Construction contract

Question 1

addendum

Answer 1

a change or addition to the contract documents issued after the documents have been released but before the bids are due.

Question 2

change order

Answer 2

request made by owner to add or subtract to the scope of work resulting in changes to the contract.

Question 3

contract documents

Answer 3

The drawings, conditions, terms, and specs. setting forth the requirements for constructing the project.

Question 4

guaranteed maximum price (GMP)

Answer 4

Contract. Contractor reimbursed for actual costs up to a fixed price.
Owner no impact but a benefit
Contractor no impact but can suffer going over budget.

Question 5

perspective drawing

Answer 5

Three-dimensional drawing representing the width, length and height of a structure.

Question 6

time and material

Answer 6

Cost-Plus-Fee contract.
Owner reimburses all actual cost plus a fixed fee.
Contractor no impact.
Owner may be hit with free going above budget

Question 7

Two major components in contract documents

Answer 7

Plans & Specs.

Question 8

Four primary sections of a project manual

Answer 8

• bidding documents
• general conditions
• supplemental conditions
• technical specifications

Question 9

Four basic types of construction contracts

Answer 9

Lump-sum, Cost plus fee, Guaranteed maximum price, Unit-price

Question 10

lump-sum

Answer 10

Contract for a single fixed price for work in the plans and specs.
Change orders may occur in bad plans.
Contractor reps benefits.
Owner no impact