Contracts Flashcards
1
Q
What 7 items are included in the “Contract Documents?” What is not included?
A
1- O/C Agreement 2- General and supplemental conditions 3 Drawings 4- Specifications 5- Addenda 6- Modifications (ex. change orders) 7- Other documents listed in contract (BIM, Sustainable exhibits, etc)
- bidding documents
- geotechnical report
- submittals
2
Q
When does contract time start and end? How is contract time measured?
A
Start can be:
- date of agreement (default if none selected)
- date set forth in notice to proceed
- other specified date
End = substantial completion
Measured in calendar days.
3
Q
What are Liquidated damages? What do they represent?
If liquidated damages are asked for in the contract, what provision must also be added?
A
Fees paid to owner by contractor for every day the project is late due to fault of contractor. It is often accompanied by a bonus provision for contractor for early completion.
- These must represent reasonable losses that the owner expects to incur if project is not completed on time (ie. rent)
A provision must be added to make this enforceable in court.
4
Q
Per AIA Doc A101 and A201, if the Owner terminates the agreement for their convenience, they must pay…
A
- the contractor for all work property executed and costs incurred due to termination, but NOT for overhead/profit
- all costs attributed to termination of subcontractors
- an agreed-on termination fee
5
Q
Per AIA Doc A101, what are progress payments?
How is the amount due calculated in A101? What items do these payments cover?
How is the amount due calculated in A102?
A
Periodic (usually monthly) payments that the Owner makes as the project progresses based on applications for payment that C submits to A).
Amount due is based on the portion of the contract sum that is properly allocable to the work completed and to any materials/equipment that have been purchased and stored on-site for later use on the project.
- work completed is based on schedule of values
- materials/equipment stored off-site also require payment, but only if Owner’s approves in writing in advance.
Amount due is based on the percentage of completed work, PLUS the amount allocated for any materials/equipment purchased and stored for later use.
- % of completed work is based on schedule of values, which allocates the GMP to various portions of the work and includes contingency and contractor’s fee
6
Q
Final payment
A
Payment made by the owner to the contractor, upon issuance by the architect of the final certificate for payment, of the entire unpaid balance of the contract sum as adjusted by the final change order.
7
Q
Final application for payment
A
The contractor’s formal request for the remaining balance of project funds allocated in the contract, submitted on the directive of the architect after final completion has been determined. The final application for payment is submitted after or contemporaneously with the processing of the final change order.
8
Q
Final change order
A
A change order to the contract for construction, executed prior to or contemporaneously with the contractor’s final application for payment, that reconciles outstanding contract cost liabilities and variables such as allowances, contingencies, shared savings, penalties, bonuses, or outstanding additional services costs due the architect.
9
Q
Retainage
A
percentage each payment to Contractor (usually 10%) that Owner withholds until final completion of the work
10
Q
What are the steps in an Owner-Contractor dispute resolution?
A
- Disputes referred to Initial Decision Maker (IDM) = Architect uon
- IDM reviews claims and supporting evidence
- IDM must take one of the following actions within 10 days:
- request additional support from claimants
- reject claim in whole or in part
- approve the claim
- suggest a compromise
- advise Owner/Contractorthat IDM is unable to resolve the claim - IDM’s decision is binding but subject to mediation
- If mediation does not resolve, it is subject to arbitration or litigation
11
Q
What are 4 main compensation methods for the construction contract?
A
- Stipulated sum
- fixed price known up-front
- typ. used in competitive bidding - Guaranteed Maximum Price (GMP)
- if project completed for less than GMP, Owner keeps savings
- if project costs exceed GMP, Contractor pays excess - Cost-plus-fee
- Contractor is compensated for actual expenses of labor, materials, and subcontractors plus a fixed fee for profit
- allows construction to proceed before design is complete
- main disadvantage = cost unknown - Unit price
- not often used for an entire project, but instead for portions of a project
- often used in excavation projects (ie. cost per cubic yard of material)
12
Q
What is AIA Doc A102? A103?
A
A102 = Owner-Contractor Agreement (Cost of Work Plus Fee with GMP)
A103 = Owner-Contractor Agreement (Cost of Work Plus Fee without GMP)
13
Q
Per AIA Doc A102, can revisions to the Contract Documents be made after GMP is set?
A
Yes, if revisions are consistent with stated assumptions contained in GMP.
