LARE Section 1 Flashcards
1
Q
A professional services contract, is composed of several standard elements:
A
Agreement
Project Description
Scope of Work
Scope of Services
Responsibilities of the Parties to the Contract
Fees
Terms and Conditions
Signature Lines
2
Q
The order of the construction drawings, according to Landscape Architecture Graphic Standards:
A
Civil Engineering
Landscape Architecture
Architecture
Structural Engineering
Mechanical, Electrical, Plumbing (MEP)
3
Q
The Project Manual:
A
a collection of documents related to the construction work on a project and does not include the design drawings. According to Construction Contracts:
Bidding documents
General Conditions
Supplementary Provisions
Technical Specifications
4
Q
Addenda
A
during the bidding period, potential bidders may find conflicting, inaccurate or unclear information, present it for further clarification. When formal changes need to be made - the owner will issue an addendum.
5
Q
Administration budget:
A
amount of money that the owner/client has allotted to manage the project over ll its phases
6
Q
Agency Agreements
A
consensual agreements similar in intent to the contact framework, but usually the scope of the agreement is often much smaller.
7
Q
attractive-nuisance doctrine
A
attractive-nuisance doctrine imposes a duty on property owners to treat trespassing children the same as an invitee, and as a result, must exercise reasonable care to eliminate potential dangers or provide adequate warning
8
Q
Bid bonds
A
protects against contractors backing out. Submitted with the bid proposal by
the contractor. 5% of bid typical. If backs out, the owner gets that amount. To cover expenses to negotiate with another contractor or re-bid the project.
9
Q
Bid Review
A
LA review the bid documents if LA is a prime consultant
A balanced bid/ unbalanced bid
10
Q
Bidding documents:
A
Notice to bidders
Instruction to Bidders
Bid Form
Contract form
Specifications
Project-specific attachments and exhibits (e.g. a geotechnical report)
11
Q
Bidding Period
A
review contract docs, and assemble their bid.
12
Q
Bidding process:
A
Invitation to bid
The bidding period
Bid review
Award of the Bid
13
Q
Builder’s Risk Insurance
A
protects from damage during the construction (for example - fire) GC is responsible to obtain it.
covers the structure during construction because GC is responsible for the project until accepted by the owner. typical: fire (primary), vandalism, burglary.
14
Q
Certificate of Insurance
A
The contractor provides the owner with a certificate of insurance - proof that C/C has obtained the required insurance.
15
Q
Closed & Proprietary Specification
A
call out brand names and models. Produced by third party like material supplier. At Least 3 be named to not be a closed spec.
A closed specification requires a specific item or system. This type of spec is used to ensure that only products of a particular type are used. Not for public projects.
Proprietary spec - state what is to be provided without any allowance for alternatives.
16
Q
Comprehensive General Liability Insurance most typical sources:
A
Provides protection from 3rd parties lawsuits
Injury to nonworkers on site. Contingent liability (indirect liability - be held responsible for injury to third party even if not caused by owner).
Damage caused after completion of the project.
Damage by mobile equipment.
Injury to employees if not covered by workers comp.
LA and the contractor get this.
17
Q
Constructability Review
A
identify any potential problem areas and suggest an improvement
18
Q
Construction budget
A
Amount of money allocated to have the project built.
19
Q
Construction Means and methods
A
refer to the labour, materials, temp structures, tools, and construction equipment as well as the manner and time of their use - necessary to finish the construction. Usually the responsibility of the contractor, but if specified in the contract documents - no longer the liability of the contractor
20
Q
Construction Support Services
A
Amount of money that owner/client has budgeted for construction inspection, testing, review of submittals etc
21
Q
Consultant
A
a party that evaluates the client’s needs and provides expert advice on how those needs should be met
22
Q
Contingency Budget
A
is the amount of money for design/construction changes, and buffer for unexpected overruns.
5-10% of the value of their respective line item.
