Exam 4 -2

Question 1

IN CCDC-2 WHICH DOCUMENT GOVERNS IN THE CASE
OF A DISCREPANCY:
A. DRAWINGS OR SPECIFICATIONS
B. LARGER DRAWINGS OR SMALLER DRAWINGS

Answer 1

a. Specifications
b. Larger drawings
(CHOP 2.3.8. pg. 7)

Question 2

WHAT ITEMS SHOULD BE INCLUDED IN
THE PROJECT MANUAL at Tender

Answer 2

• bidding requirements
• contract forms
• contract conditions
• specifications

Question 3

WHAT IS THE ROLE OF THE ARCHITECT AND THE CLIENT DURING THE BID ANALYSIS PHASE?

Answer 3

The architect is responsible for reviewing and analyzing the bid and reporting this to the client. The client selects the successful bidder.

Question 4

DESCRIBE THE RESPONSIBILITIES OF THE CLIENT DURING THE CONTRACT ADMINISTRATION PHASE

Answer 4

Providing financing information if required.
- Making payments to the contractor.
- Authorizing changes in the work.
- Providing prompt decisions and directions.

Question 5

WHAT IS THE FUNCTION OF A CERTIFICATE OF SUBSTANTIAL PERFORMANCE?

Answer 5

a Certificate of Substantial Performance sets a date which triggers the beginning of the warranty period (as outlined in CCDC-2) and the release of holdback monies (lien funds) which have been established to provide some financial protection to sub-contractors.
- definition: “a certificate issued under the appropriate lien legislation attesting that the contract between the owner and the contractor is substantially complete”

Question 6

According to the Schedule of Client
Responsibilities for Document Six, how is
the client to communicate information or
instructions to the contractor during the
construction phase?

Answer 6

Document Six, Schedule of Client
Responsibilities, Phase 5.2
The client is to issue all instructions to the
contractor via the architect.

Question 7

As a rule of thumb, what is the cost to an
architect for coordinating engineering
consultants?

Answer 7

CHOP 2.1.10 - The Architect’s Fee
25% - 35% of the engineering consultant’s fee.
In provincial or territorial fee guidelines, percentage fees usually include the fees of structural, mechanical, and electrical engineers - the three common engineering disciplines.

For example, the AIBC Tarrif
of Fees uses percentages that factor in the three basic engineering fees plus the architect’s fee for coordinating their work.

Question 8

Assuming the construction contract
between client and contractor include
provisions for dispute resolution by
arbitration, what is the client obligated to
do under one of the general conditions of
Document Six if a dispute arises?

Answer 8

The client must notify the architect in writing 10
working days in advance of any arbitration and of any matters in dispute and the extent to which they affect the architect and, if the client has a claim against the architect that arises from the dispute, bring that claim against the architect at the time of the
arbitration.

Question 9

Besides hiring a contractor to perform the
work, what is the purpose of the bidding
process?

Answer 9

Based on the “Lowest Bid Method”, the
bidding process replaces negotiation
between owner and contractor (CCDC 23)

Question 10

Define the term holdback and how it
relates to lien legislation. How is the
holdback amount determined? What is the
minimum size of project that a holdback
can be used?

Answer 10

BC Builders Lien Act
A holdback is a percentage of the monetary amount payable under a (construction) contract, which is held as security for a certain period of time in a separate savings account. The percentage and period of time are based on
the provincial lien legislation (CHOP 2.3.10, Definitions)
The holdback amount is determined by the provincial or territorial lien legislation, typically 10% of the greater of the value of the work or material provided, or 10% of any payment made on account (BC Lien Act, Holdback,
4.1)
The minimum size is also determined by the provincial or territorial lien legislation. In BC it is $100,000 (BC Lien Act, Holdback Account, 5.8b)

Question 11

Describe the process to issuing a Change
Order.

Answer 11

The change order process is usually started by the issuance of a form known as a Proposed Change (or “Contemplated Change”).
The purpose of this form is to alert the contractor to the proposed change and to provide the contractor an opportunity to submit a quotation for additional cost (or credit) or a change in time (if any) for the proposed change. The Change Order is the final form which
indicates the agreement between the client/owner and the contractor on specific additions, deletions or revisions to the
contract documents.

Question 12

Explain ‘progressive release of holdback.’

Answer 12

BC Builders Lien Act & Builders Lien Guide
Progressive release of holdback is possible if there is a multiple holdback system in place throughout the construction chain. This system allows for all persons who make payments under a contract or subcontract in a
construction chain to retain a 10% holdback. Some former Lien Acts only required a single holdback between the owner and its general contractor. A progressive release of holdback allows for the release of holdbacks
retained to sub-contractors when their contracts are completed before the construction project itself is complete. This benefits subcontractors
who are involved earlier on in the project, as well as benefiting the owner, as it will reduce the body of potential lien claimants as the
construction project progresses.

