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CeeCeeCeeAye > Domain: Contracts > Flashcards

Domain: Contracts Flashcards

1
Q

The A/E is responsible for:

A

* being generally familiar with the progress of the work

* determining if the work is being provided according to the contract documents

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2
Q

The A/E is responsible for observing what?

A

The quality and protecting the owner from defects in the work.

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3
Q

The A/E has the authority to ___.

A

* reject non-conforming work

* DOES NOT have the authority to STOP work of the contractor

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4
Q

Basic lines of communication in AIA general conditions include the following:

A

* owner-contract: through A/E

* to consultants: through A/E

* to subcontractors and suppliers: through contractor

* to separate contractor: through owner, const manager or coordinating contractor

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5
Q

What provides a forum in which matters pertinent to the timely completion of the work can be discussed?

A

progress meetings

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6
Q

Progress meetings involving the A/E and contractor typically occur when?

A

prior to submission of an application for payment (or when requested by a member of the project team)

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7
Q

Who would schedule a meeting to address internal management, organization, operation, coordination, and safety issues?

A

contractor

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8
Q

Who would schedule meetings to address coordination with separate contractors, select colors, or coordinate move-in plans?

A

Owner

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9
Q

Who would schedule meetings to address coordination between the contractor and the A/E?

A

a design-builder

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10
Q

Special meetings scheduled for a specific purpose usually (DO or DO NOT) require attendance of the entire team?

A

do NOT

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11
Q

The owner is obliged to provide information about what for the contractor to rely on?

A

* physical characteristics

* legal limits

* utility locations

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12
Q

The owner is responsible for what?

A

work performed by the owner or separate contractors that will affect the work of the contractor performing subsequent dependent work may be required to correct deficiencies reported by the contractor affected

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13
Q

When are contract modifications required?

A

whenever a change will modify the contract documents, whether or not the change will affect the time or cost.

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14
Q

When are change orders used to modify the contract documents?

A

when COST, TIME or BOTH are affected

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15
Q

What type of contract modification is issued when neither time nor cost are affected?

A

minor change in the work

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16
Q

If the A/E is in agreement with the proposed change, cost, and time revisions submitted by the contractor, what will be issued?

A

a change order

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17
Q

If the A/E is not in agreement with the contractor’s proposal, what will be issued?

A

a change DIRECTIVE

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18
Q

True or False:

Contract modifications are not required when an RFI does not affect cost or time.

A

True

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19
Q

What describes the conditions under which modifications to the contract documents will be allowed?

A

conditions of the contract and Division 01

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20
Q

When might contract document modifications be necessary?

A

* intent of the documents is not reasonably infer-able and corrections are required to eliminate errors, omissions, discrepancies or design deficiencies

* unknown conditions

* owners requirements change (additions/deletions)

* changes in the requirements after issued permit

* time period between bid proposal accepted and contract execution is too long

* interpretations of regulations by AHJs

* a spec’d product isn’t available anymore

* new product offers cost savings

* new info about a spec’d product becomes available

* adjustment in contract sum occurs (due to actual cost and specified allowance)

* estimated quantity of work for unit price is changed

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21
Q

Who can initiate a request for a contract modifications?

A

owner, contractor or A/E

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22
Q

What methods are available to request and make contract document modifications to the project?

A

* written requests for change

* minor changes

* change directives

* change orders

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23
Q

What is the difference between written requests for change, minor changes in the work, change directives, and change orders?

A

* Written requests for change are not a directive to make a change.

* Minor changes do not affect contract sum or time.

* Change Directives direct change to be made; contract sum or time adjusted at a later date in the form of a change order.

* Change Orders direct change to be made with contract sum or time adjustments stipulated.

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24
Q

What are examples of written requests for change?

A

* proposal request

* change order request

* request for subsitution

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25
Q

What are examples of minor changes in the work?

A

* AIA “Supplemental Instructions” (SI)

* EJCDC “Field Order”

* EJCDC “Written Interpretation or Clarifications”

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26
Q

What are examples of change directives?

A

* AIA “Construction Change Directive

* EJCDC “Work Change Directive”

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27
Q

Who usually prepares a proposal request?

A

A/E

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28
Q

What is a proposal request?

A

A written document that describes a proposed change to the project, and includes the reasons for the proposed change.

Usually completed by the A/E, and sent to the contractor for evaluation of how the proposed change will affect the contract sum and time.

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29
Q

Why does the contractor review a proposal request?

A

The proposal request is sent to the contractor for evaluation of how the proposed change will affect the contract sum and time.

The proposal request must include enough detail for the contractor to accurately estimate the cost and time impact of the proposed change on the project.

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30
Q

True or False:

A proposal request is a change order or a directive to make changes to the project.

A

False.

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31
Q

True or False:

A change order request may be used by the contractor.

A

True.

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32
Q

A contractor-initiated change order request should state the reasons for the proposed change along with itemized costs for what?

A

labor, materials, taxes, subcontracts, bonds, insurance, overhead, profit

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33
Q

Define “minor changes to the project” or “clarifications of the contract documents.”

