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Flashcards in Legal Deck (19)
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Contract types

-fixed price - obligates the contractor to perform the work for a fixed lump sum
- cost plus fee - owner reimburses costs and pays an establisshed fee, supervision isn't allowed in cost unless stationed on site.
- cost plus fee with GMP - same as above except contractor guarantees costs will not excess a certain amount.
-unite price - set amount for each unit of work, common in highway and utilities.
- time and material


contract documents

- contract, general conditions, technical specifications and drawings.
-bidding documents and RFIs are incorporated in contract


Plans and specifications

owner warrants to the contractor the fitness of the plans and specifications, prepared by design professional hired by owner. contractor generall has no contract recourse against design professional.
Exceptions: Patent Defect-obvious to prudent bidder


Remedy Clauses

available to the parties if another's actions cause additional cost or damages
1) Adding to the scop of the plans and specifications and or worksite conditions are not as expected
2) Limits or stipulates legal remedies in the case of an event of a breach of contract.


Scheduling provisionsSubcontr

-pay attention to dates on contract
-contract may contain liquidating damages provisions
-no damage for delay is enforceable on public project only on private.


Exculpatory Notices

excuses owners and design professionals from paying increased costs from their own acts and omissions. No damage for Delay!


Force Majeure or excusable delay

extend time due to acts of god. usually does not include compensation to either party. You will get extra time but no money.


Dispute resolution

1) resolve in the field - most cost effective
2) dispute clauses - AIA docs initially refer all disputes to the architect, final and binding but subject to mediation and arbitration.
3) Legal



* Pay when paid clause - doesn't release requirement to pay
*Pay if paid clause - payment is conditioned on contractor gtetting paidf anfd must state transfer of risk.



Express Warranty - stated in the contract , they are written in the contract
Implied Warranty - do not arise from negotiations and are not part of contract terms. Arise by operation of the law, they always imply good faith.


Non Excusable Delay

Due to the contractors fault or negligence not maintaing adequate workforce


Excusable Delay

Non compensable - not the contractors, subcontractors, or suppliers fault. Extension of time awarded and no compensation is paid, ie acts of god.
Compensable - owner caused delay and contract does not include a no damage for delay cause.
Concurrent Delay - two delays occur simultaneously ie owner and contraactor delays at the same time, not compensable



Prevention of work to continue, owners failure to respond to an RFI



Owner wants projects completed sooner that contract requires. Owner may issue change order to accelerate and compensate contractor for additional costs.


Termination of Fault

Terminated for not doing work


Termination of convenience

similar to concept of being employed at will.



most common alternative to litigation, arbitration is binding.



non binding procedure - professional mediator attempt to bring about a settlement, their purpose is to bring comprimise, must do before you do anything else.


Dispute resolution board

Neutral third party, binding until project is over