Contracts & Legal Flashcards
G704-DB
Certificate of Substantial Completion for OWNER to fill out because owner takes on that responsibility in DB
G732
Application and Certificate for Payment - CM Adviser Edition anticipates that the architect and the constructionmanager-adviser may certify a different amount than that applied for, with each initializing the figures that have been changed and providing explanations accordingly.
G612
Owner’s Instructions to the Architect Regarding the Construction Contract, Insurance and Bonds, and Bidding Procedures is a questionnaire used to obtain information from the owner necessary to arrive at a construction contract through the bidding process.
D200
Project Checklist identifies tasks and data necessary to fulfill assigned project responsibilities. It can also serve as a permanent record of owner, contractor, and architect decisions.
G716
RFI
Project Authority Matrix
Can be found in A201. Designates if O, A or C must approve contract elements.
G711
Architect’s Field Report
G702
Application and Certificate for Payment. GC shall submit itemized application for payment to architect at least 10 days prior to date established for progress payments in accordance with schedule of values. Needs to be notarized, contain supporting data and reflect retainage. Can include payment for work authorized by CCD. Architect has 7 days to review/approve. The owner could have as little as 3 days to make payment. Certificate for payment does not constitute acceptance of Work not in accordance with CDs. Look for progress and quality.
G703
Continuation Sheet / Schedule of Values: Required for stipulated sum or GMP contracts
G701
Change Order: prepared by the architect, signed by the opener and contractor stating their agreement on: 1. Change in the work2. Change in contract sum, if any3. Change in contract time, if any
G714
Construction Change Directive: prepared by the architect, signed by the owner and architect directing agreement on on contract time, sum or both. Once a contractor signs it, it will become a change order.
G710
Architect’s Supplemental Instruction: used for minor change in the work. Only needs architect’s approval. Architect submits in writing and if contractor thinks there is a change in contract sum or time, he should inform the team and not proceed until approved. If they proceed with the work anyway, they waive the right to the change in time/money.
G704
Certificate of Substantial Completion
Post-construction additional services
Lists found in B101 and D200: Post Occ Eval, construction as-builts, commissioning, LEED, FFE, Interior Design, warranty review, move-in assistance, energy analysis
Contracts for post-construction additional services
2 ways: G802, Amendment to the Professional Services Agreement adds services to original agreement (statute of limitations has already begun). B101 creates another contract and statutes timeframe begins again.
Performance Bond
Statement by surety company that obligates them to complete construction on a project if the contractor defaults on their obligations.
Payment Bond
An amount of money guaranteeing that the contractor will pay subcontractors, vendors, and suppliers for their work free of liens.
Spearin Doctrine
1918 Court Ruling: If the contractor is bound to build according to plans and specifications prepared by the owner, the contractor will not be responsible for the consequences of defects in the plans and specifications. However B101 and the professional standard of care does not require defect-free documents (nor does it allow negligence). The difference between defect-free documents and the professional standard of care is often called the Spearin Gap. The costs associated with document defects that fall within the professional standard of care are borne by the owner.
The Work
Construction and services performed by the contractor per the contract.
The Project
Total construction including the Work and any other work provided by the owner or his consultants.
Owner’s right to stop the work
A201 2.3If the connector fails to correct work that is not in accordance with CDs, or repeatedly fails to carry out the work per the CDs, the owner may issue written order to the contractor to stop the work or any portion thereof until cause is eliminated.
Owner’s right to carry out the work
If the contractor defaults or neglects to carry out the work in accordance with the CDs and fails to commence correcting it within 10 days of receiving written notice from the owner, the owner may correct it themselves. Contractor must pay for owner’s expenses and any add services from architect. Architect must approve these actions.
A201 3.2.3 requires the contractor to do what if he discovers a nonconformity in the CDs?
Promptly report it to architect. Failure to do so may result in liability for remediation costs.
When do warranties start?
A201 3.5/9.8.4At substantial completion
GC’s selection of superintendent
As soon as practicable after the award of the contract, they shall price the architect the name of the super. Architect may reply within 14 days with a reasonable objection.
Submittal schedule
Provided to architect for approval promptly after awarded the contract. It must allow the architect reasonable time to review submittals. If not provided, they are not entitled to any increase in contract time or sum based on time required for submittal review.
Indemnification
A201 3.18Contractor shall hold the owner, architect and architect’s consultants harmless against claims attributable to injury or property damage caused by the contractor’s negligence.
Who administers the A201 contract?
A201 4.2The architect shall provide administration of the contract and be an owner’s representative during construction until the date the architect issues the final certificate for payment. The architect will have authority to act on behalf of the owner only to the extent provided in the CDs.
