Exam 4 - CA + Practice Management Flashcards
(424 cards)
1
Q
What is the role of the architect in contract administration during the construction phase?
A
The architect’s role in contract administration includes overseeing that the construction complies with the contract documents, providing technical interpretations, and supporting both the client’s and contractor’s interests for successful project completion. This role is critical and cannot be eliminated by contract.
2
Q
What are the main functions of “office functions” in contract administration?
A
Office functions include reviewing documents and samples, managing construction contract changes, reviewing and certifying contractor payment applications, and other activities not conducted on site.
3
Q
How does the term “general review” differ from “supervision” and “inspection”?
A
“General review” involves periodic site visits to ensure work complies with contract documents. “Supervision” involves overseeing construction work and worker activities on site, which is the contractor’s responsibility. “Inspection” implies close examination of construction, which is beyond the architect’s responsibilities.
4
Q
What factors influence the level and scope of contract administration required for a project?
A
Factors include the nature of the project, type of construction contract, method of contract award, project delivery method, and the agreed-upon services and fees. For instance, more complex projects or those on tight schedules may require more intensive contract administration.
5
Q
What are the four main functions of the architect during general review on a construction site?
A
The architect’s four main functions are:
- Reviewing the contractor’s performance and quality of construction.
- Providing guidance and interpreting contract documents.
- Meeting performance standards required by agreements and regulations.
- Analyzing and adjusting contractor payment applications.
6
Q
What document outlines the architect’s role during the construction contract administration phase?
A
The architect’s role is outlined in the client-architect agreement and many construction contracts, such as CCDC 2.
7
Q
What are some of the architect’s specific office functions during a construction project?
A
Office functions include representing the client, reviewing construction schedules, preparing documentation, coordinating consultants, evaluating substitutions, and rendering interpretations.
8
Q
What is the architect’s role on-site during the construction phase?
A
The architect conducts field reviews, attends site meetings, interprets contract documents, observes testing, and determines the percentage of work completed.
9
Q
Who does the architect communicate with during the construction phase?
A
The architect communicates with the client, consultants, contractors, subcontractors, suppliers, authorities having jurisdiction, and inspection firms.
10
Q
What are the responsibilities of the contractor during a construction project?
A
The contractor is responsible for executing the work, maintaining quality, coordinating trades, ensuring safety, and supervising the construction site.
11
Q
Who is generally responsible for construction safety on a worksite?
A
The contractor is generally responsible for construction safety, including compliance with occupational health and safety legislation and supervising safety precautions.
12
Q
What should an architect do if they observe an unsafe situation on a construction site?
A
The architect is obliged to report the unsafe situation immediately to the contractor and owner, and document the verbal site discussions.
13
Q
Are architects contractually obligated to report safety issues on a construction site?
A
Architects are not contractually obligated, but they have a responsibility in tort to report observed safety issues to avoid potential liability for contributory negligence.
14
Q
What should architects avoid when developing the scope of their services with a client?
A
Architects should avoid inadvertently assuming responsibility for site safety, construction methods, or job-site procedures, especially when offering expanded field services.
15
Q
What types of documentation are crucial during the construction contract administration phase?
A
Important documentation includes formal correspondence, meeting minutes, supplemental instructions, change management documents, Certificates for Payment, and Letters of Assurance.
16
Q
What period is described as “Prior to Construction” in the context of contract administration?
A
The period after the client and contractor have signed the contract but before construction has begun.
17
Q
What is the main responsibility of the newly assigned contract administrator before construction starts?
A
To familiarize themselves with the construction documents and the contractual obligations and roles of all parties by reviewing both the client-architect and client-contractor agreements.
18
Q
What are two significant milestones in the early stages of a construction project?
A
The signing of the client-contractor agreement and the start of construction.
19
Q
What is the purpose of a pre-construction meeting?
A
To review pre-construction and pre-contract signing submittals and ensure all parties are aligned before construction begins.
20
Q
When should pre-construction contract administration activities be completed?
A
Prior to mobilization and within the time frames specified in the contract documents.
21
Q
What are some key responsibilities of the architect under a standard stipulated-sum construction contract like CCDC 2?
A
The architect is required to review shop drawings, samples, product data submittals, provide timely interpretation of the contract, and issue supplemental instructions.
22
Q
How does the architect handle changes to the contract price and time under the client-architect agreement?
A
The architect prepares and issues change directives if adjustments have not been agreed upon and change orders once the adjustments have been agreed to.
23
Q
What steps does the architect take in response to the contractor’s quotations for proposed changes or additional cost claims?
A
The architect reviews the contractor’s quotations and issues proposed change forms as needed.
24
Q
What is the architect’s role in reviewing progress payment requests?
A
The architect monitors construction progress against the contractor’s schedule, compares the schedule of values with actual work performed, verifies receipt of statutory declarations, and prepares a Certificate for Payment.
25
What additional administrative tasks is the architect responsible for during construction?
The architect prepares and distributes field review reports, prepares agendas for special site meetings, and documents necessary for the progressive release of holdbacks.
26
What is the purpose of a Request for Information (RFI) in a construction project?
An RFI is used to request information from another party that cannot be obtained through research, document review, or other reasonable means. It is often used by the contractor to seek clarification from the architect when the contract documents are unclear, incorrect, or missing information.
27
How should an architect respond to an RFI that does not involve changes to the contract price or time?
The architect should provide the necessary information or answer by issuing a supplemental instruction, which clarifies or corrects the issue without altering the contract price or time.
28
What are some reasons contractors might abuse the RFI process?
Contractors may issue unnecessary RFIs because it’s easier than finding information, to shift responsibility to the architect, to imply errors in documents for claims, to set up delay claims, or to discredit the architect.
29
What steps can be taken to ensure architects are compensated for responding to unnecessary RFIs?
A supplemental condition can be added to the construction contract, allowing the architect to invoice the client for the additional administrative costs of responding to unnecessary RFIs, with these costs then being charged to the contractor.
30
What is the role of a Supplemental Instruction (SI) in construction contract management?
An SI provides clarification or interpretation of contract documents in response to RFIs or site issues. If the SI involves changes to the contract price or time, the architect issues a contemplated change notice or proposed change notice, followed by a change order or change directive.
31
What is a "Proposed Change" (PC) in construction contract management?
A PC is a form used to alert the contractor of a proposed change and to allow them to submit a quotation for additional cost or schedule changes. It is issued when both the contractor and architect agree that a proposed change involves a change to the contract price or time.
32
What is the purpose of a "Change Directive" (CD) in the construction process?
A CD is issued by the architect, on behalf of the owner, to authorize work to proceed immediately when the contractor’s price cannot promptly be agreed upon. It allows work to continue while negotiations over the price or time changes continue.
33
What are "Change Orders" (COs) and when are they issued?
COs are used to finalize and document adjustments to the contract price and/or time after the acceptance of changes proposed by the contractor. They confirm the agreement between the client/owner and the contractor on specific additions, deletions, or revisions to the contract documents.
34
Why is the "Summary of Changes" Form important in contract administration?
It is used to track all proposed changes, change directives, and change orders, helping to manage the process, establish the revised contract price and time, and process Certificates for Payment.
35
What are two common methods for numbering and tracking construction contract administration documents?
One method assigns consecutive numbers to each document type in the change process, while the other method uses a single unique number for a change throughout the approval process, making tracking easier.
36
What is the role of independent inspection and testing firms in construction projects?
Independent inspection and testing firms are recommended by the architect or engineers to perform tests and issue reports on construction projects. They do not interpret test results or issue instructions, which is the responsibility of the contractor and architect.
37
How are the costs for inspection and testing services typically covered in construction projects?
The costs for inspection and testing services are generally paid by the owner, either directly to the inspection agency or indirectly through the general contractor, often using cash allowances provided in the construction contract.
38
What is the purpose of the submittal review process in construction?
it identifies the actual combination of pre-approved systems, products, and their characteristics that will be used in construction. It ensures compliance with the specifications and allows the architect to finalize design and aesthetic choices.
39
What should the contractor verify before submitting shop drawings to the architect?
The contractor must verify quantities, dimensions, accuracy, completeness, and compliance with the specifications before submitting shop drawings to the architect for review.
40
What is the recommended hierarchy for the submittal review process in construction projects? (5 steps)
1) System performance, 2) Product data, 3) Shop drawings, 4) Samples, and 5) Mock-ups. This hierarchy ensures an efficient and effective review process.
41
What types of general review might an architect conduct during a construction project?
General reviews can include periodic reviews, milestone reviews, mock-up reviews, partial occupancy reviews, substantial performance reviews, completion reviews, and warranty reviews. These reviews can occur on-site, at an extended site, or at plant/off-site locations.
42
Why are mock-ups important in a construction project?
Mock-ups are full-scale, partial constructions used to demonstrate a complete understanding of the drawings and specifications, uncover potential problems, and represent the quality of construction expected by the architect. They involve multiple trades and serve as an ongoing quality standard.
43
What should a field review report include after an architect's site visit?
A field review report should include details such as the name and position of the reviewer, date and time of the visit, weather conditions, work progress, questions raised, determinations made, outstanding issues, and a list of recipients of the report. It should also note any deficiencies or issues from previous reports.
44
What are the primary elements that a Certificate for Payment should be based on?
A Certificate for Payment should be based on the schedule of values, the architect’s determination of the percentage of work completed, and the applicable holdbacks required by provincial or territorial lien legislation.
45
What information should be included in the "Contract Summary" section of a Certificate for Payment?
The "Contract Summary" should include the total price of previously issued changes, changes issued during the preceding month with their numbers and impacts, and the net total of the current month’s issued change orders.
46
What is the purpose of a Certificate of Substantial Performance?
The Certificate of Substantial Performance documents the date when the construction contract is considered substantially complete, which triggers the start of the warranty period and the release of holdback monies.