Question 13

Explain the difference between
commissioning and take-over.

Answer 13

CHOP 2.3.12, Introduction - Commissioning
Commissioning is a separate and distinct service from take-over which may commence at the beginning of a project and may
continue until occupancy by the owner. Commissioning is an additional service often provided by an independent third party - a
commissioning agent.

Take-over, by contrast, starts when a project nears construction completion. The first step in the take-over process is certification of
substantial performance of the work.

Question 14

How long should an architect retain
project files?

Answer 14

CHOP 2.1.5, Filing and Retrieval Systems - Retaining Files Records should be maintained well beyond completion of the
project. Good records help to prepare a good defence against legal action. At a minimum, all project record should be retained until
after expiry of the limitation period for pursuing a claim for professional negligence. In BC the limitation period is 2 years for
damage or injury to property or person (see CH-30 in 2.1.9)

Question 15

How many field reviews is an architect
required to do?

Answer 15

CHOP 2.3.11, p. 4
There is no minimum or maximum legal
requirement. The architect should
schedule site visits at intervals appropriate
to the construction. The frequency and
timing is left to the judgement of the
architect.

Question 16

How much liability insurance is an
architect in Canada required to have?

Answer 16

AIBC Bulletin 66, AIBC Bylaw 16.3 & Architect’s Act
Depends on the province; in BC Architects are not required to have any liability insurance according to AIBC Bylaw 16.2d but Bulletin
66 requires that (before entering into an agreement to provide architectural services) a Certificate of Practice holder must notify
the client in writing whether or not professional liability insurance is held and under what terms.
Section 24.2h in the Architect’s Act states that an institute’s bylaws may or may not include requirements for liability insurance; in BC,
there is no requirement.

Question 17

If a client engages a consultant directly,
such as a geotechnical engineer or a land
surveyor, what should the architect do to
minimize their liability?

Answer 17

Guide to Document Six, A18, Example 2
The architect should obtain from the client
proof of professional liability insurance
from all consultants that the client
engages directly .

Question 18

If a project results in construction, the
contract between arhcitect and client
(Document 6) can be terminated in what 4
ways?

Answer 18

RAIC Document 6, GC8.7
1. Letter of termination from the client.
2. The contract can be terminated 7 days
after the abandonment of the project.
3. 1 year passes from the date of certification
of substantial performance of the work.
4. 1 year from the date of total completion

Question 19

If a sub-consultant (engineer) is hired by
the architect instead of by the client, does
this make the architect liable for that
consultant’s work?

Answer 19

Document Six, GC 7.5
No. The client agrees that the architect
shall not be liable to the client, in contract
or in tort, for the acts, omissions or errors
of such consultants whether retained by
the architect or the client.

Question 20

If an architect hires an independent
contractor (another architectural firm,
etc.) to prepare documents (drawings,
reports, etc.) and Document Nine is the
contract used between the two parties,
who owns the copyright on those
materials?

Answer 20

Guide to Document Six, GC 5
The architect owns copyright. Document Nine
binds the consultant (independent contractor) to all the terms and conditions of the lead contract (Document 6), including the statement that the work performed on the architect’s behalf is owned by the architect.

Question 21

If owner and contractor agree that
hazardous materials on site were not
brought on to the place of work by the
contractor, what measures should be
taken?

Answer 21

Contract Price and Contract Time shall be
increased an appropriate amount. (CCDC
2, GC 9.2.7.)

Question 22

If the client lacks the financial ability or
authority to proceed, how much notice
must be given to suspend the architect’s
services?

Answer 22

The client must give seven (7) days written
notice to the architect that the client elects
to suspend the architect’s services. (RAIC
Document 6, GC8)

Question 23

In the Construction Procurement phase, which of the following services
are considered basic, which are additional?
1. Pre-Qualification of Bidders;
2. assist and advise the client in obtaining bids or negotiated
5. analyze bids or negotiated proposals;
6. assist and advise in awarding and preparing contracts for
construction;
7. review and obtain client approval before proceeding to next phase;
8. Preparation of Construction Contract(s)

Answer 23

RAIC Document 6, Schedule of Architect’s
Services
Basic services: 2, 5-8
Additional services: 1,3,8