23
Q
Contingency planning
A
- plan in advance for coping with uncertainties/threats
24
Q
Contingent Liability
Contingent - вероятность
A
An injured 3rd party is not affected by a contract between 2 parties. For example: if a passerby is injured by a contractor working on an owner’s project, the passerby could sue the owner even if the contractor is directly responsible for the injury.
25
Contract
the legal document that sets forth the obligations of each party to the contract and specifies the duties and responsibilities of the entities that sign the contract
26
Contractor
similar role as a consultant, but instead of providing advice on how the clients needs should be met, the contractor performs the construction/build work required to meet those needs
27
Corporations
a form of business that is considered to be - from both legal and taxation perspectives - distinct from their owners. Corporations may be owned by a single person, a group of individuals/stakeholders, but these owners are not personally responsible for the legal or financial decisions.
Limits the liability of the owner
Only one that is considered tax paying individual
Corporations are authorized to own real property, incur debts, file suit
28
Cost Plus
allow for reimbursement of construction expenses plus a predetermined fee for overhead and profit.
Used when the construction starts before the CD and specifications are finished. No idea of the total cost for the owner.
contractor reimbursed for actual costs plus a fee.
● Total contract sum not determined until work is complete.
● The initial contract sum is just their fee.
● Payments based on actual expenditures - receipts quite burdensome.
● Can submit with Guaranteed Maximum Price (GMP).
● Can have a shared savings clause or incentives for early completion.
● USE: when needed to expedite the construction schedule. Allows flexibility if site
conditions are revealed during demo. Allows flexibility in plans and specifications.
Remodeling or renovations.
● Not for bidding.
● It does not allow the owner to acquire the best product to the budget outcome.
● Contractor won’t lose money
● Removes incentive for the contractor to increase costs
29
Design budget
amount of money allocated toward project design concept to construction documents. Takes into account all disciplines - architecture, LA, engineers, etc.
15-20% of the overall budget.
30
Design Implementation:
● working drawings: layout plan, design details, grading plan
● final estimates
● contract specifications and documents
● other: planting plan, irrigation plan
● Contract Supervision: Included in this area are the following services:
● selection of contractors
● award of contract
● general supervision on behalf of owner, inspection of work
● acceptance of work completed
● Contractual Implications: The following elements should be incorporated into a contract
between the landscape architect and client for projected design.
● Identification of the parties
● Description of the project
● Job number
● Scope of services
● Exclusions to scope of services
● Fees
● Reimbursable costs
● Additional services
● Billing method
● Disputes and termination
● Ownership of documents
● Successors
31
Design Specifications
Material/ workmanship specifications, address the methods of workmanship, methods and materials.
It is a detailed instructions how work will be constructed and what materials will be used - contractor is not liable in this case if end result is not achieved.
32
Design-Build Contract Method
the owner hires a single firm to conduct both the design and construction of a project. The design-build firm may still hire sub c/sub c.
33
Drawing Progress
0,25,50,90,100%
34
During Construction:
● Periodic site observations
● Review the complete set of documents
● Review of shop drawings
● Process submittals
● Monitor the construction schedule
● Sample materials
● Verification of work completed
● Review and make recommendations on contractor's requests for payment
● Issuance of certificate of substantial completion - by LA and possibly inspector
● Ensure that it meets the quality of standards determined by the office
35
Eminent Domain
принудительное отчуждение
the right of the federal government or a state or other public agency to take possession of the private property and appropriate it for public use (condemnation - конфискация).
36
Fees for professional design services can be calculated including:
Fixed Fees/ Lump Sum
Hourly Fees (not to exceed the amount included)
Multiplier Fee (L.A. estimates overall hours, multiply by hourly pay rates, multiple by a figure that incorporates the firms overhead costs)
Percentage of Construction (6-12% of construction budget)
37
General Conditions
Outline the rules under which the project will be built. They establish the rights, authority, and obligations of the contracting parties: owner, owner representative and contractor.
