Lesson 08 - Conditions Of The Contract For Construction

Question 1

AIA document A201

Answer 1

General Conditions of the Contract for Construction

Question 2

AIA document A201 (General Conditions of the Contract for Construction) 1st Basic thing

Answer 2

1) It is general and covers items that are common to every project. It must, therefore, be tailored to meet the needs of a specific project by supplementary or special conditions.

Question 3

AIA document A201 (General Conditions of the Contract for Construction) 2nd Basic thing

Answer 3

2) It forms a part of the owner-contractor agreement, which is a contract between those parties only. The architect is not a party to that contract and is not permitted to prepare it. Only an attorney is authorized to prepare such a contract.

Question 4

Supplementary General Conditions

Answer 4

Are used to modify the standard forms. They accommodate the legal, physical, or climatic conditions of the specific project, usually following the format of the general conditions and paralleling its provisions.

Question 5

Special Conditions

Answer 5

are used when supplementary conditions must be further extended.

Question 6

BUILDERS RISK INSURANCE

Answer 6

Property Insurance. Includes fire and property damage insurance for a project during construction. Covers temporary structures, materials, equipment, and supplies, and usually covers tools and equipment if they are located within 100 feet of the project site, as well as property in transit or stored off-site.

Question 7

LOSS OF USE Insurance

Answer 7

protects against losses arising out of delays or other events that prevents an owner from using a project when and as intended.

Question 8

Workers Compensation Insurance

Answer 8

Covers job-related injuries and is usually required by law

Question 9

Liability Insurance

Answer 9

Covers claims for damages for bodily injury, sickness, disease, or death of the contractors employees or any other person.

Question 10

Personal Injury Insurance

Answer 10

Covers libel, slander, false arrest, and defamation of character.

Question 11

Property Damage Insurance

Answer 11

Intended to cover property, other than construction work itself, which may be damaged by construction activities. Usually, explosion, collapse, and underground damages are excluded and must be added by endorsement if required.

Question 12

Automobile Liability Insurance

Answer 12

Covers claims for damages arising out of the use of an owned, non-owned, or hired automobile.

Question 13

Contractual Liability Insurance

Answer 13

Covers liability assumed by contract. Under Paragraph 3.18 of the AIA General Conditions, this is primarily indemnification, wherein contractor’s agree to hold owners and architects harmless from damages arising out of specified events.

Question 14

PRODUCTS AND COMPLETED OPERATIONS COVERAGE

Answer 14

Covers claims for bodily injury or property damage arising from accidents that may occur after the construction work has been completed and turned over to the owner. However, completed operations insurance does not apply to damage of the completed work itself.

Question 15

Liquidated Damages

Answer 15

Is an amount of money stipulated in the contract that is chargeable against the contractor as reimbursement for damages suffered by the owner because of the contractors failure to fulfill contractual obligations.

Question 16

Time is of the Essence

Answer 16

Even a slight delay may constitute a breach of contract