Legal

Question 1

Contract types

Answer 1

• fixed price - obligates the contractor to perform the work for a fixed lump sum
• cost plus fee - owner reimburses costs and pays an establisshed fee, supervision isn’t allowed in cost unless stationed on site.
• cost plus fee with GMP - same as above except contractor guarantees costs will not excess a certain amount.
• unite price - set amount for each unit of work, common in highway and utilities.
• time and material

Question 2

contract documents

Answer 2

• contract, general conditions, technical specifications and drawings.
• bidding documents and RFIs are incorporated in contract

Question 3

Plans and specifications

Answer 3

owner warrants to the contractor the fitness of the plans and specifications, prepared by design professional hired by owner. contractor generall has no contract recourse against design professional.
Exceptions: Patent Defect-obvious to prudent bidder

Question 4

Remedy Clauses

Answer 4

available to the parties if another’s actions cause additional cost or damages

1) Adding to the scop of the plans and specifications and or worksite conditions are not as expected
2) Limits or stipulates legal remedies in the case of an event of a breach of contract.

Question 5

Scheduling provisionsSubcontr

Answer 5

• pay attention to dates on contract
• contract may contain liquidating damages provisions
• no damage for delay is enforceable on public project only on private.

Question 6

Exculpatory Notices

Answer 6

excuses owners and design professionals from paying increased costs from their own acts and omissions. No damage for Delay!

Question 7

Force Majeure or excusable delay

Answer 7

extend time due to acts of god. usually does not include compensation to either party. You will get extra time but no money.

Question 8

Dispute resolution

Answer 8

1) resolve in the field - most cost effective
2) dispute clauses - AIA docs initially refer all disputes to the architect, final and binding but subject to mediation and arbitration.
3) Legal

Question 9

Subcontracts

Answer 9

• Pay when paid clause - doesn’t release requirement to pay

* Pay if paid clause - payment is conditioned on contractor gtetting paidf anfd must state transfer of risk.

Question 10

Warranties

Answer 10

Express Warranty - stated in the contract , they are written in the contract
Implied Warranty - do not arise from negotiations and are not part of contract terms. Arise by operation of the law, they always imply good faith.

Question 11

Non Excusable Delay

Answer 11

Due to the contractors fault or negligence not maintaing adequate workforce

Question 12

Excusable Delay

Answer 12

Non compensable - not the contractors, subcontractors, or suppliers fault. Extension of time awarded and no compensation is paid, ie acts of god.
Compensable - owner caused delay and contract does not include a no damage for delay cause.
Concurrent Delay - two delays occur simultaneously ie owner and contraactor delays at the same time, not compensable

Question 13

Disruption

Answer 13

Prevention of work to continue, owners failure to respond to an RFI

Question 14

Acceleration

Answer 14

Owner wants projects completed sooner that contract requires. Owner may issue change order to accelerate and compensate contractor for additional costs.

Question 15

Termination of Fault

Answer 15

Terminated for not doing work

Question 16

Termination of convenience

Answer 16

similar to concept of being employed at will.

Question 17

Arbitration

Answer 17

most common alternative to litigation, arbitration is binding.

Question 18

Mediation

Answer 18

non binding procedure - professional mediator attempt to bring about a settlement, their purpose is to bring comprimise, must do before you do anything else.

Question 19

Dispute resolution board

Answer 19

Neutral third party, binding until project is over