Improvements Flashcards
Ks with Architect
American Institute of Architects designed a series of templates designed to protect architects - maay be negotiated
K must contain:
Scope of Work
Ownership of Plans
Architect Fees
Dispute Resolution
Architect Scope of Work provision
(1) First Phase - schematic design (sketch)
(2) Second Phase - more details (blueprints)
(3) Third Phase - Construction Drawings
– Shop Drawings - used in fabricating certain components of the building. Generally come from other specialists such as cabinet makers or HVAC companies
Who Owns the drawings?
Unless negotiated ($) otherwise, the architect soley owns them as instruments of service
Can the Architect reuse plans?
Default, no
Can be negotiated ($)
How are architect’s paid?
Architect Fees may be computed in several ways :
Hourly billing rate
fixed fee
% of the cost of the building
% with a fixed cap
Architect Dispute Resolution
AIA Standard forms require mediation followed by binding arbitration - parties split cost
Careful, some states do not recognize binding arbitration
Joinder can be negotiated
What is a mutual waiver of consequential damages?
Standard in AIA
most architects try to limit liability to the cost of their fee (may be inadequate to owner)
Owner generally requires architect to have malpractice insurance - this would be the stated limit in K
Role of Construction Manager
watches over what the GC is doing (usually a hired 3rd party)
Turn Key COnstruction
Builder finances the construction and assumes the role of owner then gives the key back once complete
Pricing of K
Could be a fixed price
Could be cost of building + %
Could be cost +% with guaranteed max
What is a change order?
Once the design is done and being build, things can change - usually cost more
(catwalk hotel example)
Sub-Contractor
No privity w/owner unless stated differently
Owner should ensure that the subK indemnifies the owner
Forms of Indemnification
Broad Form
– indemnitor assumes any and all liability - regardless of fault or negligence (auto insurance)
—– some states do not recognize and will not redline
Intermediate Form
– indemnitor assumes any and all risk except indemnitee’s sole negligence
Limited/Comparative Form
– indemnitor assumes liability to the extent of it’s own negligence (AIA standard)
What is Subrogation?
the right to step into the shoes of another party from a legal standpoint - to bring suit
—-auto insurance
Additional Insured
a party with the right to make a claim on insurance policy as a third party (such as lender or bank) most require that they are listed as additionally insured
What is a mechanics lien?
Not common law - statutorily regulated
Contractor (sub or vendor too) can place lien if not paid
Mechanics Lien Filing Time Limits
Time –> in VA, filed w/in 90 days of the last day of the month of which you last did work
Contractor must sue to get judgment and perfect the lien
if filed in bad faith, tort = slander of title
What is Back-Work
mechanic’s liens can only claim back 150 days of work
Can a lein be filed on public property
No
Can a tenant place lien on LL
No 21
Owner Protection against lein
pay contractor to sign lien waiver
retainage - do not pay in full until work has been done in quality manner
Requiring contractor to post a bond whereby the GC guarantees paying their subcontractors
Building Codes in General
Local municipality law regulating safety
What is an imposed certified completion of construction?
architects certifies completion to owner
