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LHAP Year 4 > LHAP 402 Contracts > Flashcards

LHAP 402 Contracts Flashcards

1
Q

Sales minus the cost of goods sold. This is ?

A

Margin

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2
Q

The amount by which the cost of a product is increased in order to derive the selling price. This is the ?

A

Markup

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3
Q

What is the difference between Margin and Markup

A

Margin is sales minus the cost of goods sold and Markup is the amount which a product is increased to derive selling price

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4
Q

Markup divided by product cost =

A

Markup percentage

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5
Q

Margin divided by sales =

A

Margin percentage

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6
Q

To derive markup percentages the calculation is

A

Desired margin/cost of goods = Markup percentage

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7
Q

Desired margin/cost of goods =

A

Markup percentage

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8
Q

Use “ ? ” in connection with acts of the Contractor or with labor, material and equipment to be furnished by him.

A

Shall

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9
Q

Use “ ? ” in connection with acts of the Owner or Architect.

A

Will

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10
Q

Lighting fixtures shall be furnished by Owner.”
Is this an appropriate use of the word Shall

A

No

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11
Q

“Footings will rest on undisturbed soil.”
Is this an appropriate use of the word Will

A

No

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12
Q

“Footings shall rest on undisturbed soil.”
Is this an apppropriate use of the word Shall

A

Yes

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13
Q

“Lighting fixtures will be furnished by Owner.”
Is this an appropriate use of the word Will

A

Yes

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14
Q

For a contract to be valid what 2 conditions must be met

A

All parties must enter into the contract by mutual consent. That there be some recognized payment (promise) for the work requested.

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15
Q

All conditions of the duties and obligations of the contractor and promises of the owner are written and agreed to by both parties. These contracts provide both parties with better assurance in legal disputes but take considerable time to prepare.
This describes a

A

Binding Contract

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16
Q

If offer and acceptance of duties and obligations are made verbally. The owner legally accepts an offer if work is not halted. If failure of payment occurs, and the court finds in the contractor’s favour, the court assesses the consideration the contractor deserves for work accomplished to date. This describes a

A

Implied contract

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17
Q

Does a contract have to be written to be legal

A

No

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18
Q

Does a contract have to be written to be enforceable

A

Yes

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19
Q

Typical Labour Rates. Subtotal 1 =

5 Points

A

Base Rate of Pay+ Vacation+ Stat.Holidays+ Overtime+ Guaranteed Wage = Subtotal 1