47
What is the role of Letters of Assurance or Commitment to General Review in construction?
Letters of Assurance or Commitment to General Review certify to authorities having jurisdiction that a licensed professional is undertaking a general review of the construction, in accordance with provincial or territorial regulations.
48
What should an architect review when assessing the schedule of values submitted by the contractor?
The architect should review the schedule of values for completeness, accuracy, and realistic distribution of costs, and compare it with the most recent construction cost estimate to identify any significant discrepancies.
49
What should be checked regarding expansion and control joints in construction?
Expansion and control joints should align with related joints, be consistent in all planes, and not be constrained by construction to allow free expansion and contraction.
50
What issues should an architect be aware of with fireproofing during construction?
The architect should check the thickness and density of fireproofing materials, ensure proper application and patching, and verify that testing and inspection are conducted by recognized companies.
51
How does excessive humidity during construction affect building materials?
Excessive humidity can lead to problems like swelling or sagging of gypsum board or acoustic ceiling panels and long-term damage to insulation materials, windows, and roofing systems.
52
What are some of the general matters an architect should review on a construction site?
aesthetics, cleaning of trapped areas, code requirements, datums and tolerances, deflections, drainage, expansion and control joints, fireproofing, fire protection, hardware, humidity and water infiltration, mechanical and electrical equipment, operating space, public safety, wall and floor thicknesses, and water in new construction.
53
What should be confirmed if engaged for site review in terms of fee determination?
Confirm whether the services will include non-code matters, as building code matters should always be part of the fee.
54
What procedures should be followed to determine the fee for general review services?
Procedures include confirming service inclusions, establishing and defining the scope of services, discussing the review process and fee with the client, making adjustments as needed, and reviewing with consultants.
55
What should be included in the client-architect contract regarding general review services?
The contract should record the agreed-to scope of services, related fees, and an amending provision to adjust the contract if circumstances differ from what was agreed.
56
What factors that can be predicted should be considered in establishing the fee for general review services?
Consider factors such as the size and complexity of the project, type of construction contract, client’s experience with construction, and requirements for submission of code-related shop drawings.
57
What are some unpredictable factors that may affect the scope and fee for general review services?
Unpredictable factors include varying weather conditions, quality of workmanship of trades, and performance of the general contractor and their personnel.
58
What should the architect’s aim be during field review?
The architect’s aim should be to keep ahead of events on the site, assist in running the construction process smoothly, and identify events requiring advance notification.
59
What are the two broad categories of field review services?
The two categories are matters required by the building code and contractual matters or "good practice."
60
What should be considered when reviewing shop drawings and samples for code compliance?
The impact on building code requirements should be considered, and approval from the chief building official should be obtained before finalizing change orders.
61
What is an addendum in the context of construction bidding?
An addendum is a change to the bid package, usually modifying the drawings and specifications, issued during the bid period and before the execution of the contract.
Flashcard 2:
62
What does the term "base bid" refer to?
base bid refers to the stipulated sum of money offered to perform the work called for in the bid documents, without any adjustments for alternative prices or substitutions.
63
What is the difference between "bid" and "tender" according to the text?
the terms "bid" and "tender" are used interchangeably, but "tender" was formally abandoned by the CCDC in the early 1980s in favor of the term "bid."
64
What is the role of a surety in construction?
A surety is the party (surety company) that issues a bond guaranteeing the performance of the person bonded (usually the contractor) to fulfill obligations under the contract within financial and time limitations stated in the bond.
65
What is the primary purpose of a bond in construction?
A bond provides a guarantee from a surety company that ensures the contractor will perform their obligations under the contract. It is used to secure financial performance and responsible contract execution.
66
What is the difference between pre-purchasing and pre-selecting in construction procurement?
Pre-purchasing involves the owner buying materials, equipment, or services before awarding the prime contract, while pre-selecting involves the owner pre-qualifying and selecting a manufacturer or supplier before the tender or contract award.
67
What is the function of a bid bond?
A bid bond guarantees that if a bid is accepted, the contractor will enter into a formal contract. If the contractor fails to do so, the surety will pay the difference between the bid amount and the contract amount with another contractor.
68
What does a performance bond cover?
A performance bond indemnifies the owner up to the bond amount in case of the contractor’s default, such as bankruptcy or insolvency, covering the costs of completing the contract.
69
What is a labour and material payment bond?
A labour and material payment bond guarantees that subcontractors, subtrades, and suppliers will be paid for labour and materials provided to the contractor for the project.
70
Why should privilege clauses be avoided in bid packages?
Privilege clauses, like "The lowest or any tender shall not necessarily be accepted," are no longer appropriate as they can lead to unfair bidding practices and breaches of the duty of fairness. Contracts should be awarded according to the terms of the tender call.
71
What factors should architects consider when determining the distribution of bid documents?
Architects should consider client and consultant requirements, authorities having jurisdiction, electronic tendering services, construction association plan rooms, project size and complexity, number of contractors and subcontractors, and sets required for executing the contract.
72
What is the purpose of a deposit when obtaining bid documents?
The deposit ensures the safe return of the bid documents and usually covers the cost of reproducing the documents plus a handling charge. It is refunded if documents are returned complete and in good condition.
73
What are "addenda" and how should they be managed?
Addenda are modifications or clarifications to bid documents. They should be numbered, dated, and issued to all bidders with clear instructions on changes. Addenda become part of the contract documents once the contract is executed.
74
When is the latest time an addendum should be issued?
The latest time to issue an addendum is no later than four working days before the bid closing. If this is not feasible, consideration should be given to extending the bid period.
Flashcard 5:
75
What are some best practices for bid closing?
Bids should not close on Fridays or Mondays or around statutory holidays. Bids should be received electronically or at a single location, time-stamped, date-stamped, and initialed upon receipt. Bids received late should be returned unopened, and bids should be opened soon after closing with only the base bid amount and bid security announced.
76
What should the architect analyze before reporting to the client about the bids?
The architect should analyze the completeness of each bid, the bid amount including value-added taxes, proposed construction start date and schedule, inclusion of all addenda, listed subcontractors and their references, manufacturers and suppliers, alternatives, and unit prices.
77
What are the two types of bids described in the text?
compliant bids and non-compliant bids. Non-compliant bids may be informal, non-responsive, incomplete, improperly qualified, or conditional.
78
What should be done if a bid is considered non-compliant?
Any bid deemed non-compliant should be rejected.
79
What steps should be taken if the lowest bid is over budget and the client does not want to revise the budget or abandon the project?
If the difference exceeds the amount stated in the client-architect agreement, the architect may revise the construction documents and administer a new tender call at no additional fee. If the difference is less, alternatives can be proposed and price negotiations can be made with the lowest bidder.
80
What is the recommended method for preparing and executing the construction contract?
The construction contract should use standard Canadian Construction Documents Committee (CCDC) forms. A minimum of two original copies should be prepared (one for the client and one for the contractor), with signatures and corporate seals applied. Less formal methods of sealing may be used for smaller projects.
81
What are the three key services the architect continues to provide as a project nears completion?
Takeover procedures, commissioning, and post-occupancy evaluation.
82
What is the difference between takeover procedures and commissioning?
Takeover procedures start when a project nears completion and focus on transitioning the building to the owner, while commissioning is a systematic process that ensures building systems perform as intended and involves documentation and training.
83
what are the factors that constitute "ready-for-takeover" according to CCDC 2 2020?
Certification of substantial performance, compliance with occupancy requirements, final cleaning, delivery of operations and maintenance documents, availability of as-built drawings, startup testing, secured access, and scheduled demonstration and training.
84
How does the concept of "substantial performance" differ across jurisdictions in Canada?
Some provinces do not use "substantial performance" to trigger financial milestones like the release of holdbacks, and some provinces, like Quebec, do not apply statutory holdbacks to contractor payments.
85
What are the conditions under which the warranty period for a project begins?
The warranty period starts on the date indicated in the contract documents, or at "ready-for-takeover" for CCDC 2 contracts. In cases of deemed total completion, the warranty period starts on the date of total completion.
86
What issues might arise for an architect when final completion is nearing and deficiencies remain?
Progress towards final completion can be slow, the architect's authority to certify payments decreases as major payments are made, and contractors may lose interest when there's no significant financial incentive left.
87
What should the final certificate for payment confirm?
The final certificate should confirm the deemed date of completion of the contract, and it is usually dated the day the contract is deemed complete.
88
What is required before issuing a certificate for the release of holdback?
The architect should advise the owner to obtain legal counsel to ensure no liens have been registered or notices of liens received, and the holdback amount must be placed in a bank account in the joint names of the owner and contractor.
89
What are the typical final submissions required from the contractor before occupancy?
Operations instructions, maintenance manuals, a complete set of keys, record documents, maintenance materials, warranties and bonds, and system certifications.
90
What are the two stages of final submissions, and what do they entail?
Stage 1 includes items necessary for occupancy and certification of substantial performance, while Stage 2 includes items necessary to complete the contract.
91
What are the three types of occupancy that can occur for a building?
Unconditional occupancy, Conditional occupancy, and Phased (or Partial) occupancy.
92
What is the role of the authority having jurisdiction in building occupancy?
The authority issues the occupancy permit or certificate, or authorizes conditional or phased occupancy.
93
What does commissioning involve, and when might a commissioning agent be used?
Commissioning involves quality assurance from design intent to building delivery. A commissioning agent, often an independent third party, verifies the facility’s design and construction to meet client requirements, especially for large and complex projects.
94
What should be included in bid documents related to commissioning?
Bid documents should include the commissioning plan, commissioning specifications, any specialized documentation related to testing, and standards for submission and acceptance of various items.
95
What is the purpose of post-occupancy evaluations and how often should they be conducted?
Post-occupancy evaluations review a building's performance, assess how well it meets users' needs, and identify improvements. They are typically carried out at six- or 12-month intervals.
