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ARE-CDS TEST > Contractual Documents > Flashcards

Contractual Documents Flashcards

1
Q

Design-Award-Build (DAB) Or Design-Bid-Build (DBB)

A

An owner develops contract documents with an architect or engineer consisting of a set of blueprints and a detailed specification. Bids are solicited from contractors based on these documents; a contract is then awarded to the lowest responsive and responsible bidder.

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2
Q

Design-Build (DB)

A

An owner contracts with only one entity to provide both design and construction services. Cons: 1. owner does not have much control over design once the contract is signed. 2. easily run into disputes. 3. owner needs to know specific performance requirements. This method is typically used when owner has building experience.

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3
Q

common methods of project delivery includes

A
  1. Design-Award-Build 2. Fast Track 3. Design-Build or Bridging (DB with AE/PM) 4. Integrated Project Delivery
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4
Q

Integrated Project Delivery (IPD)

A

Completing a project in which all the participants collaborate closely from conceptual phase. Highly collaborative, depends heavily on technology, communication, and having an integrated building information model (BIM) that everyone on the team has access to.

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5
Q

Fast Track Or DBB with Construction Management (DBB with CM)

A

With partially completed contract documents, an owner will hire a construction manager to act as an agent. As substantial portions of the documents are completed, the construction manager will solicit bids from suitable subcontractors. This allows construction to proceed more quickly and allows the owner to share some of the risk inherent in the project with the construction manager.

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6
Q

Agency vs. Vendor

A

Agency involve 3 parties: the principal, the agent and the third party. Architect (agent) acts on behalf of the owner and has the authority to perform certain duties. Contractor is considered as a vendor, only supplies product or service and primarily acts in his or her own interests.

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7
Q

Single-Prime Contract vs. Multi-Prime Contract

A

Single prime only has one general contractor. The owner has one single source of responsibility. It’s easier for architect to do construction administration. Multiple prime has individual contracts with General Construction, HVAC, Plumbing, Electrical contractors. Difficult for scheduling, coordination, and manage. The most frequent use of multiple prime contracts is for phased construction, in which contracts are awarded sequentially for each phase . This type of construction is also referred to as the “fast-track” method.

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8
Q

3 common compensation methods for contractor

A
  1. stipulated sum / lump sum 2. guaranteed maximum price (GMP) 3. cost-plus-fee
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9
Q

3 common compensation methods for architect

A
  1. stipulated sum / lump sum / fixed fee 2. cost plus fee 3. percentage of construction cost
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10
Q

Lien

A

A mechanic’s lien is a claim by one party against the property of another party for the satisfaction of a debt and a common method for an architect, contractor or material supplier to gain payment.

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11
Q

Liquidated Damage

A

damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).

can be found in Owner-Contractor agreements

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12
Q

Surety Bond or Bond

A

an agreement by which the surety (the bonding company) agrees to be responsible to the obligee (the owner) for the default or debts of the principal (the contractor). A protection for the owner against debt and defaults. Contractor pays. Default: failure to meet the legal obligations in contract

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13
Q

Completion Bond

A

The project will be complete free of liens. Completion bonds are surety bonds which a contractor submits to a bank or other creditor that has disbursed a loan to finance a project.

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14
Q

Bid Bond

A

The bidder, if awarded a contract, will enter into the contract within a specified time, and in accordance with the bidding documents.

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15
Q

Performance Bond

A

To protect the interest of the owner, and ensure that the work will be completed in accordance with the contract documents.

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16
Q

Labor/Material Payment Bond

A

The contractor and the contractor’s surety will pay their subcontractors and to purchase materials for the construction in accordance with the CDs.

17
Q

ways to protect the owner from liens regarding paying subcontractors or material suppliers (Contractor’s responsibility)

A
  1. contractor submit a release of liens before final payment or retainages of previous payment 2. contractor to furnish an affidavit of payment of all debts and claims, and an affidavit of release of liens stating that all obligations have been satisfied
18
Q

Insurance

A

Both the owner and contractor must maintain insurance to protect against various types of loss. The provisions of insurance are listed in the General Conditions of the Contract. Additional provisions are included in the supplementary conditions. Architect is not responsible for giving advice on insurance and bonds. It’s excluded from architects’ professional liability insurance policies.

19
Q

Professional Liability Insurance

A

Architect / design professionals must maintain. Liability due to negligence or not meeting the standard of care expected of them. (eg: not designing ADA compliant restrooms in a public building)

20
Q

Contractor’s Liability Insurance

A
  1. Workers’ compensation insurance
  2. damages of bodily injury or death of the contractor’s employees and others
  3. property damage insurance
  4. personal injury insurance
  5. motor vehicle insurance
  6. contractual liability insurance
21
Q

Contractual liability insurance

A

Contractual liability insurance can be defined as coverage for the named insured’s liability that is created when it assumes, in an oral or written contract, the financial consequences of another’s negligent acts or omissions that results in bodily injury or property damage to a third party.

22
Q

Owner’s Liability Insurance

A
  1. Property insurance, protects against fire, theft, vandalism, and other hazards. All-risk coverage. The amount of coverage must be the full value of the work plus any subsequent modifications.
  2. Loss of use insurance. covers any additional living expenses, meaning any necessary expense that exceeds what you normally spend due to property damage.
  3. Liability insurance
23
Q

Contract documents includes:

A
  1. Owner-Contractor agreements 2. General conditions of the contract 3. the supplementary conditions of the contract if any 4. drawings 5. specs 6. addenda issued prior to execution of the contract 7. any other documents listed in the agreements 8. modifications issued after execution of the contract including change order / construction change directive / a written order by architect for minor change / a written amendament to the contract signed by both parties
24
Q

Bridging

A

A variation of the design-build approach. Architect/Engineer as AE/PM act as advisor and works with owner to develop the project requirements.

