Primary Contractual Documents Flashcards
1
Q
The contract documents consists of …
A
…the Owner-Contractor Agreements, the general conditions of the contract, the supplementary conditions of the contract (if any), the drawings, specifications, and addenda issued propr to execution of the contract, and other documents specifically listed in the agreements, and modifications issued after execution of the contract
2
Q
Modification (change order)
A
a construction change directive
-a written order issued by the architect for a minor change in the work, or a written amendment to the contract signed by both parties
3
Q
project delivery
A
-entire sequence of events necessary to provide an owner with a completed building
4
Q
the legal concept of agency involves three parties:
A
1) the principal (owner)
2) the agent (architect)
3) third party (contractor)
5
Q
single prime contract
A
-contract in which the owner has an agreement with a general contractor to build a project according to the plans and specs
6
Q
primary advantage of a single prime contract
A
- owner has single source of responsibility
- project is also easier to administer for archtiect
7
Q
multiple prime contract
A
- portions of work, sich as mechanical, electrcial, and plumbing are contracted separately with owner
- more difficult to administer for architect
8
Q
many prime contracts
A
- applied in fast track construction where one portion of the work needs to start before the other elements are designed or ready to be priced
- often requires the use of a CM
9
Q
design-award-build method
A
- most common and traditional of the three method of project delivery
- architect designs project and produces drawings used for costing and awarding a construction contract, either via competitive bidding or negotions
- contractor builds projects, with architect providing CA services
- owner has separate contracts with architect and contractor
10
Q
advantages of design-award-build method
A
- simple because all roles are well defined
- work proceeds in a linear fashion
- contract relationship are straighforward
- coordination problems are minimized
11
Q
disadvantages of design-award-build method
A
-one phase of the project must be completed before the next phase can begin
12
Q
fast track method
A
-used when overall time for design and construction must be compressed
13
Q
roles of a construction manager (CM)
A
14
Q
what contractual document is used if a CM is an independent advisor?
A
15
Q
What are the advantages of using a CM
A
- ealry advice on constructability of the design as it is developed
- early cost estimating and value analysis
- project scheduling
- professional management of multiple contracts
- in some cases, a guaranteed price and completion date
16
Q
What are the disadvantages of using a CM
A
17
Q
What are the disdvantages if a CM acts as the construction contractor?
A
18
Q
three common methods for establishing a total cost for the project
A
19
Q
fixed price method (stupulated sum or lump sum)
A
20
Q
guaranteed max price method
A
21
Q
cost plus fee method
A
22
Q
design build method
A
-owner contracts with one entity to provide both design and construction services
23
Q
advantages of design build method
A
- single source of responsibility
- adminstering the contract is direct
- owner has fixed price early in the process
- overall time of design and construction is reduced
24
Q
disadvantages of design build method
A
25
when is the design-build method typically used?
-used by owners who have experience with multiple facilities and who have clearly defined needs that can be precisely stated in performance requirements
26
What is AIA B141
documents that outlines architect's responsibilites
27
decribe the first part of AIA B141
28
describe the second part of AIA B141
-Standard form of Architect's Services
29
project administration services
30
evaluation of budget and cost of work
31
evaluation and planning services
32
design services
33
construction procurement services
34
contract administration services
35
owner's responsibilites of owner-architect agreement
36
the second part of AIA B141, Standard Form of Architect's Services: Design and Contract Administation, requires the owner to provide three additional supporting services
1) the owner must provide a program that gives the owner's objectives, schedule, constraints, and design criteria, inlcuding space requirements and relationships, special equipment, systems, and site requirements
2) the owner must furnish land surveys to describe legal limites of the sire
3) owner must furnish services of geotechnical engineer, which may include test borings, determinations of soil bearing values, percolation tests, evaluation of hazardous materials
37
an architect may assist an owner in procuring surveying services using what document
AIA documents G601
38
39
instruments of service
- drawings, specs, and other documents, including those in electronic form, are instruments of service and belong to the architect
- owner is allowed to keep and use originals and copies in connection with the project, but cannot use them for other projects or for addtional work
40
waiver of consequentioal damages
-both architect and owner waive on consequential damages, which limits claims to damages resulting directly from a breacj of the agreement
41
provision for hazardous material
-the architect and architect's consultants have no responsibility for the discovery, presence, handling, removal, or disposal of or the exposure of persons to hazardous materials such as asbestos, PCBs, or other toxic things
42
provision for third party claims
- states that noting in the agreements shall create a contractual relationship with a third party against either the architect or the owner
- this is to reinforce the idea of privity, which states that one party to a contract is protected from claims from other parties with whom there is no direct contractual relationship
43
provision for causes of action
