LARE SECTION 1 EXAM 2021 Flashcards
Cost incurred by a contractor when the project is interfered with by the owner.
More man power for more hours to complete project on time.
Acceleration Cost
Action by a party to a contract that causes the other party of the contract to not complete the work of the project on time or in the manner established by the contract writing.
Active Interference
Damages resulting from real and substantial loss, as
opposed to those which are merely theoretical, estimated, or anticipated.
Actual Damages
Modifications to the contract documents issued during the bid period. Become official parts of the contract documents and are legally binding.
Addenda
A person authorised by another to act for him or her; one who is employed to represent another in business and legal dealings with third persons. In a typical agency relationship, three parties are involved: a principal, an agent, and a third party.
Agent
A sum of money set aside by the owner to remove a particular portion of work from competitive bidding.
Allowance
A material or method used in place of the base material or method specified for the project. In a typical construction contract, the owner chooses the alternate or remains with the base requirement, giving it control over the total cost of the project.
Alternate
Doubtfulness; doubtfulness of meaning, duplicity, indistinctness, or uncertainty of
meaning of an expression used in a written instrument.
Ambiguity
Established when a contractor
makes a positive and unequivocal statement that it will not or cannot substantially perform the
contract or when a contractor, by any voluntary affirmative act, renders substantial performance
of its contract apparently impossible. Owner may only terminate if the statement made is clear.
Anticipatory Breach
Federal and state statutes to protect trade and commerce from unlawful restraints and monopolies. In the construction industry, bid rigging is considered a violation of antitrust laws. Those found guilty of bid rigging are assessed treble damages.
Anti Trust Laws
An agency relationship created by an act of the parties and deduced from proof of other facts.
Apparent Agency
The submission of a dispute to a third party (individual or panel), known as arbitrator(s), whose judgment is final and binding. Decisions at arbitration hearings, unlike those in judicial cases, do not establish precedents.
Arbitration
One who resolves disputes between two parties. In a typical construction contract, the Landscape Architect is designated as an arbitrator in resolving the disputes
between the owner and the contractor.
Arbitrator
A legal action which allows a person who is not party to a contract to obtain the contract rights of a party who is. A contractor, for example, may assign the rights contained
in its contract with the owner to a subcontractor. In a similar manner, the Landscape Architect can assign portions of the design of the project to its consulting engineers, primarily in the areas of structural, mechanical, and electrical design.
Assignment
The act or process of taking, apprehending, or seizing person or property by virtue of a writ, summons, or other judicial order and bringing the same into the custody of the law; a remedy ancillary to an action by which the plaintiff is enabled to acquire a lien upon the property or effects of the defendant for satisfaction of judgment which the plaintiff may have
obtained.
Attachment
An improvement brought upon an estate (land and/or buildings) which enhances its value more than mere repairs. The improvement may either be temporary or
permanent. This term also applies to denote the additional value which an estate acquires in
consequence of some public improvement, such as the widening of a street, etc.
Betterment
A clearing house for subcontractors to submit their bids for a particular project and for prime contractors to receive bids from the various subcontractors.
Bid Depository
The act of not allowing a bid to stand because of an impropriety in the process of submission or as a result of the owner’s arbitrary decision to reject the bid. The
owner, in a typical contract, reserves the right to reject any and all bids. However, in rejecting a
bid, an owner and its Landscape Architect run the risk of interfering with the bidder’s right to do
work or of defamation of character on the part of the bidder.
Bid Rejection
An independent administration quasi-judicial board to
decide all public contract disputes. Various states have created these boards to relieve the courts from the backlog of cases related to public contracts. Note that these boards hear only disputes related to public contracts and not to private contracts.
Board of Contract Appeals
A term used to represent standard legal conditions inserted at the “front end” of a construction contract. These conditions are typically titled “General Conditions,”
“Supplemental Conditions,” and/or “Special Conditions” and are inserted at the front end of the project manual.
Boiler Plate
An instrument with a clause, with a sum fined as a penalty, binding the parties to pay the same, and with the condition that the payment of the penalty may be avoided by the performance of certain acts by some, one, or more of the parties; a certificate or evidence of a debt; a mere promise to perform or pay; a written obligation.
Bond
Is a form of security to insure that the bidder will enter into the contract if the award is made to it.
Bid Bond
Insures completion of the project by the contractor,
guaranteeing that if the contractor defaults, the bonding company will step in and finish the work. This bond is also applicable between a prime contractor and its subcontractor, assuring the prime that the subcontractor will perform or pay.
Performance Bond
(Sometimes known as a labour and material payment bond) Provides a source of payment for the contractors’ or subcontractors’ labour and material men.
Payment Bond
The aggregate of reported cases forming a body of jurisprudence or the law of a particular subject as evidenced or formed by the adjudged cases; distinct from statutes and other sources of written law.
Case Law
A document issued by the building inspector certifying that the structure con-forms to all relevant code sections and is, therefore, safe for use. An owner
must obtain a certificate of occupancy before he or she can use a building. A new building
cannot be considered complete until a certificate of occupancy has been issued. In some
instances, a partial certificate of occupancy will be issued for portions of the building to be occupied.
Certificate of Occupancy
The certificate issued by the Landscape Architect when the building, or a portion thereof, is complete to the degree that the owner can use the building, or a portion thereof, for its intended purpose.
Certificate of Substantial Completion
A revision to the original contract documents. A change differs from a modification in that the modification is agreed to by both parties of the contract; however, a change may be made unilaterally by the owner in spite of the contractor’s lack of agreement.
Change
A document issued by the landscape architect directing the contractor to erect some portion of the building in a manner different than described in the original plans and a specifications. This change must have an effect on the price and/or the time of the contract in order to constitute this. If the price and/or time is not affected, then the change is a field order or minor (this) order and not (this). The change may be requested by the Owner, Landscape Architect or Contractor.
Change Order
A demand, an assertion, a pre-tense, a right or title to. An action initiated by one of the
parties of a contract against the other party. This action may be in the form of a written letter, a
legal document, or some instrument establishing the difference between the two parties.
(NOTE: A letter is sufficient, in the eyes of some courts, to establish this.)
Claim
A legal status granted to a Landscape Architect in the quasi-judicial role as arbitrator in settling a dispute between the owner and the contractor. This cloak protects the Landscape Architect from liability by either party (owner or contractor) as a result of the decision rendered in resolving the dispute.
Immunity
An agreement between two or more persons to defraud a person of his or her right by the forms of law or to obtain an object forbidden by law; a secret combination,
conspiracy, or concert of action between two or more per-sons for fraudulent or deceitful purposes.
Collusion