ARE CE #4

Question 1

What is the one benefit of Litigation over

Arbitration?

Answer 1

Litigation is when a dispute is resolved in court. It is an expensive and long process involving attorneys; however unlike Arbitration the judge’s decision can be
appealed.

Question 2

Why is Arbitration a preferable method of dispute resolution over
Litigation?

Answer 2

Arbitration tends to be less expense than Litigation and it is also faster. The decision of the arbitrator, though binding, is private
information while Litigation is public.

Question 3

Under what circumstances would the Owner contact a

Subcontractor directly?

Answer 3

If the Contractor fails to furnish written evidence that the Subcontractors have been properly paid, after a request from the Owner to do so, then the Owner shall have the right to contact Subcontractors to ascertain whether they have been properly
paid.

Question 4

What is the Contractor entitled to if the Work is stopped due to non-
payment?

Answer 4

The Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor’s reasonable costs of shutdown, delay and start-up, plus interest as
provided for in the Contract Documents.

Question 5

What should the Contractor do if he/she discovers inconsistencies within the Contract
Documents?

Answer 5

The Contractor shall promptly report to the Architect any errors, omissions or inconsistencies discovered by or made known to the Contractor regarding the
Contract Documents.

Question 6

When a Contractor or Subcontractor accepts final payment, what rights are they essentially
waiving?

Answer 6

Acceptance of final payment by the Contractor, a Subcontractor or material supplier shall constitute a waiver of claims by that payee except those previously made in writing and identified by that payee as unsettled at the time of final
Application for Payment.