38
If Design budget is insufficient for the required scope:
Reduce the number of client submittals/deliverables
Reducing the number of meetings
Adjusting the overall scope of work such that the scope of services is reduced
39
Insurance Terminology:
Comprehensive General Liability Insurance
Professional Liability Insurance
Builder’s Risk Insurance
Certificate of Insurance
40
Joint Ventures
a temporary partnership between 2 or more firms for the express purpose of completing a project.
41
Libel and Slander
Tort damages can also extend to defamation of character and thus include libel (published defamatory statement) and slander (spoken defamatory statements)
(Ущерб от деликта также может распространяться на клевету и, таким образом, включать клевету (опубликованное клеветническое заявление) и клевету (устные клеветнические заявления).
42
Lien
A legal claim placed upon property in response to an unpaid debt
43
Limited Partnership
in a limited partnership, a person generally contributes cash or property to the business and shares in its profits and losses.
44
Lump Sum/Fixed Price
fixed sum for the whole scope of work.
(most common): submits a fixed price for the scope. Low bid contracts, but doesn’t have to go through the bidding process. Less need for receipts.
45
Mechanics liens
a type of lien that permits workers and materials suppliers to place a claim on property in the event that they are not paid by a contractor.
46
Meeting Facilitation
Schedule the date, time, and place of the meeting
Preparing a meeting agenda
Ensuring that meeting participants are aware of any deliverables related to the meeting
Taking notes
Following up with Key attendees and the owner/client after the meeting to confirm key decisions,
47
Negligence
is a failure on the part of 1 person to exercise sufficient care or precaution to protect the health and safety of another person.
48
Opinion of probable cost
is based upon quantity takeoff details, and specifications and it is not intended to be authoritative. ( level one Cost Estimate)
49
Overhead
non-labor costs associated with operating and maintaining an office are known as overhead.
50
Partnership
an association of 2 or more people to conduct business as a single entity. The partners will have joint control of the firm since their resources have been joined to create a business entity.
51
Payment Bonds
protects workers, subcontractors, and material suppliers to get them paid. An alternative way to get money instead of a mechanics lien. Without it, file stop notice. Don’t protect third-tier subs and suppliers. Don’t need retainage if have a payment bond. Stop notice or payment bond doesn’t encumber property like a lien. Stop notice is the least effective.
52
Performance Bonds
protects against poor work or incorrect (replaces bid bond when the bid is accepted) set at 100% of the contract bid amount. The limit of liability is a specified dollar amount and referred to as the bond’s penalty.
53
Performance Specifications
focus on results - contractors can choose the materials and install
methods to provide the desired results. Best kind.
Only provide guidance related to the technical performance of the finished product.
The contractor's work satisfies specifications as long as their work meets the technical requirements outlined in the specification.
54
Pre-design Services:
Programming
1. Includes planning (initial stages)
2. Preliminary Programming (not just space programming): List of solutions, alternative,
feasibility studies, and cost estimates
3. Schematic
4. Market studies
55
Pre-Project Management:
● Select Project Team
● Develop Contract
● Negotiate Contract
● Prepare RFPs or RFQs. RFPS outline the bidding process and contract terms and guides how the bid should be formatted.