96
Why is financial management crucial for architectural practices? (3)
Financial management is essential for aligning architectural responsibilities with financial resources, achieving strategic objectives, and reaching financial goals.
97
What are some reasons a practice needs to generate profit?
To build reserves for downturns, invest in resources, pay retiring employees, build a financial history, fund development, reward owners, and attract investors.
98
How should profits be managed and distributed?
Profits should be planned to include a capital reserve, and the balance may be distributed to shareholders or staff. Incentive bonuses should be based on performance factors like ability and productivity.
99
What is the difference between short-term financial planning (budgeting) and long-term financial planning?
Short-term planning, or budgeting, covers a 12-month period with regular monitoring, while long-term planning includes strategic and growth considerations.
100
What elements should be included in a financial plan for an architectural practice?
Strategic goals, revenue projections, profit targets, overhead budgets, staffing plans, and costs for new services or operations.
101
What are the two types of accounting and their purposes?
Internal accounting (management accounting) provides internal financial information for decision-making, while external accounting (including audits, reviews, or compilations) provides external verification of financial statements.
102
What are the two accounting systems used to record transactions, and which one is required for architecture businesses?
The cash basis system and the accrual basis system. Architecture businesses are required to use the accrual basis for accounting and tax returns.
103
What are the three foundational elements of Financial Statements every architect should understand?
1) Balance sheet - record of all assets, liabilities + retained earnings (12-month sheet req by banks, etc)
2) Income statement - Profit+Loss, Revenue and Operating statements
3) Cashflow - cash moving into and out of businesss
104
What is the basic formula for a balance sheet?
Assets = Liabilities + Owner’s Equity
105
What information does a balance sheet provide about a business? (3)
the company’s financial position, including 1) assets owned,2) liabilities owed, and 3) owner’s equity, answering questions about ownership, liquidity, and financial health.
106
What is the primary focus of an income statement?
Profitability and how profit was earned during a given period.
107
What is the basic formula for calculating profit or loss on an income statement?
Income – Expenses = Profit or Loss
108
What does the cashflow statement detail?
It details the changes in cash over a period, including cash inflows and outflows, and helps understand how profit translates into cash.
109
Why is a cashflow forecast important for an architectural practice?
It projects the practice’s cash position, helps determine the amount of cash needed for expenses and working capital, and should be updated regularly based on actual revenues and expenses.
110
What are the different types of financial professionals that can work with architectural practices?
Bookkeepers, non-certified accountants, and Chartered Professional Accountants (CPAs).
111
What tasks should architects perform to make the accountant’s job easier and reduce accounting fees?
Maintain good financial management and proper books of account, including a general ledger, accounts payable, accounts receivable, and payroll records.
112
What should be established when engaging an accountant for an architectural practice?
The services to be provided, the “deliverables” or financial reports, and the professional fee.
113
Why is it important for architects to have a professional relationship with a banker?
To manage finances effectively, negotiate better terms for banking services, and secure lines of credit for the practice.
114
What is the primary purpose of a cashflow forecast in an architectural practice?
To project the practice’s cash position over a 12-month period, determine cash needs, and manage working capital.
115
What key components should be included in fee calculation for architectural services?
Each component of the services, the cost of production for each component, and the profit margin to be achieved.
116
How are billing rates for architectural services generally determined?
By calculating the hourly direct personnel expense, applying a multiplier that includes overhead and profit, and considering factors such as office rent, equipment, and salaries.
117
What is the definition of the “utilization factor”?
The percentage of billable hours compared to the total hours of work in a year.
118
What are the typical utilization factors for different levels of architectural staff?
40-65% for principals, 70-80% for senior architects, and 80-90% for project architects and technical staff.
119
Why is monitoring project cost control information important?
To ensure that all tasks are completed within the estimated time and budget.
120
What information should time reports or time sheets record?
Time spent on each task or portion of architectural service, accurately identifying the type of service and phase of the project.
121
What is the purpose of financial ratios in financial management?
To analyze financial performance in terms of profitability, efficiency, risk, liquidity, effectiveness, and growth, and to assist in trend and benchmark analysis.
122
What are some common financial ratios used in an architectural business?
Profit margin, overhead rate, labor multiplier (net multiplier), utilization rate, average collections period, current ratio, and debt to equity ratio.
123
What are some key taxes that an architectural practice must consider in financial management? (6)
Goods and Services Tax (GST)/Harmonized Sales Tax (HST), employees’ income tax, personal income tax, provincial sales tax (PST)/Quebec Sales Tax (QST), corporate taxes, and business taxes.
124
Why must an architectural practice be well-organized and well-managed?
To provide proper architectural services, be profitable, and decrease exposure to risk and liability.
125
What is the role of an office manager in an architectural practice?
Oversee business functions, ensure compliance with policies and regulations, and may handle human resources and bookkeeping.
126
What should an office manual include?
Policies and procedures governing day-to-day operations, and it should be documented in writing.
127
How can the appearance of the office impact a practice?
It reflects the practice’s image and organization, and can influence the first impression of visitors and clients.
128
What are key considerations for maintaining an organized office appearance? (3)
Engaging reliable maintenance, arranging regular cleaning, and addressing security needs.
129
What are the two main areas of security concerns for an architectural practice?
Security of data and information systems, and perimeter security.
130
What types of insurance should an architectural practice consider? (5)
Property insurance, commercial general liability (CGL), tenants’ legal liability, non-owned automobile liability, and employer’s liability protection.
131
What is the purpose of a filing system in an architectural office?
To provide a central location for all project documentation and communication, and to permit easy and immediate retrieval of information.
132
What is the importance of archiving project records and electronic files?
To ensure files are orderly, well-labelled, and easily located, and to verify the integrity and compatibility of electronic files over time.
133
What should be included in an office reference library?
Information on building design, technical product details, standards and codes, and practice bulletins from licensing authorities.
134
What factors must principals consider when deciding whether to hire new employees or engage external resources?
Principals must consider costs related to salaries, statutory employer contributions, overhead, and training, along with projected cash flow.
135
What are the three alternatives for meeting human resource needs in an architectural practice?
The three alternatives are hiring permanent employees, hiring temporary employees, or engaging contract resources.
136
What are the characteristics of permanent employees in an architectural practice?
Permanent employees are vital for long-term stability and are necessary to meet the firm's business objectives.
137
What role do temporary employees play in an architectural practice?
Temporary employees fill staffing voids during absences or peak workloads and are compensated hourly without benefits.
138
What are the responsibilities of independent contractors in architectural practices?
Independent contractors are responsible for their own statutory contributions and are typically engaged on a short-term, per-project basis.
139
What should be included in the terms of engagement with a contractor? (6)
The contract should cover the 1) length of the contract, 2) services provided, 3)confidentiality, 4) intellectual property, 5) liability, and 6) payment terms.
140
What should be included in the instructions given to a new employee before their first day?
Instructions should include arrival time, who will meet them, information to bring, and any necessary forms like insurance and tax forms.
141
What factors contribute to building a great work environment?
Competitive compensation, interesting project work, autonomy, strong teamwork, and an open, respectful work environment.
142
What are some optional benefits or perquisites that a firm may offer to employees?
Annual RRSP contributions, complimentary snacks, paid vacation, sick days, professional dues, and flexible work hours.
143
What factors, beyond skills and design talents, contribute to the success of an architectural practice?
Ethical conduct, customer service, professionalism, and respect demonstrated by the entire team.
144
What is the impact of losing an employee in an architectural practice?
It can result in valuable time and effort lost, with the practice spending about 25% of a lost worker's salary on recruiting and training a replacement.
145
How does diversity in teams contribute to better design solutions?
Diverse teams, representing a cross-section of the population, are more innovative and better at solving complex, non-routine problems.
146
What is the difference between diversity and inclusion?
Diversity refers to having differing elements or people in a group, while inclusion is the action of ensuring all members have equal access and tools to succeed.
147
What are some best practices for providing performance feedback?
Positive feedback should be timely and tailored to the employee's preferences, while constructive feedback should be specific, supported with examples, and offered privately.
148
What strategies can a firm implement to avoid layoffs during an economic downturn?
Reducing work hours, offering unpaid leaves, eliminating overtime, and terminating contracts with external contractors.
149
What are key steps to follow when conducting an employee termination?
Prepare paperwork, conduct the meeting privately, clearly communicate the decision, and handle the process with professionalism and empathy.
150
What are the key components of a risk management strategy in business?
Identification of risks, assessment of risk probability and impact, decision to assume risk, and steps to transfer or mitigate risks.
151
Why is inaction sometimes riskier than action in risk management?
Inaction can lead to unforeseen consequences and missed opportunities, which may pose greater risks than taking action.
152
What is a GO/NO GO decision in project risk management?
It is a rigorous appraisal of a project or client against a checklist to determine whether to pursue the opportunity based on identified risks.
153
Why is it important for architects to evaluate a prospective client before accepting a commission?
To reduce significant business risks by assessing the client's decision-making processes, payment reputation, and experience with projects.
154
What are some risks associated with taking on projects beyond a firm’s capabilities?
Inadequate resources, employee exhaustion, missed deadlines, and potential claims of professional misconduct.
155
Why are residential condominium projects considered high-risk for architects?
Due to potential quality reductions by developers, reduced involvement of architects during construction, and legal vulnerabilities in litigation.
156
What should architects consider when negotiating contracts for high-risk projects like design-build or P3 projects?
They should ensure careful contract review, consult legal counsel, and verify insurance coverage to avoid inappropriate risk transfer.
157
What is a common misconception about the GO/NO GO analysis?
That it only generates a binary decision; its primary function is to identify negotiable issues that can move a project from NO GO to GO.
158
What factors should be considered when assembling a consulting team for a project?
Competitive position of the practice and the performance of services if the project is awarded.
159
What should a written agreement with consultants include?
Roles, expectations, responsibilities, and payment terms.