14
Q
Which payments does AIA Doc A102 not allow as reimbursable expenses to anyone hired by contractor/subcontractor/ vendor/etc, unless Owner has made prior approval?
A
- bonuses
- profit sharing
- insensitive compensation
- other discretionary payments
15
Q
What type of advance payments do A102 and A103 forbid the Contractor from making?
A
Advance payments to suppliers for materials delivered to project site without the Owner’s prior approval
16
Q
Per AIA Doc B101, what are the architect’s basic services?
Additional services?
A
Basic: SD, DD, CD, Bidding, CA
Additional:
- programming
- BIM
- LEED or other sustainable building rating system certification
- post-occupancy evaluation
17
Q
If the Owner identifies a sustainable objective, which AIA Document should be added to B101?
A
E204 Sustainable Projects Exhibit
18
Q
What are AIA Documents that can be used for protocols for transmission and use of instruments of services or other digital information?
What does it mean if neither of these documents are used?
A
- AIA Doc E203, Building Information Modeling and Digital Data Exhibit
- AIA Document G202, Project Building Information Modeling Protocol Form
If neither is used, it is risky because there is no liability to the other party, contractors, or consultants when using/relying on digital data.
19
Q
Per B101, what 5 types of insurance must an architect carry?
A
- Professional Liability
- General Liability
- Automobile
- Worker’s Compensation
- Employers’ Liability
**Architect’s insurance must include Owner as an additional insured for claims caused by Architect’s negligent acts or omissions
20
Q
For how long does B101 require A to maintain insurance?
A
Up to 1 year after substantial completion.
21
Q
Per B101, when must an architect prepare a preliminary schedule for the performance of their services for the Owner’s approval?
What must this schedule include?
Once Owner has approved the schedule, time limits…
A
As soon as practical after agreement is signed.
- Time for Owner’s review
- Performance of Owner’s consultants
- Approval of submissions by authorities having jurisdiction
- Expected dates for start of construction and substantial completion
… cannot be exceeded by Architect or Owner except for reasonable cause. But the Architect must keep the project schedule updated during the project and inform Owner of any necessary changes/delays.
22
Q
Per B101, what are an architect’s responsibilities regarding sustainability during SD?
A
The Architect must consider sustainable design alternatives (including materials, building orientation etc) that are consistent with Owner’s program, schedule, and budget.
23
Q
Per B101, what are the architect’s responsibilities regarding a preliminary cost of work?
What must the architect do if the estimate exceeds the budget?
Can the architect guarantee bids or negotiated prices?
A
The architect must prepare a preliminary cost of work and refine as the design work progresses during prep of Construction Documents.
The architect must make recommendations to the owner to adjust the project’s size, schedule, or budget. The owner must cooperate with the architect’s suggestions.
No! Neither owner nor architect can guarantee prices, only the Contractor can.
24
Q
Per B101, what must be received at the end of each phase before the architect can start work on the next phase?
A
Owner’s written approval
25
Per B101, for what 4 tasks is the architect authorized to act as owner's agent regarding construction procurement services?
What is the architect NOT doing while providing these services?
Architect is authorized to act of Owner's agent for these tasks:
- assisting Owner in obtaining competitive bids or negotiated proposals
- determining responsiveness of bids or proposals
- determining the successful bid proposal
- assisting Owner in awarding the contract and preparing contracts for construction
HOWEVER, A is not providing legal services and is not party to Owner-Contract agreement, which must be drafted by an attorney.
26
What are the architect's basic services during construction procurement? Additional services?
Basic:
- produce bidding documents
- distribute bidding documents
- hold pre-bid conferences
- answer questions
- prepare addenda
- participates in bid opening
Additional:
- if substitutions are allowed per CDs, consider requests for substitutions upon Owner's written authorization
27
If the bids are higher than the budget, what must the architect do per B101?
The architect must modify the bidding documents to comply with the budget without any additional compensation.
28
Is this service listed as a basic, additional or supplemental service in B101?
Assisting the Owner in establishing a list of prospective contractors and (following the Owner’s approval of the Construction Documents) assisting the Owner in
(1) obtaining either competitive bids or negotiated proposals;
(2) confirming responsiveness of bids or proposals;
(3) determining the successful bid or proposal, if any; and,
(4) awarding and preparing contracts for construction.
basic (3.5.1)
29
Is this service listed as a basic, additional or supplemental service in B101?
