Chapter 32 - Construction and FF&E Contracts Flashcards
Contract documents consist of:
Owner-Contractor Agreement
General Conditions of the Contract
Supplementary Conditions of the Contract
Drawings
Specs
Addenda
Any additional docs specifically listed in the agreement
And modifications (i.e. change orders)
Are bidding documents part of the contract documents?
no (although they are often bound into the project manual)
Some provisions are common to all contracts and include:
a description of the work
the time of commencement and substantial completion
contract sum
________ is defined as the stage in the progress of the work when the work or a designated option 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 completed or corrected
substantial correction
_______ are moneys paid by the contractor to the owner for every day the project is late
liquidated damages
if a particular completion date is important to the owner, provisions for ______ may be included
liquidated damages
In many cases, a liquidated damage provision is accompanied by a ______
bonus provision so the contractor receives a payment for early completion
What is the most pertinent code for designers selling furniture and accessories to clients rather than just selling them?
Uniform Commercial Code (UCC)
Furniture and accessories may be shipped by a common carrier, contract carrier, or a private carrier. What’s the difference?
common carrier- publiccontract- only provides service to some companiesprivate- companies who own and operate their own trucks and move their own merchandise
If a common carrier is used, the responsibility for the furniture during shipment is _____.
whoever has title to the furniture bear the responsibility for damage or loss
There are several ways furniture and accessories are shipped and risk to the either the seller or the buyer is assigned by _____
the UCC
What does the term FOB mean?
free on board- the manufacturer pays for loading the goods onto a truck or train
is there another method than FOB?
no- everything is always FOB
FOB is followed by the word ____ or _____ (give examples)
factory or destination Ex: FOB Factory or FOB Los Angeles
What does FOB factory mean?
that the title is transferred at the factory.
Who pays the transportation costs and who is responsible for loss or damage during shipment with FOB factory?
the buyer (vendor/client/designer) pays the transportation costs manufacturer is not responsible for loss or damage during shipping
One goods are consigned to a common carrier at a factory, who does the title pass on to?
to the buyer of the goods
What is a shipment contract?
goods are shipped “FOB Factory” and are insured by the buyer
What is FOB factory-freight prepaid?
the FF&E vendor owns the furniture, but the supplier pays the shipping charges
A _____ is anyone who sells products or services to the interior designer or the client.
vendorA vendor may be a furniture dealership, individual furniture company, drapery work room, tradesperson, or similar business.
The ____ in an FF&E contract is responsible for ordering, delivery, and installing the goods described in the contract
vendor
_____ is the detention of a ship in port by the ship owner, or of a railroad car or truck by its owner, beyond the time normally allowed or agreed upon.
demurrage
Does the interior designer have authority to stop the work or terminate the contract on behalf of the owner?
no
Does the designer have the authority to require special inspections or testing of the work?
yes
Can the interior designer recommend that the owner reject work that does not conform to the contract documents?
yes
The designer reviews shop drawings and other submittals of the limited purpose of ________.
checking conformance with the design concept expressed in the contract documents
Who prepares change orders for the owner to authorize? This person may authorize minor changes in the work that do not involve adjusting either the contract sum or contract time and that are not inconsistent with the intent of the contract documents.
the designer
Who conducts a final inspection to determine the dates of substantial completion and final completion?
the interior designer
Who must provide surveys of the land?
the owner
To _____ is to secure against loss or damage
indemnify
Who does an indemnification clause protect?
the owner and designer
protects against situations where a person is injured due to the negligence of the contractor or the contractor’s agents. it also protects the owner and architect against claims from property damage other than to the work itself
The contract time is the period starting ____ to the time of ______
starting date established in the agreementto the time of substantial completion
what do change orders primarily cover?
contract cost AND contract TIME
what types of items are found in supplementary conditions?
items that are specific to each client type and project type ex: permission for the ID to give the contractor change orders etc electronically- additional info and services provided by the owner- cost for the interior designer to review the contractor’s requests for substitutions- requirement that a contractor must employ a superintendent to coordinate mechanical and electrical work- provisions for fast track-schedule- reimbursements for extra site visits- more details info on costs and overhead- requirements for liquidated damages and bonuses- additional requirements for bonding and insurance
Should an ID change the general conditions or supplementary conditions on their own?
no- they should do so with the advice of legal counsel
