor protected by liability insurance, owner protected by builders risk insurance if he has paid for the material
Name the protection: a contractor is the low bidder but refuses to enter into an agreement
Bid bond or bid deposit
Which is the bond guaranteeing that the bitter will enter into a contract if excepted, and that the bitter will provide a performance and labor and material payment bond to guarantee the work.?
A bid Bond
What does document A312 do?
It combines a performance and payment bond
Usually, how much is a performance bond?
Usually 100% of the contract amount
About how much can an owner save by for doing a performance bond with the contractor?
About one or 1 1/2% of the contract price
What happens if the contractor defaults?
Performance bond ensures that the surety company either 1.) completes the contract or 2.) obtains bids to enable another contractor under contract to either the surety with the owner to complete the contract
Why should an architect not interpret bond terminology for an owner?
Because professional liability insurance excludes coverage for claims arising out of giving her failing to give advice about insurance and bonds
Why should the retainage never be released without the surety's written permission?
Because that retainage can be used by the surety to reduce its financial losses in the case of a default
What does the AIA document G610 – owners instructions for bonds and insurance – do?
It is a checklist to be filled out by the owner and delivered to the architect to be inserted into the building and contract documents for the project...The architect cannot advise on matters of insurance
What is contractual liability insurance?
Provides coverage for liability assumed by contract… As in the portion requiring the contractor to indemnify the owner and architect if they are sued by a construction worker in the course of work
The owner usually carries property insurance, but when the contractor does, why?
Because the owner doesn't know what he is doing and it is easier for the contractor to acquire it
What is subrogation?
This is a procedure by which an insurance company, after paying out a loss to the insured, can attempt to recover this amount from some other party who may have actually caused the loss.
The standard AIA waiver of subrogation clause in the general conditions pertains to…
Who must agree if the owner has to occupy the work before substantial completion?
The contractor as well as the company providing property insurance
Who should analyze the contractors submitted certificate of insurance?
Owners insurance agent