A

Instructions or Clarifications not involving adjustment of the contract sum or time.

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34
Q

True or False:

The A/E’s supplemental instruction or field order requires the owner’s and contractor’s signature.

A

False.
* sum or time is not affected

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35
Q

True or False:

A minor change is initiated by the A/E as a written instruction or order directed to the contractor and is binding on the owner and contractor.

A

True.

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36
Q

Construction Change Directives and Work Change Directives direct the contractor to make a change to the project prior to what?

A

owner and contractor agreement upon the proposed changes in contract sum or time

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37
Q

Change directives are prepared by A/E and signed by _____.

A

A/E and owner

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38
Q

Once the cost or time is agreed upon, the change directive is ____.

A

incorporated into a change order.

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39
Q

If the proposed adjustment in the contract sum or time is subject to later acceptance or rejection, the contractor ____.

A

is directed to proceed with the change regardless.

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40
Q

A Change Order authorizes what?

A

an addition, deletion, or revision to the project in consideration of an adjustment in the contract sum, time, or both.

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41
Q

A principle of most standard general conditions is that _______ _______ has authority to execute a change order.

A

owner only

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42
Q

What part of the contract gives the owner authority to execute a change order?

A

standard general conditions

43
Q

Who prepares the change order?

A

A/E

44
Q

Why does the contractor sign the change order?

A

indicate acceptance of the change

45
Q

What happens to formally authorize a change order?

A

The owner signs the document to formally authorize the change.

46
Q

It is usually beneficial for the A/E to do what regarding the procedures of creating a change order?

A

* prepare A/E’s own estimate for proposed change

* compare estimate with contractor’s proposal

* negotiate acceptable price

* issue formal change order

47
Q

What methods may determine cost increase or decrease for a change order?

A

* mutual acceptance of a stipulated sum

* unit prices from contract documents or mutually agreed upon

* contractor’s cost + fixed or % fee for overhead & profit

48
Q

What items may be considered when determining the cost of a change to the contract:

A

* contractor’s overhead & profit

* method of crediting owner for deductions

* unit prices

* confirming contractor’s incurred costs

* use of subs to perform work

* equipment rental costs

* amount of time extensions

49
Q

Both AIA document A201 and EJCDC C-700 both state that whenever both additions and credits are involved in a change that has a net additional cost, the adjustment in the contractor’s fee shall be ____.

A

based on the net change.

50
Q

Depending on which standard general conditions are used, the contractor may be entitled to _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ for changes that result in a change order credit to the contract sum.

A

keep some or all of the contractor’s overhead and profit

51
Q

What is often used as the method of computing change order costs?

A

unit prices

52
Q

If general conditions do not stipulate method of handling computations for costs of changes, then the subject should be covered in the supplemental conditions to _____.

A

to minimize disputes

53
Q

Many difficulties with change orders result from a lack of ___.

A

communication.

54
Q

It is helpful for the A/E to stipulate what to avoid difficulties with change orders?

A

modification procedures to be followed and the data required to substantiate claims for extra costs in a Division 01 section of the specs

55
Q

After a change order has been issued, what should the contractor do?

A

adjust the schedule of values and the construction progress schedule to reflect the changes

56
Q

Time changes need to be documented as prescribed in the contract, which may include documentation on how the change affects the schedule’s ____.

A

critical path

57
Q

If there is a failure to report code-related changes to “permit set”, what can happen?

A

AHJs may stop work by issuing a “stop work order”

58
Q

What is the A/E responsible for regarding separate prime contracts?

A

clarifying contractual obligations

59
Q

Information should be stated _____

A

clearly and only once

60
Q

Information in the drawings and specifications should ____.

A

compliment each other, but should not be repetitive.

61
Q

If similar information appears in both the drawings and specifications but is in conflict, _______.

A

document interpretation or modification will be needed.

62
Q

In what document are the contract documents described as “complementary” and is it stated that what is required by one is as binding as if required by all?

A

General conditions

63
Q

What is the definition of contract documents?

A

The legally enforceable requirements that become part of the contract when the agreement is executed.

64
Q

Contract documents include the following:

A

* contracting forms

* conditions of the contract

* specifications

* drawings

* addenda

* modifications

65
Q

If an item is adequately indicated in either the drawings or the specifications, then _____.

A

the item is required by the contract.

66
Q

AIA document A201 states that the contract documents are intended to include all items ____.

A

* for the contractor to complete the work

* that what is required by one is as binding as if it were required by all

* that the contractor is required to do only what is reasonably consistent with the contract documents and what is reasonably infer-able as being required to produce the intended results.

67
Q

What do RFI’s allow?

A

* Contractor and owner to inquire about an item of work insufficiently described in the contract documents and to seek an interpretation

* A/E to respond with an interpretation or minor change that does not require a change to the contract sum or time.

68
Q

If an item is not clearly indicated or reasonably inferable, the A/E may respond to the RFI with a ___.

A

proposal request for a designated solution that anticipates an adjustment of the contract sum or time.