160
What should an architect do if a client insists on using a client-preferred subconsultant?
Consider adding an indemnification clause and ensure proper insurance coverage.
161
What role might a contracted project management service provider (PMSP) play in a project?
They can act as the owner's representative, but this may increase the architect’s reporting requirements and risk.
162
Why should architects avoid verbal agreements and purchase orders for contracts?
Verbal agreements lack clarity and enforceability, while purchase orders often contain inappropriate and uninsurable obligations.
163
What is the risk of agreeing to indemnify beyond negligence?
It exposes the architect to contractual liability for damages that would not be covered under common law and may not be insurable.
164
Why should architects avoid agreeing to “defend” the client in legal proceedings?
It is generally not covered by insurance policies, which typically do not pay for upfront legal defense costs.
165
What should architects do if client-prepared agreements require cooperation with lenders or signing documents for lenders?
Avoid signing such documents and ensure any requests from lenders are reviewed by legal counsel and a professional liability insurer.
166
What should an architect’s agreement state about copyright and ownership of documents?
The architect should retain copyright and ownership and include provisions to protect against unauthorized changes or reuse.
167
Why is a limitation of liability clause important in client-architect agreements?
limits the architect's liability to a predetermined amount, helping to manage risk and is recommended for all agreements.
168
What are problematic terms regarding the standard of care in client agreements?
Terms like “highest,” “first class,” “best,” or creating a fiduciary relationship, as they may elevate the standard of care beyond legal requirements and pose insurability issues.
169
Why should architects be cautious about agreeing to “time is of the essence” clauses?
they may elevate the standard of care and are problematic because they may not account for factors beyond the architect’s control.
170
What should architects do if faced with a client stating “all other architects accept and sign this agreement”?
Treat it as a red flag, review the agreement with legal counsel, assess the risks, negotiate changes if possible, and consider declining the project if necessary.
171
What are three high-level risks in the design and documentation phases of an architectural project?
1) Loss of money in producing documents, 2) Project over budget, 3) Claims due to errors or omissions in documents.
172
What is the purpose of Building Information Modeling (BIM) in project management?
BIM aims to improve effectiveness and efficiency by integrating data, reducing conflicts, and enhancing coordination through a shared model.
173
Why should architects review BIM and Integrated Project Delivery (IPD) contracts with legal counsel?
Because there is insufficient history to fully understand the legal implications and risks associated with these new forms of contract.
174
What should be considered if a client-prepared agreement allows for the replacement of personnel?
Ensure the clause includes language that decisions regarding replacements should be made by the client reasonably.
175
What is a critical step when considering a new project delivery method?
Understand the role of the architect and the scope of services, and consult with a lawyer and professional liability insurer if unfamiliar with the method.
176
Why is project management methodology important in design projects?
It helps in planning and tracking scope, schedule, and costs, ensuring the project stays on track and supports future planning.
177
What is the difference between Quality Assurance (QA) and Quality Control (QC)?
QA ensures systems and processes are in place and effective, while QC focuses on ensuring that the deliverables meet the required standards.
178
What should be done if a substitution request is made during construction?
Carefully document and review the substitution request to avoid potential claims.
179
How can architects minimize the risk of litigation from unsuccessful bidders?
Use clear criteria, adhere to selection methods, and review all privilege clauses in bid documents.
180
What is a key action for architects before the warranty period expires?
Architects should schedule a final on-site review to create a list of warranty items for the contractor to correct.
181
What should architects do if a client insists on additional forms and certifications at project completion?
Architects should carefully review these documents and consult with legal counsel, their insurer, and their association before signing.
182
What steps should a replacing architect take when replacing another architect?
communicate with the previous firm, ensure proper agreement language to avoid assuming prior liability, and involve legal counsel if necessary.
183
Why is maintaining complete documentation critical for architects?
Documentation serves as a reference for litigation that may arise years after project completion, especially if the individuals involved have left the practice.
184
How should architects handle the statute of limitations regarding project documentation?
Architects should establish a system for easy retrieval of records and consult a lawyer and professional liability insurer about how long to keep documents.
185
What measures can architects take to reduce the risk of late payment or non-payment?
Obtain a retainer, issue frequent invoices, include interest on overdue accounts, separate fees from expenses, and follow up with clients.
186
What should architects do if they need to stop work due to non-payment?
Review the agreement, consider legal advice, and possibly send a lawyer's letter, file a lien, or take legal action. Document all communications carefully.
187
How can architects handle disputes effectively?
Implement internal procedures for reporting issues, adhere to contract requirements, notify their insurer, and avoid admitting liability or making payments without insurer consent.
188
What is the purpose of Alternative Dispute Resolution (ADR)?
ADR aims to resolve disputes without the costly and lengthy process of litigation, using methods like mediation or arbitration.
189
What should architects do before agreeing to participate in ADR?
Architects should discuss the proposal with a lawyer and their professional liability insurer, who may wish to represent them.
190
What does RAIC Document Six mandate regarding dispute resolution?
RAIC Document Six requires amicable negotiations, followed by mediation or arbitration as outlined in CCDC 40.
191
What is the objective of partnering in dispute avoidance?
Partnering aims to solve problems collaboratively and achieve collective goals rather than assigning blame.
192
How does negotiation differ from mediation in resolving disputes?
Negotiation focuses on resolving disputes based on contract terms and underlying interests, while mediation involves a neutral facilitator who helps parties reach a settlement.
193
What role does a mediator play in mediation?
The mediator facilitates discussions and helps parties negotiate a settlement but does not impose a decision or act as an expert.
194
What are the characteristics of arbitration compared to mediation?
Arbitration is more formal, with a binding decision made by an impartial arbitrator or panel, whereas mediation is more informal and non-binding.
195
What does professional liability insurance protect architects against? (3)
protection against 1) claims of negligence, 2) errors, or 3) omissions in their professional services.
196
Why should architects be cautious about contractual terms extending time limitations for claims?
Such terms should be avoided as they may impose unreasonable obligations beyond the statutory limitation periods.
197
The architect is not responsible to ensure the subconsultants have the appropriate professional liability insurance? T/F
False. Architect is responsible for this
198
What components are included in the construction cost calculation? (4)
Construction cost includes the 1) contract price, 2) cost of changes,3) construction management fees, and 4) applicable taxes, but excludes architect and consultant compensation, land cost, land development charges, and other professional fees.
199
How is construction cost calculated if the client provides labor or materials below market cost?
cost is calculated as if all materials were new and labor paid at market prices, whether or not the construction proceeds.
200
What is a fixed fee or lump sum in architectural compensation?
It is a single stated amount of money agreed upon for the performance of specific services.
201
How does a percentage fee work in architectural services?
The fee is a percentage of the construction cost, varying based on building type, construction value, and contract type.
202
What does "per diem" refer to in architectural compensation?
It is an allowance or payment for each day worked.
203
What are the basic phases of architectural services? (5)
he basic phases include 1) schematic design, 2) design development, 3) construction documents, 4) bidding and negotiation, and 5) construction phase (contract administration).
204
How should architects approach the identification of services required for a project?
Architects should work with the client to identify needed services, prepare a proposal, and negotiate an agreement, possibly using a per diem basis if the project scope is unclear.
205
What is the purpose of additional services in architectural contracts?
Additional services are those not included in the original agreement but can be added with the client’s and architect’s written agreement. They are often billed based on hourly rates or defined scope.
206
What are some methods of architectural compensation? (3 types)
Compensation methods include percentage of construction cost, time basis (per diem or hourly rates), lump sum (fixed fee), or a combination of these.
207
Why is understanding reimbursable expenses important in architectural contracts?
Reimbursable expenses are separate from fees and must be clearly defined in agreements to avoid confusion and ensure proper compensation for out-of-pocket costs.
208
How is the fee breakdown typically structured for projects using Building Information Modeling (BIM)?
Fees are usually rendered progressively, with final accounting at substantial performance of construction or after the final Certificate for Payment.
209
What should architects use to base their percentage fees for construction projects?
Architects should use recommended schedules prepared by RAIC or provincial/territorial associations of architects.
210
How are percentage fees adjusted based on project complexity?
Higher percentages are charged for complex projects or those with lower construction costs, while lower percentages apply to simpler or higher-cost projects.
211
What conditions are assumed for base percentage fees?
Full basic services, a unique project with clear scope, straightforward approvals, single tendering, and simple project size and approvals are assumed.
212
What is the per diem or hourly rate method of compensation used for?
It is used when final project scope and services are not yet determined, such as for pre-design studies or small projects.
213
What factors should be included when calculating a lump sum or fixed fee?
Direct and indirect labor costs, expenses, overhead, profit, risk factors, consultant costs, coordination costs, and a contingency.
214
What are the potential risks of agreeing to unreasonably low fees?
Risks include the inability to deliver professional services, potential claims of professional misconduct, and undermining the value of architectural design.
215
Why should architects carefully review RFPs (Requests for Proposals)?
To ensure they are not bound to provide services beyond their competence or willingness and to clarify ambiguous or incomplete project descriptions.
216
What should be done if an RFP describes services as if the architect were a contractor or supplier?
The architect should challenge the RFP, seek improvements, or consider not responding if the terms are unrealistic or non-insurable.
217
Why is it important for architects to use standard forms of agreements?
Standard forms are widely accepted, consistent with CCDC contracts, and benefit from established case law and broad consensus on their terms
218
What is the difference between a factual witness and an expert witness in legal proceedings involving an architect?
A factual witness is involved in a case related to a project they have previously worked on, while an expert witness is independent and not previously involved in the project.
219
What should an architect do if contacted to testify in a case involving a project they have previously worked on?
The architect should inform their professional errors and omissions insurer, avoid acknowledging responsibility without authorization, and cooperate with the insurer and its legal counsel.
220
What is the role of a summons (or subpoena) in legal proceedings?
