ch 22 contract documents Flashcards
What do contract documents consist of?
Owner-Contractor (or Vendor) Agreement; the General Conditions of the Contract; the Supplementary Conditions of the Contract (if any); the drawings, specifications, and addenda issued before execution of the contract; any other documents specifically listed in the agreement; and modifications issued after execution of the contract.
Modification
A change order, a written amendment to the contract signed by both parties, a written interpretation issued by the interior designer, or a written order for a minor change in the work.
The contract documents are complementary in that . . .
what is required by one is as binding as if required by all of them.
Bidding documents ARE NOT part of .the _______, although they are often bound into the project manual.
Contract
What are the 5 sets of AIA documents that relate to interior design work?
A175 ID, A275 ID, A775 ID, B171 ID, & B175ID (In addition, AIA form A201 can be used for interior construction projects).
A175 ID
Standard Form of Agreement Between Owner and Vendor for FF&E when the basis of payment is a STIPULATED SUM.
A275 ID
General Conditions of the Contract for FF&E
A775 ID
Invitation and Instructions for Quotation for FF&E
B171 ID
Standard Form of Agreement Between Owner and Architect for Architectural Interior Design Services
B175 ID
Standard Form of Agreement Between Owner and Architect for FF&E Design Services.
A201
General Conditions of the Contract for Construction
Whether the interior designer is working alone or with an architect, interior design projects that involve both construction and furnishings are typically completed under . . .
2 contracts - 1 for construction and 1 for FF&E
What contracts can be written by the interior designer’s attorney or provided by the owner?
Owner-Vendor Agreement & Owner-Contractor Agreement
If there are two contracts for the job (FF&E & Construction), there are two . . . .
Contractors
Why are there two contracts (1 for construction and 1 for FF&E)?
Because construction contracts are governed by common law that regulates services, and FF&E contracts are governed by statutory law that regulates the sale of goods.
What do FF&E contracts typically cover?
Moveable items such as furniture, appliances, rugs, lamps and accessories.
How are any exclusions described for the Owner-Vendor Agreement?
They can be described in the Owner-Vendor Agreement as well as in the other contract documents when the are identified as being the responsibility of other parties.
Why is the date of commencement important?
Because it is from this date that construction complete time is measured.
What can be used as the date of commencement?
The date can be the date of the agreement, a specific calendar date specified in the agreement, or the date when the contractor is given a notice-to-proceed letter by the owner.
Date of Completion
In the same article as the date of commencement and is expressed with a specific calendar date.
Contract Sum
The contract sum states the compensation the vendor or contractor will receive for doing the work.
What define how the owner makes periodic payments to the contractor?
The Owner-Contractor Agreement defines how these payments are to be made. These payments are usually monthly.
In standard AIA forms, what is the amount due in any period based on?
The percentage of completed work and any materials purchased and stored by not incorporated into the work, less any moneys already paid.
Retainage (Holdback in Canada)
A certain percentage (usually 10%) of each payment from the owner to the contractor that is withheld until final completion of the work.
How does a ventor receive payment?
The vendor must submit an application for payment to the interior designer listing the completed work and stored materials. The designer then reviews the application, verifies that it is correct, and recommends payment to the owner, when then makes payment. If there is work in dispute, the designer may choose not to certify payment of all or a portion of the amount until the problem is resolved.
Stipend
A periodic payment.
Substantial Completion
The stage in the progress of the work when the work or a designated portion thereof is sufficiently complete according to the contract documents so the owner can occupy or utilize the site, though a few minor items may remain to be completed or corrected.
When is completion time extended?
Completion time may be extended as provided for in the General Conditions when circumstances are beyond the control of the contractor.
Liquidated Damages
Moneys paid by the contractor to the owner for every day the project is late. They represent actual anticipated losses the owner will incur if the project is not completed on time. A liquidated damage provision is accompanied by a bonus provision.
Bonus Provision
Provision so that the contractor receives a payment for early completion. It is usually based on a realistic cost saving the owner will realize for early completion. This provision is usually included with one for liquidated damages.
If a penalty clause is included, an equal _____ provision must also be included.
Bonus
Bonus/Penalty Clause
An incentive to complete the project on time. This clause may have no relationship to actual monetary losses the owner may incur if the project is not completed on time.
A penalty clause is NOT the same as . . . .
Liquidated Damages
What document is one of the most important parts in the entire set of contract documents for FF&E?
The General Conditions of the Contract for FF&E (AIA Form A275 ID).
The General Conditions of the Contract for FF&E (AIA Form A275 ID) is incorporated by specific reference into which two forms?
Owner-Designer Agreement (B171 ID) as well as the Owner-Vendor Agreement (A175 ID).
If AIA forms are used the word _________ must be replaced with _______ _________.
Architect with Interior Designer