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Scillish CeeCeeCeeAye > Chap 11 - Measurement and Payment > Flashcards

Chap 11 - Measurement and Payment Flashcards

1
Q

The documents that establish the rights, responsibilities, and duties of the parties regarding measurement and payment are:

A
  • (AIA) A201, General Conditions of the Contract for Construction
  • (EJCDC) C-700, Standard General Conditions of the Construction Contract
  • AIA B101, Standard Form of Agreement Between Owner and Architect
  • EJCDC E-500, Standard Form of Agreement Between Owner and Engineer for Professional Services

CAPG Cap 11 Intro

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2
Q

Most contracts require that a ______________be submitted to the A/E for approval prior to the first application for payment.

A

…. schedule of values
CAPG 11.1

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3
Q

As a prerequisite for payment, the contractor may be required to submit _____________ . (4 things)

A
  • updated construction progress schedule,
  • test reports,
  • material certifications, and
  • other accompanying information

CAPG 11.1

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4
Q

Name three common payment intervals:

A
  • Periodic Progress Payments
  • Provisional Payments
  • Single Payment

CAPG 11.2

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5
Q

What are Provisional Payments?

A

…. Provisional payments are predetermined partial amounts of the total contract sum tied to the attainment of identifiable milestones.
CAPG 11.2

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6
Q

Provisional Payments are often used with what type of project?

A

…. design-build projects.
CAPG 11.2

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7
Q

The contract sum may be established by a combination of base bid items, as well as: (3 items)

A
  • unit prices
  • allowances, and
  • alternates

CAPG 11.3

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8
Q

The basis of payment is identified in the contract documents. Name three bases of payment:

A
  • Stipulated Sum
  • Unit Price
  • Cost-Plus Fee

CAPG 11.3

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9
Q

The contract requires that values of the various portions of the work be established before the first application for payment. This is accomplished how?

A

…by the contractor preparing and submitting a schedule of values which breaks down the contract amount into definable line items with corresponding dollar amounts. CAPG 11.3

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10
Q

The cost-plus fee basis of payment is also referred to as:

A

….the time and material basis of compensation
CAPG 11.3

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11
Q

As the term cost-plus implies, the contractor is reimbursed the contractor’s actual cost of labor, equipment, and material, plus a predetermined fixed fee, or percentage of costs, for:

A

…. overhead and profit.
CAPG 10.3

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12
Q

Regarding Pay-apps, the A/E’s certification is based only on his knowledge, information, and belief that: (2 things)

A
  • the work has progressed to the point indicated
  • the quality of work conforms to the requirements of the contract documents

CAPG 10.4

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13
Q

Regarding Pay-apps, the A/E’s certification does not mean that the A/E:

A
  • Made exhaustive on-site inspections
  • Reviewed construction means, methods, sequences, or procedures
  • Reviewed requisitions of subcontractors or suppliers
  • Determined the disposition of previously certified payments

CAPG 10.4

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14
Q

Contract documents addressing payment usually include the following:

A
  • Agreement
  • General Conditions
  • Supplementary Conditions
  • Division 01—General Requirements, Section 01 20 00—Price and Payment Procedures

CAPG 10.4

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15
Q

On complex projects, the schedule of values could be organized using ____________

A

…. UniFormat™ or MasterFormat® classification system.
CAPG 10.6

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16
Q

When is the schedule of values usually secured? (two items)

A

… after award of the contract and before processing of the first progress payment.
CAPG 10.6

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17
Q

Two commonly used application forms for payment are:

A
  • AIA G702, Application and Certificate for Payment
  • EJCDC C-620, Contractor’s Application for Payment

CAPG 11.7.1

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18
Q

Regarding Pay-Apps, the A/E certifies only the amount having a sound contractual basis for payment, and when there is a disagreement, (does what)?

A

….provides both parties with a written explanation of the reasons for withholding certification of all or part of the payment.
CAPG 11.7.3

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19
Q

If the owner is informed of a judgment against the contractor or the existence of a lien, what happens? (2 things)

A
  • appropriate amounts are withheld, as provided for under the general conditions
  • the amounts dispersed as required by law and recommended by the owner’s legal counsel

CAPG 11.8

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20
Q

T/F: The conditions of the contract usually stipulate that progress payments (approval by owner and acceptance by Contractor) constitute acceptance of the work.

A

FALSE:
CAPG 11.8

21
Q

T/F: The conditions of the contract make provision for the owner to reject work and adjust payment accordingly any time up to final acceptance.

