IDPX 6 - Contract Administration

Question 1

What is a performance bond?

Answer 1

This is a statement by a surety company that obligates the surety company to complete construction of hte owner’s project if the contractor defaults.

Question 2

What is the purpose of a labor and material payment bond?

Answer 2

This is used to guarantee payment for labor and materials on a project if the contractor defaults or otherwise fails to make payments.

Question 3

At an owner’s request, a contractor may include alternates in teh bid documents. What is an alternate?

Answer 3

This is a construction item that could, at the owner’s discretion, be substituted for a similar item in the base bid to reduce project costs.

Question 4

What is a unit price?

Answer 4

This is a set cost for providing a portion of the construction work that is based on an individual quantity, such as per unit or per square foot.

Question 5

What is an allowance in interior design?

Question 6

What are four types of written modifications that can be made after the execution of a contract?

Answer 6

Four examples of this are

• a change order
• an amendment to the contract
• a written order for minor changes in the work
• a written interpretation by the interior designer

Question 7

What is retainage (also called holdback in Canada)?

Answer 7

This is a percentage (usually 10%) of each payment to a contractor or vendor that is withheld by the owner for th epurpose of protecting the owner against incomplete or defective work.

Question 8

What form does a vendor or contractor use to request a payment from the owner?

Answer 8

An application for payment form is used for this.

Question 9

In regard to interior design, what is substantial completion?

Answer 9

In a construction project, this is the stage when the work, or a designated portion of it, is sufficiently complete according to the contract documents that the owner can occupy or sue the site, even though a few minor items may yet need to be finished or corrected.

Question 10

Who has the authority to stop construction?

Answer 10

On a construction project, only the owner can authorize this action.

Question 11

What is a change order?

Answer 11

This is a form used to authorize a change in contract time, contract cost, or both, made after the execution of the contract. It is generally prepared by the interior designer and must be signed by the designer, contractor, and owner.

Question 12

What are shop drawings?

Answer 12

These are detailed drawings, diagrams, and other data, prepare by a subcontractor or supplier, that show exactly how the provider intends to supply and install work to meet the contract requirements. They are submitted to the contractor and interior designer for approval.

Question 13

What is the basic process for getting approval on submittals from subcontractors or suppliers?

Answer 13

• First, the submittal is sent to the general contractor, who reviews it and sends it to the interior designer for approval.
• If the submittal also requries a review by one of the designer’s consultants, it is sent ot the consultant for review.
• The submittal is then sent back to the contractor, who returns it to the party who originally made the submittal.

Question 14

What are the interior designer’s obligations during construction observation?

Answer 14

During this phase of the work, the interior designer msut

• become generally familiar with the progress and quality of the work
• keep the owner informed about the progress of the work
• endeavor to gaurd the owner against defects in the work
• determine, in general, if the work is progressing in such a way that it is in accordance with the contract documents

Question 15

Who has the authority to reject work that does not conform ot the contract documents?

Answer 15

The interior designer can reject work that does not conform to these.

Question 16

What is a claim in interior design?

Answer 16

This is a demand or assertion by the contractor or owner seeking payment of money, an extension of time, or an adjustment or interpretation of the contract terms.

Question 17

What are two common types of construction claims?

Answer 17

Two common types are

• claims for additional time
• claims for concealed or unknown conditions

Question 18

What are six things the interior designer is NOT responsible for during contract administration?

Answer 18

During this phase of a project, the designer is NOT responsible for

• the means, methods or techniques of construction
• safety on the job site
• fabrication, shipment, or installation of construction elements or furnishings
• acts or omissiosn of contractos, subcontractors, or suppliers
• stopping the works if there are problems
• receipt, inspection, ad acceptance of furniture or fixtures

Question 19

What is a construction change directive?

Answer 19

This is a written order, prepared by the interior designer, directing the contractor to make a chagne before the owner and contractor have agreed onthe amount of adjustments in cost, time or both.

Question 20

What are six common reasons why a designer might withhold payment to a contractor?

Answer 20

This action might be taken because

• the work is defective
• the contractor failed to pay the subcontractors
• the contractor has damaged the property of the owner or another contractor
• third-party claims have been filed
• evidence existing that the work will not be completed on time
• the contractor failed to conform to the contract documents

Question 21

What is a punch list (known in Canada as a deficiency list)?

Answer 21

This is a list of items made by the interior designer during hte final inspection. It includes anything that needs to be completed or corrected by the contractor if not in accordance with teh contract documents.

Question 22

What is a purchase order?

Answer 22

This is a document sent to a manufacturer or vendor that lists all the items to be purchased along with the prices, catalog numbers, and shipping information.

Question 23

What is required from a manufacturer after it receives a purchase order from the designer?

Answer 23

A confirmation or acknowledgement is required from the manufacturer after receiving this from the designer.

Question 24

What is a packing list?

Answer 24

This is a detailed list of item descriptions and quantities in a shipment that is attached to one of the items shipped.

Question 25

What is a drop ship order?

Answer 25

This is a request to ship furniture or other goods to an address different from the address of hte company placing the order.

Question 26

What is a bill of lading?

Answer 26

This is a document that lists the contents of a shipment from a manufacturer or vendor.

Question 27

What is a freight bill?

Answer 27

This is the invoice from a shipping company?

Question 28

What is a sales agreement?

Answer 28

This is a document signed by the client that obligates the client to pay for the various items listed in the agreement.

Question 29

If all bids on a project exceed the owner’s budget, what four options are available to the owner?

Answer 29

If this happens, the owner can

• rebid (or renegotiate) the contract
• authorize an increase in construction costs
• work with the designer to reduce the scope of a proejct
• abandon the project

Question 30

What are seven of the items the contractor must submit to the owner during project closeout?

Answer 30

During this phase of a project, the contractor must give the owner

• the bonds
• all warranties
• any extra stock of materials
• a set of record drawings
• teh certificate of occupancy
• documentation required by the final application for payment
• maintenance contracts and equipment operating instructions

Question 31

What are the five basic activities of project management?

Answer 31

The task involves five basic activities.

• planning
• monitoring
• coordinating and directing
• documenting
• closing out a project

Question 32

What are the two common ways to notify prospective contractors that a project is being bid?

Answer 32

The two common ways to accomplish this are to

• advertise for bids in local newpapers and trade journals
• send invitation to bid forms to prospective bidders

Question 33

What is an addendum?

Answer 33

This is a written or graphic document issued by the interior designer before the execution of the contract that modifies or interprets the bididng documents by additions, deletions, clarifications, or corrections.

Question 34

Under what conditions can a contractor propose substitutions during bidding?

Answer 34

Bidders must request written approval of these at least 10 days before bid opening. The request must include documentation showing that the proposal meets the requirements of the contract document.

Question 35

What seven types of information are typically included in the instructions to bidder?

Answer 35

This document typically gives information about

• procedures for submitting bids
• where to obtain bidding documents
• procedures for opening bids
• submittal required with the bids
• bidders’ representation statements
• required bonds
• procedures for issuing addenda and other modifications

Question 36

What is bid security?

Answer 36

This is a certified check, cashier’s check, or bid bond requested by the owner to ensure that teh successful bidder will fulfill the contract.