A summons is a legal document requiring a person to attend court or a tribunal to testify and often to bring relevant documents.
221
How should an architect approach their testimony in court or a tribunal?
The architect should provide complete, truthful, and even-handed testimony without confusing their role with that of an advocate, and should cooperate with their insurer and legal counsel.
222
What is a retainer in the context of legal services?
A retainer is a preliminary fee paid to secure services and induce a lawyer or professional to act for the client.
223
What distinguishes an independent expert witness from a factual witness in legal proceedings involving an architect?
An independent expert witness has no prior involvement with the project and is selected for their specialized expertise, while a factual witness has previous involvement with the project.
224
What is expected of an independent expert witness when providing testimony?
The expert should provide impartial, balanced, and objective testimony, avoiding any role as an advocate and refraining from judgments on liability.
225
What is an Acknowledgement of Expert’s Duty in Ontario, and what does it require?
It is a document that requires an expert witness to provide fair, objective, and non-partisan opinion evidence, and to assist the court as needed, prioritizing this duty over any obligations to a party.
226
In what types of proceedings might an architect be called as a witness
Architects may appear in courts of law, public tribunals, judicial inquests, royal commissions, coroner’s inquests, arbitrations, and professional disciplinary hearings.
227
What are key considerations for an architect before accepting an assignment as an expert witness?
Considerations include competence, conflict of interest, conditions, restrictions, confidentiality, and agreement and fees.
228
What should an architect ensure when documenting their investigation and fieldwork?
The architect should thoroughly record all pertinent information, including the source, time, and details of site inspections and documentation.
229
How should an architect handle potential conflicts of interest when acting as an expert witness?
The architect should examine any personal or professional conflicts, consult a lawyer or professional association if needed, and ensure impartiality.
230
Why is it important for an architect to maintain impartiality and objectivity in their report as an expert witness?
Maintaining impartiality ensures the credibility of the expert witness and avoids suspicion of bias, which is crucial for the acceptance and reliability of the evidence presented.
231
What should an architect do if they cannot form a final opinion due to insufficient information?
The architect should clearly state that no final opinion was reached and provide the reasons why.
232
What is the primary purpose of a preliminary report in legal cases?
To update the client on the progress of the investigation and assist with risk assessment or negotiation strategy.
233
What should the final report prepared by an architect include?
The final report should explain the terms of reference, outline the findings and conclusions, and be complete and impartial, with a non-technical body and optional appendices for technical details.
234
What should an architect do to prepare for giving evidence in court?
Review all relevant documents thoroughly, understand the case implications, and rehearse the testimony with legal counsel.
235
What is expected of an architect during cross-examination in court?
maintain consistency in their answers, provide reasonable explanations, and avoid becoming defensive or argumentative.
236
What is adjudication and how does it differ from mediation, arbitration, or litigation?
Adjudication is a form of alternative dispute resolution intended to provide a quick and binding interim resolution of disputes, often described as "rough-and-ready" compared to mediation, arbitration, or litigation.
237
What is the role of the Authorized Nominating Authority (ANA) in adjudication?
The ANA oversees the appointment of adjudicators, develops training and qualifications, maintains a registry of adjudicators, and guides the adjudication process.
238
How might adjudication impact the construction industry in Canada?
Adjudication is intended to keep money flowing and resolve disputes quickly, but its effectiveness and reception are uncertain. The impact may vary based on the specific legislation and construction environment.
239
What should architects consider when assisting with adjudication under a construction contract?
Architects should ensure adjudication assistance is part of the contract scope, consider hourly rates or allowances, be aware of potential disruptions, and avoid providing legal advice.
240
Why might architects be well-suited to the role of adjudicator?
Architects are impartial interpreters of construction documents, understand long-term implications of design changes, and are accountable professionals, which aligns with the role of adjudicator.
241
What should architects be cautious of when serving as adjudicators?
Architects should avoid conflicts of interest, manage the tight time frames, and consider the potential impact on their architectural practice and professional standards.
242
What are the key project management approaches (3 types)
Adaptive Project Management (iterative and incremental), Hybrid Project Management (combines adaptive and predictive), and Predictive Project Management (focuses on planning and adjusting according to the plan).
243
What roles do "agent" and "primary" refer to in the context of project management?
An "agent" provides project management services as a consultant without contractual relationships with design consultants or constructors. A "primary" retains and contracts with design consultants and/or constructors on behalf of the owner.
244
What is the role of a project manager
A project manager is responsible for planning, executing, and controlling the project to achieve its outcomes. This role can be filled by an in-house employee, a contracted individual, or a PMSP.
245
How are "owners" and "clients" different?
An "owner" is someone with authority to make decisions and delegate, while a "client" can be anyone paying for services or receiving them, which may include multiple entities in a capital design and construction program.
246
Two types of consultants
Consultants include regulated professionals like architects and engineers, and non-regulated professionals such as interior designers. The "prime consultant" is typically an architecture or engineering firm responsible for coordinating design and construction reviews.
247
What should be considered when defining the scope of services for a PMSP?
The PMSP’s role should be clearly defined to avoid gaps or overlaps with other roles, such as those of the prime consultant or contractor. The PMSP cannot assume design responsibilities unless also a regulated professional.
248
What project delivery method is assumed in the examples when an owner employs a PMSP
Design-bid-build.
249
What is the key characteristic of the owner-managed project organizational structure?
owner retains control of the project and assumes both the risks and opportunities associated with ownership.
250
In the PMSP – advisor relationship, what are the typical responsibilities of the PMSP?
PMSP manages communications, monitors project activities, maintains schedule and costs, and may assist in procurement but does not make decisions on project requirements, scope, or quality.
251
What is the role of the PMSP in the PMSP – principal relationship?
The PMSP makes decisions on behalf of the owner, engages the prime consultant and contractor directly, and assumes financial and project risks.
252
What should a Project Management Service Provider (PMSP) cover in their service offerings?
Services include defining project requirements, developing and implementing management plans, monitoring and controlling the project, managing communication and risk, and ensuring scope validation and quality control.
253
What is the role of the "advocate architect" in a design-build project?
The advocate architect supports the owner and user stakeholders when there is no direct relationship between the owner and the consulting architect.
254
What are the 4 major phases in IDP project delivery?
1) Validation (scope, cost, schedule,etc)
2) Design
3) Implementation
4) Warrantee (resolution of deficiencies)
255
Who are considered "user stakeholders"?
User stakeholders include anyone using the building after construction, such as the owner’s staff and the public who enter the building.
256
What activities does the advocate architect perform during the pre-design phase?
Activities include analyzing client/user needs, developing the functional program, reviewing budgets, and assessing project delivery methods.
257
What is the advocate architect’s role during the schematic design phase?
advocate architect communicates the owner’s requirements, validates the consulting architect’s schematic design, and reviews cost estimates and design documents with the owner.
258
What types of fees are typically charged for advocate architect services?
Fees are usually billed at a fixed or hourly rate. Pre-design and other services are typically hourly, while design and construction phase services may be fixed, based on a multiplier of the construction budget.
259
Why are the advocate architect’s activities weighted towards the beginning of a project?
Early involvement ensures user stakeholders’ requirements are integrated into the design, having the greatest impact before the design is finalized.
260
What is RS means categorized by?
Division #, master format level 2, level 3, level 4 + 4 digit RSmeans code
261
Handcomb yardstick provides for how many cities?
8 Canadian Cities: Vancouver, Calg, Winnipeg, Ottawa, Toronto, MTL, halifax, st Johns
262
Yardsticks is for what kind of construction
Non-residential, union labour, residential is approx 20-30% lower, not incl GST, incl PST for BC, MB, ON
Labour costs incl union fee stat holidays pension etc
263
What are composite unit rates used for?
Preliminary estimates and for comparasion
264
Yardsticks should include what escalation rate?
2% escalation rate per year, january is published year
265
What contract is responsible for bonds and sureties?
CCDC 22
266
What contract is for construction insurance?
CCDC 41
267
Mandatory components of client-architect agreements
written agreement of services, fee, time frame & expected completion date, various terms and conditions
268
Typical client-architect contract
Raic doc 6
269
Two project management structures
PM as agent (equal place as architect)
PM as authority (between arch and client)
270
Standard contract for engineers & design professionals
Raic 9, not standalone needs raic 6 to ensure subs have certificate of liability insurance
271
3 types of bonds
Bid bond (guarantees pay difference of bid, contract - bid amount)
Performance bond (indemnification in even of bankruptcy to cover cost of completion of project up to bond amount)
Labour & material ( guarantees t&m is paid to subs)
272
What is CCDC 23
Guide to calling bids and awarding contracts
273
What must invitation for tender documents include? (4)
Instructions/requirements for bid
Whether bids can be withdrawn
Pre-award negociation
Criteria for successful bids
274
What happens when bids come in over budget? (2 options)
If diference is more than amount in client arch agreement, revise CDs and administer new tender call
If delta is less: propose alternatives and negotiate price with lowest bidders
275
3 contracts for design bid build
CCDC 2 stip price
CCDC 3 cost plus
CCDC 4 unit price
276
2 contracts for construction management
Ccdc 5A construct management
Ccdc 5b for services and work
277
2 contracts for design build
CCDC 14 design-building stip price
CCDC 15 design builder consultant contract
278
Rule of thumb for determining billing rates
add 25% to the hourly rate for payroll burden (1.25) + double the total to include overhead (1.25) + add 50% of the overhead for profit. (0.6125) = This is the equivalent of a multiplier of 3.125 applied to the direct personnel expense. (40$/hr salary = 125$ billing rate)
279
Three steps for calculating your architectural fees
1. Identify services to be provided
2. Determine cost of production of these services
3. Determine Profit margins to be achieved
280
What is the most important financial statement?
