II - Review Exam

Question 1

What are some things to be done to avoid disputes over contractual clauses?

Answer 1

Avoid vague language
Negotiate changes
Avoid no damage for delays clauses
Avoid broad form of indemnification

Question 2

What are some causes of defective documents?

Answer 2

Design & engineering expertise
Inadequate time to prepare plans & specs
Budget constraints

Question 3

What are some effects of defective documents?

Answer 3

Errors, revisions of drawings
Addenda, RFIs
Delays, distruption & inefficiencies
Failures & injuries

Question 4

Definition of contract change:

Answer 4

Bilateral agreement b/w owner and contractor or unilateral order from owner to alter the contract docs

Question 5

What are the three contract change types?

Answer 5

Directed Change
Constructive Change
Cardinal Change

Question 6

Directed change definition:

Answer 6

Owner directs and contractor complies

Question 7

Constructive change definition:

Answer 7

Not an ordered change, such as accelerate completion when not given extension

Question 8

Cardinal change definition:

Answer 8

Modification beyond the scope of contract

Question 9

Explain Spearin Doctrine:

Answer 9

If a contractor bound to build according to plans/specs, contractor not responsible for consequences or defects

Question 10

What are potential damages the owner can claim due to contractor delays that prevents the facility to be utilized on schedule?

Answer 10

Actual
Liquidated
Consequential

Question 11

In preparation of the contract documents, the owner can reduce the potential disputes by writing clauses and preparing drawings and specification based upon the following recommendations:

Answer 11

• Avoid vague language
• Allow adequate design time
• Reasonable time requirements for claims, changes, delays
• Provide reasonable fees for design work

Question 12

When would an owner issue a “field change order” to a contractor rather than follow the formal change order procedure that requires it to be in writing with cost and time negotiated?

Answer 12

Safety considerations
To save time
For small sized changes

Question 13

What are the three C’s in relation to contractors obtaining bonds from a surety?

Answer 13

Capital
Character
Capacity

Question 14

Explain Capital from three C’s:

Answer 14

Adequate working capital & line of credit?

Question 15

Explain Character from three C’s:

Answer 15

Will contractor finish the job & walk away?

Question 16

Explain Capacity from three C’s:

Answer 16

Enough supervision, manpower, equipment?

Question 17

Other than mediation and arbitration, what are some other forms of alternative dispute resolution?

Answer 17

Negotiation
Step negotiation
Mini trial
Neutral expert
Dispute review board
advisory opinion
standing neutral

Question 18

How can contractors protect themselves or transfer the risk of doing construction?

Answer 18

Subcontract portions of job
Negotiate contract clauses w/ unreasonable risk
Add contingency to contract
Have insurance to cover indemnification requirements
Ensure contract has “differing site conditions” clause
Effective management of project

Question 19

If there’s DSC, what must a contractor do to insure recovery of costs?

Answer 19

Follow reqs for DSC
Stop working
Put owner on notice of type I&II DSC
Implement sol’n from engineers

Question 20

If you want to prove a claim for productivity loss due to disruption and delays of the workforce, what information can be utilized to prove causation and determine the damages?

Answer 20

Daliy reports
Logs
Diaries
Emails
Photos & Videos
Schedules & updates
Cost reports

Question 21

What is contingency?

Answer 21

A portion of budget left aside for unforeseen costs

Question 22

What are the three types of delays?

Answer 22

Compensable
Excusable
Non-compensable

Question 23

What are compensable delays?

Answer 23

Delayed by another party, differing site conditions, changes

Question 24

What are excusable delays?

Answer 24

Weather-related delays, strikes

Question 25

What are non-compensable delays?

Answer 25

Assumed risk, or contractor is cause of delay

Question 26

What is retainage?

Answer 26

Witholding a portion of final payment for a defined period

Question 27

What is the purpose of retainage?

Answer 27

To insure work is done on time & within desired quality

Question 28

What are the reasons why public contracts often require bid, performance, and payment bonds?

Answer 28

• Contractors often fail & become bankrupt
• Adverse economic conditions impact construction work
• GC take on too much work
• Lack of experience in type of project

Question 29

When a measured mile cannot be used to calculate productivity loss, experts often utilize published studies that include curves equations that show the relationship b/w a specific cause and the productivity loss percentage. What are the curves that were reviewed?

Answer 29

CO
Temperature
Overmanning
Overtime