Question 24

In the Construction/Contract Administration phase, which of the following services are considered basic,
which are additional?
1. forward all instructions from the client to the contractor;
2. carry out and coordinate as applicable the General Review / Field Review of the Work;
3. keep the client informed of the progress and quality of the Work, and report to the client defects and deficiencies in the Work;
4. Full time on-site Project Representation;
5. require special inspection or testing of work, whether or not such work has been fabricated, installed or completed;
6. Review of contractor’s As-built Drawings;
7. prepare change orders and change directives for the client’s approval;
8. furnish supplemental instructions to the contractor;
9. receive from the contractor and forward to the client for the client’s review the written warranties and related documents;
10. prior to the end of the period of one year following the date of Substantial Performance of the Work, review any defects or deficiencies which have been observed and reported during that period;
11. issue certificates for payment;
12. issue a certificate of final payment;

Answer 24

RAIC Document 6, Schedule of Architect’s
Services
Basic services: 1-3, 5, 7-12
Additional services: 4,6

Question 25

Name four methods of compensation for
architectural services.

Answer 25

CHOP 2.1.10, The Architect’s Fee - Methods of
Compensation
Compensation is usually by one of the following
methods:
* Percentage (of the construction cost)
* Time basis (per diem or hourly rates)
* Lump sum (or fixed fee)
* Any combination of the above

Question 26

Name the following contract form: CCDC
2

Answer 26

CCDC 2 - Stipulated Price Contract
Standard prime contract between Owner and prime Contractor to perform the required work for a single, pre-determined fixed price or lump sum, regardless of the Contractor’s actual costs

Question 27

Name the following contract form: CCDC
3

Answer 27

CCDC 3 - Cost Plus Contract
Standard prime contract between Owner and prime Contractor to perform the required work on an actual cost basis, plus a percentage or fixed fee which is applied to actual costs.

Question 28

Name the following contract form: CCDC
4

Answer 28

CCDC 4 - Unit Price Contract
Standard prime contract between Owner and prime Contractor to perform the required work for a predetermined, fixed amount for each specified unit of work performed. The total price is determined by multiplying the unit price by the actual, measured quantity of work performed for each specified unit.

Question 29

Name the following contract form: CCDC
14

Answer 29

CCDC 14 - Design-Build Stipulated Price Contract
Standard prime contract between Owner and Design-Builder where the Design-Builder performs Design Services and Construction under one agreement, for a single, pre-determined stipulated or fixed price.

Question 30

Name the following contract form: CCDC
15

Answer 30

CCDC 15 - Design Services Contract between Design- Builder and Consultant
Standard contract between Design-Builder and
Consultant to perform the design services required under a design-build contract between Owner and Design-Builder.

Question 31

Name the following contract forms: CCDC
5A & 5B

Answer 31

CCDC 5A - Construction Management Contract - For Services Standard contract between Owner and Construction Manager for which the Work is to be performed by Trade Contractors. The Construction Manager acts as a limited agent of the Owner providing advisory services and administering and overseeing the contracts between the Owner and Trade Contractors.

CCDC 5B - Construction Management Contract - For Services and Construction Standard contract between Owner and Construction Manager to provide advisory services during the pre-construction phase and perform the required Work during the construction phase. At the
outset, the Work is performed on an actual-cost basis, plus a percentage or fixed fee which is
applied to actual costs. The parties may agree to exercise the following options: Guaranteed
Maximum Price (GMP), GMP Plus Percentage Cost Savings, and conversion into a Stipulated
Price Contract.

Question 32

Name the following contract forms: CCDC
9A & 9B

Answer 32

CCDC 9A - Statutory Declaration of Progress Payment Distribution by Contractor

A sworn statement for use by the Contractor as a condition of receiving payment for either the second and subsequent applications for progress payment or the release of holdback funds.

CCDC 9B - Statutory Declaration of Progress Payment Distribution by Subcontractor
A sworn statement for use by the Subcontractor as a condition of receiving
payment for either the second and subsequent applications for progress
payment or the release of holdback funds.

Question 33

Under Document Nine, if the consultant
fails to provide services properly or fails to
comply with the requirement of this
contract, the architect may terminate this
contract after how long?

Answer 33

Document Nine, General Conditions 3.2.2
Seven days.

Question 34

Under what circumstances can a bid be
deemed non-compliant?

Answer 34

The envelope is not sealed
Bidder not reviewed all the addenda
Not accompanied by bid bond or bid security
Not properly signed or sealed
Surety bonding requirements not submitted

Question 35

Under what circumstances can the owner
award a contract to someone other than
the lowest bidder assuming all bids are
compliant?

