LARE SECTION 1 EXAM 2021 Flashcards
Cost incurred by a contractor when the project is interfered with by the owner.
More man power for more hours to complete project on time.
Acceleration Cost
Action by a party to a contract that causes the other party of the contract to not complete the work of the project on time or in the manner established by the contract writing.
Active Interference
Damages resulting from real and substantial loss, as
opposed to those which are merely theoretical, estimated, or anticipated.
Actual Damages
Modifications to the contract documents issued during the bid period. Become official parts of the contract documents and are legally binding.
Addenda
A person authorised by another to act for him or her; one who is employed to represent another in business and legal dealings with third persons. In a typical agency relationship, three parties are involved: a principal, an agent, and a third party.
Agent
A sum of money set aside by the owner to remove a particular portion of work from competitive bidding.
Allowance
A material or method used in place of the base material or method specified for the project. In a typical construction contract, the owner chooses the alternate or remains with the base requirement, giving it control over the total cost of the project.
Alternate
Doubtfulness; doubtfulness of meaning, duplicity, indistinctness, or uncertainty of
meaning of an expression used in a written instrument.
Ambiguity
Established when a contractor
makes a positive and unequivocal statement that it will not or cannot substantially perform the
contract or when a contractor, by any voluntary affirmative act, renders substantial performance
of its contract apparently impossible. Owner may only terminate if the statement made is clear.
Anticipatory Breach
Federal and state statutes to protect trade and commerce from unlawful restraints and monopolies. In the construction industry, bid rigging is considered a violation of antitrust laws. Those found guilty of bid rigging are assessed treble damages.
Anti Trust Laws
An agency relationship created by an act of the parties and deduced from proof of other facts.
Apparent Agency
The submission of a dispute to a third party (individual or panel), known as arbitrator(s), whose judgment is final and binding. Decisions at arbitration hearings, unlike those in judicial cases, do not establish precedents.
Arbitration
One who resolves disputes between two parties. In a typical construction contract, the Landscape Architect is designated as an arbitrator in resolving the disputes
between the owner and the contractor.
Arbitrator
A legal action which allows a person who is not party to a contract to obtain the contract rights of a party who is. A contractor, for example, may assign the rights contained
in its contract with the owner to a subcontractor. In a similar manner, the Landscape Architect can assign portions of the design of the project to its consulting engineers, primarily in the areas of structural, mechanical, and electrical design.
Assignment
The act or process of taking, apprehending, or seizing person or property by virtue of a writ, summons, or other judicial order and bringing the same into the custody of the law; a remedy ancillary to an action by which the plaintiff is enabled to acquire a lien upon the property or effects of the defendant for satisfaction of judgment which the plaintiff may have
obtained.
Attachment
An improvement brought upon an estate (land and/or buildings) which enhances its value more than mere repairs. The improvement may either be temporary or
permanent. This term also applies to denote the additional value which an estate acquires in
consequence of some public improvement, such as the widening of a street, etc.
Betterment
A clearing house for subcontractors to submit their bids for a particular project and for prime contractors to receive bids from the various subcontractors.
Bid Depository
The act of not allowing a bid to stand because of an impropriety in the process of submission or as a result of the owner’s arbitrary decision to reject the bid. The
owner, in a typical contract, reserves the right to reject any and all bids. However, in rejecting a
bid, an owner and its Landscape Architect run the risk of interfering with the bidder’s right to do
work or of defamation of character on the part of the bidder.
Bid Rejection
An independent administration quasi-judicial board to
decide all public contract disputes. Various states have created these boards to relieve the courts from the backlog of cases related to public contracts. Note that these boards hear only disputes related to public contracts and not to private contracts.
Board of Contract Appeals
A term used to represent standard legal conditions inserted at the “front end” of a construction contract. These conditions are typically titled “General Conditions,”
“Supplemental Conditions,” and/or “Special Conditions” and are inserted at the front end of the project manual.
Boiler Plate
An instrument with a clause, with a sum fined as a penalty, binding the parties to pay the same, and with the condition that the payment of the penalty may be avoided by the performance of certain acts by some, one, or more of the parties; a certificate or evidence of a debt; a mere promise to perform or pay; a written obligation.
Bond
Is a form of security to insure that the bidder will enter into the contract if the award is made to it.
Bid Bond
Insures completion of the project by the contractor,
guaranteeing that if the contractor defaults, the bonding company will step in and finish the work. This bond is also applicable between a prime contractor and its subcontractor, assuring the prime that the subcontractor will perform or pay.
Performance Bond
(Sometimes known as a labour and material payment bond) Provides a source of payment for the contractors’ or subcontractors’ labour and material men.
Payment Bond