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Contracts, Liability, and Ethics > II - Review Exam > Flashcards

II - Review Exam Flashcards

1
Q

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

A

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

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2
Q

What are some causes of defective documents?

A

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

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3
Q

What are some effects of defective documents?

A

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

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4
Q

Definition of contract change:

A

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

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5
Q

What are the three contract change types?

A

Directed Change
Constructive Change
Cardinal Change

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6
Q

Directed change definition:

A

Owner directs and contractor complies

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7
Q

Constructive change definition:

A

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

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8
Q

Cardinal change definition:

A

Modification beyond the scope of contract

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9
Q

Explain Spearin Doctrine:

A

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

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10
Q

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

A

Actual
Liquidated
Consequential

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11
Q

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:

A
  • Avoid vague language
  • Allow adequate design time
  • Reasonable time requirements for claims, changes, delays
  • Provide reasonable fees for design work
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12
Q

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?

A

Safety considerations
To save time
For small sized changes

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13
Q

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

A

Capital
Character
Capacity

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14
Q

Explain Capital from three C’s:

A

Adequate working capital & line of credit?

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15
Q

Explain Character from three C’s:

A

Will contractor finish the job & walk away?

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16
Q

Explain Capacity from three C’s:

A

Enough supervision, manpower, equipment?

17
Q

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

A

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

18
Q

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

A

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

19
Q

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

A

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

20
Q

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?

A

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

21
Q

What is contingency?

A

A portion of budget left aside for unforeseen costs

22
Q

What are the three types of delays?

A

Compensable
Excusable
Non-compensable

23
Q

What are compensable delays?

A

Delayed by another party, differing site conditions, changes

24
Q

What are excusable delays?

A

Weather-related delays, strikes

25
Q

What are non-compensable delays?

A

Assumed risk, or contractor is cause of delay

26
Q

What is retainage?

A

Witholding a portion of final payment for a defined period

27
Q

What is the purpose of retainage?

A

To insure work is done on time & within desired quality

28
Q

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

A
  • Contractors often fail & become bankrupt
  • Adverse economic conditions impact construction work
  • GC take on too much work
  • Lack of experience in type of project
29
Q

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?

A

CO
Temperature
Overmanning
Overtime

Contracts, Liability, and Ethics (9 decks)

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