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LARE Section 1 > Hinze - Chapters 1 - 4 > Flashcards

Hinze - Chapters 1 - 4 Flashcards

1
Q

What is the role of the owner, designer, and contractor and do they need to be three separate parties?

A

Owner: determines when a particular project is needed
Designer: create guiding documents for the contractor
Contractor: builds the project

Do not need to be three separate parties

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2
Q

What are the 5 types of contracting procedures in the construction industry and do pure forms of each exist?

A

Often modified by owners, pure forms do exist for each type

General Contract Method, Separate Contracts Method, Self Performance Method, Design-Build Method, Professional Construction Management Method and, Construction Management at Risk

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3
Q

What is a General Contract Method

A

Often referred to as design-bid-build.

The contract between an owner (represented by the design firm) and a contractor.

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4
Q

Which method gives the owner a confirmed cost (rather than an estimate)?

A

General Contract Method

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5
Q

What are the main benefits of a General Contract method?

A

Owner gets a confirmed cost, rather than an estimate.

GC provides construction management skills which the owner may not have.

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6
Q

What are some downsides to the General Contract method?

A

Extends project timelines

Tight bids and small profit margins

Creates bad relationships (due to the bidding and award structure)

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7
Q

What is a Separate Contracts Method

A

Also known as multiple prime contracts method. The owner acts as GC and has separate contracts with each subcontracter

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8
Q

When is a Separate Contracts Method adviseable

A

Separate contract method is advisable if the personale are available and the work is restricted to a few types of construction

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9
Q

What are the potential downsides to a Separate Contracts Method

A

Delays can occur if the permit is not acquired for projects in the private sector, most places will require a GC license

The owner assumes more risk.

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10
Q

What is the Self-Performance Method and when is it appropriate?

A

In a Self-Performance Method the owner may self-perform (complete in-house) work, also known as force account work.

Appropriate when project is small in scope, simple in character and ongoing in nature, common to maintenance works.

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11
Q

What is the Design-Build Method?

A

Also known as design-construct or turnkey construction. The owner lets a single contract for the design and the construction of the project

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12
Q

When is the Design-Build Method advisable?

A

Advisable when projects are large and technically complex

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13
Q

What is the Professional Construction Management Method?

A

Owner hires a firm to provide construction management (CM) services on their behalf

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14
Q

What is the Construction Management at Risk?

A

Not setting up the CM as an agent of the owner (as with Profession Construction Management Method) the CM is an independent contractor and so is responsible to complete the project by the established completion date and within the budget

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15
Q

What conditions must exist for the Separate Contracts Method to be viable

A

owner must have necessary in-house capabilities to manage the project i.e. a competent construction manager or construction engineer to administer the contracts

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16
Q

What are the criticisms of self-performance or force account work?

A

Unfair in the bidding process, not held to the same wage laws that construction companies are held to.

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17
Q

What type of construction is well suited for force account work

A

Force account (or self-performance method) is particularly appropriate for small scope projects that are simple and ongoing in nature

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18
Q

What type of project might be ideally suited for the design-build or design-construct method?

A

large industrial-type projects

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19
Q

What are the advantages to using the professional construction management approach?

A

provides flexibility to change the project as the design evolves

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20
Q

Which types of contractual arrangements lend themselves to fast-tracking?

A

find the answer

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21
Q

Describe how different contracting approaches differ in terms of allocating risk.

A

find the answer

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22
Q

What is the definition of a contract?

A

An agreement between two parties enforceable by law

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23
Q

When is a contract fully executed?

A

Executed when both parties are in agreement that the contract terms have been fully performed. A construction contract is fully executed when the contractor has satisfactorily completed the work in accordance with the construction documents

24
Q

What are the main differences between a bilateral and a unilateral contract? Which is more common in construction contracts?

A

Bilateral - consists of an agreement created by mutual promises made by the parties (the promiser and the promisee)
Unilateral - Only one party makes a promise and the other performs/exchanges something in return.

25
Q

What are the main differences between an expressed and an implied contract?

A

Expressed: Can be verbal or written, most construction contracts are expressed (most contracts in general should be).

Implied: Terms are not clearly stated, established through inference or deduction

26
Q

A party can be comprised of several individuals engaged in one of the following arrangement, joint arrangement, several, or combined joint and several. What are the main differences?