- provides a uniform fate from which a statutes of limitation period will begin if legal actions are taken by either the architect or the owner,
- defined as either the date of substantial completion for acts or failures to act occuring prior to substantial completion or the date of issuance
44
provision for waiver of rights
aka waiver of subrogation
- provides a waiver of damages that are covered by property insurance during construction
- it means that the owner and architect cannot sue each other for damages if they are covered by property insurance that is required by the Owner-Contracto Agreement
- prevent the insurance company from suing any of the principal participants in the project to recover what has been pais out for an insured loss
45
provision for right to photograph
-architect has right to photograph the project and include photographs or other artistic representatioins of the design in the architec promotional materials unless the owner has specifically notified the architect in writing that some of all of the portions the architec want to photgraph are conficetial or proprietary information
46
provisoin for termination
- either party can terminate the agreement on no less than seven day's written notice if hte other party fails substantially to perform according to the terms of the agreement
- architect is also allowed to suspend performance of services on seven days' written notice to the owner if the owner fails to make fee paments when due
- if the owner suspends work for more than 30 days or terminates agreement, the architect mst be compensated for services performed prior to termination or suspension
47
the cost of work is defined as...
... the cost at current market rates of lanor and materials furnished by the owner and items specified or designed by the architect
- includes costs of managements and upervision of construction provided by a separate construction manager or contractor
- does not include professional fees, land costs, financing costs, or other costs (such as land surveys) that are the responsibility of the owner
48
if the budget is exceeded by the lowest bid or negotiated proposal, the owner has four choices:
1) to increase the budget
2) to authorize rebidding or renegotiation
3) terminate the project
4) cooperate in revising project scope and quality (if this is chosen, the architect must modify the documents without further compensation)
49
What is the change in services article?
-allows the archite's services to e modified after the execution of the original agreement withou invalidating the agreement, if both owner and architect agree in writing
50
Change in services, for which the architect must be compensated include:
- changes in the instruction by the owner that require revisions to the drawings or specs (instruments of service)
- revision of codes, laws, or regulations that require changes in the drawings or specs
- decisions of the owner not made in a timely manner
- significant changes in the project, including size, quality, complexity, the owner's schedule, budget, or procurement method
- failure of performance on the part of the owner or owner's consultants or contractors
- preparation for and attendance at public hearings, dispute resolution proceedings, or legal proceedings except where the architect is a party
- changes in information contained in the first article of the agreements
51
Stipulated sum
- states a fixed sum of money that the owner will pay to the architect for a specifici set of services
- susally paid out monthly according tot he proportion of the five basic phrases of servies previously described
- architect must accurately estimate the cost for the office to do the job and still make a profit
- reimburable expenses are in addition to fees for the basic services and include such things as postage, reproduction, transportation, long distance communication, computer aided design and drafting equipment time, renderings, and models
52
cost plus fee
- the professional is compensated for the actual expenses of doing the job plus a reasonable fee for profit
- actual expense includes salaries, employee benefits, direct expenses, and office overhead
- variations of the cost-plus-fee method include:multiples of direct personnel expense, mulitple of direct salary expense, hourly billing rates
53
multiple of direct personnel expense
- variation of cost-plus-fee
- the direct salarry of employees is determined and multiplied by a factor to account for normal and required personnel expenses such as taxes, sick leave, health care, and so on. this is then increased by a multiplier that includes provisions for overhead and profit
- example: if a particular person's direct personnel expense is calculated at $30.00 per hour and the multplier is 2.5, then the cost to the client for that person is $75.00 per hour
54
multiple of direct salary expense
- variation of cost-plus-fee
- similar to mutliple of direct personnel expense, except that the multiplier is larger to provide for emplyee benefits
55
hourly billing rates
- variation of cost-plus-fee
- simply build the multiplier to the hourly rate so that the client only sees one number for each of the types of people working on the project
56
percentage of construction cost
- professional fee is tied to the cost of construction as a fixed percentage
- from the client's standpoint, the architect may be encouraged to increase the cost of construction to increase the fee, or conversely, may lose any incentive to reduce constrcution cost
- from architect's standpoint, the percentage method may not be good because a low-cost projects may require just as much work as, or more work than, and expensive project
57
unit cost method
-fees are based on a definable unit, such as square footage, for such work as tenant planning in a leased building or on a per-hour basis in a large residential project
58
What is the AIA document used to describe the provision between Owner and Contractor
AIA Document A101, Standard Form of Agreement Between Owner and Contractor
59
The date of commencement is important because...