69
Q

Why is it appropriate for the A/E to interpret the contract documents?

A

because the A/E prepared the contract documents

70
Q

Interpretations by the A/E should be issued with reasonable promptness and in writing, and should be supplemented with ___.

A

drawings and specifications

71
Q

The A/E should render interpretations based on the contract documents and ____.

A

without partiality to either the owner or the contractor.

72
Q

What document usually has provisions for the timeliness of interpreting the contract documents and making responses to the contractor’s written RFIs?

A

the conditions of the contract

73
Q

Failure for the A/E to respond to a RFI in a timely manner may ___.

A

delay the contractor and result in a claim for delay.

74
Q

How can disputes be avoided?

A

by resolving claims in a timely manner.

75
Q

The owner’s or the contractor’s disagreement with the A/E’s interpretation that the A/E does not believe will have an impact on the construction cost or time may cause ___.

A

a claim

76
Q

Who can commit the owner’s funds?

A

only the owner

77
Q

What are the duties and responsibilities of the Basic Services the A/E has for CCA?

A

* advise and consult owner

* interpret contract docs

* observe the work-review and certify payment to contractor

* review and approve submittals

* prepare modifications

* prepare updates and revisions to contractor’s initial punch list and verify completion

* inspect to determine date of substantial and final completions

78
Q

True or False:

Project representation is usually an additional service that may or may not be provided by the A/E.

A

True

79
Q

Preparation of record documents and coordination of separate work awarded by the owner, including furniture, furnishings, and equipment as well as selection and placement of art, are examples of what?

A

additional service activities that are beyond the A/E’s basic services

80
Q

Reviewing substitutions during construction is an example of what?

A

contingent additional services

81
Q

True or False:

On-site project representation is considered a continuous or extensive site representation that is in addition to the services called for in the standard owner-A/E agreement.

A

True

82
Q

EJCDC’s “resident project representative” and AIA’s “on-site project representative” are used when?

A

When an owner desires to have more extensive A/E representation on the project site.

83
Q

A change order request may be used by the contractor to ___.

A

initiate proposed changes that the contractor deems necessary.

84
Q

True or False:

The basic lines of communication to separate contractors as identified in the General Conditions is through the A/E.

A

False
* through the owner, construction manager or coordinating contractor

85
Q

True or False:

The procedures for utilizing electronic communications are established by the construction documents or agreed to at the beginning of a project.

A

True

86
Q

What items are typically covered in project closeout meetings?

A. substantial completion

B. final completion

C. warranty reviews

D. final delivery issues

A

C. warranty reviews

87
Q

Separate meetings may be required for what milestones in the process?

A

substantial completion, final completion, warranty reviews

88
Q

What document is used to modify the contract documents when cost or time are affected?

A

change order

89
Q

True or False:

Contract document modifications may be necessary when there are interpretations of the regulations by the AHJ.

A

True

90
Q

True or False:

The owner can direct the A/E to initiate a contract modification.

A

True

91
Q

Which of the following are methods available to request and make a minor contract document modification?

A. Change Order Request

B. Field Order

C. Architects Supplemental Instructions

D. All of the above.

A

B. Field Order

C. Architects Supplemental Instructions

92
Q

True or False:

The contractor can perform extra work for which payment is expected without following change procedures.

A

False

93
Q

True or False:

A proposal request is a directive to make changes to the work.

A

False

94
Q

A proposal request is:

A. sent to the contractor for evaluation of how a change will affect the project.

B. sent to the owner for evaluation.

C. an instruction to execute proposed changes.

D. a written document prepared by the owner.

A

A. sent to the contractor for evaluation of how a change will affect the project.

95
Q

True or False:

The Architect’s supplemental instructions require the owner’s signature.

A

False

96
Q

True or False:

Change directives are used in absence of an agreement between the owner and the contractor on the terms of a change order.

A

True

97
Q

True or False:

If the General Conditions do not stipulate the method for computing the cost of a change, the subject should be addressed in the Supplementary General Conditions.

A

True

98
Q

True or False:

If the owner or A/E delays the contractor through failure to act in a timely manner on items beyond the control of the contractor, the contract time may be extended by change order.

A

True

99
Q

The acronym RFI stands for:

A

Request for INTERPRETATION (NOT information!)

100
Q

True or False:

An excessive number of RFI’s may be an indication of inadequate contract documents.

A

True

101
Q

Some methods that promote dispute resolution are ____.

A

* listening carefully and communicating effectively.

* considering outside or expert help if needed.

* having a complete understanding of the rights and obligations of each party to the contract.

102
Q

The A/E’s Basic Services include:

A. Interpret Contract Documents

B. Review and Approve Submittals

C. Prepare Modifications

D. Prepare the Punch List

E. All of the above

F. A, B and C only.

A

A. Interpret Contract Documents

B. Review and Approve Submittals

C. Prepare Modifications

* contractor reviews initial punch list–not the A/E

103
Q

True or False: Separate meetings may be required for projectcloseout?

A

True

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