● Determine Project Scope, Schedule, and Budget
56
Order by CSI (Construction Documentation Institute)
00 00 00 Procurement and Contracting Requirements
● Procurement: switch between design and building (includes bidding and such)
● Bid ad, available project info, bid forms
01 00 00 General
● Summary of work, payment procedures
02 00 00 Sitework - and existing conditions
● Includes existing conditions in old format
03 00 00 Concrete
04 00 00 Masonry
05 00 00 Metal
06 00 00 Wood + Plastics
07 00 00 Thermal / Moisture Prevention
08 00 00 Doors + Windows
09 00 00 Finishes
10 00 00 Specialties
11 00 00 Equipment
12 00 00 Furnishings
13 00 00 Special Construction
14 00 00 Conveying Systems
15 00 00 Mechanical
57
Professional Liability Insurance
errors and omissions insurance - to protect professional services firm from claims of negligence or failing to perform their professional duties
- Covers legal defense and court costs
- 70% of all litigation is from miscommunication between consultant and client. (filed by client) more than contractor
- Extends to W2 employees and 1099 subcontractors worldwide
- Obtained by LA, surveyor
- If LA approves a request for payment that includes services that haven’t been
performed they are held responsible but covered by E&O
58
Programming and Analysis:
● assessment of clients' needs
● site selection
● site inventory
● site analysis
● Design Development: Included in this general area are several services:
● client conferences
● design schematics
● specific/special studies
● feasibility studies related to the project/site
● preliminary plan and presentation drawings
● preliminary estimates
59
Project Budget Categories:
Administration
Design
Construction
Construction Support Service
Contingency
60
Project Stages:
List the order in which the following activities occur:
1. RFP - to find a consultant or the contractor
2. Advertisement for bid
3. Qualifications statement - submitted on a form by the contractor.
4. Scope of Services
5. Work Plan
6. Budget
PLANS 0%, 25%, 50%, 90%, 100%. At 90% drawing is complete but hasn’t been submitted for QC.
61
Proprietorship
a business owned by an individual, all earnings taxed as income to the individual business owner
Each partner has unlimited liability with creditors
No formal docs required
62
Punch List items
- items are usually small in scope because punch lists are usually created after the notice of substantial completion.
Correcting the punch list items will generally result in the release of all the retainage.
63
Reference Specifications:
requirements based on an established standard like the Uniform Building
Code or prepared by a government organization.
64
S-Corporations
incorporated partnership, it differs from other types of corporations in that the S-Corporation does not pay taxes as a separate entity.
65
Self-performance Method
the owner will conduct the entire scope of work in-house. The owner’s employees are solely responsible for the entire project scope.
66
Separate Contracts Method
“multiple prime contracts”, the owner enters into contracts with multiple service providers across a variety of disciplines. This contract eliminates prime c/c as middle man, therefore the owner manages the work.
67
Silent partner
is a person who is a partner in a firm but remains unknown to the public
68
Specification
the term is often used very broadly to include all the contract documents except CD:
Invitation to bid
Instruction to bidders
General Conditions
Supplementary conditions
Bid proposal form
Bid bond form
Contract bond form
List of prevailing wages
Noncollussion affidavit (Аффидевит об отсутствии сговора)
Technical specifications
69
Statute of limitations
(Срок исковой давности)
statute of limitations is the maximum time after an event within which legal action may be initiated against another party. (In LA generally 6-10 years)
70
Strategies for controlling risk:
Prevention
Transference - make another party responsible for the uncertainties/threats
Mitigation - lessen the impact of the U/T
Contingency planning - plan in advance for coping with uncertainties/threats
Assumption - identify the U/T and accept their potential impact
71
Supplementary Provisions
Also known as supplementary or specific conditions. They have the f(x) of amending the general conditions and tend to be more specific.
72
Surety Bonds
instrument in the bidding and construction process to reduce the risk that the terms of a contract will not be fulfilled. In LA, the owner will require to provide the bond during the bidding process. There are 3 parties of surety bonds:
The surety ( the bond company)
The principal Debtor (The Principal)
The Obligee (the party to whom the promise of the principal’s performance is made)
73
Tax liens
Used by the government to retain possession of a property until the tax on it has been paid
74
Technical Specifications
TS cover the qualitative items of the project and written descriptions of the quality of the various aspects of the construction project, and they are often used to modify or clarify information shown in the design drawings.
75
Technique for Dispute Resolution:
Mediation - common agreement, the process is led by a 3rd party, not legally binding
Arbitration (Арбитраж) - led by a 3rd party which empowered to render final decision, the most formal
Partnering - team-building sessions by a facilitator
76
The Bid form
to submit a bid to the owner/owner’s representative.