Maintaining a record of the Applications and Certificates for Payment.
Basic (3.6.3.3)
30
Is this service listed as a basic, additional or supplemental service in B101?
Programming
Supplemental
31
Is this service listed as a basic, additional or supplemental service in B101?
Changing or editing previously prepared Instruments of Service necessitated by official interpretations of applicable codes, laws or regulations that are either
(a) contrary to specific interpretations by the applicable authorities having jurisdiction made before issuance of the building permit, or
(b) contrary to requirements of the Instruments of Service when they were prepared in accordance with the applicable standard of care.
Additional services
32
Is this service listed as a basic, additional or supplemental service in B101?
Preparing and presenting, for the Owner’s approval, a preliminary design illustrating the scale and relationship of the Project components based the Project requirements agreed upon with the Owner.
Basic
33
Is this service listed as a basic, additional or supplemental service in B101?
Value analysis
Supplemental
34
Is this service listed as a basic, additional or supplemental service in B101?
Assisting the Owner in obtaining proposals by:
1) facilitating the distribution of Proposal Documents to prospective contractors and
requesting their return upon completion of the negotiation process;
2) organizing and participating in selection interviews with prospective contractors;
3) preparing responses to questions from prospective contractors and providing clarifications and
interpretations in the form of addenda; and,
4) participating in negotiations with prospective contractors, and subsequently preparing a summary report
of the negotiation results, as directed by the Owner.
basic
35
Is this service listed as a basic, additional or supplemental service in B101?
Changing or editing previously prepared Instruments of Service due to the enactment or revision of codes, laws, or regulations.
Additional
36
Is this service listed as a basic, additional or supplemental service in B101?
Architect’s coordination of the Owner’s consultants
Supplemental
37
Is this service listed as a basic, additional or supplemental service in B101?
Conducting a meeting with the Owner to review the facility operations and performance, prior to the expiration of one year from the date of Substantial Completion and upon request of the Owner.
Basic
| ** but post-occupancy evaluation is listed as a supplemental service**
38
Is this service listed as a basic, additional or supplemental service in B101?
Reviewing a Contractor’s submittal out of sequence from the submittal schedule approved by the Architect.
Additional services to be provided to avoid delay of construction. Notify Owner. If deemed not required by Owner, Owner will pay for any services provided prior to receipt of notice. (4.2.2)
39
Is this service listed as a basic, additional or supplemental service in B101?
Evaluating substitutions proposed by the Owner or Contractor and making subsequent revisions to Instruments of Service resulting therefrom.
Additional services to be provided to avoid delay of construction. Notify Owner. If deemed not required by Owner, Owner will pay for any services provided prior to receipt of notice. (4.2.2)
40
Is this service listed as a basic, additional or supplemental service in B101?
Preparation for, and attendance at, a public presentation, meeting or hearing.
Additional
41
Is this service listed as a basic, additional or supplemental service in B101?
Site evaluation and planning
Additional
42
Is this service listed as a basic, additional or supplemental service in B101?
Conducting inspections with the Owner to check conformance of the Work with the requirements of the Contract Documents and to verify the accuracy and completeness of the list submitted by the Contractor of Work to be completed or corrected.
Basic
43
Is this service listed as a basic, additional or supplemental service in B101?
Preparing digital models or other design documentation for transmission to the Owner’s consultants and contractors, or to other Owner-authorized recipients.
Additional
44
Is this service listed as a basic, additional or supplemental service in B101?
Preparation of design and documentation for alternate bid or proposal requests proposed by the Owner.
Additional
45
Is this service listed as a basic, additional or supplemental service in B101?
Providing Sustainable Project Services pursuant to Section 4.1.3
Supplemental
46
Is this service listed as a basic, additional or supplemental service in B101?
Evaluation of the qualifications of entities providing bids or proposals.
Additional
47
Is this service listed as a basic, additional or supplemental service in B101?
Considering sustainable design alternatives, such as material choices and building orientation, together with other considerations based on program and aesthetics, in developing a design that is consistent with the Owner’s program, schedule and budget for the Cost of the Work.
Basic
| **more advanced sustainable design services may be obtained as a supplemental service**
48
Is this service listed as a basic, additional or supplemental service in B101?
