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
Surety Bond
A guarantee provided by a firm that states that the contractor will fulfill the terms of the contract (A surety bond is not the same as insurance) (Analogous to a minor who must have an elder sign a contract to purchase an item on credit)
Underwriting
rating the acceptability of risks being solicited (The surety conducts an underwriting procedure on contractors to determine their risk to give them a surety bond)
Can a project have more than one surety?
Yes, some large projects have 5 or 6. Some surety firms do not have enough capital to issue a bond, so multiple firms join together to issue a bond)
A surety bond from a surety cannot exceed what percent of the surety’s equity?
A surety cannot issue a single obligation that exceeds 10 percent of the surety’s equity.
The Miller Act
An act that stipulates that surety bonds are required of construction contractors on all federal and federally assisted projects.
Under the Miller Act, when are payment and performance bonds required?
When the contract exceeds $100,000 for the construction, alteration, or repair of any building or public work in the USA
Under the Miller Act, a performance bond must equal what percent of the contract?
A performance bond must equal 100% of the contract.
Performance Bond
A performance bond ensures the owner that a surety (financially responsible party) will stand behind the prime contractor if he/she does not perform properly
Under the Miller Act, a payment bond is required for what amount?
A payment bond is required for no less than the face value of the performance bond, and should be determined by the contracting officer.
What does a payment bond ensure?
A payment bond gives protection to the owner if subcontractors and suppliers are not paid by the prime contractor.
Bid bond
A bid bond is issued to give assurance that the contractor will enter into a binding construction contract and will provide the required payment and performance bonds if the contract is awarded to them.
How does a bid bond protect an owner?
If a contractor fails to sign the contract or furnish the required bonds, the bind stipulates that the surety will pay the damages (usually to pay the difference between the amounts of the low bidder and the next low bidder up to the face value of the bond)
What is a contractors bonding capacity?
A contractors bonding capacity is the maximum amount of uncompleted work that a contractor can undertake at one time that is stipulated by the surety.
A single bonded contract cannot exceed what percent of the bonding capacity?
50%. If a contractor has a $4 million bonding capacity, then they can by given bonds for projects up to $2 million in value.
Notice to bid
Advertisements that are placed in newspapers, magazines, trade publications, etc., dictated by the jurisdiction of the owner and the type of project. The frequency and length of time advertised are also dictated by the jurisdiction.
What are 4 specific procedures that must be followed to award a contract on public projects?
- Notice to bid must be given 2. Invitations to bid posted in public spaces and distributed to local construction community 3. Bidders must be treated alike and given the same opportunity to bid 4. Prequalifications may be required
What is the public bid process normally referred to as?
The design-bid-build process (first the design is completed, then the bidding can take place, then the start of construction)
What benefit does the prequalification process have for the owner?
the result is a select bidders list (a short list) which identifies firms that have demonstrated to the owner that they have the necessary abilities to perform the required work.
Value Engineering
a review of the contract documents in relation to the owner’s objectives to determine if alternative methods or materials can be used.
Bidding / Estimating Period
time allowed contractors to prepare an estimate for their bid.
Addenda
formal changes or clarifications issued by the owner or owner’s representative to all identified bidders during the bidding period.
Alternates (add alt or deduct alt)
selected items of work that bidders are asked to provide prices that will add to or subtract from the base bid. These items give the owner more flexibility when choosing items to add or delete from the contract.
Bid Form
a form on which bids are to be submitted. This form will facilitate analysis and comparison of the bids so that irregularities can be detected quickly.
Escrow estimate
A copy of the estimate from the low-bidding contractor that is sealed and submitted to the owner within a short period of time (usually a day). It is only viewed by the owner as necessary to resolve a dispute (escrow estimates are not a common practice)
Notice to Proceed
a means of notifying the contractor about the decision to award the contract and specifying when the contract time will start. After the contractor returns a signed contract to the owner, the owner issues the notice to proceed.
Give 4 examples of irregular or non-responsive bids
- bid bond provided by surety that is not on approved list 2. submitting a bid 2 minutes late 3. not submitting a bid on all alternates 4. failure to sign bid
Mistakes of fact vs mistakes of judgement when nullifying a bid
Mistakes of fact are grounds for relieving the bidder of any further obligations. Mistakes in judgement provide no base for relief.
Reverse auction bidding
An open website for bidders to submit bids. All bids can be viewed by bidders but are not identified as to who the bid came from. A bidder can bid multiple times to keep lowering their bid as needed.
When will a project be broken out into multiple bid packages or contracts?
If a project is large and would exceed most contractors bonding capacities. Multiple contracts also allows a project to be completed in phases, or phases can be constructed at the same time by different contractors.
What does a project manual consist of?
drawings, bidding documents, general conditions, supplementary provisions, and technical specifications.