it is from this date that the contruction completion time is measured
-date can be a specific calendar date or when the contractor is given a notice-to-proceed letter by the owner
60
substantial completion
-the stage in the prgoress of the work when the work or deisgnated portion therof is sufficiently complete in accordance with the contract documents so that the owner can occupy or utilize the work for its intended use
61
liquidated damages
- monies paid by the contractor to the owner for every day the project is late
- represent actual anticipated losses the owner will incur if the project is not completed on time
- used if a particular completion date is important
62
bonus provision
- often accompianied by a liquidate dmages provision
- contractor receives a payment for early completion
63
contract sum
-states the compensation the contractor will receive for the work
64
in order for a contractor to receive payment....
---the contactor must submit an application for payment to the architect listing the completed work and stored materials acccording to the schedule of values
- architect reviews the application, verifies it, and recommends payment to the owner, who then makes payment
- if there is work in dispute, the architect may choose not to certify payment of all or a portion of the amount until the problem is solved
65
Enumeration of Contract Documents
-article in which all the documents are listed individually
66
Constrcution can by based on unit prices. How it this method used?
- entire projects are seldom based this way, portion only
- in cases where it is not possible to firmly establish quantities at the time of bid, a unit price can be set (happens frequently with excavation where a cost per cubic yard of materials is stated. the final quantity is then mutliplied by this unit proce to arrive at the total cost)
67
What are record documents?
- marked-up construction drawings, specs, and other documents that record exactly how the project was built, noting an y changes or deveiations from the original contract documents
- architect should include the exat requirements for record documents in Divison 01 of the specs
68
why is design delegation used?
- allows the use of performance specifications for products and building assemblies or allows the contractor to select the best apporoach to completing the work
- example: specialized temporary shoring may be required to support cutting and patching operations for a portion of the work. The contracto is responsible for doing this but may require the services of a registered professional engineer to design the shoring according to the contracto's needs
69
what does it mean to idemnify?
- to secure against loss or damage
- clause describing idemnification is ued to protect the owner and architect against situations where a person is injured due to negligence of the contracto or the contractor's agents
- also intended to protect the owner and architect against gclaims from property damage other than the work itself
70
is something wrong is found in construction work during a site visit or if the architect observes some safety problem, the architect should....
- notify both the contractor and the owner
- architect does not have the right to stop work
71
if the contractor discovers that construction by the owner or separate contractors will adversely affect his or her work, the contracto must ....
promptly notify the architect
-the contractor must pay the owner for any costs incurred by the owner for delays or defective construction of the contractor
72
differences between change order, construction change directive, and minor change
- change order: based on a written agreement among the contractor, owner, and architect concerning the extent of the change and how it affects construction cost and construction time
- construction change directive: instructs the contractor to proceed with the required changes in the work even if the contractor does not agree with the basis for adjustment in contract sum or contract time
- minor change: ordered by the architect alone
73
contract time is defined as...
the period form the starting date established in the agreements to the time of substantial completion, including any authorized judgements
74
mechanics lien
-claim by one party against the property of another party for the satisfaction of a debt and is a common method for an architect, contractor, or material supplier to gain payment
75
A contractor’s ability to obtain a performance bond for a specific construction contract is determined by the
surety
76
AIA Document A305, Contractor’s Qualification Statement, includes a
financial statement
77
A local bank has a budget of $30,000,000 to construct a new main office. The bank wants to use contractors who are customers of the bank; however, none of the bank’s contractor customers can bond the entire amount of the contract. Which of the following is a possible option?