Coordinating the Architect's services with those provided by the Owner and the Owner's consultants.
Basic
49
Is this service listed as a basic, additional or supplemental service in B101?
Assisting Owner in the development and preparation of procurement information that describes the time, place, and conditions of bidding, including bidding or proposal forms.
Basic
50
Is this service listed as a basic, additional or supplemental service in B101?
Multiple bid packages
Supplemental
51
Is this service listed as a basic, additional or supplemental service in B101?
Furniture, furnishings, and equipment design
Supplemental
52
Is this service listed as a basic, additional or supplemental service in B101?
Preparing Change Orders and Construction Change Directives that require evaluation of Contractor’s proposals and supporting data, or the preparation or revision of Instruments of Service.
Additional
53
Is this service listed as a basic, additional or supplemental service in B101?
Assisting the owner in the forming of agreement between Owner and Contractor.
Basic
54
Is this service listed as a basic, additional or supplemental service in B101?
Consultation concerning replacement of Work resulting from fire or other cause during construction
Additional
55
Is this service listed as a basic, additional or supplemental service in B101?
Building Information Model management responsibilities
Supplemental
56
Is this service listed as a basic, additional or supplemental service in B101?
Assisting the Owner in development and preparation of the Conditions of the Contract for Construction (General, Supplemental, and other Conditions).
Basic
57
Is this service listed as a basic, additional or supplemental service in B101?
Compiling a project manual that includes the Conditions of the Contract for Construction and Specifications, and may include bidding requirements and sample forms.
Basic
58
Is this service listed as a basic, additional or supplemental service in B101?
Multiple preliminary designs
Supplemental
59
Is this service listed as a basic, additional or supplemental service in B101?
Responding to the Contractor’s requests for information that are not prepared in accordance with the Contract Documents or where such information is available to the Contractor from a careful study and comparison of the Contract Documents, field conditions, other Owner-provided information, Contractor- prepared coordination drawings, or prior Project correspondence or documentation.
Additional services to be provided to avoid delay of construction. Notify Owner. If deemed not required by Owner, Owner will pay for any services provided prior to receipt of notice. (4.2.2)
60
Is this service listed as a basic, additional or supplemental service in B101?
Evaluating qualifications of bidders or persons providing proposals.
Additional.
61
The architect owns the instruments of service and grants Owner what type of license?
a license to use the instruments of service solely and exclusively for constructing, using, maintaining, altering, and adding to the project
62
If the architect rightfully terminates the agreement for cause, then what happens with the owner's license to the instruments of service?
It is also terminated.
63
If the architect does not rightfully terminate the agreement for cause, then what happens with the owner's license to the instruments of service?
Owner retains the license until after the completion of the project or until Owner's termination of the agreement
64
If the owner uses the instruments of service without retaining the architect, then...
Owner agrees to release and indemnify the architect and architect's consultants for all claims arising form such uses.
65
Waiver of consequential damages
limits claims to damages resulting directly from breach of agreement
66
Waiver of subrogation (waiver of rights)
Owner and architect cannot sue each other for damages IF they are covered by property insurance (as required by O/A agreement).
Also prevents insurance company from suing the O/A/C/consultants/subs to recover what has been paid for an insured loss.
67
Either party can terminate the agreement with at least X days written notice if Y.
X = 7
Y = the other party fails to substantially perform according to the agreement.
68
The architect may suspend performance of services within X days written notice if Y.
X = 7 days
Y = Owner fails to make payments on time
69
If the owner suspends work or terminates the agreement, then the owner must pay the architect ....
... for work completed.
70
A termination fee/licensing fee must be agreed on in B101 for these 3 situations:
1. The owner terminate the agreement for their convenience (7 days notice required)
2. The architect terminates the agreement after the owner suspends the project for more than 90 cumulative days for reasons other than fault of the architect (7 days notice required)
3. The agreement automatically terminates 1 year from date of substantial completion.
71
What is the Cost of the Work? What does it include? What does it not include? How are costs figured?
Total cost to the owner to construct the project designed and specified by the architect.
Includes:
- contractor's general conditions cost
- overhead
- profit
- owner supplied work
Does not include:
- professional fees
- land costs
- rights-of-way
- financing
- contingencies for changes in work
Costs are figured at current market rates.