Base bid price
Alternates
Provisions for additional work
Time of completion
Bid surety, agreement to provide contract surety (поручительство)
Qualifications, financial statement, list of subcontractors
Signature, certification by the contractor
77
The Construction Contract Documents:
Construction contract
Design drawings
Project Manual:
- Bidding documents
- General Conditions
- Supplementary conditions
- Technical Specifications
78
The four basic contracting methods:
The General Contract Method
Design-Build Contract Method
Separate Contracts Method
Self-performance Method
79
The General Contract Method
a contract between the owner and a general contractor/consultant. The prime c/c will be in direct communication with the owner, whereas sub c/sub c would report to the prime c/c and only communicate with the owner when expressly told so.
80
The order of the construction drawings, according to Construction Contract Documents:
1. General Information and Site Work
2. Structural
3. Architectural
4. Plumbing
5. Heating, Air-Conditioning, Ventilation
6. Electrical
81
The Proposal process:
RFI - Request for Information
SOI - Statement of Interest
RFQ - Request for Qualification
SOQ - Statement of Qualification
RFP - Request for proposal
82
There are 3 general types of Construction contracts
Lump Sum/Fixed Price - fixed sum for the whole scope of work.
Unit Price - for projects with well-defined methods but unclear scope of work.
Cost Plus
allow for reimbursement of construction expenses plus a predetermined fee for overhead and profit. Used when the construction starts before the CD and specifications are finished. No idea of the total cost for the owner.
83
There are 3 parties of surety bonds:
The surety ( the bond company)
The principal Debtor (The Principal)
The Obligee (the party to whom the promise of the principal’s performance is made)
84
There are 3 types of bonds:
Bid bonds
Performance Bonds
Payment Bonds
85
Torts
гражданское правонарушение
A private or civil wrong or injury that occurs independent of a contract and is not criminal in nature.
Settled through common law interpretation.
Torts generally result from a specific action or failure to act.
Breaches of duty
Trespass violations are torts
86
Types of Specifications:
Design Specifications
Performance Specifications
Closed & Proprietary Specifications
87
Project Work Plan Document
1. Project objectives
General description of the project, including any unusual project features
- Major project objectives
- Major milestones (project phases)
- Project construction budget, if known
- Deliverables by milestones or phases
2. Project team
3. Project task-budget information
4. Project schedule information
5. Project quality-control procedures
6. Miscellaneous procedures
88
Umbrella Excess Liability:
extends the limits of liability coverage. One of the better buys. Uses the limit of basic liability as the deductible amount. Picks up where other insurance leaves off.
89
Unit Price
for projects with well-defined methods but an unclear scope of work.
The unit price includes all labor, overhead, etc.
Only actual quantities of used material are paid for.
● Unbalanced bid: moving a heavy price to items that happen earlier in the construction process to have more capital early on. Or higher on one item they think will be used more of.
● won't know the actual price until the end.
90
Value Engineering
(VE) Review of the contract docs to determine if construction costs and duration can be reduced while maintaining project quality. Can occur during the design or construction phase.
Potential benefits:
- Reduced long-term maintenance costs
- Improved ease of construction
- The reduced probability of litigation related to construction
(Снижение вероятности судебных разбирательств, связанных со строительством)
91
Why does tort occur?
1 party must owe another party a duty
There must be a breach of performance of that duty
Someone must be harmed by this breach of performance
There must be a clear link between the harm suffered and the breach of performance
92
Why does tort occur?
1 party must owe another party a duty
There must be a breach of performance of that duty
Someone must be harmed by this breach of performance
There must be a clear link between the harm suffered and the breach of performance
(1 сторона должна иметь перед другой стороной долг;
Должно быть нарушение выполнения этой обязанности;
Кто-то должен пострадать от этого нарушения производительности;
Должна существовать четкая связь между нанесенным ущербом и нарушением исполнения.)
93
Agent:
a person authorized to act on behalf of the owner. Include in the contract whether this is contractor or LA. Fiduciary (involving trust) relationship the agent has the legal power to
bind the principal to the decisions you make with a third party. An employee can be an agent.