a) Design-build
b) Fast-track
c) Multiple prime contractors
d) Additive change orders
c) Multiple prime contractors
78
In accordance with AIA Document A201, General Conditions, the obligation to pay or to see to the payment of money to a subcontractor, except as may otherwise be required by law, rests with the
a) contractor alone
b) architect alone
c) owner alone
d) contractor, the architect, and the owner
a) contractor alone
79
Separate [other] contracts by the owner generally require
a) more extensive services by the architect
b) coordination of all separate contractors by the surety
c) these separate contracts to be subcontracts of the contractor
d) a special consultant to assume overall responsibility for compliance with the applicable health and construction safety legislation at the place of work
a) more extensive services by the architect
80
Matters affecting the basic legal rights and responsibilities of the parties to the contract, but which may vary from one project to another, should be handled in
a) the bidding requirements
b) the owner-contractor agreement
c) the supplementary conditions
d) Division 1, General Requirements
c) the supplementary conditions
81
Which of the following should be included in the written contract for architectural services? Check the two that apply.
A. Means and methods to be used in construction
B. Programming services
C. Description of reimbursable expenses
D. Name of the general contractor
E. Insurance requirements
F. Additional services that may be provided by
the architect
C. Description of reimbursable expenses
F. Additional services that may be provided by
the architect
82
during the final stage of contract document development, the electrical engineer discovers that mechanical ductwork is shown on the mechanical engineering drawings in a position that interferes with electical conduit . the person responsible for resolving this conlict is the ...
...architect
- Architect is responsible for the overall coordination of all consultants drawings and for resolving disputes and conflicts
- the electrical engineer shoul bring the conflict to the archtiect's attention
- the archtiect can then coordinate with both consultants to resolve the conlfict
83
the client requests that the architect provide a full time staff member on the job site during construction. The archtiect is entitled to extra compensation for this service under what provision of AIA Documents B101?
a. designated services
b. schedule of services
c. schedule of values
d. optional additional services
b. schedule of services
- site visits "at intervals appropriate to the stage of construction" are included, but exhaustive or continuous on -site inspections and on-site project representation are considered additional services
84
AIA Document B101 separates the architect from the contractor with...
a. agency
b. privity
c. mediation
d. indemnification
B101 states that nothing in that agreement will create a contractual relationship with a third party against either the architect or the owner
-privity: two parties to a contract are not liable to a third party
85
Which if the following may be used to encourage the contractor to finish the job or to satisfy mechanic's lien claims by the subcontractors?
a. surety bond
b. liquidated damages
c. retainage
d. arbitration
c. retainage
retainage: the amount of money witheld from each pay application, gives the owner leverage to make the contractor finish the job and provides a reserve in case liens must be satisfied
86
surety bond
involves a third party (the surety) who ensures completion of the project if the contractor fails to meet his or her obligations
87
liquidated damages
amount specified in advance that the contracto must pay to the owner if the project is not completed on time
88
Which of the following describes the architect's role as the owner's agent?
a. the architect acts on behalf of the owner, making decisions, expediting the work, and taling on responsibilities the owner would normally have
b. the architec mediates between the owner, the contractor, and vendors for the benefit of the owner
c. the architect is the principal of the relationship and balances the needs of the contractor and owner
d. the architect works for the owner in certain designated areas where he or she has been given the authority to act on the owner's behalf
d. the architect works for the owner in certain designated areas where he or she has been given the authority to act on the owner's behalf
89
Which of the following are parts of the contract documents?
A. an addendum
B. a change order
C. special supplementary conditions
D. the contractor's bid
E a written amendment signed by owner and contractor
ABCE
90
Project Manual Include this Stuff
- Cover Sheet
- Table of Contents
- Bid Form
- Instruction To Bidders
- Contract Forms
* Owner Contractor Agreements
* Performance Bond
* Payment Bond
* Certificate of Insurance
- General / Supplementary Conditions
- Contents/Index for Specifications
- Specifications organized by division
91
Contract Documents Include this Stuff
The Owner/Contractor Agreement (A101) General/Supplementary Conditions
Specifications (CSI Masterformat) Working Drawings
Addenda
Modifications (Change Orders)
92
Which of the following is the contractor soley responsible for?
