CONSTRUCTION AND CONTRACT ADMINISTRATION

Question 1

Which two AIA forms do you need to memorize for your career, for this exam, and to be a good architect?

Answer 1

AIA Document B141 owner-architect agreement

And

AIA Document A201 General conditions of the contract for construction

Question 2

What is… Someone who is authorized to act on behalf of another party, the principal?

Answer 2

An agent

Question 3

A contract between owner and architect spells out the scope of the architect’s…

Answer 3

Agency

Question 4

What terms do you AVOID when describing what an architect does during the construction phase in order to avoid potential professional liability problems? What professions do they dovetail with?

Answer 4

Supervision (the contractor does this), inspection (Government agencies)

Question 5

Which contract defines the scope of the architect’s agency to the owner?

Answer 5

AIA Document B141

Question 6

Who can stop work on construction?

Answer 6

Only the owner

Question 7

A legal claim against someone’s property.

Answer 7

A mechanics lien

Question 8

How does retainage protect against liens?

Answer 8

By withholding retainage of money owed to the contractor, the owner has funds to pay for labor materials if the contractor fails to make payment to subcontractors. Retainage can also be used to pay for correction of work.

Question 9

What needs to be done before retainage is released?

Answer 9

A surety company that issued the performance bond gives written permission

Question 10

What else provides protection from liens?

Answer 10

And I for David from the contractor before he is entitled to receive final payment

Question 11

What are documents AIA G706 and AIA G706A?

Answer 11

G706: Contractors affidavit of payment of debts and claims

G706A: contractors affidavit of release of liens

Question 12

What are the 4 reasons the AIA says that arbitration is preferred over litigation?

Answer 12

1. Quicker
2. Less costly
3. Matter can be heard by someone with construction expertise
4. It is private

Question 13

Name the protection: an embankment gives way endocrine plunges into an excavation, causing injury and property damage.

Answer 13

Contractor has liability insurance and workers compensation insurance

Question 14

Name the protection: a subcontractor goes bankrupt causing workers and material suppliers to go unpaid

Answer 14

The owner is protected by the contractors labor and material payment bond

Question 15

Name the protection: material shipped from overseas is mishandled, causing breakage in shortage of critical building components

Answer 15

Contractor protected by liability insurance, owner protected by builders risk insurance if he has paid for the material

Question 16

Name the protection: a contractor is the low bidder but refuses to enter into an agreement

Answer 16

Bid bond or bid deposit

Question 17

Which is the bond guaranteeing that the bitter will enter into a contract if excepted, and that the bitter will provide a performance and labor and material payment bond to guarantee the work.?

Answer 17

A bid Bond

Question 18

What does document A312 do?

Answer 18

It combines a performance and payment bond

Question 19

Usually, how much is a performance bond?

Answer 19

Usually 100% of the contract amount

Question 20

About how much can an owner save by for doing a performance bond with the contractor?

Answer 20

About one or 1 1/2% of the contract price

Question 21

What happens if the contractor defaults?

Answer 21

Performance bond ensures that the surety company either 1.) completes the contract or 2.) obtains bids to enable another contractor under contract to either the surety with the owner to complete the contract

Question 22

Why should an architect not interpret bond terminology for an owner?

Answer 22

Because professional liability insurance excludes coverage for claims arising out of giving her failing to give advice about insurance and bonds

Question 23

Why should the retainage never be released without the surety’s written permission?

Answer 23

Because that retainage can be used by the surety to reduce its financial losses in the case of a default

Question 24

What does the AIA document G610 – owners instructions for bonds and insurance – do?

Answer 24

It is a checklist to be filled out by the owner and delivered to the architect to be inserted into the building and contract documents for the project…The architect cannot advise on matters of insurance

Question 25

What is contractual liability insurance?

Answer 25

Provides coverage for liability assumed by contract… As in the portion requiring the contractor to indemnify the owner and architect if they are sued by a construction worker in the course of work

Question 26

The owner usually carries property insurance, but when the contractor does, why?

Answer 26

Because the owner doesn’t know what he is doing and it is easier for the contractor to acquire it

Question 27

What is subrogation?

Answer 27

This is a procedure by which an insurance company, after paying out a loss to the insured, can attempt to recover this amount from some other party who may have actually caused the loss.

Question 28

The standard AIA waiver of subrogation clause in the general conditions pertains to…

Answer 28

Property insurance

Question 29

Who must agree if the owner has to occupy the work before substantial completion?

Answer 29

The contractor as well as the company providing property insurance

Question 30

Who should analyze the contractors submitted certificate of insurance?

Answer 30

Owners insurance agent

Question 31

Except in regard to what kind of decision, the architects decisions are always subject to appeal by demand for arbitration.

Answer 31

Aesthetic effects