CDS

Question 1

What are the supplementary general conditions used for?

Answer 1

Modify general firms (e.g. multiple prime, phased or fast-track, contract priced with cost & fee)

Question 2

What are the special conditions?

Answer 2

Further extended, local laws & customs

Question 3

Performance bond

Answer 3

provided by contractor after he wins bid, surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor; 100% of contract amount (indicates belief contractor can carry out work); if defaults, bond used to complete work or obtain bids; suit must be brought within 2 years from date on which final payment under contract due

Question 4

Labor & Material bond

Answer 4

Guaranty or security provided by a bonding or surety company to owner (principal) on behalf of a contractor. cover payment for all equipment, labor, materials, and services

Question 5

Bid bond

Answer 5

5-10% of bid amount in case lower bidder refuses to sign contract, covers difference between lowest & next; in form of bond, cashiers check, certified check, aka bid security

Question 6

Contractor required insurance

Answer 6

worker’s compensation, liability, personal injury, property damage (property other than construction work), automobile liability insurance, contractual liability insurance “indemnification” owner & architect held harmless from damages of specific events, products & completed operations coverage (bodily injury or property damage from accidents after turned over to owner)

Question 7

Owner’s required insurance

Answer 7

property insurance for full insurable value of construction work (usually less than contract sum b/c certain elements not included)

Question 8

force majeure

Answer 8

acts of god beyond anyone’s control; contractor most notify within 21 days the architect

Question 9

When does the architect inspect?

Answer 9

@ S.C. & F. C.; all other times less comprehensive, generally familiar with work progress & quality to inform owner

Question 10

Punch list

Answer 10

put together by contractor, list of what must be corrected, completed, submitted to architect & date set for inspection

Question 11

When does the architect issue final certificate of payment & reviews completed punch list work?

Answer 11

Affidavit made all debts which owner & owner’s property held responsible have been paid; written consent from surety; receipts & waivers show no outstanding obligations

Question 12

Owner waives all rights to claim except those from:

Answer 12

liens, failure of work to comply with CDs, terms of special warranties

Question 13

Close out procedures by contractor:

Answer 13

submit record set, maintenance manual, warranties, & record info; tools, spare parts, extra stock; removes temp facilities; start up equipment; train O’s personnel; touch-up, repairs, cleaning

Question 14

Cost breakdown

Answer 14

Renovations 10%; Financing 10%; Taxes 20%; Maintenance 15%; Operations 20%; Land, Feels, Legal furniture 10%; Construction Costs 15%

Question 15

Labor cost percentage of construction cost

Answer 15

50%

Question 16

Long term cost

Answer 16

Operational cost (typically inversely proportional to initial costs); maintenance cost (equal to sum of all other costs of operating a project)

Question 17

Life cycle cost

Answer 17

operational, maintenance, taxes, financing, replacement, renovation; deduct salvage value

Question 18

What happens if the bid is in excess of budget?

Answer 18

1) increase budget & accept bid amount; 2) rebid or renegotiate project within reasonable time; abandon project; cooperate with architect to reduce scope, quality or both, architect must modify without additional charge to comply, after redesign complete architect subject to compensation for all service performed regardless of construction

Question 19

Direct costs of a project

Answer 19

Labor and materials that can be identified physically in the product produced. Direct costs for an apartment building, for example, are construction materials and labor

Question 20

Indirect costs

Answer 20

contractor’s overhead & profit; contingencies; architect’s fees; interest during construction; insurance

Question 21

Float value

Answer 21

extra time available for an activity as long as not exceed project will not be delayed by other paths

Question 22

Design/Award/Build Delivery Method

Answer 22

bid after CDs & Specs complete

Question 23

Construction Management Delivery Method

Answer 23

works with selected CM in process of design, bidding, letting of contracts (does not benefit from positive bid climate)

Question 24

Design/Build Delivery Method

Answer 24

single entity responsible for design construction

Question 25

Deadline for bidders to submit requests for unclear areas

Answer 25

7 days

Question 26

Number of days bidder cannot modify or withdraw bid

Answer 26

30-60 days, specified period of time; if withdraws, forfeits bid security

Question 27

instructions to bidders

Answer 27

owner’s right to performance bond & labor & material payment bond (cost included in bid amount)

Question 28

Professional Liability Insurance

Answer 28

protects architect against errors & negligent acts or omissions; excludes expressed warranties & guarantees architect may have agreed to, claims from cost; negligence: failure to meet ordinary standard of care

Question 29

liens

Answer 29

mechanics liens: legal claim against someones property; filed within 30-90 days after last work performed

Question 30

protection of owner (forms)

Answer 30

retainage; labor & material bond; affidavit & release of liens

Question 31

Builder’s Risk Insurance

Answer 31

Owner’s insurance; protects against fire, theft, vandalism, malicious mischief (on completed value or reporting form)

Question 32

subrogation

Answer 32

seeking to recover money fro one another

Question 33

architect as initial decision maker

Answer 33

neither party can demand arbitration until 10 days after party has presented evidence to architect if architect has not provided response; response subject to appeal & arbitration, made within 30 days, typically otherwise decision is binding

Question 34

claim resolution

Answer 34

additional cost, time delays, concealed/unknown conditions; made by claimant within 21 days of occurrence, architect must respond within 10 days of receipt, if claim unresolved, claimant may submit additional data, modify claim, or reiterate initial claim, if remains unresolved, architect’s decision subject to binding arbitration

Question 35

change order

Answer 35

written instrument prepared by A, signed by O, C, and A for a change in work, amount of adjustment in contract sum, amount of adjustment in contract time

Question 36

if all agree to a change order it becomes?

Answer 36

a contract modification and is included in the scope of the CDs

Question 37

construction change directive

Answer 37

absence of total agreement, not approved by C, still required under terms of contract to complete it; adjust sum, lump sum, unit price, fixed % fee, or A decides (considers value of work & allowance for C’s overhead & profit)

Question 38

Owner’s time frame for payments after certificate of payment by A

Answer 38

usually 10 days

Question 39

Final Completion Payment by O after COP by A

Answer 39

30 days

Question 40

A required to issue COP after date received in CDs for payments

Answer 40

7 days

Question 41

days contractor can stop work after giving O written notice

Answer 41

7

Question 42

Retainage

Answer 42

10% of each payment at each one until 50%, then no additional; 10% retainage until 90% complete

Question 43

Negligence (4 to prove)

Answer 43

1) duty; 2) breach; 3) claim, breach is proximate cause of harm to person making claim; 4) damage