What are the general conditions / the boilerplate?
They establish the rights, obligations, and authority of the contracting parties; the owner, owner’s representative, and contractor
Supplementary Conditions / Special Provisions / Special Conditions
Amending or augmenting the general conditions, more specific to the job being constructed
Technical specifications generally follow a standard format that includes what 3 main areas of information?
General (defines scope of work to be performed), Product (describes materials, equipment, accessories, components; and their manufacturing process), and Execution (preparation, workmanship, installation, erection, and application procedures to be employed; quality requirements; and performance criteria)
Performance Specification
describes the end result desired, not the method to accomplish it.
Design Specifications
‘how to’ specifications that state exactly what the contractor is to do to satisfy the quality requirement.
Closed Specification
a specification that is expressly restrictive in stating that only one or two products will satisfy the quality requirements, or is implied when performance is so narrowly prescribed that only one or two products will satisfy requirements
Proprietary Specification
A closed specification that names a product model number and particular manufacturer. (An open proprietary spec would allow for substitutions, ‘or approved equal’)
Open Specification
permit a wide variety of choices for acceptable products to be used, three or more
Multiple Proprietary Specifications
An open or closed specification when more than one manufacturer is specified.
Reference Specifications
References an established industry standard (AASHTO, ACI, ASTM, ANSI, etc) and makes items, established tests, or formal procedures a part of the contract documents by reference.
difference between specifications that state ‘equal’ vs ‘approved equal’?
equal implies that the contractor can make the substitution, and approved equal must be accepted by architect/engineer
Standard Specifications
a set of technical specs that have been developed by an owner.
Cut sheets
information about a product provided in the manufacturers standard literature
Give examples of when Shop Drawings may be needed
guardrails, sign posts, concrete forms, built-in furnishings
As-built drawings (record drawings)
Record drawings are updated to reflect as-installed construction items and underground elements.
Liquidated Damages
A specified sum of money that is charged against a contractor for each day the project completion is delayed. This amount is assumed to accurately reflect the anticipated costs of late completion.
How is a contractor paid under a Unit Price Contract? And when are they appropriate?
For this contract, the various unit prices of work are determined before the start of construction. Overhead and profit must be factored into the unit prices. Use when a project is fairly well defined but the quantities may be hard to estimate before construction starts.
Balanced vs Unbalanced bids
In a unit price contract, balanced bids accurately reflect the unit prices where as in unbalanced bids, the unit prices are altered to maybe get more money upfront in a project or give another advantage to the contractor.
How is a contractor paid under a Cost-Plus Contract? And when are they appropriate?
In this contract, a contractor is reimbursed for most of the direct expenditures associated with a project plus an allowance for overhead and profit. Use when a project is difficult to estimate or when a project has a short completion period and plans and specification cannot be completed before construction. (Or remodeling or renovation)
How is a contractor paid under a Lump Sum Contract? And when are they appropriate?
In this contract, the contractor will produce the project as designed for a stated specific sum of money. A payment schedule or schedule of values is determined at the beginning of the project, and the contractor is usually paid monthly per the schedule. Plans for the project must be fully completed so the contractor can estimate quantities accurately. Owners with a limited budget like this contract.
It is common for changes clauses to have what 4 elements?
- The owner has the right to make changes within the general scope of the contract. 2. The contractor is obligated to perform the work necessitated by the change. 3. The change must be in written form and signed. 4. An adjustment to the contract price and/or contract duration will be assessed by some means or can be predetermined.
Change order
Proposed changes that do affect the contract amount or time deadline, usually a directive in writing from the owner
Field Change
A directive given by owner or designer in the field when a change has no impact on the contract’s amount or duration.
Cardinal Changes
A change that is not within the general scope of the contract.
Hold Harmless Clause
clause in contract where the liability is conveyed to the contractor
Punch list
a list developed at substantial completion that itemizes all remaining work tasks that must be performed before a project reaches final completion
Statute of Limitations
legal term for established length of time an individual or organization is responsible for certain actions and must therefore maintain adequate documentation in the event a claim is made.
As-designed drawings
updated drawings as changes occur throughout project (different from as-built dwgs)
Davis-Bacon Wages
An act passed in 1931 that establishes the requirement for paying local prevailing wages on pubic works projects (laborers, plumbers, carpenters, painters, etc…)
Application for payment
contractor submits pay app for review by owners representative to determine if the payment requests resemble the work performed.
Construction Observation
where LA observes construction at the directive of the owner to determine if the project is being built according to plans and specifications.
name 8 basic services in a LA contract
Pre-design; site analysis; schematic design; design development, construction documents; bidding and negotiations; construction contract administration; postconstruction
What are the 4 types of technical specifications?
Descriptive, Performance, Reference, and Proprietary
Descriptive specification
describes methods of installation and materials desired on a project.
