Contracts Flashcards
A document used to rush in new subcontractors or establish penalties, but it does not hold the same legal weight as a full contract.
What is a “Letter of Intent” in contracting?
What is the most common contract type in construction?
Lump sum contract, which provides a fixed total for a specific job and covers the complete scope of work.
It requires a list of total quantities from the owner/architect and sets the price per unit, with costs unknown until completion.
What does a “Unit Price Contract” require?
What contract type includes labor, materials, and a contractor fee, with the owner directly paying invoices. GC bids subs aggressively.
What is the main feature of a “Cost Plus Fee Contract”?
What contract is used for when the scope of work is poorly defined, often for emergency repairs or renovations.
When is a “Cost Plus Percentage of Cost Contract” typically used? AKA Time and materials contract.
What should be verified about the “Owner” in contract writing?
Legal ownership should be confirmed, often through the assessing office.
What is a “Retainage” in a construction contract?
It is a portion of the payment withheld until final project completion.
What is the purpose of a “Final Punch List”?
It includes a final walkthrough to address any remaining tasks, often focusing on interior paint issues.
What are “Liquidated Damages”?
Penalties for project delays, such as a $300/day fee for not finishing on time.
What are examples of real damages in a contract
owners not being able to move into house on time causing moving renting etc like costs
These confirm that construction aligns with structural and utility plans (ex cabinets/behind wall utilities, landscaping irrigation)
What should “Shop Drawings” confirm?
What is important about “Weather Conditions” in contracts?
They should account for potential hot or cold weather impacts, like concrete curing.
Manuals, warranties, and training for equipment usage, ensuring the owner is informed post-project are examples of what sub category in a contract?
What do “Close-Out Documents” include?
What is recommended for “Sanitation” on construction sites?
A portable restroom should be on-site, with permission from relevant authorities.
What is the purpose of “Photo Records” during a project?
To document progress, including before, during, and after shots.
Why is a “Log Book” maintained in new construction?
To record daily activities, conditions, and inspections, keeping track of project progress.
Why is it necessary for a “Temporary Power” contractual line item?
to ensure arrangement by the homeowner, with details outlined in the contract.
Who administrates testing for the Michigan Builders License?
PSI administrates the testing.
Which organization regulates licenses for builders in Michigan?
LARA (Department of Licensing and Regulatory Affairs).
It is contract language that resolves contractor-client issues through alternative dispute resolution methods outside of court.
What is Independent Arbitration in the context of construction contracts?
A change in the contract or set of plans.
What is an Addendum Change
They facilitate different or new work, with payment typically due at the time of signing.
What are Change Orders used for?
How are Progress Payments structured in large jobs?
They are paid throughout the project, often as the contractor reaches certain milestones.
What key details should a contract agreement include?
Back:
Date of agreement
Contact info (cell phones)
Name/location of project
Architect’s details
Drawings/specifications (project number, revisions)
Contract lump sum and allowances