A

Joint arrangement: Individuals are joined in a legal or liability sense as one party. If one individual is released then all are released, similarly, if one individual is sued they all are able to be sued

Several, separate, or severed: Each individual has a liability that is separate from all the other individuals

Combined joint and several: If individuals defaulted then the suit would be either joint or several

27
Q

Consideration

A

Consideration may consist of any benefit received by the promisor or any detriment incurred by the party to whom the promise is made
Ex: deprived of promised profits
Ex: completion of a requested expedited deadline

28
Q

Estoppel

A

Promissory estoppel implies that there is to be the delivery of a promise due to an action

29
Q

Contract Intent

A

the presumption of the desired outcome, not clearly embodied in the contract

30
Q

What general rule is followed when one party to a contract wants to cancel the contract, even though the second party has already performed a portion of or all the obligations under the contract?

A

Design-Build and Self Performance

31
Q

Give a construction example of a unilateral contract

A

Only one party makes a promise and the other performs/exchanges something in return.

32
Q

Give a construction example of a bilateral contract

A

Consists of an agreement created by mutual promises made by the parties (the promiser and the promisee)

33
Q

Discuss bilateral and unilateral contracts in relation to express and implied contracts

A

find the answer

34
Q

Give an example of an implied contract in which estoppel will prevent one party from canceling the contract

A

find the answer

35
Q

Give an example of a practice in bidding that may be contrary to public policy, and thus may constitute invalid grounds to enforce a contract

A

find the answer

36
Q

Discuss the significance of a bid being an offer rather than an acceptance

A

Offer made by the offerer is revocable until the offeree accepts. Must have both an offer AND an acceptance for a contract

37
Q

In order to be valid, a contract must have what 5 elements?

A
  1. Offer and Acceptance
  2. Meeting of Minds
  3. Consideration
  4. Lawful Subject Matter
  5. Competent Parties
38
Q

Tax Lein

A

The party filing the lien has the right to the property if the lien is not satisfied.

39
Q

Eminent Domain

A

The gov’t can take possession of a privately owned property for public use

40
Q

Right-of-way

A

Owned by either public or private firms

Series of connected parcels used for the operation of a highway or public utility

41
Q

Easement

A

Grants a specific, limited, right to use by non-owners

If work in the easement devalues the property then damages can be sought

42
Q

Zoning

A

Division of property into land use classifications

43
Q

What aspects of building can zoning restrict?

A

minimum lot size, minmum building distance from boundary line, types of buildings, number of stories, size of billboards, percentage of land for building footprint, density of population, use of land

44
Q

Mechanics Lein

A

The right created by law that permits workers to place a lien on the land if they are not compensated for improvements

45
Q

What components must exist to apply for a lien?

A

A written contract, work must be completed, ‘notice to owner’ or ‘notice of intent to lien’ must have been issued to the owner within a timely manner

46
Q

What may happen to a property if the lien is not satisfied?

A

Foreclosure

47
Q

What is often used in luei of lien rights on public works projects?

A

Stop notice can be delivered to the owner to indicate that the GC had debts to subs or suppliers

48
Q

Major critiques of mechanics liens for the worker?

A
  • complex
  • severe means of collection
  • no guarantee of payment for the worker
49
Q

Major critiques of mechanics liens for the owner?

A

may end up paying twice

50
Q

What is the relationship between eminent domain and condemnation?

A

Eminent domain is the right of the government to seize property and transfer from private to public ownership. Condemnation is the legal process utilized by the government to seize property via eminent domain.

Eminent domain is the legal right, condemnation is the action/method

51
Q

What is the essential difference between prescription and dedication?

A

Prescription is the hostile acquisition of a private property to become public.

Dedication is a mutual agreement that is granted by the owner where the land title is not transfered.

52
Q

Describe the major difference between a right-of-way and an easement

A

Both are property rights which grants others a right to use your property. Easements are for general property rights by others while a right-of-way is for a specific property right.

53
Q

Give examples of zoning restrictions that a municipality might enact to control or guide its growth and development.

A

answer?

54
Q

Discuss what may happen to a municipality that does not enact any zoning restrictions

A

answer?

55
Q

Does an owner’s agent guarantee the construction costs time, or quality of a completed facility?

A

no

LARE Section 1 (7 decks)

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