72
If the lowest bid or negotiated proposal is greater than the budget, the Owner has these 5 options:
1. increase budget
2. authorize re-bidding or re-negotiation
3. terminate the project
4. cooperate with architect to reduce project scope or quality (at no cost to the owner)
5. implement some other mutually acceptable alternative
73
Architect's estimate of cost of work is based on:
current area, volume, or similar technique
74
Per B101, if the Owner requests a detailed estimate, then the architect...
must provide one but as a supplemental service.
75
If the project is over budget at the conclusion of the Construction Document phase, the owners may reduce the cost of the work in consultation with Architect.
a) If the overage is due to market values or conditions the architect could not anticipate, then ...
b) If the overage is due to conditions the architect could have anticipated then ...
a) the owner must compensation the architect for modifications to the documents.
b) the architect must modify the construction documents without additional compensation.
76
Per B101, if a request for mediation is filed, then no binding dispute resolutions may be held before X days min from the date the request was filed. Why?
60 days min
In hopes that a mutually acceptable agreement can be reached in that period.
77
B101 divides compensation methods into what 3 groups?(but any method may be used)
1. stipulated sum
2. percentage basis
3. other
78
How is stipulated sum typically billed?
Typically billed monthly according to a percentage of phase completion.
79
Per B101, what is NOT included in a stipulated sum payment?
Reimbursable expenses:
- postage
- reproductions
- travel & accommodations
- overtime work w/ owner authorization
- project-specific communication costs
- project websites
- project insurance
- renderings and models
- fees for jurisdictional approvals
- taxes on professional services
80
In the cost-plus-fee payment method, the owner pays the architect actual expenses of doing the job plus a reasonable fee for project. What is included in "actual expenses"?
- salaries
- employee benefits
- direct expenses
- office overhead
81
What are 4 variations of cost-plus-fee (O/A)?
1. multiple of direct personnel expense (based on direct personnel expense, which includes employee salary + benefits)
2. Multiple of direct salary expense (also called net multiplier method. Based on direct salary expense, which does NOT include employee benefits. It is usually higher to account for cost of benefits)
3. Hourly billing rates (multiplier is built into the hourly rate for each employee)
4. Hourly billing rates, not to exceed
82
What is the primary disadvantage to the owner in a percentage of construction cost fee structure? Primary disadvantage to the architect?
Owner: Architect has incentive to keep cost of construction high
Architect: Low-cost projects can require just a s much, or more, work as an expensive project
83
How does a "unit cost" fee structure work (O/A)?
Owner pays architect fees based on a definable unit, such as SF (ie. tenant planning in a leased building) or residential unit. It works well with projects that have repetition.
84
How does a "progress payment" fee structure work (O/A)?
Owner pays Architect progress payments that are calculated by multiplying agreen-on percentages by Owner's most recent budget.
Updates to budget will affect future payments, but not past payments.
85
When compensation is based on a stipulated sum or percentage basis, what must the architect include in B101?
a payment schedule that gives the proportion of compensation for each phase of service including SD, DD, CD, procurement, and construction.
Payments to architect include an initial payment made upon execution of the o/a agreement, but thereafter all payments are made monthly based on proportion of services performed based on the payment schedule, in additional to reimbursable expenses.
86
What other AIA docs should include for a sustainable project?
E204 Sustainable Project Exhibits
Can be used with D503, Guide for Sustainable Projects and B214, Standard Form of Architect's Services: LEED Certification
87
What is sustainable objective per E204? Who sets it?
A goal to be set by owner and to be achieved by incorporating sustainable measures into the design, construction, maintenance, and operation of the project.
88
What is a sustainability workshop per E204? When should it be held?
Team members meet to confirm the sustainable objective, establish goals and expectations, and discuss possible sustainable measures and the effect they may have on budget and feasibility.
Before the end of the SD phase.
89
What are sustainable measures per E204?
Specific design or construction element, or post-oct use, operation, maintenance, or monitoring requirement, that must be completed in order to achieve the sustainable objective.
90
What is the sustainability plan per E204? What 7 items does it contain? Who prepares it?
Contract documents that identify and describe:
1- sustainable objective
2- sustainable measures used to achieve the objective
3- strategies used to implement sustainable measures
4- associated roles/responsibitilites of O/A/C
5- Specific details about design reviews
6- Details about testing required to verify achievement of sustainable measures
7- details about required sustainability documentation
The architect prepares this and sends to owner for approval.