Substantial Completion
a designation of when a project is sufficiently finished to be occupied by the owner. Typically, a certificate of substantial completion marks the beginning of any required warranty periods.
Errors and omissions insurance
insurance involving tort laws; used to cover claims in regards to poor, inadequate, or dysfunctional design that caused an injury.
Preliminary estimate of costs
During schematic design phase, prepare preliminary estimate of costs based on preferred design concept, materials selection, and preliminary details.
RFP - Request for Proposal
An advertisement from an agency (federal, state, or local) seeking planning and design services. LA services fall under the heading of A/E services.
Name three types of easements
Utility (gas/water/storm/sewer); Access (access to land locked parcels with no legal street access); Conservation (restrictions placed on parcel to restrict development)
What are Predesign Services
when consultant provides necessary assistance to the client to establish or refine the clients program.
What are the differences between schematic design and design development?
Schematic design comes first. In schematic design phase, goals are defined and design concepts are created; in design development the client approves a concept and the concept is refined.
Post occupancy evaluation (POE)
the study of the effectiveness for human users of occupied designed environments after they have been designed, constructed, and occupied.
Shop Drawings
drawings prepared by the contractor, supplier, manufacturer, subcontractor, or fabricator of a particular item to be installed on project.
Construction Change Directive
directive for changes in the work where the owner and contractor have not reached an agreement on proposed changes in the contract sum or contract time.
Final Inspection - what must contractor submit upon completion of the punch list?
- affidavit that payroll and materials bills have been paid 2. release and waivers of liens 3. bonding surety’s written consent
Codes, Ordinances, and Regulations
federal, state, and local laws and regulations that must be addressed in the design of a project.
Instructions to Bidders
The rules by which the project will be bid. Rules concern the bid itself and the project during construction.
Arbitration
Methods to resolve disputes prior to taking legal action
Name 3 main responsibilities of the designer
- produce a design that meets applicable codes 2. can be constructed within established budget 3. is functional in terms of the public’s health, safety, and welfare.
Negotiated Contract
when the owner negotiates an agreement with a contracting firm in advance of the design documents completion. Contractor may provide a GMP.
describe Predesign Phase
LA and owner determine desired outcome of project. LA creates a written program of all site elements and a probable cost of construction. Phase is complete when LA and owner agree upon scope of work, anticipated construction costs, and time schedule.
describe Schematic Design Phase
Objective is to design a clearly defined, feasible concept while exploring alternate design solutions.
describe Design Development Phase
LA expands upon schematic design concept and develops more detailed drawings. Outline specs are prepared listing major site materials and finishes. Verify all building codes.
describe Construction Document Phase
detailed working drawings and specifications are created which the contractor will use to establish construction cost and build the project.
Design Program
To be created with the owner and approved before beginning contractual negotiations. Design Program outlines the elements that make up the clients desired project end result.
Design Service Contract
generally used for consulting services between LA and client, or LA and other consultant.
Lump Sum compensation
based on an estimate of the total time and effort anticipated
Percentage of Construction Cost compensation
typically 5-10% of construction costs
Cost Plus compensation
based on actual amount of time designer spends to complete task, agreed upon hourly rates, reimbursable expenses are added to the cost of services.
Hourly Not to Exceed compensation
based on actual amount of time designer spends to complete task at an agreed upon hourly rate, with a maximum amount not to exceed.
Workers compensation insurance
compensation is granted for disability and medical treatment for injuries resulting from accidents occurring as a result of employment, regardless of fault.
Key-Man insurance
insures a company against the heavy losses that can result from the untimely death of a principal
Who is responsible for negotiation of the project schedule with the client?
The Prime Design Consultant
Building Code
Minimum standards established by an agency or municipality to maintain the health, safety, and welfare of the public. Prior to breaking ground, state and local jurisdictions require that building permits are obtained.
Covenants
restrictions and rules in addition to zoning and subdivision regulations applied to a specific parcel of land regulating the use or development of the land.
Subdivision Regulations
Enforceable guidelines for subdividing land parcels, including road and street design, minimum lot sizes, required setbacks from property lines, required yards between buildings and property lines, utility design, etc.
Design Guidelines
usually commissioned by the developer of a property to regulate design that will ultimately be provided by other design teams.
OSHA
Occupational Safety and Health Administration: a federal agency providing standards to protect worker safety and reduce hazardous conditions in the work environment.
Who can procure permits for a project?
It is designated in the contract and can be one of the following: owner, designer, contractor, or permit procurement service.
What are 6 responsibilities that the Prime Consultant has?
- control of design direction and focus 2. responsibility for sub-consultants work (additional liability) 3. coordination of sub-consultant docs 4. meeting established project deadlines 5. administration, billing and paper work 6. compensation for sub-consultants
