Contract Management Flashcards
Required contract elements:
Required contract elements include offer and acceptance, consideration, competent parties and legal purpose.
Contract Provisions:
Your contract should contain provisions that clearly outline the terms of the contract. A few key provisions you want to include are contract price and payment terms, obligation of parties, and breach of contract.
Breach of Contract:
A breach of contract occurs when one of the parties involved fails to perform in accordance with any of the terms and conditions of the contract.
Boilerplate Provisions:
These provisions contain standard language designed to protect you in the event of a lawsuit. “ Miscellaneous” clauses such as attorney’s fees, arbitration & where disputes will be settled.
Provisions to Limit Risk:
These provisions limit the liability of the contracting parties by addressing allocations of risk.
What Are Recitals?
This language appears at the beginning of the contract and is intended to give background information.
Types of Construction Contracts:
Different types of contracts address who is responsible for cost savings and overruns for estimated work. Ex: Lump-Sum Contract, Unit-Price Contract & Cost-Plus Contract.
Contracting Methods:
Depending on the level of involvement in a construction project different types of contracting methods are used. Single Prime, Design/Build, Construction Management, Turnkey, Fast-Track Construction, Multiple Prime Contracts, & Partnering.
Sources of Contracts:
Contacts are available through several different sources, including associations such as the American Institute of Architects (AIA) or the Associated General Contractors (AGC).
Making Changes of Contract:
To change the contract, a change order is written and agreed to by the owner and contractor.
Alternative Dispute Resolution (ADR)
The process involves settling legal disputes by avoiding the process of a government judicial trial. The most common forms of ADR are negotiation, mediation, collaborative laws, and arbitration.
Resolving Claims:
The claims resolution process provides a way for the owner and contractor to resolve disputes about additional amounts owed as a result of contract changes.
Making Substitutions:
Specifications must be analyzed carefully before submitting the substitution request. Substitutions may be granted if products are discontinued or to provide a cost or time savings.
Contract Documents & Project Manuel:
The project manuel is central location for bid documents, contract provisions, technical specifications, and addenda.
