Key Terms: Contracting Flashcards
Assignability provision
This provision states that neither party may assign its obligations under the contract to any
other person without the express written consent of the other party.
Bid request
Also known as request for proposal (RFP). An announcement that an organization is interested in
receiving proposals for a particular project
Bid specifications
Detailed instructions about the products or services requested through the bid request. All
contract terms should be included in the bid request
Contract
A contract is an agreement between two or more parties—enforceable by law—by which each party
promises to do, or not to do, something
Default
Failure of either party to fulfill the terms of the contract
Entire obligation provision
This provision states that the written, signed contract constitutes the entire….
This provision states that the law of a particular state will be applied if there are any disputes about the contract after it is signed. This is particularly useful when the community association and the contractor are based in different states.
Modification provision
This provision states that the contract may not be modified in any way unless such modification is written and signed by both parties.
Payment bond
This bond comes in a package with the performance bond. The surety guarantees that the
contractor’s suppliers and any subcontractors will be paid if the contractor does not pay them
Performance bond
This is a guarantee by a surety (a third party) to protect the community association if the
contractor fails to perform or finish the work. Because there is a cost to the community association involved, a performance bond typically is used with certain large projects.
Progress payments
Partial payments based on some demonstrable progress in completing the work involved
Prospective bidder’s questionnaire
Also known as qualification sheet. This is a document that asks for certain types of information to determine if the bidder is technically and financially qualified to handle a job of this scope.
Qualification sheet
Also known as prospective bidder’s questionnaire. This is a document that asks for certain types
of information to determine if the bidder is technically and financially qualified to handle a job of this scope.
Request for proposal (RFP)
Also known as bid request. An announcement that an organization is interested in
receiving proposals for a particular project
Severability provision
This provision states that if a court finds that any clause of the contract is illegal or unenforceable, that clause shall be severed (separated) from the rest of the contract, so that the whole contract need not be invalidated
Waiver of lien
A document which gives up the right to make a claim against the community association for payments
not received.