Application of Professional Ethics, and Business Practices - Part I Flashcards
Occasionally, a designer will have to ______ _______ as a result of shoddy work.
take action
In the event that a designer notices work that does not conform to the contract documents during a visit, the designer may ______________.
recommend to the owner that the work be rejected
The designer does not have the right to reject work, but can authorize _______ ________ or ______ to determine if work that has been done is in conformance with contract documents.
special instructions
tests
The designer can also recommend the payment be ________, if work is ________, _________, or if the contractor has violated the terms of his or her contract.
withheld
defective
incomplete
In some cases, a designer will need to take unusual actions as a result of __________ or ______ _________ by a contractor.
negligence
poor conduct
The designer has the right to withhold a portion or all of an ___________ for ________ for any of the following reasons. (See next cards)
application for payment
Reason 1: He or she cannot ______ the amount of work that has been done.
verify
Reason 2: some of the work is ________.
defective
Reason 3: ______-_______ claims have been made, or are likely to be made.
third-party
Reason 4: The contractor has not made payments to ___________ or __________.
subcontractors or suppliers
Reason 5: there is reasonable evidence that the work cannot be completed for the ______ balance of the ________ ______.
unpaid balance of the contract sum
Reason 6: The owner or another contractor has been _______.
damaged
There is reasonable evidence that the work will not be ____________ or the contractor has ___________ ________ to carry out work in accordance with the contract documents.
completed on time
consistently failed
Occasionally, a designer will have to withhold _______ from a contractor with the _________ of the owner or client.
payment
permission
The common reasons for a designer to withhold payment to a contractor are _______ work; failure to ____ subcontractors; damage to the _______ property; _____-______ claims; indications that the work will not ________________ or failure to meet the standards set by the ________ _________.
defective
pay
owners
third-party
be completed on time
contract documents
The occasional necessity of withholding payment reinforces the importance of ________, which can be used to force a contractor to consider the validity of an owners claim.
retainage
What is the simplest type of business structure?
Sole proprietorship
A ______ _________ is a business structure in which the company is owned by an individual and operates under his/her name or a company name.
Sole proprietorship
Sole proprietorships can be set up simply by establishing ___________________.
establishing a name and location, opening a company bank account, and having company stationary printed
List three benefits to sole proprietorships.
- They are easy to establish
- They allow total management control by the owner
- Have tax advantages (expenses and losses can be deducted from gross income)
List, two disadvantages of a sole proprietorship.
The owner is personally liable for all the debts and losses of the company.
It is more difficult to raise capital and establish credit for a sole proprietorship.
A business arrangement in which two or more individuals share in the management, profits and risks of the business.
Partnership
The members of the partnership have their income taxed as _________ ________ on personal tax forms.
ordinary income
Partnerships are relatively easy to form; however, all the partners are _________________.
liable for the actions of each other