91
What is sustainability certification per E204?
Certification of sustainable design, construction, or environmental/energy performance that is certified by an agency certifying authority (ex. Green Building Certification Inc for LEED)
92
If the sustainable objective is to achieve certification, what 4 items should the sustainability plan include?
1- sustainable measures needed to achieve objective
2- potential and expected value of each credit from the certifying authority
3- the responsible party (o/a/c/other) and whether the party is primarily responsible for implementing measures or just provides support
4- description of implementation strategies selected to achieve sustainable measures, details about design reviews/testing, and required sustainability documentation
93
On a sustainable project, if the architect is unable to determine whether materials/equipment will perform as represented by manufacturer or supplier, what should they do?
Discuss with the owner and obtain owner's approval in writing so that the architect may rely on manufacturer’s representatives and is not responsible for performance. The same goes for the contractor in the architect's position.
94
Who registers a sustainable project with the certifying authority? What are the two steps involved?
The architect does.
1. Collect sustainability documentation from O/C, organize, format, an submit to certifying authority
2. Prepare and submit application for certification to certifying authority
95
For whose acts or omissions is the architect's consultant responsible? What must a consultant do if becoming aware of any errors, omissions, or inconsistencies in the architect's work?
Only their own. Consultants are not responsible for acts/omissions by Architect or Architect's other consultants.
Provide prompt written notice to the architect.
96
What AIA docs can architect/consutlants use to agree on protocols governing transmission and use of digital forms of instruments of service?
E203, Building Information Modeling and Digital Data Exhibit
G202, Project Building Information Modeling Protocol Form
97
What is the architect's responsibility toward their consultants regarding relevant code and design information?
Architect is responsible for providing their consultants with the relevant code and design information.
98
Who is responsible for the code compliance of the consultant's drawings and specs?
While the consultant is responsible for code compliance in their area of work, accuracy of their drawings and specs, and checking their drawings for consistency, the architect is legally responsible for and liable to the owner for the code compliance of the consultant's drawing and specs.
99
What are the architect's and consultant's responsibilities regarding the consultant's schedule?
Architect should outline all work needed from the consultants based on the preliminary schedule and provide consultants with this information as well as key dates/milestones.
The consultant must then submit for architect's approval schedule of the consultant's services.
100
What is the AIA Doc for Architect/Consultant? For Owner/Consultant?
AIA C401 Architect-Consultant Agreement
AIA C103 Owner-Consultant Agreement
101
Per C103, what are the owner's options for coordinating their consultant's design services with the other consultants and the architect? How should the architect coordinate with the owner's consultants?
1. Owner must coordinate their consultant's services with other consultants and architect
or
2. Owner retains the architect to provide coordination services as supplemental services.
The architect should NEVER assume responsibility for coordinate the Owner's consultants' documents, only coordinating with the consultants themselves.
102
Per C103, how does the owner's consultants schedules get prepared?
Architect must give the owner critical milestone dates from the architect's schedlule that can be incorporated into C103. The owner's consultants then submit a schedule for the services to the owner for approval.
103
Per A201, what is the "work"?
| The "project"?
Work = contractor's obligations to provide improvements to the project (aka, it may be the whole project or a portion of it.)
Project = the whole project, so may also include construction by other contractors or the owners own forces.
104
What are the instruments of services? What do they include?
Representations of the tangible and intangible creative work of the architect and architect's consultants.
Includes:
1. studies
2. surveys
3. models
4. sketches
5. drawings
6. specifications
105
Per A201, what is the owner's responsibility to the contractor regarding their ability to pay for the project?
The owner must furnish reasonable evidence that the contractor can be paid.
- Before work commences, upon written request by the contractor, the owner must provide reasonable evidence that the owner has made financial arrangements to fulfill their obligation under the contract.
- contractor does not have to commence work until the owner provides this evidence
- once the work has begun, the contractor can only request this information if:
1. the owner fails to make payments
2. change in the work materially changes the contract sum
3. the contractor identifies a reasonable concern regarding the owner's ability to pay
106
What is the responsibility for paying for permits and approvals per A201?
Owner must pay for all permits/approvals required before execution of the project (ex. zoning permit, easements, assessments, environmental impact studies, etc).