A. field reports to the owner
B. field tests
C. scaffolding
D. reviewing claims of contractors
E. reviewing shop drawings
BC
- scaffolding is part of the means of construction which is the contractor's responsibility
- field tests are also part of the contractor's responsibility
- field reports are the responsibility of the architect
93
Is a subcontractor makes a claim to the contractor, what happens next?
the contractor, in turn, makes a claim to the owner that is reviewed by the architect
94
who is responsile for the accuracy of shop drawings?
contractor
- they are reviewed by both contractor and architect
- architect reviews them only for general compliance with the contract documents
95
which of the following are true of a project alliance?
a. non-owner parties receive payment of overhead costs, profit, and bonuses only upon successful completion of the work
b. the agreement among the parties establishes a new legal entity
c. all decision are made by consensus
d. no mechanisms for dispute resolutions are included in the agreement
e. liability of one party to another is limited, but not waived
f. a project alliance closeley resembles the tradtional design-build agreement
ACD
-project alliance is a legal structure often associated with integrated project delivery
in IPD, the architect and contractor are not caontractually bound to each other (as they are in design build); each has a separate contract with the owner
96
project alliance
- allows for the payment of direct costs incurred by team members, but ties addtitional compensation to eprformance
- payment of profit, overhead, and bonuses depends on the successful completion of the project's goal
- enourage team to work together for a successful outcome
- mechanisms for dispute resolution are not part of the contract because all parties agree to comply with decisions that the team makes by consensus
97
single purpose entity
- independent corporate sturcture that is newly formed specifically for a project
- payment of direct costs is included in the base agreement, but additional compensation depends on performance
- disputes that cannot be resolved inernally through negotiation may be resolved through mediation, arbitration, or litigation
98
relational contract
- used to limit the parties liability, but liability is not waived
- in absence of team consensus, the owner is charged with making final decision
- compensation for direct costs, profit, and overhead is included in the agreement, but additional compensation depends on performance
- disputes not able to be resolved internally, must go through mediation, arbitration, or litigation
99
What does the phrase "time is of the essence" mean in the contract?
-it means all work must be completed by the dates specified in the contract or the contractor has breached the agreement
100
Which party owen the copyright on a building?
the architect
-achitect owne the copyright on his or her work from the moment the ideas are expressed in a tangible form , such as sketches, CAD files, technical drawings, models, and so on.
101
An architect is hired to renovate a building listed on the National Register of Historic Places. Is the building required to have an elevator complying with Americans with Disablities Act regulations?
Yes, unless compliance with the requirements would threaten or destroy the historic significance of the building
102
all tests and inspections required for these specifications will be performed by a person or testing laboratory emplyed by the contractor with the prior approval of the archtiect. THe statement above should be in the following documents?
a. instruction to bidders
b. supplementary conditions
c. general conditions
d. special conditions
d. special conditions
- only those rquirements which change from project to project, such as soil borings, traffic control, reference documents including codes, temporary utilities, tests and inspections, shop drawings, cleaning, safety, are contained in the special conditions
103
The supplementary conditions are..
modifications to the general conditions to accomodate the legal, physical, or climatic conditions of the specific project
104
which of the following are part of the contract documents? check all that apply
a. drawings
b. specs
c. addenda
d. shop drawings
ABC
-shop drawings are submitted by the successful bidder after the contract has been awarded
105
the architect determines during a site visit that the project is behind schedule. the architect should...
...advise the owner
-AIA A201 requires the architect to notify the owner when work is not proceeding according to the achedule
106
the schedule of values is a statement reflecting the amounts to be allotted for the principal divisions of the work. Who prepares and submits the schedule of values?
the contractor submits the schedule of values to the architect
107
when must a performance bond be delivered to the owner?
-prior to commencement of the work
108
during the production of working drawings for a project, the client has financial problems that preclude further payment to the architect on account of his or her architectural fee. Under standard agreement between architect and owner, what recourse does the architect have?
a. the architect may withhold further services until he or she is paid
b. the architect may increase the interest rate on unpaid amounts
c. the architect may terminate the agreement
d. the architect may transfer his or her interest in the agreement to another architect
c. the architect may terminate the agreement
109
Which series of AIA Contract Documents would include a joint venture agreement between two architecture firms.
a. A series
b. B series
c. C series
d. D series
c. C series
110
To prove negligence, four elements must be present:
1) duty: one entity is obligated to another to provide something as result of a written or oral agreement
2) breach: one entity did not provide what they wre obligated to provide
3) cause: one party has suffered harm as a result of the other party's breach of agreement
4) damage: there must be actual harm caused as a result of the breach
111
If a penalty clause is included in the owner-contractor agreement, what else must be included?
a bonus provision
112
an architect's interpretations of the contract documents are performed in what capacity?
quasi-judicial