● Agency: agency agreements are similar to contracts. The principal is liable for agents actions.
● Agent Relationship: controls overall conduct and performance of people (not the contractor’s employees). Submits recommendations to the client. Differ from independent contractor because they are only responsible for own decisions.
94
Bilateral Contract:
normal two party contract
95
Brokerage:
When a general contractor subcontracts all the work on a project. Not beneficial to the owner.
● Owners my place limits: “Contractor shall perform with his own organization, not less than 25% of the work”
● Some public works projects have these limits required by law.
96
Buying-Out the contract:
don’t like work that has been completed. Say you’ll pay $5000 to have them leave the contract. Most accept.
97
Change vs. Modification:
revision to original contract docs. Vs. a modification that is agreed upon by both parties. Change can be made by owner without the contractor’s agreement.
98
Construction Contract Docs:
advertisement,
instruction to bidders
bid forms
contract,
specifications,
plans
99
Contract Conditions:
General Conditions + Supplementary Conditions
● General conditions set forth the rights and responsibilities of the parties. Legally established standards that promote fair and objective contractual stipulations between all parties. The section includes insurance. The boilerplate stuff. AIA 201 has them you can take.
● Supplementary Conditions/Special Conditions at front of the bid book or specifications book.
Modifies the general conditions. More specific to the job. It also may include the invitation to bid and bidding instructions, and shop diagrams and other written clarifications such as any pre-bid meeting minutes. And amended insurance.
100
Caveat Emptor:
Пусть покупатель будет бдителен:
latin for the buyer beware. The contract law principle is that the buyer is responsible for checking the quality before real estate purchase. Must be accepted with whatever flaws at the time of buying.
101
Mediation
good faith negotiation with a neutral mediator would meet separately with both parties in different rooms and works to find points of agreement. Non-binding.
102
Partnering:
voluntary approach to solving and issue with an outside facilitator. Two-three days.
103
The owner can terminate the contract if:
The owner can terminate the contract if:
● The contractor has gone bankrupt
● Hazardous site conditions
● Non-payment of professional fees
● Fraud
● Breach of contract
● The contractor fails to pay the subcontractors
● The contractor disregards local ordinances.
● But not if working too slow
104
Assures Timely completion:
Assures Timely completion:
● Liquidated damages
● Bonus
● Retainage
Обеспечивает своевременное выполнение:
● Заранее оцененные убытки
● Бонус
● Удержание
105
Filed order vs change order:
both are documents issued by the LA that directs the contractor to alter some portion of the design as described in the construction drawings.
Field order - the modification will have no cost or time implications for the project or the contractor.
106
Cardinal Changes:
changes that are not within the general scope. Breach of contract when altering the original contract to an extent that its essentially making a new contract. A contractor might not have the expertise, bonding limit, capital, or other projects.
107
Field report
Field report - a critical aspect of conservation, observation and administration. They can be used to
- document the progress of construction work
- observe the condition of stored materials
- approve mock-ups and material samples
- confirm (согласие) with contract documents
108
Drawings
0% - the drawing is not started
25% - The drawing has been started - plans, sections, elevations or details are still in progress
50% - plans, sections, elevations, or details are drawn but not dimensioned or dimensions are missing. There are no notes or material call-outs, or notes. Callouts are incomplete
90% - the drawing is complete but has not been submitted for a QC check
100% - the drawings has been checked for QC, the QC comments have been corrected on the drawing.
109
3 schedule formats:
- milestone list
(2 types of milestones: the contractual - required by the agreement; and additional - to manage design teams)
- the bar chart (Gantt chart)
- CPM schedule
110
Task organisation:
Start-to-start: tasks are interrelated and start at the same time
Start-to-finish: tasks are interrelated and 1 task finishes before the other starts
Finish-to-finish: tasks are interrelated and finish at the same time.
111
Project Management 6 activities:
Defining
Planning
Directing
Coordinating
Monitoring
Learning
112
Post-construction evaluations
are used to determine if the design as built meets the needs of the owner and site users.
