CDS Flashcards
What are the supplementary general conditions used for?
Modify general firms (e.g. multiple prime, phased or fast-track, contract priced with cost & fee)
What are the special conditions?
Further extended, local laws & customs
Performance bond
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
Labor & Material bond
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
Bid bond
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
Contractor required insurance
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)
Owner’s required insurance
property insurance for full insurable value of construction work (usually less than contract sum b/c certain elements not included)
force majeure
acts of god beyond anyone’s control; contractor most notify within 21 days the architect
When does the architect inspect?
@ S.C. & F. C.; all other times less comprehensive, generally familiar with work progress & quality to inform owner
Punch list
put together by contractor, list of what must be corrected, completed, submitted to architect & date set for inspection
When does the architect issue final certificate of payment & reviews completed punch list work?
Affidavit made all debts which owner & owner’s property held responsible have been paid; written consent from surety; receipts & waivers show no outstanding obligations
Owner waives all rights to claim except those from:
liens, failure of work to comply with CDs, terms of special warranties
Close out procedures by contractor:
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
Cost breakdown
Renovations 10%; Financing 10%; Taxes 20%; Maintenance 15%; Operations 20%; Land, Feels, Legal furniture 10%; Construction Costs 15%
Labor cost percentage of construction cost
50%
Long term cost
Operational cost (typically inversely proportional to initial costs); maintenance cost (equal to sum of all other costs of operating a project)
Life cycle cost
operational, maintenance, taxes, financing, replacement, renovation; deduct salvage value
What happens if the bid is in excess of budget?
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
Direct costs of a project
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
Indirect costs
contractor’s overhead & profit; contingencies; architect’s fees; interest during construction; insurance
Float value
extra time available for an activity as long as not exceed project will not be delayed by other paths
Design/Award/Build Delivery Method
bid after CDs & Specs complete
Construction Management Delivery Method
works with selected CM in process of design, bidding, letting of contracts (does not benefit from positive bid climate)
Design/Build Delivery Method
single entity responsible for design construction
Deadline for bidders to submit requests for unclear areas
7 days
Number of days bidder cannot modify or withdraw bid
30-60 days, specified period of time; if withdraws, forfeits bid security
instructions to bidders
owner’s right to performance bond & labor & material payment bond (cost included in bid amount)
Professional Liability Insurance
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
liens
mechanics liens: legal claim against someones property; filed within 30-90 days after last work performed
protection of owner (forms)
retainage; labor & material bond; affidavit & release of liens
Builder’s Risk Insurance
Owner’s insurance; protects against fire, theft, vandalism, malicious mischief (on completed value or reporting form)
subrogation
seeking to recover money fro one another
architect as initial decision maker
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
claim resolution
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
change order
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
if all agree to a change order it becomes?
a contract modification and is included in the scope of the CDs
construction change directive
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)
Owner’s time frame for payments after certificate of payment by A
usually 10 days
Final Completion Payment by O after COP by A
30 days
A required to issue COP after date received in CDs for payments
7 days
days contractor can stop work after giving O written notice
7
Retainage
10% of each payment at each one until 50%, then no additional; 10% retainage until 90% complete
Negligence (4 to prove)
1) duty; 2) breach; 3) claim, breach is proximate cause of harm to person making claim; 4) damage
