Project Management Flashcards
Owner
The party with the overall responsibility for a project beginning from inception and ending with the project sale or occupancy.
General Contract Method
A common procedure in which the owner of a project contracts with a single firm, often called a prime contractor, for its construction. This firm may contract with specialty contractors for portions of the work.
Brokerage
A situation in which the general contractor subcontracts all the work on a project.
Separate Contracts Method (AKA Multiple Prime Contracts Method)
An arrangement by which the owner lets contracts directly to specialty contractors for various portions of the work.
Self-performance Method
A mechanism by which no contracts are awarded for a construction project. The owner’s own workers or employees are solely responsible for the construction effort.
Design-Build Method (AKA Design-Construct or Turnkey Construction)
An arrangement by which an owner lets a single contract for both the design and the construction of a project.
Professional Construction Management Method
A method in which the owner hires a construction management firm to perform professional services and represent the owner during the design and construction phases.
Contract
An agreement, usually between two parties, that is enforceable by law.
When is a contract executed?
A contract is executed when both parties to the agreement have fully performed in accordance with the contracts terms.
When is a contract executory?
A contract is executory when some portion of the agreement remains to be done. It may be executory on the part of both parties or on just one party.
Unilateral Contract
A contract in which only one of the contracting parties makes a promise. The other party exchanges something other than a promise, commonly performance.
Express Contract
An agreement in which the terms of the agreement, whether verbal or written, are clear, concise, explicit, and definite. Virtually all written agreements could be classified as being express.
Implied Contract
An agreement in which the terms of the agreement are not clearly stated, but are established through inference and deduction.
Joint Arrangement
When individuals are joined, in a legal and liability sense, as one party in the action.
What criteria must all contracts meet to be valid?
Offer and acceptance, a meeting of the minds, consideration (payment or something of value exchanged), lawful subject matter, and competent parties.
When is an offer made?
An offer is considered to be made when one person signifies to another person a willingness to enter into a binding contract on certain specified terms.
What is acceptance?
Acceptance creates the contract, provided it is made in the manner and at the time specified in the offer
Can you revoke an offer?
An offer is revokable as long as it has not been accepted.
What is a meeting of the minds?
When the contracting parties agree on the basic meaning and legal implications of a contract.
What is consideration?
An essential ingredient to a contract that implies something of value, commonly a stated sum of money.
What is lawful subject matter?
The subject of a contract must be definite and clearly defined.
Estoppel
A principle by which a contract becomes binding in spite of the fact that no formal agreement was made between the parties concerned.
Both contracting parties must be competent. Who is an incompetent party?
Infants, minors, persons insane and not mentally competent, and drunken persons.
When does an assignment of contract occur?
When one party to an agreement transfers the rights or obligations of the agreement to another party who was not originally involved in the agreement, but became involved only after the assignment was made.
Sovereign immunity
A government entity cannot be sued without consent.
Lien
A legal claim placed on real property
Real property or real estate
Land and all items physically attached to it, such as buildings, fences, utilities, and walls.
Tax lien
The right of the government to retain possession of property until the tax on it has been paid.
Eminent domain
The right of the federal government or a state or other public agency to take possession of private property and appropriate it for public use.
Condemnation
The exercise of eminent domain to seize private property.
Prescription
The legal transfer of private property to a public agency or another private citizen that can occur when that property has been used by the public for a stipulated number of years. (hostile acquisition)
Dedication
When a private property owner grants the public to use the property in a certain manner. The owner cannot deny the use if the public uses it continuously. When the public stops that use, the private owner has free use of the property once again.
How can highway property be obtained from private landowners?
- Outright or direct purchase (mutual agreement) 2. Eminent domain or condemnation proceedings (hostile acquisition) 3. Prescription (hostile acquisition) 4. Dedication (mutual agreement)
Right-of-way
a tract of land, usually consisting of a series of connected parcels of property, that is used for the operation of a highway or public utility
easement
A restricted use of private land granted to another party. If the land is sold, the easement is generally transferred with the land.
Zoning
A legal means by which a municipality dictates or limits the allowable use of a parcel of land. Also dictates buffers between unlike land uses.
Mechanic’s Lien
A right created by law that permits a worker (or material suppliers, subcontractors, and general contractors) to place a claim on land on which improvements have been made in case the worker is not paid.