Balance sheet (Assets = Liabilities + Owner's Equity)
281
How to calculate overhead rate
Overhead rate = Total overhead divided by direct labour cost (measures efficiency)
282
What is the definition of utilization factor?
the percentage of billable hours compared to total hours. It helps measure the efficiency and productivity of staff in terms of billable work
283
Typical design fees breakdown per phase (BIM)?
SD = 12.5% (20-25%)
DD = 12.5% (20-25%)
CD = 50% (25-35%)
Bidding = 2.5%
Construction Admin = 22.5%
284
What are the three common types of competitive tendering processes?
Open competitive bids (public tender call)
Invited competitive bids (invited tender call)
Direct selection (sole sourcing)
285
Stages of a standard tendering process:
Notice of Tender
Issue Bid Documents
Issue Addenda
Receive Confidential Bids Before Closing Date and Time
Return Non-Compliant Bids
Read and Release the Bidders Name, Base Bid, And Bid Bond
Analyse Bids and make recommendations
Letter of acceptance and letter to unsuccessful bidders
Prepare construction contract
286
What is the letter of acceptance?
notifies the successful bidder of the contract award and permits them to start work while the formal contract is being prepared. It's a preliminary step before the contract is finalized
287
What information should be indicated in the instructions to bidders when preparing tender documents? (4)
Specify compliant bid requirements
Specify bid withdrawal conditions
Pre-award negotiations
All criteria for selecting the successful bidder
288
What solutions are available if bids exceed the budget? (2)
Revising the construction documents and calling for a new tender
Negotiating with the lowest bidder using alternatives
289
What is an addendum
An addendum provides additional information, corrections, or changes to bid documents. It is distributed to all bidders to ensure consistency and clarity in the bidding process. (last day to issue addenda is 4 working days before bid closing)
290
What are the three important bonds in construction contracts?
Bid bond
Performance bond
Labour and material payment bond
291
Three parts to a CCDC contract
1. Agreements between owner and contractor
2. Definitions
3. General Conditions
* CCDC 40 & 41 must always be attached to the main contract
*Administrative procedure for the administration of the contract should not be added to supplementary conditions; these will be found on Masterformat division 1: general requirements)
292
What is CCDC 4?
CCDC 4 – Unit Price Contract
293
What is CCDC 2
CCDC 2 – Stipulated Price Contract (CCDC 2MA = master agreement between owner and contractor)
294
what is ccdc 3?
CCDC 3 – Cost Plus Contract (time and material)
295
Two types of contracts for construction managers
CCDC 5A – Construction Management Contract for Services
CCDC 5B – Construction Management Contract for Services and Construction
296
What ccdc contracts are for progress payments?
CCDC 9A – Statutory declaration of progress payment distribution by contractor
CCDC 9B – Statutory declaration of progress payment distribution by subcontractor
297
What is CCDC 17?
CCDC 17 – Stipulated price contract for trade contractors on construction management projects (used when project is performed under CCDC 5A contract)
298
CCDC 11 is...
CCDC 11 – Contractors qualification Statement
299
CCDC 14 is...
CCDC 14 – Design-build stipulated price contract
300
what is CCDC 15?
CCDC 15 – Design services contract between design-builder and consultant
301
What is CCDC 30 used for?
CCDC 30 – Integrated Project Delivery Contract
302
What are CCDC 40 and 41?
CCDC 40 – Rules for mediation and arbitration
CCDC 41 – Insurance requirements
303
What is included as part of the contract documents?
Supplementary conditions (if any)
Specifications
Material finishing schedule
Drawings
Addenda
Other pertinent information documents, as appropriate
304
Who is responsible for control, charge or supervision of construction means, methods, techniques, sequences, or procedures or for safety precautions
contractor
305
Does architect have the authority to reject work which does not conform to the requirements of the contract documents.
yes
306
Main CA architect responsibilities
Provide supplemental instructions to contractor reasonably quickly (SI)
Review shop drawings
Prepare COs and CDs
Determine the date of substantial performance
Receive and review written warranties and related documents required by the contract and forward to owner
issue certificates for payments
Consultants will be the interpreter in the first instance, of the requirements of the contract documents (RFI responses)
307
who is responsible for correcting all work deemed in nonconformity with contract documents and pay for the cost of examination and correction
contractor
308
who has to pay for inspections, samples and mock ups if specified in contract documents.
contractor
309
Name the 4 main project delivery types
1 Stipulated price contract (design-bid-build),
2 Construction management,
3 design build,
4 public private partnership (p3)
Others: Project management, just in time, turnkey development, unit rates, lease back, cost plus
310
Explain stipulated price contract (design-bid-build)
and pros/cons
Owner hires architect, owner hires contractor by competitive bidding (usually CCDC 2), architect administers contract and reviews/certifies payment, three distinct phases, two independent contracts, linear sequencing
Pros: widespread use, clear roles, generally transparent, design & program requirements resolved prior to project, known price before construction, client relationship between architect and client
Cons: separation of design & construction restricts useful communication, client perceives extras as more costly, contractor is unknown when construction docs are prepared, contracts typically awarded to lowest bidder
311
Explain construction management and pros/cons
Hired as an advisor or manager of the project, CCDC 5a → construction management for services, CCDC 5b → construction management for services and work
Pros: Direct contractual relationship with owner, construction advice during design process, permitting a start on construction before documentation is complete, careful monitoring of costs & schedule
Cons: Construction begins before total costs are known, added costs in time in selection of additional consultant, more complex relationships, now three parties (Architect, contractor, and CM), less control over final cost, change orders and delay claims are possible, conflict of interest if no cost consultant and CM is doing work, multiple contracts increase administrative cost to owner
312
Explain design build and pros/cons
One firm to provide design & construction (CCDC 14), Architect has contract with design-builder, sometimes owner will engage and advocate architect (also called bridging consultant) to provide requirements to design builder, typically has 2 phases → 1) design-builder provides architectural design services then the design builder provides max-stipulated price which includes fee for managing construction. 2) Parties enter into stipulated price contract for the completion of the building, owner pays costs of construction plus the design builder’s fee.
Pros: Functional program & owners decisions are committed early, cost benefit analysis is addressed early, immediate feedback from contractors or design options, can increase efficiency, team approach
Cons: Design approvals shift from owner to design-builder, decisions based on initial costs as opposed to long term design value, cost determined before design is complete, additional fees when two architects involved, high risk to architect preparing proposal, lack of communication between arch and owner, conflict of interest on change orders and payment certifications
313
Explain p3 and pros/cons
Private money to fund infrastructure projects for the public sector.
Pros: Uses efficiency of the private sector, allows projects to be funded when it would otherwise could not have been completed with public funds, lifecycle costs can be reduced b/c with private company operating the project costs become critical, single point responsibility, architect may develop long term relationship with entities, reduced time and construction schedule, design often becomes differentiating quality
Cons: Transfers risk to private sector, best value is not always achieved as initial capital costs are critical, potential lack of communication between architect and client, building users have less control over outcome, sometimes more difficult to obtain liability insurance, difficult for small firms to compete
314
Explain project management
PM has contract with client & employs consultants to form his/her group (different than CM), PM usually hired in pre-design phase to manage entire project
Pros: well informed client can make better decisions, quality design may improve when Architect can draw on PM experience
Cons: Not permitted in most provincial associations, Architect & owner lose direct link
315
Explain just in time
Fast track, large projects are broken into small work packages
316
Explain turnkey development
Various real estate functions (site acquisitions) as well as design and construction
317
Explain unit rates
Primarily for heavy civil engineering projects, contractor is paid on quantities at quoted unit rates, could be appropriate for identical buildings
318
Explain lease back
Project is financed, constructed & owned by builder, then building is leased back to owner
319
Explain cost plus
Contractor is compensated for actual cost of work plus a fee which is based upon agreed number or %, often called “time and materials”, good for small projects where time is factor and cost is difficult to determine, normally uses CCD3 (Cost plus contract), often now replaced with CM method
Pros: Costs based on actual quantities, suitable when time frame is key (a formal tender call is not required), flexible in response to unknowns at project start, construction may begin before design is complete
Cons: No incentive to avoid cost overruns, often not permitted on publicly funded jobs, total cost is unknown until completion
320
Name the CCDC contracts primarily used
CCDC 2 → Stipulated price
CCDC 3 → Cost Plus
CCDC 4 → Unit price
CCDC 5a → CM with services (not typical)
CCDC 5b → CM with services and work (not typical)
CCDC 11 → Contractors qualification statement (for prequalification)
CCDC 14 → Design Build Stipulated Price
321
Explain CCDC 2 and which CCDC doc explains how to use CCDC 2?
Most common type, fixed price can only be adjusted by change orders, contractor of course has maximum risk, should be used when costs are reasonably predictable
CCDC 20
322
Explain CCDC 14?
Design services and construction of the project under one contract package, prime contract between owner and design builder
323
Explain CCDC 3 and which CCDC doc explains how to use CCDC 3?
Actual cost plus fee, work may cease when construction equals costs allocated for project
CCDC 3 w/ Guaranteed max price option → also called “upset price” b/c contractor can have guaranteed maximum option and contractor will bear all cost beyond designated threshold, price max can only be adjusted by change orders
324
Explain CCDC 4?
Contractor is paid pre-determined price for each unit or quantity of work or material, price is derived through bidding and negotiation, quantities often verified by independent inspection (i.e. quantity surveyor), contract price is final sum of each unit price stated in schedule of prices multiplied by actual amount of each item incorporated into project plus lump sums and allowances (if any), currently CCDC 4 has limited use in building construction and is primarily for civil
325
what other kinds of contracts can be used (not ccdc)
Government or “in-house”, contracts with economic adjustments, incentive based contracts, standing offer contracts, purchase order contracts, oral contracts are to never be used
326
Which CCDC document acts as a guide to calling bids & awarding contracts?
