Practice Management Flashcards
What types of insurance are required in AIA Doc B101
Commercial General Liability
Automobile Liability
Workers Compensation
Employers Liability
Professional Liability
Three types of insurance coverage and their applications
Primary Coverage - covers financial liability as a result of a triggering event.
Umbrella Insurance - provides coverage beyond existing limits and coverage of other policies
Excess insurance - coverage takes affect only after the coverage in primary insurance is exhausted or used up.
Contract language Definition: Consolidation
Consolidation requires at least two arbitrations in existence. Those separate arbitrations are ‘consolidated’ into a single arbitration.
Contract language Definition: Joinder
Joinder is the term for adding (i.e. joining) another party to an existing arbitration. The process of Joining parties in arbitration can hurt more than help and was previously prohibited in AIA 2007 Contracts.
what does “Time is of the Essence” mean in a contract
This language is used to emphasize as well as state that timing is material to the performance of the Contract. This also means that a delay could potentially become a breach of contract. This language is not as binding as an “express clause”
Design Bid Build (DBB)
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
Most traditional form of project delivery.
- project proceeds in a linear fashion:
Design> Bid> Build - The owner has separate contracts with architect and contractor.
- Design must be completely finished before construction can proceed. Can result in adversarial relationships. Longer project timeline than other delivery methods.
Construction Manager as Advisor (CMa)
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
- pricing begins earlier as CM is separate from Contractor.
- CM, Architect, and Contractor all have separate contracts with the owner.
- Two important disadvantages.
First, there is no competitive bidding bc the CM is hired before design is complete and provides early pricing.
Second, the management team is more complicated with additional people on the team.
Construction Manager as Constructor (CMc)
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
- the project benefits from early pricing as the CM is both advisor and Constructor.
- CM involved early. CM and Architect have separate contracts w/ the owner.
- CM bases cost on early documents. If the project compensation is cost + fee w/ GMP , this is known as CM@Risk because they will be liable for cost overruns despite unknown conditions because the GMP is based on incomplete documents.
Design Build (DB)
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
Design-Assist Contracting
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
Integrated Project Delivery (IPD)
- how is the project delivered?
- how are the contractual relationships set?
- disadvantages?
What is an “Express Clause”
An express clause can be used to clearly define the conditions to be met for a project.. I.e. the project must be completed by X dates or else x payment as consequence. This type of clause can be more clear or enforceable than a “Time is of the essence” clause which would determine the conditions by which the contract may be breached.
In other words an express clause is the same as “time is of the essence” + clear consequences for failure to perform.
Delegated design
The Arch produces the deliverables (specs) which set the basis for the contractors design obligations.
Code of Ethics: Admonition
Code of Ethics: Censure