Stop Work Order
The project CA may submit in writing to the owner a notice for the contractor to cease work on all or a portion of a project. This is usually a last resort action to give time to resolve nonconforming work.
Agency Agreements
an arrangement between a principle and an agent by which the agent agrees to perform certain tasks for the principle. The principle is bound by the actions of the agent.
Cost-Plus Contract
For LA-based on actual time the designer spends to complete a task at an agreed upon hourly rate. Reimbursable expenses are added to the cost of services. (Contractor-a contract in which the contractor is reimbursed for specified incurred costs; with an additional allowance provided for overhead and profit.)
Independent Contractor
A contractor hired to produce a product without being specifically supervised or constrained by specific means and methods of performance.
What are four typical occupations where individuals are considered Statutory Employees?
- Full time life insurance salespersons, 2. agent drivers and commission drivers, 3. traveling or city salespersons, 4. Homeworkers
What are the three forms of business organizations?
- Proprietorships 2. Partnerships 3. Corporations
Proprietorships
A firm owned by an individual
How is income tax handled with a proprietorship?
The owner pays income tax on the company profits as personal income.
Partnership
An association of two or more persons to carry on a business. Each person acts as an agent for the other partners, and has the power to enter into binding contracts in the name of the partnership.
How is income tax handled with a partnership?
A partnership pays no income tax. It is not considered a separate legal entity apart from the individual owners.
Limited Partner
A partner who contributes to a partnership and shares in the profits and losses, but provides no services and has no vote in matters of management.
Silent Partner
A person who is a partner in a firm but remains unknown to the public.
When a partnership dissolves, what is the priority in which debts of the partnership will be paid?
- Outside creditors are paid first 2. Repayment of loans or advances to the partnership made by any partner above and beyond the capital contributions stated in the articles of partnership 3. Return each partners capital investment 4. The remaining profits (if any) are distributed according to the partnership agreement
Joint Venture
A company formed by two or more companies in which the sole objective is typically to perform services and secure a contract that would not be possible for the individuals or companies to perform on their own.
Corporation
A corporation is owned by one or more individuals who form an independent body or unit under a special a corporate name. A legal entity (an artificial tax-paying individual) created to act as an individual while protecting the owners or stockholders in the firm.
How is income tax handled with a corporation?
The owners pay income tax only on the profits actually paid to them.
Stockholders or Shareholders
The owners of a corporation. They are essentially limited to voting at company meetings, they are not agents of the corporation.
Common Stock
A type of share typically referred to when shareholders are discussed, and entitles the owner to one vote per share.
Preferred Stock
A type of share that has a fixed rate of return and is guaranteed as long as a profit is made.
Directors
Agents that are elected by stockholders in a corporation.
Ultra Vires Contracts
Agreements made by corporations that go beyond the scope of a corporations implied or expressed powers, when an agent of a corporation acts outside of their authority.
Holding company
Essentially a big stockholder; a firm that has a dominant interest in one or more other companies where it can, through voting power, prescribe the management policies of those companies.
What is the difference between a corporation and a subchapter S corporation?
The big difference is that the S corporation does not generally pay income taxes as a separate legal entity; earnings are not taxed prior to distribution to shareholders so there is no double taxation.
Exculpatory provision
contract clauses that shift liability from one of the contracting parties to the other. In the absence of such a clause, the shift will in risk will not occur.
Tort Laws (Negligence and Liability)
legal term describing violation where one person causes damage, injury, or harm to another person (physical or emotional distress or violation of personal rights); wrongs committed against others that do not involve contracts. (Negligent - LA can be sued for designs that do not meet safety standards. Liability - LA can be sued for the infringement of intellectual property rights of others)
Standard of Care
conduct that can reasonably be expected of other landscape architects in a similar situation.
What are 4 general conditions that must be met for the attractive nuisance doctrine to apply?
- party controlling the property should know that children are likely to trespass 2. party should realize there is an unreasonable risk of death or serious injury on site 3. children will will not recognize the risk 4. party could reduce risk by keeping children out or reducing dangerous conditions.
Contributory negligence
careless acts of an injured person that accompany the careless acts or physical conditions under the control of a second party.
Surety
A bond company that guarantees or vouches for the performance or indebtedness of another party