CCDC 23
327
Three ways to select a GC
Open competitive bids (public tender),
invited competitive bids (invited tender),
and direct selection
328
what is the architect's role in selecting a GC
Architect responsibility under RAIC 6 is to “assist and advise client in obtaining bids & negotiating proposals and awarding/preparing contracts for construction”
329
architect and client must determine the following before callings bids? (3) and what do they affect?
1 Form of project delivery,
2 type of construction delivery method,
3 method of awarding contract
Scope of services and fee, project schedule, preparation of construction docs and bid docs, bidding process
330
Explain open competitive bids
Notice of tender is issued to various publications with the following information:
Name and location of project, name of architect, client, size and type of project, bid closing date, method of obtaining bids, bid security requirements (bid bond), date, location of pre-bid meeting (if applicable), construction start and completion date (if applicable), form of contract
331
Explain Invited Competitive Bids (invited tender)
Can select by previous satisfactory experience or through pre-qualification (CCDC 11, contractors qualification), good for: 1) private clients who want to ensure quality & relevant experience; 2) special expertise for certain type of project; 3) small jobs that may not draw interest
332
What contracts are used for direct selection
Direct selection usually leads to use of CCDC 2, CCDC 3, and CM (5a or 5b)
333
What is a bond?
Bond is an instrument that permits contractor to provide an owner with a guarantee from a bonding company (surety), the guarantee ensures the contractor will complete the work and obligations under the contract (CCDC 22a, a guide to construction surety bonds), A bond is not insurance, three-party undertaking whereby the surety agrees to indemnify the owner against failure of the contractor resulting in loss
334
How long should the architect allow for GC’s to provide their bid?
For a small invited bid → +/- 2 weeks
For a large public bid → +/- 4 - 6 weeks
335
Is the submission of a bid a legally enforceable contract between the bidder and the owner?
Yes
336
What should an architect look at and consider when analyzing a bid? Also, what would result in a bid being non-compliant?
Completeness of bid, amount w/ taxes, proposed schedule, inclusion of addenda, sub-contractor listed, unit prices, manufacturer and suppliers
Should provide written analysis and comparison to owner
Not compliant if: no bid bond, did not meet requirements, not inclusion of all addenda, bonding requirements not submitted
337
When the lowest bid is 15% higher than the architects class A estimate (tender) what happens?
As per RAIC 6, architect will redesign at no cost to client and administer a new tender call, negotiate, or client to revise budget
338
What is a letter of acceptance
This allows contractor to begin work while formal contract is drafted and executed
Note, some client wish to use letter of intent which has no commitment, this should be avoided in favour of a letter of acceptance
339
What is contract execution?
Signing of contract
340
What are some potential clauses in contracts of concern to architects?
1) Indemnification - reimburse client beyond arch causation
2) Lender requirements & certifications - any commitment to others should be deleted
3) Copyright and ownership of docs - do not transfer copyright to client
4) Standard of Care - avoid clauses like "best", "first class"...beyond stated in RIAC Doc Six
5) "Time is of the Essence" - many circumstances out of arch control, must deleted
6) Sustainable design and certification - (Architects should not guarantee certification, ie LEED)
7) Insufficient professional fees
*Architects should not accept contract clauses that extend the liability time limitations imposed by statutes
341
Explain statutory and contractual rights
Statutory rights = cannot be contracted away
Contractual rights = are determined by the terms on the specific contract
342
According to RAIC doc 6, when can architect suspend work after unpaid services?
RAIC six: architect can suspend work 52 days after unpaid services (7day notice after first 45 days)
343
When is warranty period as specified in CCDC 2?
Warranty period (specified in CCDC 2) is 1 year from the date of “Ready For Takeover”
*there may be longer warranty periods for specific installation and products
344
What is the hierarchy of contract documents?
Hierarchy of documents (as per CCDC 2):
Contract
Agreements
Definitions
Supplementary Conditions
General Conditions
Specs
Div 1 of Specs
Technical Specs
Material & Finishing Schedules
Drawings
*Prime consultant drawings outrank subconsultant drawings
*Small scale drawings outrank large scale drawings
345
three ways to set cost allowances
Set in Contract
If cost over or less, need a change order
346
What are the three main "office" functions of construction contract administration?
Review of documents & samples submitted for review/approval
Construction Contract change management
Contractor Payment Application review certification
347
Explain process for owner/consultant want/need to propose a change or SI require contract adjustment during construction:
1. Consultant issues Contemplated/Proposed Change Order (CCO/PCO) or Proposed Change Notice (PCN) with the desired change
2. Contractor will respond and provide information such as how much time, labor, and materials are necessary with pricing for each
3.Consultant/Owner will review and, if proceeding, will issue a Change Order (CO)
Changes in the work: should be covered by change orders or change directives (or separate contract or purchase order if needed)
348
When is a change directive used?
Change Directive: Only used for changes within the general scope of the contract when action is needed but not time is of the essence (change order not yet issued or agreed upon)
349
When are change orders used?
Can be used for changes within or outside the general scope of the contract documents.
Used when owner & contractor agree on a change in:
The work
Contract Price, or on the method to adjust it or
Contract time
350
What is an SI?
Supplemental Instructions are used to provide additional instructions, clarifications, or interpretations to the contract documents. They help address issues that arise during construction.
351
What are record drawings?
record drawings =
Capture changes made during construction based on contractor mark-ups.
Prepared for the client and should be kept for future reference or claims.
352
Purpose of Field Review Report
serves to record observations made during construction and post-construction stages. It documents project status, identifies non-conformances, and assists in managing information and potential claims.
353
What is a general review?
involves periodic site visits by the architect to assess the overall progress and quality of the construction work. It ensures that the work is generally conforming to the contract documents, allows for addressing issues, and reporting observations to the client and authorities.
354
Information to include in a field review report
Percentage of work completed by trade
Work progress compared to the contractor’s schedule
Work underway or being accomplished
Work scheduled to be completed before the next visit
Questions raised by contractor or owner
Determinations made by the architect
Outstanding issues requiring action
List of people receiving copies of the report
Status of deficiencies or outstanding issues from previous reports
Report number for filing purposes
355
List different types of reviews during construction
Periodic general review
On-site or off-site review
Milestone reviews
Mock-up review
Partial occupancy review
Substantial performance review
Completion review
Warranty review
356
Steps to take in a submittal review
1 System performance – documents demonstrating that proposed systems meet required performance levels.
2 Product data – technical product literature identifying product details and specifications.
3 Shop drawings – illustrations showing how systems or assemblies will be manufactured and assembled.
4 Samples – physical representations of patterns, colors, textures, etc.
5 Mock-ups – contractor's attempt to assemble a system, demonstrating its assembly on-site.
357
Typical % holdback on each billing cycle
Holdbacks: 10% at each payment/billing cycle.
358
How does the architect certify the release of holdback payments?
The architect prepares a certificate for the release of holdback monies, with the payment date typically set one day after the termination of the lien claim period. Owners might need legal counsel to ensure no liens are present.
359
Payment application process (steps):
1. Contractor submits payment application
2. Consultant has 10 calendar days to issue certificate of payment
3. Owner has 28 calendar days to pay after receiving application for payment or;
4. Owner has 14 calendar days to dispute
5. Contractor then has 7 calendar days to pay subcontractors
360
What is substantial completion?
GC applies for SC
Consultant reviews & issues certificate of SC
GC then must publish the certificate
45-day lien period kicks in once certificate is published (consultants can claim up to 5 days before end of lien period to make a claim)
If no claims are made or all are resolved, Holdbacks are released at the end of the 45-day period
361
Definition of 'ready for takeover'
mechanism for ensuring the timely completion of the project once substantial performance has been achieved. In the CCDC 2 (2020), the definition of “Contract Time” replaces the term “Substantial Performance of the Work” with the term "Ready-for-Takeover", with the result that the specified date for completion of the Contract now requires the project to be in a further state of completion than under the previous version of the CCDC 2.
362
what are the requirements for achieving ready for takeover?
Achieving Substantial Performance of the Work;
Compliance with the requirements for occupancy under the occupancy permits;
Final cleaning and waste removal;
Delivery of as-builts and any necessary operation and maintenance documents;
Completion of any necessary start-up testing, demonstration and training; and
Provision to the Owner of the ability to secure access to the work.
363
What is substantial performance/completion?
Bldg is ready for intended use
Balance of payments to contractor is below the threshold indication that the work is substantially performed. The outstanding amount can cover:
- actual total completion
- correction of known defects
- the last supply of outstanding services or materials
364
What is the purpose of the final certificate for payment?
It is prepared by the architect to confirm that all deficiencies have been corrected, and all work under the contract has been completed, allowing the contractor to apply for payment of the outstanding amount.
365
two kinds of charts
Gantt chart: displays the project schedule on a linear calendar, visualizing tasks' durations as bars. It's visually clear and commonly used to communicate project schedules.
Milestone Chart: high-level snapshot of project phases and their completion dates, helping to communicate executive-level information and schedule constraints.
366
What are the objectives of the work breakdown structure (WBS) and how does it contribute to project planning?
Objective is to break down work into tasks that are:
Individually understood/clearly defined
Clearly communicated/delegated
Trackable as to status
367
who is responsible for insuring there are no toxic substances or hazardous materials
mostly owner, unless contractor is found responsible for bringing it to site
368
Roles of the project manager
Ensuring that the project proceeds through successive stages from program approval to project implementation
Keeping the project on time and within budget
Managing the progress of the project by
Directing the internal team
Coordinating and directing the contribution of engineers and other consultants
Achieving the firms’ financial objectives
Providing proper project closeout
Providing the engineers and consultants with all information promptly and clearly in order to optimize their participation
Ensure consultant’s designs and specs are properly coordinate
Maintain morale and recognition of consultants
369
Main components of a project file
A project file initiated and maintained by the project manager is the comprehensive record to the project's life and a useful resource for future endeavours.