As such, they can provide the design team with valuable feedback and help understand what aspects could be improved in the future.
113
Post-construction evaluations
are used to determine if the design as built meets the needs of the owner and site users.
As such, they can provide the design team with valuable feedback and help understand what aspects could be improved in the future.
114
Construction Management at Risk:
Services are provided as an independent contractor
The project must be completed by the established substantial completion date
The project must be completed within the agreed-upon budget
The owner can be compensated for any work that does not conform to the contract documents
115
On-site inspection
to ensure that construction conforms to the info provided in the construction documents, especially technical specifications.
116
Review/approval stamp:
approves; approved as corrected; revise and resubmit, for your information and use; incomplete submittal; not approved
117
Change Orders:
when the owner wishes to introduce a change to the project during construction, they will issue a change order to the contractor.
Change Orders:
Direct the contractor to alter some portion of the design as described in the contract docs
Are considered a modification of the existing contract between the contractor and the owner
Always have a cost impact
118
Shop Drawing:
Shop drawing is developed by a subcontractor to show how design intent in detail will be fabricated, assembled, and installed. Reviewed prior to the fabrication.
119
Clerk of Works
Clerk of Works - is generally responsible for verifying quantities of material delivered to the construction site and confirming that work is carried out properly and that health and safety rules are being followed.
120
Schedule of Values:
Schedule of Values - A schedule of values is a cost item breakdown that allocates value for the project scope described in the contract between the owner and the contractor and as such could be used as a basis for submitting and reviewing progress payments between two parties (owner/contractor)
121
Acceleration
Acceleration - occurs when the contractor must hire additional workers, work overtime or incur(навлечь на себя) other costs to meet the deadline.
122
Backcharging
backcharging provisions (положения контракта) in a contract allows a party to recover expenses incurred when the other party fails to act according to the language outlined in the contract. Can be effective means for a GC to regulate the work of the subcontractors and ensure that their work is completed as promised.
123
Active Interference
occurs when the owner directly interferes with the work of the contractor, thus causing damages or delays to the project.
124
Liquidated Damages
provide compensation to the owner for financial and other losses resulting from delayed completion. Typically liquidated damages are assessed for every working day that a project extends beyond the end date stipulated in the construction contract. Often predetermined sum is used in lieu of actual damages.
125
Retainage
is withheld from payments to the contractor and then released back after addressing all punch list items and upon completion. May range from 5 to 20%, 5-10% typically.
126
Revision clouds and callouts
are used to designate/highlight changes in the project work, and are typically shown as a scalloped line drawn around the revision areas.
127
Notice of substantial completion
is to establish that the project is suitable for occupancy or for use for its intended purpose.
127
Project closeout phases:
Project closeout phases: start with substantial completion and owner-occupancy and ends with final completion.
128
Substantially complete
A project is substantially complete when the owner can occupy it. It will also coincide with a certificate of occupancy (issued by a government agency). Once certificate has been issued, the project has entered owner occupancy.
129
The punch list
to document minor deficiencies in teh construction project and track these outstanding items to ensure their completion. Typically prepared by the designers, designers will be responsible in this case for verifying that the punch list items have been completed. Once punch list items are done - the owner releases retainage and the contractor receives the final payment.
130
As-built Drawings
the contractor is responsible for providing the owner with the as-built drawings that depict all aspects of the final built project. As-built drawings are essential to long-term maintenance, especially because they allow all parties to work safely on the site.
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Final Completion
the work is fully and finally completed in accordance with the contract documents. It is reached once all liens have been released against the project and all punch list items have been addressed and approved. Final completion - the last opportunity for any non-warranty aspect to be addressed by the owner to the contractor.
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How LA could promote effective site maintenance?
