*Proposals & Contracts

Question 1

What is an RFP?

Answer 1

A request for proposal or RFP is a document prepared by the client. It contains the specific information the client seeks from the interested design firm. This can include:

-the full scope of services request
-the project description
-the proposal requirements section
-the due date for the submission

Question 2

What is a performance bond?

Answer 2

A statement by an insurance company that ensures project completion should the contractor default on its obligations.

Question 3

What is a labor and material payment bond?

Answer 3

Promises payment to labor and for materials by a defaulting contractor.

Question 4

What are the four elements a contract must include?

Answer 4

1.) an offer
2.) acceptance
3.) consideration
4.) mutual agreement.

Question 5

Who are the A series agreements between?

Answer 5

Owner and the Vendor or contractor

Question 6

What are A series agreements typically used for?

Answer 6

These are typically used for large projects with a fixed payment amount.

These include three basic categories of information: schedule, cost, and the scope of the work

Question 7

What is A101and why would it be used?

Answer 7

Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

Question 8

What is A104?

Answer 8

Standard Abbreviated Form of Agreement Between Owner and Contractor

This contract is used on construction projects of limited scope and complexity when there is a stipulated sum or cost plus.

Question 9

What is A201?

Answer 9

General Conditions of the Contract for Construction

This contract sets the rights, responsibilities, and relationships of the owner, contractor, and architect. Various design-bid-build agreements incorporate and reference this “umbrella” document.

Question 10

What is A151?

Answer 10

Standard Form of Agreement Between Owner and Vendor for Furniture, Furnishings, and Equipment

The Vendor sells, delivers, and installs work

This contract is used between owner and vendor for furniture, furnishings and equipment (FF&E) where the basis of payment is a stipulated sum (fixed price) agreed to at the time of contracting.

Question 11

What is A152?

Answer 11

Purchase Order

This purchase order agreement is intended for situations where a Purchaser will buy goods from a Vendor.

Question 12

What is A751?

Answer 12

Invitation and Instructions to Vendors for Quotations for Furniture, Furnishings, and Equipment (FF&E)

This contract is used for an invitation to bid for an interiors project.

Question 13

Who are the B series agreements between?

Answer 13

The owner and architect or designer

Basic services include the scope of work and schedule, cost for the scope of work, and all fees.

Question 14

What is B101?

Answer 14

Standard Form of Agreement Between Owner and Architect.

(Used with A201 general conditions)

Services listed are divided into basic, supplemental, and additional services. It may be used with a variety of compensation methods, including percentage of the budget for construction cost and stipulated sum.

Question 15

What is B152?

Answer 15

Standard Form of Agreement Between Owner and Architect for Interior Design and Furniture, Furnishings, and Equipment (FF&E) Design Services,

This contract between owner and architect is used with any sized interior project which includes interior design services including furniture, furnishings and equipment.

Question 16

What is B252?

Answer 16

Standard Form of Architect’s Services: Interior Design and Furniture, Furnishings, and Equipment (FF&E) Design Services.

This contract is used with any sized interior design project to establish duties and responsibilities when the architect provides architectural interior design services and design services for furniture, furnishings, and equipment.

Question 17

What is B253?

Answer 17

Standard Form of Architect’s Services: Furniture, Furnishings, and Equipment (FF&E) Design Services

This contract is used with any sized interior design project to establish duties and responsibilities when the architect provides design services for furniture, furnishings, and equipment.

Question 18

What is B254?

Answer 18

Standard Form of Architect’s Services: Purchasing Agent Services for Furniture, Furnishings, & Equipment

This contract is used in situations where an Architect is expected to assist an Owner in purchasing furniture, furnishings, and equipment (FF&E) and managing FF&E contracts.

For FF&E Procurement, allows A/ID to enter into FF&E sales contracts on the owner’s behalf, and positions A/ID as a legal agent for the owner for purchasing services, instead of as reseller of goods

Question 19

What are terms and conditions?

Answer 19

identify the rights and responsibilities of parties agreeing. Terms and conditions do not refer to the overall contract but the legal terms. This can include general conditions and special conditions.

Question 20

define liquidated damages

Answer 20

the moneys paid by contractor to the owner for every day the project is late.

Actual anticipated losses the owner will incur if the project is late. For example, if the owner must pay double to rent since they cannot move.

Question 21

What is Area Fee and when should it be used?

Answer 21

Area fee: professional fees based on the area method are determined by multiplying the square footage of a project by some fixed rate.

This method is generally used only in commercial construction and then only for project types with which the interior designer has much experience.

Question 22

Define a percentage of the cost pricing method and when it should be used

Answer 22

A percentage of project costs is appropriate for projects where the interior designer can accurately anticipate the amount of work required and has a good idea of the expected time involved and the project’s cost.

be weary of doing this for new clients though

Question 23

The project is in a building currently listed for sale. Which type of bond would be most important to prevent the project from interfering with any potential sale of the building?

Answer 23

Labor and Materials Payment Bond

Question 24

What are liens and what can they do?

Answer 24

Labor and Materials Payment Bond

Question 25

Define Common carriers

Answer 25

Those who offer services to the public

Question 26

Define contract carriers

Answer 26

provide service only to certain companies they choose to do business with

Question 27

Define private carriers

Answer 27

companies who own and operate their own trucks to move their own merchandise

Question 28

What does FOB mean?

Answer 28

Free on board

Meaning the manufacturer pays for loading the goods onto the truck/train

Question 29

What does FOB Factory mean?

Answer 29

that the title is transferred at the factory. They buyer pays transportation costs, and the manufacturer is not responsible for loss or damage during shipping.

Title passes to the buyer after the goods are cosigned to the common carrier at the factory

Question 30

What does FOB destination mean?

Answer 30

the seller is responsible for shipping and recovering any damage or loss during shipping.

Question 31

What is the intended purpose of an indemnification clause in a contract?

Answer 31

to hold harmless both the owner and interior designer for any damages, claims or losses resulting from the performance of any work on the project, whether by the contractor or others with whom the interior designer has no contractual relationship

Question 32

Which of the following is more legally binding?
a) schedules
b) all of these
c) specifications
d) drawings

Answer 32

C) Specifications

The courts have held in many past cases that information in the specifications takes precedence over other documents in the case of conflicts. This provision is often written into contracts.