370
contractor shall submit schedule of values ________ days to consultant before first application for payment
15 calendar
371
What should a progress claim include
the contract price
evidence of workers compensation legislation
products delivered and on progress payment claim shall have evidence of delivery
372
Consultant issues certificate of payment ____ days after receipt of application of payment.
10 calendar days
373
Owner has _______days to pay contractor after the receipt of a____________ (application OR certificate) for payment
28 calendar days, application for payment
374
Consultant to review work to certify or validity of the application for substantial performance no later than _________days after receipt of application.
20 calendar days
375
Owner shall, no later than ___________ days prior to the expiry of the holdback period stipulated in the lien legislation applicable to the Place of the Work, place the holdback amount in a bank account in the joint names of the Owner and the Contractor.
10 calendar days
376
Subject to the requirements of any Payment Legislation, all holdback amount prescribed by the applicable lien legislation for the Work shall become due and payable to the Contractor no later than _______________ Days following the expiration of the holdback period stipulated in the lien legislation applicable to the Place of the Work.
10 working
377
If the Owner or the Contractor discover conditions at the Place of the Work which are: 1) subsurface or 2) due to weather, then the observing party shall give Notice in Writing to the other party of such conditions before they are disturbed and in no event later than __________ Days after first observance of the conditions.
5 working
378
T/F The Contractor shall be reimbursed by the Owner for reasonable costs incurred by the Contractor as the result of a delay from a stop work order
True
379
How many days should a party provide a notice in writing after discovering an unknown condition?
5 working days
380
What are the base building consultants
Mech, Elec, Structural
381
What kind of sub consultants + technical services should be retained by the Client?
Geotech Eng, Environmental Eng
Land surveys, geotech reports, DSR (investigative + existing conditions consultants)
382
What is an injunction?
Stops client from building contrary to regs, codes and/or bylaws. "Stop Work Order"
383
What is a mandamus?
Order public body to exercise public duty - such as an issuance of a building permit.
Ie Municipality refuses to issue a BP and forces client to apply to courts for a Mandamus (if/when fully compliant)
384
Does a contractor need a municipal permit for hoarding, a covered way for public protection etc?
Yes
385
Salaries are largest expense for firms
True
386
Should an architect ever warrant or guarantee any aspect of professional services? T/F
False
387
Inclusion of "inspection" "supervision" "guard against defects" in client-approved contract docs should be deleted? T/F
True
388
When should arch Stop Work? What next?
If no or late payment. Follow this until resolved
Send lawyer letter to client > file lien > attempt to reach mediation > agreement through arbitration > collection agency > legal action
389
What is Alternative Dispute Resolution (ADR)?
A less costly, less lengthy litigation process
390
What is not covered by Professional Liability Insurance? (Exclusions)
Fraudulent/dishonest acts
Product/contract liabilities
Construction activities
Express warranties/guarantees
391
What clause should be included in all non-standard client-architect agreements?
Limitation of Liability clause
392
What clause should be included in all non-standard client-architect agreements?
Limitation of Liability clause
393
When is per diem compensation of architect fees best?
When scope not fully determined, small projects, intermittent work.
394
When should you use a memorandum?
When client-arch agreement not yet reached
395
Compliance arch v Advocate arch?
Compliance Arch - in P3 or Alternate Funding Plan (AFP) project delivery
Advocate Arch - in Design-Build
396
What are the 2 types of Design-Build ?
1) Owner + Design Builder
(CCDC 14 - DB Stip. Price)
2) Owner + Advocate Architect + Design -Builder
(CCDC 15 - DB / Consultant)
397
What are the 2 types of Design-Build ?
1) Owner + Design Builder
(CCDC 14 - DB Stip. Price)
2) Owner + Advocate Architect + Design -Builder
(CCDC 15 - DB / Consultant)
398
Difference between Project Manager and Construction manager (as it relates to relationships and contracts)?
PM - Hired by + directly in contact with owner. Hires arch+eng. Typ retained in pre-design.
CM - Hired by owner. Works parallel to arch+eng
399
Difference between Project Manager and Construction manager (as it relates to relationships and contracts)?
PM - Hired by + directly in contact with owner. Hires arch+eng. Typ retained in pre-design.
CM - Hired by owner. Works parallel to arch+eng
400
What are the 3 methods of cost estimations?
1) Analogous - done before engaging arch (prev. project as reference)
2) Parametric - most common, measures cost of component, system, building against cost per unit (size, floor area, etc)
3) Bottom-Up - Done when GC prepares for a bid. Includes deliverables, labour, materials, overhead, etc. Most accurate/extensive.
401
What are the Basic Services per RAIC Doc Six?
SD
DD
CD + SPECS
CA + Construction
402
Contract Time shall be extended for such reasonable time as the Consultant may recommend in consultation with the Contractor for ...
any reason outside of contractors control (ie, fire, labour strikes, weather)
403
No extension shall be made for delay unless Notice in Writing of the cause of delay is given to the Consultant not later than ____________Days after the commencement of the delay. In the case of a continuing cause of delay only one Notice in Writing shall be necessary.
10 Working
404
If no schedule is made under paragraph 2.2.12 of GC 2.2 – ROLE OF THE CONSULTANT, then no request for extension shall be made because of failure of the Consultant to furnish instructions until ______________ days after demand for such instructions has been made.
10 working
405
If the Contractor neglects to perform the Work properly or otherwise fails to comply with the requirements of the Contract to a substantial degree and if the Consultant has given a written statement to the Owner and Contractor which provides the detail of such neglect to perform the Work properly or such failure to comply with the requirements of the Contract to a substantial degree, the Owner may, without prejudice to any other right or remedy the Owner may have, give the Contractor Notice in Writing, containing particulars of the default including references to applicable provisions of the Contract, that the Contractor is in default of the Contractor’s contractual obligations and instruct the Contractor to correct the default in the_______ Days immediately following the receipt of such Notice in Writing
5 working
406
If the default cannot be corrected in the 5 Working Days specified or in such other time period as may be subsequently agreed in writing by the parties, the Contractor shall be in compliance with the Owner’s instructions if the Contractor: (3 things)
1 commences the correction of the default within the specified time, .
2 provides the Owner with an acceptable schedule for such correction, and
.3 corrects the default in accordance with the Contract terms and with such schedule.
407
If the Work is suspended or otherwise delayed for a period of ___________-Days or more under an order of a court or other public authority and providing that such order was not issued as the result of an act or fault of the Contractor or of anyone directly or indirectly employed or engaged by the Contractor, the Contractor may, without prejudice to any other right or remedy the Contractor may have, terminate the Contract by giving the Owner Notice in Writing to that effect.
20 working
408
The Contractor’s Notice in Writing to the Owner provided under paragraph 7.2.3 shall advise that if the default is not corrected within ________ days following the receipt of the Notice in Writing, the Contractor may, without prejudice to any other right or remedy the Contractor may have, suspend the Work or terminate the Contract.
5 working
409
In accordance with the rules for mediation as provided in CCDC 40 ‘Rules for Mediation and Arbitration of Construction Industry Disputes’ in effect at the time of bid closing, the parties shall appoint a Project Mediator .
1 within _________ Days after the Contract was awarded, or .
2 if the parties neglected to make an appointment within the X days, within _______ days after either party by Notice in Writing requests that the Project Mediator be appointed.
20 working
10 working
410
If neither party, by Notice in Writing, given within ______ Days of the date of Notice in Writing requesting arbitration in paragraph 8.3.6, requires that a dispute be arbitrated immediately, all disputes referred to arbitration as provided in paragraph 8.3.6 shall be: .1 CCDC 2 – 2020 Note: held in abeyance until: (3 points)
10 working,
(1) Ready-for-Takeover,
(2) the Contract has been terminated, or
(3) the Contractor has abandoned the Work, whichever is earlier
411
The Contract Price shall include all taxes and customs duties in effect at the time of the bid closing except for _____________ payable by the Owner to the Contractor as stipulated in Article A-4 of the Agreement – CONTRACT PRICE
VAT = Value Added Taxes
412
General liability insurance shall be maintained from the date of commencement of the Work until ________-from the date of Ready-for-Takeover.
one year
413
Liability coverage shall be provided for completed operations hazards from the date of Ready-for-Takeover on an ongoing basis for a period of _______following Ready-for-Takeover.
6 years
414
What is a statement of 'Deemed total completion' and when is it used?
It is equivalent to a substantial performance certificate and is used in its place as per regulatory requirements. Holdbacks can be released with this step.
415
who is responsible for paying for development approvals building permits, easments, etc?
The Owner
416
Who is responsible for paying and procuring licences, permits, inspections and certificates?
contractor
417
is the contractor responsible to ensure the contract documents meet code or applicable laws?
No
418
Who is responsible for paying royalties and patent fees?
contractor
419
When is broad form property insurance required? and who is involved in the insurance?
10 days after ready for takeover
on commencement of occupancy or use
if left for more than 30 calendar days without construction
420
What 8 things are required for ready for takeover?
1. consultant certified substantial performance of work
2. evidence of compliance with requirement for occupancy
3. final cleaning
4. O&M documents are delivered to owner
5. as-built drawings are available
6. start up testing as required
7. secure access to work has been provided
8. training and demonstration has been scheduled by contractor
421
how long is warranty period
1 year from ready for take over
422
Amounts for which indemification is not required to be provided for either party (contractor and owner) in respect to losses ($) for
greater of the contract price, or 2M but not more than 20M
423
Contractor waives and releases owner from claims contractor has reasonable have knowledge of, including those arising from negligence or breach of contractor UNLESS: (4 exceptions)
1. claims arising prior to ready for takeover in which a notice of writing has been provided to owner no later than 5 calendar days before expiry of lien period or 20 calendar days after ready-for-takeover (whichever is later)
2. indemnification claims from 3rd parties
3. claims for toxic substances
4. claims occurring from omissions after ready for takeover
424
