ARE CE #3 Flashcards

1
Q

What must the Contractor submit to the Architect in order to

receive Final Payment?

A

occupy the building.
1. Affidavit that payrolls, bills for materials and equipment and other indebtedness have been paid or satisfied.
2. Submit Contractor’s Affidavit of Release of Liens.
3. Certificate stating that the insurance is in effect and no known reason for it not being renewable.
4. Consent of Surety.
5. Proof of release of all applicable liens from Subcontractors, material suppliers, and vendors.
See AIA A201 9.10.2

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2
Q

Who issues the Certificate of

Occupancy?

A

The Building Official issues the Certificate of Occupancy after conducting final inspection and walk through with the Contractor. Once the Certificate of Occupancy is issued, the Owner can legally
occupy the building.

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3
Q

What documents, not directly used by the Architect, are typically used during Contract
Administration?

A
  1. Contractor’s Affidavit of Releases of Liens
  2. Lien releases from subcontractors, material suppliers, and vendors.
  3. Certificate of Occupancy (issued by Building Official)
  4. Notice of Completion (filed by Owner)
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4
Q

How does filing the Notice of Completion affect the period for Contractors and Subcontractors
to file liens?

A

If the Owner files the Notice of Completion with the County Clerk Recorder’s Office, it has the following affect on lien periods:
1. Prime Contractors – reduces the lien period from 90 days to 60 days.
2. Subcontractors – reduces the lien period from 60 days to 30 days.
If no Notice of Completion is filed, lien period is 90 days for both Prime and Sub
Contractors.

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5
Q

What is Mediation?

A

Mediation is the first line of conflict resolution if parties are unable to resolve it themselves. It is a form of alternative dispute resolution and it must take place before Arbitration.
A neutral third party aims to assist two (or more) parties in reaching an agreement. Both parties share the expenses of Mediation.
An important distinction is that Mediation is
non-binding.

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6
Q

How is Arbitration different from

Mediation?

A

The main difference is Mediation is nonbinding and Arbitration is binding.
Both are forms of alternate dispute resolution. Arbitration is used when
Mediation is unable to resolve a dispute.

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