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LARE Construction > Construction Administration > Flashcards

Construction Administration Flashcards

1
Q

The general contract method

A

Design- bid- build/ Design - estimating - construction

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2
Q

Brokerage

A

When the general contractor subcontracts all the work on a project. It’s not beneficial to the owner.

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3
Q

Many owners place contractual limits on the amount of work that can be sub-contracted. Contract statement

A

“ The contractor shall perform with his or her own organization not less than 25 percent of the work”.

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4
Q

The methods of construction contracting

A
  1. General contract method
  2. Separate contracts method
  3. Self -performance method
  4. Design- build method
  5. Professional constuction management method
  6. CM at risk
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5
Q

The pros and cons of GC method

A

Gives the owner a firm idea of the final cost of the total project prior to construction phase. Clearly defined roles for each of the contracting parties. Minimizes the contractual liability for cost overruns and late project delivery.

Often extends the project duration. The owner doesn’t have an agent involved in the contractual arrangements. Leads to tight bids and small profit margins. Might lead to bad performance. Inflexible.

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6
Q

Separate contracts method

A

Owner as GC with multiple prime contracts.

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7
Q

Pros and cons of Separate contracts method

A

Save money,

Require in-house capabilities to manage a construction project. Or hire a management firm, but the power of this firm won’t be as great as GC. Greater risk for owner.

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8
Q

The profit earned by the GC is usually

A

Less than 3%

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9
Q

Self-performance method/ force account work

A

Owner do the construction work in-house

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10
Q

The pros and cons of self-performance method

A

Save time and money

Unfair in public works.

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11
Q

Self- performance is common for

A

The maintenance of county roads, maintenance of railroad tracks… small scope, ongoing projects.
When the contractor defaults on the contract and the owner must step in to finish the project.

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12
Q

Design-build/ design-construction/ turnkey

A

Single contract for both design and construction of a project.

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13
Q

Pros and Cons of design build

A

Higher degree of constructability; fewer changes due to design error. Possible for construction to begin before finishing design. Usually the lowest cost, 20-30% faster

The dispute can still arise between design and construction firm. Less checks and balances in the process. Less control by the owner. On public projects, there are usually restrictions on the process.

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14
Q

Design build method is popular in projects

A

Large, industrial- type projects. When project is large and technically complicated.

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15
Q

Professional construction management method

A

Owner hires a professional construction management firm (CM)

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16
Q

The contract for design build is generally established as

A

fixed fee+ cost with GMP

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17
Q

The pros and cons of CM

A

CM works for the owner’s benefit. Allow flexibility for changing the project as the design evolves. Save time.

Owner need to trust CM

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18
Q

The payment for the CM

A

Flat fee/ shared cost savings/ cost+ percentage.
Cost: service + stated multiplier to cover other items like travel expenses, training, inspections…

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19
Q

The CM often gives the owner a GMP

A
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20
Q

CM is usually used when

A

The project is large or complex when construction expertise is needed during design phase. E.g. hospitals.

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21
Q

CM at risk

A

CM as independent contractor. or CM/GC

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22
Q

Contract for CM at risk

A

Cost + fixed fee with GMP

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23
Q

Difference between CM at risk and GC

A

CM at risk enters the contract prior to design completion.

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24
Q

“Execute a contract”

A

A contract has been signed

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25
Q

Bilateral contract

A

Promises exchanged between the two parties. Most construction contracts are bilateral

26
Q

Unilateral

A

Promise on one side in exchange for something other than promise.

27
Q

Express contract

A

Clear, concise terms of the agreement, whether verbal or written.

28
Q

Implied contract

A

The term established through inference and deduction.

29
Q

Sometimes an express contract may be altered by an implied contract

A
30
Q

Joint agreement

A

One in which the individuals are “joined” as one party in the action

31
Q

“Several, separate or severed” parties

A

Each party has a liability that is separate from that of any of the other parties

32
Q

“Joint and several” parties

A

Binding the individuals as a unit and also of having each individual accept separate accountability. If individuals defaulted, the suit would then be either joint or several. Often for the benefit of the “other party entering the agreement.

33
Q

Basic elements of a contract

A

Offer and Acceptance; Meeting of the minds; Consideration; Lawful subject matter; competent parties

34
Q

The offer and acceptance may be express or implied

A
35
Q

Acceptance creates the contract

A
36
Q

In construction contracts, the offer is

A

The bid submitted to the owner

37
Q

Meeting of the minds

A

The contracting parties agree on the basic meaning and legal implications of the contract.

38
Q

The accuracy of the plans is primarily the responsibility of the owner.

A
39
Q

Consideration in contract

A

Something of value

40
Q

Lawful subject matter

A

The subject must be definite and clearly defined. And the subject cannot violate any fundamental dictates of common law.

41
Q

Competent parties

A

If one of the two contracting parties is judged to be incompetent, the contract can be nullified. (Infants, insane persons, or drunken persons)

42
Q

Estoppel

A

Implied agreement. A contract may be created by what a party does or says, without a written document, and that party is then “ estopped” from denying that a contract exists.

43
Q

The intent of the contract

A

The presumption of what one party wanted to have done when entering the contract

44
Q

Assignment of contracts

A

Transfer

45
Q

Sovereign immunity

A

The government entity cannot be sued without its consent.

46
Q

Tax lien

A

The right of the government to retain possession of property until the tax on it has been paid

47
Q

Eminent domain

A

The right of the federal government or a state or other public agency to take possession of private property and appropriate it for public use.

48
Q

Condemnation

A

Eminent domain

49
Q

Quasipublic firms

A

Private firms have occasionally ben given the power of eminent domain

50
Q

Once eminent domain proceedings begin, the most viable means of stopping condemnation may be

A

To show that the land seizure is not for the public good.

51
Q

Highway property can be obtained from private landowners by several means, including

A
  • Outright or direct purchase
  • Eminent domain
  • Prescription
  • Dedication
52
Q

Right of way

A

Land used for the operation of a highway or public utility.

53
Q

Easement

A

Grants a specific right of use to nonowners

54
Q

Zoning requirements are

A

The master plan of a city to regulate the use of the land in each area or community

55
Q

Mechanic’s lien

A

Workers and materials suppliers who provide improvements to real property, are permitted to place a claim on that land if they are not paid

56
Q

“Notice to owner” or “notice of intent to lien”

A

Many states require that some official notification be provided to the owner about the work or materials that are being provided by these parties.

57
Q

Public property is usually not subject to liens. Instead, subcontractor can use “stop notice”

A
58
Q

“Stop notice”

A

Subcontractor to notify owner to stop paying GC.

59
Q

Notice to bidders should include

A
  • nature or type of project
  • location of the project
  • type of contract for construction
  • bonding requirements
  • dates in which to perform work
  • terms of payment
  • estimated construction cost
  • time, manner, and place to submit bids
  • location to obtain bid documents
  • deposit required on bid documents
  • owner’s right to reject any and all bids
  • requirements regarding wage rates
60
Q
A

LARE Construction (1 decks)

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