II - Review Exam Flashcards
What are some things to be done to avoid disputes over contractual clauses?
Avoid vague language
Negotiate changes
Avoid no damage for delays clauses
Avoid broad form of indemnification
What are some causes of defective documents?
Design & engineering expertise
Inadequate time to prepare plans & specs
Budget constraints
What are some effects of defective documents?
Errors, revisions of drawings
Addenda, RFIs
Delays, distruption & inefficiencies
Failures & injuries
Definition of contract change:
Bilateral agreement b/w owner and contractor or unilateral order from owner to alter the contract docs
What are the three contract change types?
Directed Change
Constructive Change
Cardinal Change
Directed change definition:
Owner directs and contractor complies
Constructive change definition:
Not an ordered change, such as accelerate completion when not given extension
Cardinal change definition:
Modification beyond the scope of contract
Explain Spearin Doctrine:
If a contractor bound to build according to plans/specs, contractor not responsible for consequences or defects
What are potential damages the owner can claim due to contractor delays that prevents the facility to be utilized on schedule?
Actual
Liquidated
Consequential
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:
- Avoid vague language
- Allow adequate design time
- Reasonable time requirements for claims, changes, delays
- Provide reasonable fees for design work
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?
Safety considerations
To save time
For small sized changes
What are the three C’s in relation to contractors obtaining bonds from a surety?
Capital
Character
Capacity
Explain Capital from three C’s:
Adequate working capital & line of credit?
Explain Character from three C’s:
Will contractor finish the job & walk away?
Explain Capacity from three C’s:
Enough supervision, manpower, equipment?
Other than mediation and arbitration, what are some other forms of alternative dispute resolution?
Negotiation
Step negotiation
Mini trial
Neutral expert
Dispute review board
advisory opinion
standing neutral
How can contractors protect themselves or transfer the risk of doing construction?
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
If there’s DSC, what must a contractor do to insure recovery of costs?
Follow reqs for DSC
Stop working
Put owner on notice of type I&II DSC
Implement sol’n from engineers
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?
Daliy reports
Logs
Diaries
Emails
Photos & Videos
Schedules & updates
Cost reports
What is contingency?
A portion of budget left aside for unforeseen costs
What are the three types of delays?
Compensable
Excusable
Non-compensable
What are compensable delays?
Delayed by another party, differing site conditions, changes
What are excusable delays?
Weather-related delays, strikes
What are non-compensable delays?
Assumed risk, or contractor is cause of delay
What is retainage?
Witholding a portion of final payment for a defined period
What is the purpose of retainage?
To insure work is done on time & within desired quality
What are the reasons why public contracts often require bid, performance, and payment bonds?
- Contractors often fail & become bankrupt
- Adverse economic conditions impact construction work
- GC take on too much work
- Lack of experience in type of project
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?
CO
Temperature
Overmanning
Overtime