Answer 35

It is contrary to industry “best practice” to award a contract to someone other than the lowest bidder. Standard “privilege” clauses that state that the lowest or any bid will not necessarily be accepted are not advised and may not hold up to a legal challenge even though the current law of competitive bidding does not necessarily obligate the Owner to award to the
lowest compliant bidder. Under what conditions can the architect suspend services?

Question 36

What are 5 implied duties of the owner to
treat all bidders fairly and equally in a
bidding process?

Answer 36

1. All bidders must receive the same information.
2. All information relevant to the bid must be
   disclosed.
3. The owner may not change any of the terms of the bid after bid closing.
4. Any preferences must be disclosed (I.E. Local
   Builders preferred).
5. Only compliant bids may be considered.
   (CCDC 23)

Question 37

What are privilege clauses and why are
they not recommended in bidding
contracts?

Answer 37

The use of privilege clauses is no longer appropriate in bidding documents because owners are expected not to provide an unfair
advantage to one bidder. A typical privilege clause would read as follows:
“The lowest or any tender shall not necessarily be accepted.”
Architects should review Section 2.0, Principles of the Law of Competitive Bidding of CCDC 23, A Guide to Calling Bids and
Awarding Construction Contracts.

Question 38

What are Supplemental Instructions?

Answer 38

CHOP 2.3.10, Documentation
Instructions issued by the architect (sometimes with the assistance of consultants) to clarify or interpret the contract documents. Can also be issued to provide direction to the contractor concerning a problem which may have resulted during the course of construction.

Question 39

What are the five main methods of
construction project delivery?

Answer 39

1. Stipulated Price Contract (Design-Bid-Build)
2. Construction Management
3. Design-Build
4. Public Private Partnership (P3)
5. Integrated project delivery

Question 40

What are the six main types of
architectural practice ownership?

Answer 40

1. Sole Proprietorships
   The most common architectural practice in Canada
2. Partnerships
   Comprised of two or more partners. Most provincial associations impose restrictions on whom an architect may form a
   partnership with (see “Comparison of Provincial Requirements regarding Partnerships” in Chapter 1.1.5)
3. Corporations
   A legal, collective entity authorized by statute to act as an individual business unit. Most provincial and territorial
   associations of architects have regulations which restrict the share ownership and the qualifications of directors of
   architectural corporations.
4. Partnership of Corporations
   An architectural practice structured to preserve the individual identity of two or more corporations. For example, you can
   bring together complementary but differing interests and ownership - one corporation may focus on architectural services,
   while the other is a corporation providing support through drafting services.
5. Joint Ventures
   Joint ventures are usually formed to create one architectural entity for the purpose of a single specific project. Frequently, a
   joint venture is set up to provide complementary services for a particular project - for example, a practice specializing in
   hospital work may need to team up with a firm located near the site of the project to provide contract administration

Question 41

What are the three locations the architect
may be required to make and record
observations as part of a field review?

Answer 41

CHOP 2.3.11, Conducting a Field Review -
Field Locations
* the construction site;
* the “extended” site;
* the plant or location of off-site
fabrication.

Question 42

What are the three types of occupancy that
can be granted near project completion?

Answer 42

1. Unconditional Occupancy - everything has been completed; no outstanding issues or
   deficiencies
2. Conditional Occupancy - occurs when a building or portion thereof, may be considered safe but is incomplete with respect to the scope of work shown on the construction documents submitted for the building permit.
3. Phased (or Partial) Occupancy - occurs when a discrete, or stand-alone, portion of a building is
   complete with respect to the scope of work shown (for that portion) on the construction
   documents submitted for the building permit, or with respect to the permit conditions or
   substantial building code compliance.

Question 43

What are the two broad categories of
things an architect should review when
performing field review services?

Answer 43

1. Matters required by the Building Code:
   These services are a regulatory requirement and they must be performed.
2. Contractual Matters or “good practice”:
   These are matters related to workmanship,
   appearance, accuracy, etc. and they go beyond the review required for code-related matters.

Question 44

What are the two main filing systems
every architectural practice should
maintain?

Answer 44

An architectural practice will require at least two
type of filing systems:
1. Filing of information relating to the
management of the practice
2. Filing of information relating to the
management of the project

Question 45

What do the bidding documents consist
of? (6 items)

Answer 45

CHOP 2.3.8, p.1
* Bidding Requirements
* Contract Forms
* Contract Conditions
* Specifications
* Drawings
* Addendum

Question 46

What is a Certificate of Substantial
Performance?

Answer 46

A certificate issued under the appropriate lien
legislation attesting that the contract between the owner and the contractor is substantially complete.

Question 47

What is a Change Directive?