The contractor is responsible for all permits obtained after the execution of the contract (typically the building permits and other governmental fees/permits).
107
Per A201, if the contractor fails to correct work or continuously carries out work not in accordance with the Contract Documents, then the Owner may order the contractor to stop work until issue is resolved.
How many days does the contractor have to correct the problem?
If the contractor does not correct the work within that time, what is the owner's rights regarding carrying out the work at this point?
What is the owner's rights regarding cost of correcting work?
Contractor has 10 days to correct the problem.
Owner may carry out the work without the contractor. This would not consistute a breach of contract of owner's part.
Owner may subtract the cost of correcting the work (and any cost of compensation for the architect's work involved) from the contract sum, if approved by the architect.
108
Per A201, what is the contractor's responsibility to the owner for errors and omissions in the contract documents?
Contractor is not liable to O/A for damage resulting from e&o's in the contract documents UNLESS the contractor recognized such an error and knowingly failed to report it to the architect.
109
Which acts and omissions is the contract responsible for per A201?
The contractor's own errors and omissions and those of their workers.
110
What does the contractor guarantee regarding materials and workmanship crafted under A201 and A101?
they are:
- of good quality
- free of defects
- conform to the requirements of the contract documents
111
Per A201, what is the procedure if the contractor notices any concealed or unknown conditions that are materially different from those indicted in the contract documents?
1. Contractor must notify O/A within 14 days
| 2. Architect must investigate conditions and determine if it is necessary to change contract sum or time
112
What are "allowances?"
The architect's estimated cost of a particular material or equipment when actual cost cannot be precisely determined at time of bid or negotiated proposal.
113
What should an allowance cover?
| What is it not intended to cover?
the cost to contractor of the item, its delivery to the job site, and all taxes.
costs of unloading, handling, or installing the item nor the contractor's overhead/profit.
114
How do allowances affect the contract sum?
The O/C contract must included all allowances (plus contractor's overhead/profit) listed in the contract documents when developing the contract sum.
If actual costs are different from the allowance, the contract sum is adjusted by a change order.
115
What are the 'record documents?' Who must maintain them per A201?
Copies of all construction drawings, specifications, and other contract documents, marked to record exactly how project was built, noting changes from original documents.
**submittals are NOT contract documents**
The contractor must maintain record documents at the job site and keep available for architect's reference during construction.
116
Who maintains the submittals?
Contract must keep one copy of all submittals at he job site.
**submittals are NOT contractor documents**
117
What are "design services" per A201? What is another name for this?
Contractor may be required to provide professional design services or certifications if required to do so by the contract documents or contract.
It is legally a form of design allocation by the Owner, since there is no contractual relationship between the A/C.
It is also called design delegation.
118
What indemnification is provided per A201?
Contractor indemnifies and holds harmless, Owner, architect, architect's consultants, and agents against claims, damages, and expenses arising from performance work.
This protects O/A against situations where a person is inured or property is damages due to contractor's negligence.
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What are the 3 ways that changes can be made after the execution of the construction contract?
1. Minor changes in the work
2. Change order
3. Construction change directive
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Change order
A way to make changes to the work after execution of the contract that is written by the architect and signed by the O/A/C. The order states the extent of the change and how it affects construction time/cost.
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Construction change directive
A way to make changes to the work after execution of the contract that requires agreement only between O/A and contains instructions to the contractor to proceed with the state changes, even if the contractor does not agree with the basis of adjustment in contract sum or time.
Once changes in cost/time are determined, a change order is issued.
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What is a minor change in work?
1. How much it be submitted?
2. What should the contractor do if they believe such a change would impact construction time/cost?
3. What does the contractor waive by performing a minor change of work?
A way to make changes to the work after execution of the contract that can be ordered by the architect alone, provided the change is consistent with the contract documents and does not impact construction time or cost.
1. Architect must submit it in writing
2. If the contractor believes such a change would impact construction time/cost, the contractor must notify the architect and not implement the change until a change order is issued.
3. By performing work of a minor change of work, the contractor waives any adjustments to contract sum or time.
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What are 2 things an owner can do to protect themselves from mechanic's liens resulting from the contractor not paying the subcontractors?
1. Require the contractor to submit a release or waiver of liens to the owner before final payment is made or retainages are released.