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20
Q

Typical Labour Rates. Subtotal 2 =

A

Subtotal 1 + Payroll Taxes = Subtotal 2

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21
Q

Typical Labour Rates. Subtotal 3 =

A

Subtotal 2 + Benefits = Subtotal 3

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22
Q

Typical Labour Rates. Total Cost/Hr =

A

Subtotal 3 + Production Costs = Typical Labour Rates

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23
Q

Depreciation =

A

Purchase Price/Years

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24
Q

Total fixed cost =

4 PNTS

A

Purchase $ + Depreciation + Inflation + Interest

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25
Q

Fuel Costs/Liters =

A

L x Actual Hr = X
X x $L = Fuel Cost/L

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26
Q

Fixed Cost/Hr or Km =

A

Total fixed cost/Actual Hr or Km

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27
Q

Fuel Costs/Km =

A

L/100 = X
X x Actual Km = X
X x $L = Fuel Cost/Km

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28
Q

Total Operating Costs =

5 PNTS

A

Fuel Costs per L or Km + Repairs + Insurance + License + Storage

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29
Q

Operating Costs =

A

Total Operating Costs / Actual Hr or Km

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30
Q

Total Costs per Hr or Km =

A

Fixed Costs per Hr or Km + Operating Costs per Hr or Km

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31
Q

Quantity =

A

Quantity of each item from take off

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32
Q

Description =

A

Description of item

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33
Q

Size =

A

Size of Item

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34
Q

Material Cost =

A

Cost per (one) unit of item

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35
Q

Material Total Cost =

A

Qty*Material Unit Cost

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36
Q

Labour/Equipment Frequency Hr =

A

Frequency Hrs necessary to achieve result

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37
Q

Labour/Equipment Total Hr =

A

Qty*Freq. Hr

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38
Q

Labour/Equipment Rate is

A

Composite rate for each item

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39
Q

Composite rate =

A

Employee & Equipment rates total/ #of Employees

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40
Q

Labour/Equipment Total Cost =

A

Total Hr*Rate

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41
Q

Total Material, Labour/Equipment =

A

Material Total Cost + Total Labour/Equipment Costs

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42
Q

Selling Price =

A

1 - Desired % = X
Total Material, Labour/Equip. / X = Selling Price

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43
Q

Gst =

A

Selling price*1.05

44
Q

Unit Bid =

A

Gst price / Qty

45
Q

Can Km and Hrs be added together to give you a total

A

No, they must be stated separately

46
Q

What is crucial when doing cost calculations

A

That you are using the same units

47
Q

Are brand names of products allowed to be present on drawings

A

No, Never

48
Q

Can a specification include brand names

A

Yes

49
Q

Specifications should describe

A

Workmanship and installation

50
Q

Drawings illustrate ?

A

Extent and quantity

51
Q

CCDC stands for

A

Canadian Contract Document Committee

52
Q

According to the CCDC figured dimensions on a drawing shall govern over scaled dimensions. True or False

A

True

53
Q

According to the CCDC drawings of larger scale shall govern over those of smaller scale of the same date. True or False

A

True

54
Q

According to the CCDC Drawing shall govern over specifications. True or False

A

False

55
Q

According to the CCDC Specifications shall govern over The General Conditions. True or False

A

False. General conditions govern over specifications

56
Q

According to the CCDC Supplementary Conditions shall govern over General Conditions. True or False

A

True

57
Q

According to the CCDC the executed Agreement between Owner and Contractor shall govern over all documents. True or False

A

True.

58
Q

Notwithstanding the documents of a later date shall always govern. True or False

A

True

59
Q

Complements and permits simplification of drawings, permits the drawings to address form, shape, and dimension. Deals with quality and workmanship issues which the drawings cannot address and addresses compatibility between materials. These are the functions of ?

A

Technical Specifications

60
Q

A document issued by a surety company on behalf of a contractor (or supplier or service provider), guaranteeing that contractor will complete a contract per the specifications (contract). This document is known as a

A

Bond

61
Q

C.O stands for

A

Change Orders

62
Q

They serve as proof of ownership that the bondholder has lent money to the issuer in exchange for periodic interest payments and the return of the face value of the ? at maturity. This describes a

A

Bond

63
Q

Surety bonds issued by an insurance company or bank to guarantee the satisfactory completion of a project. They are financial guarantees that are provided to the consumer to ensure the contractor fulfills their obligations. This describes a

A

Performance Bond

64
Q

These surety bonds are guarantees provided by the the contractor will pay all the claimants for the goods and services supplied during the project. They provide protection to subcontractors and material suppliers to ensure that they are paid for their work. This bond is known as a ?

A

Labour and Material Bond

65
Q

Two types of bonds are

A

Performance and Labour/Material Bonds

66
Q

The requirements for bonding may include submission of financial statements, credit history, project details, and other information to bonding providers for evaluation. This typically requires the contractor to fill out application forms, and other documents. This describes the process for ?

A

Obtaining a bond

67
Q

Two types of liens are

A

Builders and Mechanics Liens

68
Q

Guarantees of payment to builders, contractors, and construction companies. They also cover suppliers and subcontractors to ensure that all parties are paid for their work before other claims. This describes a

A

Lien

69
Q

Two types of operating costs are

A

Overhead and Administrative Costs

70
Q

Ongoing business expenses that cannot be directly attributed to a client or service but must be maintained in order to remain in business. These costs are known as

A

Overhead Costs

71
Q

Business expenses incurred from personal or departments required to maintain a company such as accountants, office personnel, lawyers etc. They are also not related to clients or services provided but are needed expenses to ensure a functioning business. These costs are known as

A

Administrative Costs

72
Q

How would you decide to bid on a contract ?

A

Do you have the time, the crew and will you make money.

73
Q

Each party of a contract is competent to make a valid enforceable contract. This describes ?

A

Capacity

74
Q

An understanding reached through mutual agreement. The agreement can be verbal but must be witnessed to be enforceable. This describes ?

A

Valid contract

75
Q

In Alberta, an agreement is not considered a contract unless some form of consideration is stipulated in the Terms of Agreement. The ? does not have to be recognized as being of equal value. This describes a?

A

Consideration

76
Q

This term excludes any illegal act or object. An owner cannot contract for services or goods that are not within the law. This describes a ?

