LHAP 402 Contracts Flashcards
1
Q
Sales minus the cost of goods sold. This is ?
A
Margin
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
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
4
Q
Markup divided by product cost =
A
Markup percentage
5
Q
Margin divided by sales =
A
Margin percentage
6
Q
To derive markup percentages the calculation is
A
Desired margin/cost of goods = Markup percentage
7
Q
Desired margin/cost of goods =
A
Markup percentage
8
Q
Use “ ? ” in connection with acts of the Contractor or with labor, material and equipment to be furnished by him.
A
Shall
9
Q
Use “ ? ” in connection with acts of the Owner or Architect.
A
Will
10
Q
Lighting fixtures shall be furnished by Owner.”
Is this an appropriate use of the word Shall
A
No
11
Q
“Footings will rest on undisturbed soil.”
Is this an appropriate use of the word Will
A
No
12
Q
“Footings shall rest on undisturbed soil.”
Is this an apppropriate use of the word Shall
A
Yes
13
Q
“Lighting fixtures will be furnished by Owner.”
Is this an appropriate use of the word Will
A
Yes
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.
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
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
17
Q
Does a contract have to be written to be legal
A
No
18
Q
Does a contract have to be written to be enforceable
A
Yes
19
Q
Typical Labour Rates. Subtotal 1 =
5 Points
A
Base Rate of Pay+ Vacation+ Stat.Holidays+ Overtime+ Guaranteed Wage = Subtotal 1
20
Q
Typical Labour Rates. Subtotal 2 =
A
Subtotal 1 + Payroll Taxes = Subtotal 2
21
Q
Typical Labour Rates. Subtotal 3 =
A
Subtotal 2 + Benefits = Subtotal 3
22
Q
Typical Labour Rates. Total Cost/Hr =
A
Subtotal 3 + Production Costs = Typical Labour Rates
23
Q
Depreciation =
A
Purchase Price/Years
24
Q
Total fixed cost =
4 PNTS
A
Purchase $ + Depreciation + Inflation + Interest
25
Fuel Costs/Liters =
L x Actual Hr = X
X x $L = Fuel Cost/L
26
Fixed Cost/Hr or Km =
Total fixed cost/Actual Hr or Km
27
Fuel Costs/Km =
L/100 = X
X x Actual Km = X
X x $L = Fuel Cost/Km
28
Total Operating Costs =
## Footnote
5 PNTS
Fuel Costs per L or Km + Repairs + Insurance + License + Storage
29
Operating Costs =
Total Operating Costs / Actual Hr or Km
30
Total Costs per Hr or Km =
Fixed Costs per Hr or Km + Operating Costs per Hr or Km
31
Quantity =
Quantity of each item from take off
32
Description =
Description of item
33
Size =
Size of Item
34
Material Cost =
Cost per (one) unit of item
35
Material Total Cost =
Qty*Material Unit Cost
36
Labour/Equipment Frequency Hr =
Frequency Hrs necessary to achieve result
37
Labour/Equipment Total Hr =
Qty*Freq. Hr
38
Labour/Equipment Rate is
Composite rate for each item
39
Composite rate =
Employee & Equipment rates total/ #of Employees
40
Labour/Equipment Total Cost =
Total Hr*Rate
41
Total Material, Labour/Equipment =
Material Total Cost + Total Labour/Equipment Costs
42
Selling Price =
1 - Desired % = X
Total Material, Labour/Equip. / X = Selling Price
43
Gst =
Selling price*1.05
44
Unit Bid =
Gst price / Qty
45
Can Km and Hrs be added together to give you a total
No, they must be stated separately
46
What is crucial when doing cost calculations
That you are using the same units
47
Are brand names of products allowed to be present on drawings
No, Never
48
Can a specification include brand names
Yes
49
Specifications should describe
Workmanship and installation
50
Drawings illustrate ?
Extent and quantity
51
CCDC stands for
Canadian Contract Document Committee
52
According to the CCDC figured dimensions on a drawing shall govern over scaled dimensions. True or False
True
53
According to the CCDC drawings of larger scale shall govern over those of smaller scale of the same date. True or False
True
54
According to the CCDC Drawing shall govern over specifications. True or False
False
55
According to the CCDC Specifications shall govern over The General Conditions. True or False
False. General conditions govern over specifications
56
According to the CCDC Supplementary Conditions shall govern over General Conditions. True or False
True
57
According to the CCDC the executed Agreement between Owner and Contractor shall govern over all documents. True or False
True.
58
Notwithstanding the documents of a later date shall always govern. True or False
True
59
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 ?
Technical Specifications
60
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
Bond
61
C.O stands for
Change Orders
62
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
Bond
63
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
Performance Bond
64
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 ?
Labour and Material Bond
65
Two types of bonds are
Performance and Labour/Material Bonds
66
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 ?
Obtaining a bond
67
Two types of liens are
Builders and Mechanics Liens
68
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
Lien
69
Two types of operating costs are
Overhead and Administrative Costs
70
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
Overhead Costs
71
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
Administrative Costs
72
How would you decide to bid on a contract ?
Do you have the time, the crew and will you make money.
73
Each party of a contract is competent to make a valid enforceable contract. This describes ?
Capacity
74
An understanding reached through mutual agreement. The agreement can be verbal but must be witnessed to be enforceable. This describes ?
Valid contract
75
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?
Consideration
76
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 ?
Lawful Object
77
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
Letter of Intent
78
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?
Mutual Agreement
79
Any violation of any provision in the contract. This may be a default against the contractor or the owner. This describes which contract failure
Dishonesty
80
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
Termination in the public interest
81
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
Lack of Cooperation
82
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
Failure to fund.
83
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
Work Stoppage
84
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
Public Works Act
85
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
Builders' Lien Act
86
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
Mechanics' Lien Act
87
All withdrawals must be in writing.
Yes
88
The description of the change order should be in writing and signed by contracting parties.
Yes
89
Provincial legislation that acts as a protective agency for a subcontractor on any job involving public government funds is known as?
The Public Works Act
90
Who can place a lien
A contractor or a subcontractor
91
Where is a lien registered
Land Titles Office
92
When can a lien be created
Anytime before the start of work to 45 days after work is completed
93
A contractor that has a license to do business, and/or may be recognized by a trade association. This person is known as a
Licensed Contractor
94
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
Qualified Contractor
95
Cost plus is
When the owner agrees to pay the contractor his direct costs of doing the work plus a percentage for overhead.
96
A favorable contract since the contractor is at least assured of not making a loss is known as ?
Cost Plus
97
Cycle Time. Formula for determining the number of cycles
Total volume / Capacity
98
Cycle Time. Formula for determining time needed
Cycles * # Mins
Ans / 60
99
Cycle Time. Formula for determining total cost
Equipment x Labour Hours
100
Cycle Time. Formula for Cost per cubic meter
Total cost / Total volume
101
A Lien may be placed:
Subcontractor, Property, Nursery
102
The F.A.C. (final acceptance certificate) is issued;
Once all contract work and warranties are complete
103
The main element that lacks in making a verbal contract enforceable is:
Evidence
104
Which type of contract failures may lead to legal recourse by one or both of the parties involved?
lack of co-operation
105
Change orders may involve no adjustment to the contract price.
True