A

TRUE:
CAPG 11.8

22
Q

Retainage is designed to protect the owner against: (2 things)

A
  • errors in estimating the value of work completed
  • third-party claims against the contractor

CAPG 11.9

23
Q

Excessive withholding of payment can be deemed as nonpayment and result in _________

A

….the contractor’s exercising of his right to stop work.
CAPG 11.10

24
Q

If the A/E determines that payments should be withheld, AIA general conditions require _________

A

….the architect to notify the owner and contractor in writing.
CAPG 11.10

25
Q

Common conditions for the A/E to recommend withholding payments are:

A
  • Damaged or nonconforming work
  • Damaged property caused by the contractor
  • Failure by the contractor to meet milestones or approved schedule
  • Claims made against the owner on account of the contractor
  • Liens filed in connection with nonpayment of subcontractors, suppliers, laborers, etc
  • Failure to keep record documents up to date
  • The cost of the owner doing cleanup

CAPG 11.10

26
Q

If the owner exercises his right to withhold payment, the owner is required to _______ and to _______ .

A

….give the contractor a written notice stating the reason(s) for withholding payment, and ….provide the A/E with a copy of the notice.
CAPG 11.10

27
Q

If there is a failure to make payment within the prescribed times, without cause under the contract conditions, the owner may be __________

A

….in material breach of contract.
CAPG 11.11

28
Q

Should the contractor stop work due to nonpayment, the owner’s exposure to liability may include:

A
  • the contractor’s cost of demobilization
  • the cost of delay
  • remobilization

CAPG 11.11

29
Q

T/F: A lien is the legal right of a party, such as a subcontractor, to control the improved property of the owner or have it sold for payment of a claim.

A

TRUE:
CAPG 11.12

30
Q

T/F: Mechanic’s liens generally do not apply to public projects.

A

TRUE: Contractors and suppliers are not allowed to lien public property.
CAPG 11.12.1

31
Q

Because the mechanic’s lien right does not exist on public projects, most public projects require __________ .

A

….payment and performance bonds to provide unpaid parties with a remedy.
CAPG 11.12.1

32
Q

The owner should require partial releases of mechanic’s lien with each _________ .

A

….with each payment made to the contractor. CAPG 11.12.1

33
Q

At the time of final payment, final mechanic’s lien releases should be obtained not only from the contractor, but also:

A

….from, all subcontractors and material suppliers.
CAPG 11.12.1

34
Q

Contract documents should require the contractor to furnish a release of liens with each application for payment. In addition, a requirement for ___________ usually exists.

A

…..consent of surety for final payment
CAPG 11.12.1

35
Q

T/F: Issuance of final payment indicates final acceptance of the work.

A

TRUE:
CAPG 11.12.1

36
Q

On acceptance of final payment, the contractor waives all claims (except those previously made in writing) against:

A

….either the owner or the A/E.
CAPG 11.12.1

37
Q

The owner, in making final payment, also waives all claims, except:

A
  • those arising from unsettled liens, and
  • defective work appearing after final inspection.

CAPG 11.12.1

38
Q

T/F: Liens on the project are to be released upon to issuance of final payment.

A

FALSE: Under provisions of the general conditions, final payment for the project is not made until the contractor can certify to the owner that liens have been released.
CAPG 11.12.1

39
Q

Some jurisdictions have statutes that allow contractors, subcontractors, sub-subcontractors, and suppliers to assert claims on construction funds. These are called:

A

….Stop Notices.
CAPG 11.12.2

40
Q

When a stop notice is served, the statutes typically require the Owner to:

A

….withhold that amount for the unpaid claimant. CAPG 11.12.2

41
Q

T/F: To enforce a Stop Order, the claimant is generally required to file suit within a certain time period.

A

TRUE: If no suit is filed within the proper time period, the stop notice becomes invalid.
CAPG 11.12.2

42
Q

Liquidated damages stated in the agreement are usually invoked when?

A

….when substantial completion is not achieved by the indicated date or within the indicated time.
CAPG 11.13

43
Q

Liquidated damages, penalties, or bonuses are normally ___________ (when/how)

A

……deducted from or added to, the final payment.
CAPG 11.13

44
Q

Absent a specific amount for liquidated damages, the owner can document and make a claim for:

A

….actual damages, (aka compensatory damages).
CAPG 11.13

45
Q

If contract provisions exist for reduction of retainage, then the A/E must observe the project closeout procedures related to:

A

….consent of surety and lien waivers.
CAPG 11.14

46
Q

Neither progress payments, nor acknowledgment of substantial completion, nor partial occupancy constitute acceptance of work _______________ .

A

….not completed according to the contract documents.
CAPG 11.14

47
Q

Typical final change order items may include:

A
  • Adjustments to unit price item quantities
  • Adjustments to stipulated allowances
  • Adjustments for liquidated damages or penalty/bonus clauses
  • Adjustments for testing reimbursement when the owner employs the testing services and pays for only passing tests
  • Adjustments for reimbursement of utilities
  • Adjustments for reimbursement of the owner’s expense for additional A/E services

CAPG 11.15

48
Q

Final acceptance of the work is indicated by:

A

….issuance of final payment.
CAPG 11.15

Scillish CeeCeeCeeAye (14 decks)

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