Can the architect accept and reject non-conforming work?
A201 4.2.6 / 12.3Architect can reject only. When advisable the architect can require inspection or testing if the work. If the owner chooses to accept non-conforming work, the contract sum shall be adjusted accordingly.
Owner’s separate contractors
A201 6.1The owner shall coordinate his own consultants with the work of the contractor. If the contractor’s work depends on that of the owner’s consultants, the contractor shall notify the architect of apparent deficiencies prior to proceeding with their work. The contractor may be responsible for these defects if not reported. Contractor is not responsible for defects not discovered.
Approvals required for changes in the work
Change order: OACCCD: OAASI: A alone
Payment Bond
AKA Labor and Materials Bond. Guarantees payment to subs, employees and suppliers. Completion of project free of liens.
Contractor’s Insurance and Bonds
GC must purchase and maintain required insurance types and name the Owner, Architect and Architect’s consultants as additional insureds under the commercial general liability policy.
Insurance Owner is required to carry
- General liability2. All-risk property insurance3. Boiler and machinery insurance
Insurance Architect is required to carry
- Commercial liability2. Employer’s insurance3. Professional liability (Errors and Omissions)4. Worker’s compensation5. Auto insurance
Time limits of required insurances
A201 11.1.2Start at date of commencement of the Work and end at date of final payment
Waiver of subrogation
A201 11.3.7Owner and contractor waive all rights against each other and the architect for damages caused to the property to the extent covered by property insurance
Indemnification
A201 3.1.8The owner, architect and architect’s consultants shall not be held liable for claims against contractor caused by negligent acts or omissions.
Correction of Work after Substantial Completion
A201 12.2In addition to the contractor’s warranty obligations, they must correct work not in accordance with CD’s within 1 year period after substantial completion.
Governing law of contract
A201 13.1The contract shall be governed by the law of the place where the Project is located except that, if the parties have selected arbitration, the Federal Arbitration Act shall govern.
Contractor’s right to terminate the contract
A201 14.1A) The contractor may terminate the contract after 7 days written notice if work has been stopped for a period of 30 consecutive days through no fault of the GC or its subs for any of these reasons:1. Ordered by AHJ or court2. Act of government or national emergency3. Lack of certificate for payment or payment by owner per 9.4.1.4. Owner doesn’t provide evidence of finances for project per 2.2.1.B) If the project has been delayed more than 100% of the total number of days scheduled for completion or 120 days in a 365 day period, whichever is less.C) If the owner repeatedly fails to fulfill their obligations under the contract and work is stopped for 60 consecutive days as a result. GC must give 7 days written notice.
Owner’s right to terminate contract
A201 14.21. GC repeatedly refuses or fails to supply enough properly skilled workers or proper materials2. GC fails to make payments for labor or material3. GC repeatedly disregards laws or orders of AHJ4. GC is guilty of substantial breach of contract documentsOwner must get agreement from IDM and provide 7 days written notice.
Owner’s right to suspend work for convenience
The owner may, without cause, suspend, delay or interrupt Work. Contract time and sum shall be adjusted accordingly.
Waiver of consequential damages
Owner and contractor waive claims against each other
Initial Decision Maker
Architect unless noted otherwise. 30 days to make a decision until it goes to Mediation if arbitration is a condition of mediation. 10 days to take action after receipt of claim in general.
What happens if mediation is concluded without resolution?
Either party may demand in writing that the other party file for binding dispute resolution within 30 days from conclusion of mediation of 60 days from start.
A305
Contractor’s Qualification Statement: Sworn and notorized form for GC to fill out with financial data, experience and references.
What does the Cost of Work include and not include according to B101 6.1?
Includes: Total cost to the owner to construct all elements of the Project designed or specified by the Architect. GC costs, overhead, profit, reasonable value of labor, materials and equipment furnished or donated to Owner.Not: Compensation of the Architect, cost of land, rights of way, financing, contingencies.
What can owner do if GC is not paying subs?
A201 9.5.4 Issue joint checks
What are authorized Architect’s reimbursables?
Authorized Out-of-town travel Physical models Permitting Taxes on professional services
What can a subcontractor do first if they have not been paid by the GC?
A201 9.6.3 Request from the architect information on the previous progress payments to the contractor.
During procurement, what tasks does the architect assist the owner with?
B101 3.5.2 Facilitating the distribution of Bidding Documents Organizing and conducting a pre-bid conference Answering RFI’s and preparing addenda Organizing and conducting the opening of the bids Documenting and distributing the bidding results as directed by owner Participating in negotiations with prospective contractors (if a negotiated contract)Add service:- substitution requests- distributing drawings to bidders