2. Require the contractor to furnish to O/A an affidavit of payment of all debts and claims, and an affidavit of release of liens stating all obligations have been satisfied.
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The contractor must furnish liability insurance to cover entities for whom the contractor is legally responsible. What 6 situation must this insurance cover?
For how long must coverage be maintained?
- workers compensation
- bodily injury or death
- damage to work
- personal injury
- motor/vehicle insurance
- contractual liability
Coverage must be maintained without interruption from beginning of work until date of final completion.
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What insurance must the owner maintain per A201?
1. liability insurance to protect owner from claims and losses
2. property insurance (all-risk) for full value of work against:
- fire
- theft
- vandalism
- other hazards
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What is a surety bond? What is another name for it?
Protection for owner against default by contractor, also called contract bond. Ensures the contractor will fulfill their obligations under the contract.
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If the architect requests work to be uncovered and
a) it is found to be in accordance with the contract documents, who is responsible for the cost of uncovering and recovering?
b) it is not found to be in accordance with the contract documents, who is responsible for the cost of uncovering, correcting, and recovering?
a) Owner
| b) Contractor
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If the architect rejects nonconforming work prior to substantial completion, what is the contractor's responsibility?
Contractor must:
- correct the work
- cover costs of correcting, testing, inspections, and compensation of architect's services connected to corrections
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How long does the contractor's warranty last after the project has ended?
If the owner finds work that needs correcting, what is the process for correcting it?
For 1 year after substantial completion contractor must correct any work that is found not be in accordance with contract documents.
1. Owner must notify contractor in writing.
2. Contractor has 10 days to fix the issue.
3. If contractor does not fix within 10 days, the owner can have others correct it.
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In what circumstances may the owner accept nonconforming work?
With a change order, as long as it meets code.
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In which two situations may the contractor rightfully terminate the contract? How much notice must the contractor give?
1. If work has stopped for > 30 days (through no fault of contractor or anyone who works for them) for any of these causes:
- a court order
- an act of government
- architect's failure to issue certificate of payment within time required in contract documents
- owner's failure to make payment within time per CDs
- owner's failure to give proper evidence that financial arrangements have been made to fulfill the owner's obligations
2. Work has been repeatedly delayed by the owner (for reasons other than contractor's fault) for either:
- a total of 120 days within a 365 day period
- a total number of days equal to the construction time given in the original contract documents.
7 days written notice
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The owner can terminate the contract if the architect certifies that sufficient cause exists that these 4 situations are true.
How much notice must the owner give?
1. contractor fails to supply enough properly skilled workers or proper materials
2. contractor fails to make payments to subcontractors
3. contractor disregards laws/ordinances
4. contractor is guilty of substantial breach of contract documents
7 days written notice
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Per A201, what is a "claim"? For what type of damages may it be made? How are claims initiated and within what time restriction?
An assertion made by one of the parties to the contract that they are owed payment under contract terms.
It can only be made for direct damages.
Claims must be initiated by written notice to both the other party and initial decision maker within 21 days of the event that gives rise to the claim or discovery of condition that gives rise to the claim.
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Direct damages
damages caused directly by the other party's action, such as cost of preparing defective work or completing unfinished work.
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Consequential/indirect damages
damages not caused directly by the other party's action, but as consequences of those actions.
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What consequential damages does the owner waive per A201?
- rental expenses
- loss of use, income, profit, financing, business, or reputation
- loss of profit other than anticipated profit arising directly from work
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Claims are first referred to whom? What happens if the IDM does not render a decision or if both parties do not agree with the decision?
And if that is not successful?
The initial decision maker (architect unless otherwise specified in the contract).
Claim goes to mediation. If that is not successful then it goes to arbitration, litigation, or some other binding resolution specified in the contract.
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What AIA document should be used for the general conditions of the contract of construction for a sustainable project?
AIA Doc A201 SP.
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What are special conditions? What is the best way to incorporate them into A201?
Provisions that are completely unique to a particular project or site. They are always given in a separate document that is attached to the contract.
Include a separate, additional document rather than edit A201: A503, Guide for Supplemental Conditions.
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In which 2 situations should supplemental conditions be completely separate from the contract?
1. bidding matters should be included in the bidding documents
2. administrative/procedural requirements should be given only as broad provisions in General Conditions and then explained in detail in Division 01 "General Requirements" of specifications.
