Chapter 3 Flashcards
The Construction Industry
Project Life Cycle
- Project Initiation
- Project Planning
- Project Execution
- Project Closure
Participants of a construction project
- Client
- Consultant Office
- Contractor
Types of a construction project
- Commercial and Institutional
- Building
- Residential
- Highway Construction
- Heavy Construction
- Industrial
- Specialized Industrial Construction
It involves building clinics, sports facilities, large shopping centers, hospitals, universities, warehouses, retail chain stores, skyscrapers, schools and other projects of various sizes and types.
Commercial and Institutional
It is all about adding structure to the actual property and is likely the most popular kind of construction project.
Building
It includes building single unit homes, subdivisions, cottages, apartments, townhouses, and condominiums.
Residential
It includes repair, construction and alteration od roads, alleys, parking areas, highways, runways, and streets.
Highway construction
It involves projects that are not accurately categorized as highway or building. Some examples of this are dams, sewage treatment plants, water treatment plants, dredging projects, flood control projects, water treatment plants, and sewer line projects.
Heavy construction
It may only be a small segment od the construction induatry but it is very important. Such projects are usually owned by large, for profit companies like medicine, power generation and manufacturing.
Industrial
It involves large scale projects with a high level of technological complexity like chemical processing plants, oil refineries, nuclear power plants and steel mills.
Specialized Industrial
Types of Construction Financing Scheme
- DB (Design-Build)
- DBOM (Design-Build-Operate-Maintain)
- DBFO (Design-Build-Finance-Operate)
- DBOT (Design-Build-Operate-Transfer)
- DCMF (Design-Construct-Manage-Finance)
- BT (Build-Transfer)
- BLT (Build-Lease-Transfer)
- BOT (Build-Operate-Transfer)
- BOO (Build-Own-Operate)
- BOOT (Build-Own-Operate-Transfer)
- BLOT (Build-Lease-Operate-Transfer)
- ROT (Rehabilitate-Own-Transfer)
- ROO (Rehabilitate-Own-Operate
- ROOT ( Rehabilitate-Own-Operate)
Examples of Torts
- Nuisance
- Negligence
- Misrepresentation
- Fraud
- Trespass
Person that annoys or causes trouble
Nuisance
Intrude upon another person’s property without permission
Trespass
Acquiring financial advantage by means of deliberate deception.
Fraud
To give an untrue idea.
Misrepresentation
Lack of attention or care
Negligence
Classification of contracts
- As to origin
- As to participation
- As to obligation
- As to completion status
- As to form
- As to legal status
Stages of contract
- Preparation/Conception
- Perfection/Birth
- Consummation/Death
The moment both parties have agreed in all the terms and conditions of the contract.
Perfection/ Birth
Preliminary stage of negotiation until an agreement is reached.
Preparation/Conception
When the contract is performed and its terms fulfilled.
Consummation/Death
Fundamental Elements of Contracts
- Offer
- Acceptance
- Consideration
- Competency
- Mutuality of Obligation
- Legal Capacity
- Terms and Conditions
- Project Managers and Contract Knowledge
Refers to either a promise or money.
Consideration
To establish one party’s competency to enter into a contract means to ensure that they have the capacity to knowingly and consensually enter into a contract.
Competency
The first step toward making a contract.
Offer
The offer recipient’s consent to enter into the contract on the terms expressed by the person making the offer.
Acceptance
Contracts are the basis of business deals, negotiations, and projects.
Project Managers and Contract Knowledge
The nuts and bolts of a contract.
Terms and Conditions
Refers to the more fundamental requirement that both parties to the contract be people.
Legal Capacity
Law concerned with crimes (breach of statute or laws enacted by legislature) against the state or society; involved with punishment of individuals or groups by the state.
Criminal Law
Law concerned with torts (wrong done by one party to another) between individuals or groups; involved with judgements through civil courts.
Civil Law