Conduction soil tests and amending soils prior the planting (written in tech spec)
Requiring 2-3 inches of mulch coverage in planting beds to suppress weed growth (Written in tech specs)
Using well-proven and/or drought-tolerant planting material that reduces the need for costly or specialized maintenance
Minimizing turf areas to reduce carbon emissions from mowing equipment
Developing a site maintenance plan, providing it to the owner and requesting that copies be distributed to the owner’s maintenance staff
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WBS
Relate to the contract requirements, use same terminology
Should be hierarchical, so budget’s cannot be counted twice
No more complicated than is absolutely necessary
Staff must intuitively understand the codes to which they are to charge
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Bid / Proposal form
Price for which C offers to perform the work
Price of completion
Bond
Contract surety agreement
Additions to plans/specifications
List of subcontractors
Experience record , financial statements
Declaration that no fraud or collusion exist
Statement that the site has been examined
Signature and witnesses
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Adhesion
One-sided contract, take it or leave it
Boilerplate contract created by provider of services. Can’t negotiate items
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Active interference
Action by a party that causes other to not complete their work.
Courts might require to prove that adherence is intentional, not passive negligence
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Caveat Emptor
Latin for the buyer beware
Contract la principal that buyer is responsible for checking the quality before real estate purchase.
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To define a task:
An objective
A timeline
A level of effort
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Arbitration
Arbitration are impartial, 3d parties lead process
Decisions of arbitration are final and binding
Decisions of arbitration hearings do not establish legal precedent
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Field order
Issued when the modification will have no cost or time implications
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At risk construction management
Services provided as an independent contractor
The project must be completed by the established substantial completion date
Within the agreed budget
The owner can be compensated for any work that does not conform to the contract documents
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A contract can be terminated if;
Breach of contract
Fraud
Nonpayment of professional fees
Hazardous site conditions
Failure to pay subcontractors
Contractor goes bankrupt
Contractor violates ordinance (правила) intentionally
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Actual Damages:
Direct and Consequential are referred to compensatory or actual
damages and fully compensate an injured party, but not for more than loss.
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Delay Damages
economic loss suffered as a result of extended time.
o Penalty clauses without some kind of balancing bonus are rendered
unenforceable by the courts.
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Direct Damages:
Direct Damages:
o Bodily injury or damage to property
o Direct result of the proscribed actions or a failure to act
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Consequential Damages
(Косвенные убытки)
Consequential Damages
o Injury Doesn’t flow directly from that act of the party but consequences of.
o Economic losses such as loss of profit
o Most closely associated with tort.
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Compensatory Damages:
repair or replacement of the loss caused by the wrong or
injury and nothing more.
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Statutory Damages
(Установленные законом убытки)
o May be rewarded regardless if a party actually suffers damages
o Created by specific laws like copyright
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Nominal Damages
Nominal Damages
o Issues by a court when a legal wrong has occurred, but no actual financial loss
as a result of the wrong. Plaintiff awarded $1.
o Recognition that a legal wrong occured. Where no loss can be established.
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Liquidated Damages:
(Заранее оцененные убытки:)
sum agreed to forfeit for any breach of contract (not a penalty
fee)
● Can be for each day past deadline (sometimes weekly), but not only this may be
confidentiality breach or something.
● If include a liquidated damages clause then maybe can get paid for damages
without going to court.
● Predetermined sum in contract used in lieu of actual damages because can be
hard to estimate for cost of delays.
● To fix the amount to be paid in lieu of performance.
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Punitive damages:
to punish wrongdoer not compensate the harmed.
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Warranty:
a legally enforceable assurance of the truth of a statement. Often describe the quality
or performance of a product/service. Warranties, guarantees, and certificates can be considered
contracts as well.
● A guarantee from the prior owner that the title is clean, and that he will be held liable in
the future if anyone comes forward and stake a claim to the title of the property.
● Owner’s implied warranty when providing plans and specs that they are possible to
perform, adequate for intended purpose, and are free from defect.
● Maintenance bond is a warranty. Typical 1 year.
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Base bid includes:
Overhead
Labor
Equipment
Site Preparation
Materials
Not includes: Alternate