Answer 47

CHOP 2.3.10, Documentation
If the contractor’s price cannot quickly be agreed to, the architect may issue a Change Directive if the proposed changes are within the general scope of work described in the contract documents. A Change Directive avoids delays and permits work to proceed
while negotiations continue over the price of the
proposed change.

Question 48

What is a Change Order

Answer 48

Change Orders cover adjustments to the scope of work that require a change or changes to the contract price or contract time. The Change Order is the final form which indicates the agreement between the
client/owner and the contractor on specific additions, deletions or revisions to the contract documents.

Question 49

What is a lien?

Answer 49

A legal claim on real property to satisfy a
debt owned to the lien claimant by the
property owner. This claim can carry the
right to sell the property upon default.

Question 50

What is a Schedule of Values?

Answer 50

A schedule submitted by the contractor at the start of a project, typically sub-divided by divisions, major sub-trades or quantifiable
elements related to the construction. The work performed by the general contractor’s own forces, as well as the costs for
mobilization, supervision, overhead, and profit, are usually indicated. The value of sub-trade contracts and sub-trade breakdowns assists in determining the appropriate Certificates for
Payment and the progressive release of holdback monies for lien
purposes.

Question 51

What is a Statutory Holdback?

Answer 51

A percentage of the monetary amount
payable under a (construction) contract,
which is held as security for a certain
period of time. The percentage and period
of time are based on the provincial lien
legislation.

Question 52

What is Substantial Performance of the
work?

Answer 52

Substantial Performance of the Work shall
have been reached when the work is ready
for use or is being used for the purpose
intended, and is so certified by the
consultant.

Question 53

What is the Final Certificate for Payment
and when is it issued?

Answer 53

Once the architect is satisfied that all deficiencies have been corrected and that all work under the contract has been completed, the contractor can apply for payment for the outstanding amount so that
the architect can issue the Final Certificate for
Payment.

Question 54

What is the formula used by the payment
certifier to determine if a certificate of
completion or substantial performance
can be issued?

Answer 54

This depends on provincial or territorial lien legislation. In BC, in order to qualify for substantial performance, the extent of work
remaining must be evaluated by the payment certifier (usually the architect) as being capable of completion or correction at a cost of
not more than 3% of the first $500,000 of the contract plus 2% of its second $500,000 plus 1% of the balance. As well, for purposes
of the statute, an improvement is completed if it or a substantial part of it is ready for use or is being used for the purpose intended.
(Lien Act, AIBC)

Question 55

What is the purpose of field reviews?

Answer 55

Field reviews are based on a systematic, random sampling of the work. The architect’s duty during field review is to carry out sufficient periodic site visits at appropriate intervals during the various stages of construction to determine if the work is in general conformity with the contract documents. In addition, the architect reports on the progress of
the work and observations made on site. In most agreements, such as RAIC Document Six, the architect is not required to make exhaustive
inspections or continuous on-site review; nor is the architect responsible for the construction methods or procedures or for construction safety.

Question 56

What is the purpose of progressive release
of holdbacks?

Answer 56

This allows the release of holdbacks to
subcontractors or suppliers in advance of
the substantial performance of the work.

Question 57

What role do sub-consultants play in
performing field reviews and determining
percentage of work completed?

Answer 57

The architect is usually the prime or “managing and coordinating” consultant, and is responsible for coordinating the field functions
of the engineering and other consultants. All consultants should be required to submit field review reports in a format similar to that
used by the architect, and the architect will distribute the reports as required. In addition, the architect relies on the consultants to
determine the value or percentage of work completed by each respective discipline in order to prepare Certificates for Payment.

Question 58

What should an architect look for when
they review a bid submitted by a general
contractor? (8 things)

Answer 58

CHOP 2.3.9, Analysis of Bids
* the completeness of each bid;
* the bid amount and the amount of valueadded taxes such as GST,
HST or QST;
* the proposed construction start date and schedule;
* inclusion of all addenda;
* sub-contractors listed, including follow-up of the references;
* manufacturers and suppliers listed with follow-up as required;
* alternatives;
* unit prices.

Question 59

What should the architect do if only one
bid is submitted during a call for bids?

Answer 59

CHOP 2.3.9, Bid Period and Bid Closing
If only one bid is submitted, the architect
should advise the client to consider
returning the bid unopened, or negotiating
with the sole bidder.

Question 60

When calculating a percentage-based fee,
what should the architect use and what
level of service does this fee include?

Answer 60

Each provincial or territorial association of architects provides a schedule or tarrif of fees to be used by their member architects. In
provincial or territorial fee guidelines, percentage fees usually include an outline of what they consider to be basic services plus
the fees of structural, mechanical, and electrical engineers - the three common engineering disciplines.