A

Lawful Object

77
Q

Used when the proper contract documents cannot be executed immediately. This letter notifies the receiver of the intent to contract and authorizes the contractor to make preparations, promising compensation for loss should the contract not be forthcoming. This describes a

A

Letter of Intent

78
Q

The owner and contractor agree that they are unable to satisfy their obligations and terminate the contract. This is a no-fault termination and the contractor receives considerations for all services, supplies and materials rendered the owner to this time. This describes which contract failure?

A

Mutual Agreement

79
Q

Any violation of any provision in the contract. This may be a default against the contractor or the owner. This describes which contract failure

A

Dishonesty

80
Q

i.e. An unsafe work site due to conditions on neighbouring properties, in the event of a utility failure, if an unlawful act has been committed on site….The possibilities are endless. This describes which contract failure

A

Termination in the public interest

81
Q

When a contractor abandons the job site (for 30 days or more) or fails to complete work according to schedule, or fails to produce the appearance of skilled workers as specified, then the owner has the right to declare the contractor in default. An owner may take possession of property, materials and tools. May finish or have the work finished via a new contract, and/or withhold payment to the initial contractor until work is completed. This describes which contract failure

A

Lack of Cooperation

82
Q

When the owner is unable to meet the disbursement schedule (payments to the contractor), the contract fails. The contractor declares the contract defaulted and instigates proceedings (places a lien) to recover expenses, a proportion of profits and damages, if applicable. This describes which contract failure

A

Failure to fund.

83
Q

A contractor can declare the contract defaulted if work has stopped on the site for 30 days, work stoppage is not the fault of the contractor. This may be the care during labour strikes. This describes which contract failure

A

Work Stoppage

84
Q

Provincial legislation to protect the Sub-contractor on any job involving public provincial government funds. It acts as a recourse for a sub-contractor when they receive failure of payment from the Prime Contractor. This describes which piece of legislation

A

Public Works Act

85
Q

A legal document that places a claim on the estate or interest of the owner in respect of improvements made on the property. A contractor, sub-contractor, supplier, or a “renter”. The renter is someone who has deemed to have performed a service towards property improvement through contract obligations with the owner. This describes which legislation

A

Builders’ Lien Act

86
Q

The act applies to all persons who design and/or install works of improvement inasmuch as the value of the labour performed or services rendered and materials utilized are recognized as debts. (? is defined as a worker employed in shaping and uniting materials into some kind of structure, requiring the use of tools.) Hence, any work done or material supplied to improve a real property constitutes the right to place a lien. This describes which legislation

A

Mechanics’ Lien Act

87
Q

All withdrawals must be in writing.

A

Yes

88
Q

The description of the change order should be in writing and signed by contracting parties.

A

Yes

89
Q

Provincial legislation that acts as a protective agency for a subcontractor on any job involving public government funds is known as?

A

The Public Works Act

90
Q

Who can place a lien

A

A contractor or a subcontractor

91
Q

Where is a lien registered

A

Land Titles Office

92
Q

When can a lien be created

A

Anytime before the start of work to 45 days after work is completed

93
Q

A contractor that has a license to do business, and/or may be recognized by a trade association. This person is known as a

A

Licensed Contractor

94
Q

Qualifications are determined by owner/agent. These may include any of the following conditions: financial capacity, job size, location, type of work, bonding requirements, experience and satisfaction of owner, scope of work. This person is known as a

A

Qualified Contractor

95
Q

Cost plus is

A

When the owner agrees to pay the contractor his direct costs of doing the work plus a percentage for overhead.

96
Q

A favorable contract since the contractor is at least assured of not making a loss is known as ?

A

Cost Plus

97
Q

Cycle Time. Formula for determining the number of cycles

A

Total volume / Capacity

98
Q

Cycle Time. Formula for determining time needed

A

Cycles * # Mins
Ans / 60

99
Q

Cycle Time. Formula for determining total cost

A

Equipment x Labour Hours

100
Q

Cycle Time. Formula for Cost per cubic meter

A

Total cost / Total volume

101
Q

A Lien may be placed:

A

Subcontractor, Property, Nursery

102
Q

The F.A.C. (final acceptance certificate) is issued;

A

Once all contract work and warranties are complete

103
Q

The main element that lacks in making a verbal contract enforceable is:

A

Evidence

104
Q

Which type of contract failures may lead to legal recourse by one or both of the parties involved?

A

lack of co-operation

105
Q

Change orders may involve no adjustment to the contract price.

A

True

LHAP Year 4 (10 decks)

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