Contract and Legal Terms Flashcards
(165 cards)
Contract
An agreement between two or more parties that stipulates the exchange of things of value between the parties in the contract.
Percentage of cost agreement
A contract where the fee for services is based on percent of construction costs.
Time and Materials Agreement
contractors will be reimbursed for the material costs, and they will also be paid a rate for the time they’re working on the job.
Flat Fee Agreement/Fixed Price
A contract where the fee is fixed in advance of beginning work. Payment linked to contract defined deliverables. Must have a well defined scope.
Time and Materials with Maximum not to Exceed
includes a cap that represents the maximum amount that can be charged by the contractor. Provides owners with more security. Removes potential for profit from design firms.
Cost Plus Fixed Fee
Hourly cost plus a negotiated flat fee. Uncommon.
Preamble
Lists date, parties of the contract, description of work or services, and compensation.
Basic Services
Services to be provided (ie Scope of Work)
Services
Spells out other services and anticipated compensation (use of subconsultants).
Owner’s Responsibility
Provision of necessary information (surveys, grading etc.) to successfully execute contract.
Reimbursable Expenses
Direct costs to the designer that will be documented and compensated. Travel, delivery, reproduction.
Method of Payment
How and when payments are to be made and products delivered.
Indemnity Clause
Client and consultant agree to hold each other harmless in the event of liability claims.
Conclusion
Termination Clauses, statements regarding ownerships of original drawings, limits of liability.
Successor and Assigns
Transferability of responsibility should one of the parties sell the business, property or die.
Signature Section
Where parties of the contract sign.
Contract Amendment
Additional service requests, contract modifications or amendments to professional services. Bases on the same terms as the original contract. Includes detailed description of additional work , scope, fee and schedule, date and both parties signatures.
Tort
A civil wrong for which a court will grant a remedy. Someone has suffered damage, and somebody else is at fault.
Independent of contract, does not break any laws.
Intentional Tort
Misrepresentation of facts, deceit -rare in the design field.
Unintentional Tort
Generally deal with issues of negligence. Considerable concern to the design field.
Negligence
Failure to exercise the care that a prudent person usually exercises.
Duty of Care
Doctrine of Respondent Superior -Employers are responsible for the acts of their employees while they are working within their employment duties.
Doctrine of Gratuitous Service - volunteer and free services carry same responsibility as paid services.
Breach of Duty
Affirmative Acts - giving incorrect advice or issuing drawings that result in damage.
Failure to Act (Errors and Omissions) - Failing to provide advice or mission of a drawing or spec that results in damage.
Causal Connection
To prove negligence, a connection between breach of duty and damage must be shown.