PJM_A101_Articles_5_8

Question 1

What does Article 5 of A101 outline?

Answer 1

The contractor payment process involving pay applications, schedule of values, and architect certification.

Question 2

What is the schedule of values?

Answer 2

A breakdown of the total contract sum into portions for specific tasks used for determining payment progress.

Question 3

What is retainage?

Answer 3

A percentage of each payment withheld until substantial completion to ensure the contractor completes the work.

Question 4

When is the final payment issued to the contractor?

Answer 4

When the architect issues the final Certificate for Payment, including retainage.

Question 5

What role does the architect play in contractor payments?

Answer 5

Evaluates progress, certifies pay applications, and protects the owner from overpayment.

Question 6

What is the IDM in A101?

Answer 6

The Initial Decision Maker, typically the architect, who first attempts to resolve owner-contractor disputes.

Question 7

What happens if the IDM cannot resolve a dispute?

Answer 7

The conflict proceeds to mediation, then to binding dispute resolution (arbitration or litigation).

Question 8

What is the architect’s responsibility as IDM?

Answer 8

Serve as a neutral party to assess and interpret construction documents and resolve disputes fairly.

Question 9

What does Article 7 of A101 address?

Answer 9

Termination or suspension of the contract by either the owner or contractor.

Question 10

Under what conditions can the contractor terminate the contract?

Answer 10

If work is stopped for a prolonged period through no fault of their own.

Question 11

When can the owner terminate the contract?

Answer 11

For cause (poor performance) or for convenience (e.g., economic feasibility).

Question 12

What happens if the owner terminates for convenience?

Answer 12

The owner must pay the contractor a termination fee if specified.

Question 13

What is covered in Article 8 of A101?

Answer 13

Miscellaneous provisions, including party representatives and insurance requirements.

Question 14

What are performance and payment bonds?

Answer 14

Guarantees by a surety that the contractor will complete the work and pay subcontractors/suppliers.

Question 15

What is included in A101 Exhibit A?

Answer 15

Insurance requirements and bonding provisions for both owner and contractor.