Bidding/Construction 20% Flashcards
what items does the architect assist the owner with during the bidding or negotiation phase?
- establishing a list of prospective contractors
- obtaining either competitive bids or negotiated proposals
- confirming responsiveness of bids or proposals
- determining the successful bid or proposal
- awarding and preparing contracts for construction
what specific responsibilities does the architect have in bidding the project?
- distribute bidding documents to prospective bidders, maintaining a log of distribution.
- organizing and conducting a pre-bid conference for bidders
- preparing responses to questions from bidders and issuing addenda
- organizing and conducting opening of the bids and distributing the bid results
what services is the architect responsible for regarding negotiated proposals?
- distribute proposal documents to prospective contractors
- organize and participate in selection interviews with prospective contractors
- participate in negotiations with prospective contractors
- prepare a summary report of the negotiation results
what is the intent of the california public contract code?
- to clarify the law with respect to competitive bidding requirements
- to ensure full compliance with competitive bidding statutes as a means of protecting the public from misuse of public funds
- to provide qualified bidders a fair opportunity to enter the bidding process, stimulating competition.
- to eliminate favoritism, fraud and corruption in the awarding of public contracts.
what are eight requirements of the california public contract code?
- requires competitive bidding
- requires bidders to obtain performance bonds
- requires bidders to obtain payment bonds
- bidders must complete pre-qualification process
- must utilize equal or open specifications
- must be advertised publicly
- bids must be opened publicly
- contract awarded to lowest qualified/responsible bidder
in terms of the design professionals lien laws, what four groups are considered design professionals?
- licensed Architect
- licensed Landscape Architect
- registered Professional Engineer
- licensed Land Surveyor
what is a design professionals lean?
right to record a lien on a property before construction begins IF a building permit or other government approval has been obtained. available for public or private projects
What are the five steps included in the process of imposing a design professional lien?
- determine if construction has started
- determine governmental approval
- send demand letter - 10 days prior to recording lien
- record lien - in county of project location, no later than 90 days after knowledge that work will not commence
- enforce lien - file suit within 90 days of recording the lien
what are three conditions that will cause a design professional lien to expire?
- design Professional does not file lawsuit to enforce the lien
- the work commences on the project
- landowner partially or fully satisfies the lien, design professionals shall execute and record a document as applicable.
What is a mechanics lien?
a legal claim against real property for satisfaction of debt (you or another individual perform work on a private project and are not paid for your service to materials, you can file a mechanics lien)
not allowed on public projects
Who has rights to file a mechanics lien?
- contractors
- subcontractors
- material supplier
- laborer
- equipment lessor
- design professional. any individual or business that supplies labor or materials on a private project hav mechanics lien rights, including, but not limited to the parties listed above.
what is a preliminary 20 day notice?
A document that aids subcontractors, vendors, and material suppliers protect their lien rights in the event they are not paid for services rendered or materials supplied. Within 20 days of furnishing labor or materials, subcontractors must serve a preliminary 20 day notice to owner, by certified first class mail or in person, which allows the owner to be made aware of the lien rights of the subcontractors, vendors, and material suppliers
what are the consequences of not sending a preliminary 20 day notice to the owner?
failure to send the preliminary 20 day notice can cause the subcontractors, vendors or material suppliers to lose some or all of their lien rights.
which parties are exempt from sending a preliminary 20 day notice to the owner?
Architects and General Contractors do not need to send a preliminary 20 day notice because they have direct contact with the owner.
what three steps are involved in issuing a mechanics lien?
- serve notice of mechanics lien - must serve on the owner by registered mail prior to recording the lien
- record mechanics lien - at county recorder’s office in county where project is located
- enforce mechanics’s lien - file lawsuit within 90 calendar days fro date of recording.
what time frames are important to be aware of regarding mechanics liens?
It a notice of completion or notice of cessation (work has formally stopped) is NOT filed by the owner, the lien filing period is 90 days from completion of construction. if the notice of completion or notice of cessation is filed, the lien period is reduced to:
- 60 days for prime contractors
- 30 days for subcontractors
why is filing a notice of completion advantageous to the owner?
it reduces the period in which claimants can file a lien, thus reducing the owners window of liability. if the notice of completion or notice of cessation is filed, the lien period is reduced from 90 days to:
- 60 days for prime contractors
- 30 days for subcontractors
what is a stop notice?
A stop notice is a lien against funds. the procedure for filing a stop notice is similar to a mechanics lien. stop notices can be used on private or public projects and served accordingly:
- private projects - serve stop notice to lender
- public projects - serve stop notice to owner of public work
what is the main difference between the filing of stop notice and a mechanics lien?
stop notice may be filed on a public project or private project
mechanics lien can only be filed on private projects
define a bonded stop notice.
bonded stop notice - a stop notice presented to a construction lender accompanied by a bond with good and sufficient sureties for 125% of the claim.
if a bonded stop notice is presented to the lender, the lender does not have the option to withhold funds.
how does a notice of non-responsibility protect the owner?
a notice of non-responsibility is utilized when a tenant (not owner) of a space is performing work and the owner (landlord) wants to protect themselves from any liens stemming from the failure of the tenant to pay contractors and vendors. the notice of non-responsibility is completed by the owner and physically posted at the construction site.
what are five ways an architect can help protect an owner from liens being filed?
- have the owner request the general contractor to purchase a performance bond and payment bond
- receive a signed lien release from subcontractors at time of payment
- architect process contractors request for payment in a timely manner
- collect and hold retainage
- recommend the owner files notice of completion with county recorder to reduce the window in which liens may be filed
What is a AIA A201?
General conditions of the contract for construction, which sets out the duties, responsibilities and relationships of the three parties (owner, architect and contractor) during construction.
Under what conditions may the contractor request the owner to provide evidence of financial ability to fulfill the requirements of the contract?
before the commencing of work, the contractor may request the owner to provide reasonable evidence that the owner has made financial arrangements to fulfill the owner obligations under contract.