25
Q

The owner vs the contractor

A
  • The owner shall designate a representative, the owner means owner and its representative
  • The contractor shall be lawfully licensed. shall designate a representative. The contractor means the contractor and its representative
26
Q

Owner’s responsibilities include

A
  1. Within 15 days after receiving written notive, the owner shall furnish information necessary and relevant for the contractor to evaluate, give notice or enforce on the lien’s rights.
  2. provide reasonable evidence for financial arrangements of the payments
  3. Except for permits and fees that contractors need to pay, the owner shall secure and pay for neccessary approvals, easements, assessments and construction cost, charges of use and occupying permernant structures or for permernant changes in existing structures.
  4. furnish site surveys describing physical conditions, legal limitations, and utility locations. The contractor shall rely on the accuracy of the information provided by owner.
  5. provide information with reasonable promptness
  6. provide one copy of contract documents unless specified in contract
  7. owner’s right to stop the work
  8. owner’s right to carry out the work
27
Q

Contractor’s responsibilties include

A

3.1 General

  1. 1.2 Contractor shall perform work according to the contract documents.
  2. 1.3 Contractor shall not be relieved of any obligation by the architect or inspections by others.

3.2 shall review contract docs and field conditions

  1. 2.1 Execution of the Contract by the Contractor is a presentation that the Contractor has visited the site,become generally familiar with local conditions.
  2. 2.2 Contractor shall carefully study contract drawings, take field measurements, etc. Contractor not obligated to search for errors. However Contractor shall promptly report to the Architect any errors, inconsistencies or omissions discovered by or made known to the Contractor.
  3. 2.3 Contractor not responsible to verify drawings compliance with laws, codes, etc. Any non-conformity found shall be reported to the architect promptly.
  4. 2.4 If contractor believes additional cost or time due to RFI, contractor to make claim as provided in Article 15. If contractor fails to perform 3.2.2 or 3.2.3, the contractor shall pay costs and damages to others.

3.3 supervision and construction procedures

3.3.1 The Contractor shall supervise and direct the
Work, using the Contractor’s best skill and attention. The Contractor shall be solely responsible for, and have control over, construction means, methods, techniques, sequences and procedures and for
coordinating all portions of the Work.

Contractor shall evaluate the jobsite safety, if the construction means…specified in the contract docs might not be safe, contractor shall give timely written notice to the Owner and Architect. Owner shall be solely responsible for any loss or damage arising solely from those Owner-required means, methods, techniques, sequences or procedures if he orders contractor to proceed anyway.

  1. 3.2 Contractor is responsible to owner for actions of employees, subs and consultants performing work.
  2. 3.3 Contractor shall inspect portions of the work to determine if more work can be done.

3.4 LABOR AND MATERIALS

  1. 4.1 Contractor to pay for labor, tools, equipment, transportation, utilities, etc.
  2. 4.2 Contractor can make substitutions only with consent of owner and architect by change order or construction change directive
  3. 5 WARRANTY

3.5.1 Contractor warrants to the owner and architect that the materials and equipment are new and work is of good quality and free from defect and in accordance with the construction documents. Contractor’s warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by the Contractor, improper or insufficient maintenance, improper operation, or normal wear and tear
and normal usage.

3.6 TAXES

The Contractor shall pay sales, consumer, use and similar taxes for the Work

3.7 PERMITS, FEES, NOTICES, AND COMPLIANCE WITH LAWS

  1. 7.1 Contractor pays for permits secured after execution of the contract
  2. 7.2 Contractor shall comply with laws while performing work.

3.7.3 the Contractor shall assume appropriate
responsibility for Work that violate laws and codes and shall bear the costs attributable to correction.

3.7.4 If the Contractor encounters conditions at the site that are (1) subsurface or otherwise concealed physical conditions that differ materially from those indicated in the Contract Documents or (2) unknown physical conditions
of an unusual nature that differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, the Contractor shall promptly provide notice to the Owner and the Architect before conditions are disturbed and in no event
later than 21 days after first observance of the conditions. The Architect will promptly investigate such conditions and will recommend an equitable adjustment in the ContractSum or Contract Time, or both if needed.

3.7.5 If discover burial markers, archaeological sites or wetlands during construction, contractor shall immediately suspend any operations that would affect them and shall notify the Owner and Architect. Upon receipt of such notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume the operations.

3.8 Allowances

3.8.1 The Contractor shall include in the Contract Sum all allowances stated in the Contract Documents.

  1. 8.2.1 Allowances shall cover cost of materials and equipment
  2. 8.2.2 Allowances do not include labor, profit, handling, and other expenses.
  3. 8.2.3 When costs are more than allowances, cotract sum shall be adjusted by change order.
  4. 8.3 Materials and equipment under an allowance shall be selected by the owner in time to avoid a delay in the project.

3.9 SUPERINTENDENT

3.9.1 The contractor shall employ a competent superintendent who will be in attendance at the site while work is done. The superintendent shell represent the contractor and instruction to the superintendent is binding to the contractor.

28
Q

Payment procedure

A

bnnb

29
Q

Warranties and guarantees

A
30
Q

Architect’s responsibilities include

A
31
Q

Changes in the work

A
32
Q

Time Limits, schedule and delay

A
33
Q

Project close-out

A
34
Q

Record drawings

A
35
Q
  1. protect owner
  2. protect contractor
A
  1. performance bond and labor/material payment bond/bid bond
  2. liquidated damage

ARE-CDS TEST (2 decks)

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