Lecture 2: Contract Parties

Question 1

Who are the 8 parties of a contract?

Answer 1

1. Owner 2. Architect/engineer 3. General or Prime contractor 4. Subcontractors 5. Suppliers 6. CM 7. Government 8. General Public

Question 2

Authorizes the work and eventually pays for its execution.

Answer 2

Owner (Client)

Question 3

Designs the project. May be involved in supervision during execution.

Answer 3

Architect / Engineer

Question 4

Heads the execution or construction team. Has a direct contract with the Owner and other contracts with his subs, manufacturers, and suppliers.

Answer 4

General or Prime contractor

Question 5

Work under the leadership and supervision of the GC to perform specialty work. Have no direct contract with owner.

Answer 5

Subcontractors

Question 6

Supply materials and equipment to GC or his subs. Have no direct contract with the owner. Selected by GC or subs unless nominated by Owner.

Answer 6

Suppliers

Question 7

Could be agency or at-risk. Owner’s agent during the execution or construction phase.

Answer 7

CM

Question 8

Issuing and enforcing regulations, codes, permits, etc.

Answer 8

Government

Question 9

As users or as third party to the contract.

Answer 9

General public

Question 10

Which method has one prime general contractor?

Answer 10

General Contract Method

Question 11

Which contract method has several GC’s?

Answer 11

Separate contracts method

Question 12

This contract method as no GC. The Owner and the A/E are at the top. This is also known as the Self performance Approach.

Answer 12

Force account method

Question 13

This contract method has the Owner on top and the Designer/builder underneath. (consolidation of Responsibilities)

Answer 13

Design - Build approach

Question 14

A principle of contract interpretation is that the document must be read as a ____.

Answer 14

Whole

Question 15

A principle of contract interpretation is that the contract will be construed against the drafter_____.

Answer 15

(Contra Proferntem)

Question 16

A principle of contract interpretation is that the document supercedes all _____.

Answer 16

Previous discussions

Question 17

A principle of contract interpretation is that the document’s specific terms govern and override _____.

Answer 17

the general terms

Question 18

A principle of contract interpretation is that the document must read in the ____.

Answer 18

context of the trade

Question 19

A purpose of the contract documents is to ____ detailed description of the _____.

Answer 19

works

Question 20

A purpose of contract documents is to provide documentation of the _____.

Answer 20

agreement between parties

Question 21

A purpose of contract documents is provide a means of ___ between parties.

Answer 21

communication

Question 22

A purpose of contract document is to provide an ____ of project cost.

Answer 22

estimate

Question 23

A purpose of contract documents is to assist the _______ in the performance of their duties.

Answer 23

field forces

Question 24

A purpose of the contract documents is to guarantee and ensure the _______.

Answer 24

quality of performed work.

Question 25

The contract document are mostly prepared by the owner’s agents

Answer 25

(namely the A/E and the CM)

Question 26

The ______ keeps ownership of the creative part of the documents (Unless otherwise stated)

Answer 26

Design professional

Question 27

_____ should be clearly stated in the contract.

Answer 27

Dispute resolution methods

Question 28

Several parties use the contract documents during the different project phases.

Answer 28

Banks, Suppliers, manufacturers, lawyers, estimators, users, inspectors, government agencies, etc.

Question 29

The owner is on top. The CM and A/E are under him. Under the CM and the A/E is the GC.

Answer 29

Professional construction management approach or (ACM)

Question 30

In this scenario the CM is acting like the GC.

Answer 30

Construction manager at-risk