PX : Contract Administration Flashcards
177
What is a performance bond?
This is a statement by a surety company that obligates the surety company to complete construction of the owner’s project if the contractor defaults.
178
What is the purpose of a labor and material payment bond?
This is used to guarantee payment for labor and materials on a project if the contractor defaults or otherwise fails to make payments.
179
At an owner’s request, a contractor may include alternates in the bid documents. What is an alternate?
This is a construction item that could, at the owner’s discretion, be substituted for a similar item in the base bid to reduce project costs.
180
What is a unit price?
This is a set cost for providing a portion of the construction work that is based on an individual quantity, such as per unit or per square foot.
181
What is an allowance in interior design?
This is a set amount of money that the interior designer estimates will cover the cost of a particular item (construction or furnishing) when that cost cannot be determined precisely at the time of the bid or negotiated proposal.
182
What are the four types of written modifications that can be made after the execution of a contract?
Four examples of this are
a change order
an amendment to the contract
a written order for minor changes in the work
a written interpretation by the interior designer
183
What is retainage (also called holdback in Canada)?
This is a percentage (usually 10%) of each payment to a contractor or vendor that is withheld by the owner for the purpose of protecting the owner against incomplete or defective work.
184
What form does a vendor or contractor use to request a payment from the owner?
An application for payment form is used for this.
185
In regard to interior design, what is substantial completion?
In a construction project, this is the stage when work, or a designated portion of it, is sufficiently complete according to the contract documents that the owner can occupy or use the site, even though a few minor items may yet to be finished or corrected.
186
Who has the authority to stop construction?
On a construction project, only the owner can authorize this action.
187
What is a change order?
This is a form used to authorize a change in contract time, contract cost, or both, made after the execution of the contract. It is generally prepared by the interior designer and must be signed by the designer, contractor, and owner.
188
What are shop drawings?
These are detailed drawings, diagrams, and other data, prepared by a subcontractor or supplier, that show exactly how the provider intends to supply and install work to meet the contract requirements. They are submitted to the contractor and interior designer for approval.
189
What is the basic process for getting approval on submittals from subcontractors or suppliers?
First, the submittal is sent to the general contractor, who reviews it and then sends it to the interior designer for approval.
If the submittal also requires a review by one of the designer’s consultants, it is sent to the consultant for review.
The submittal is then sent back to the contractor, who returns it to the party who originally made the submittal.
190
What are the interior designer’s obligations during construction observation?
During this phase of the work, the interior designer
becomes generally familiar with the progress and quality of the work
keep the owner informed about the progress of the work
endeavor to guard the owner against defects in the work
determine, in general, if the work is progressing in such a way that it is in accordance with the contract documents
191
Who has the authority to reject work that does not conform to the contract documents?
The interior designer can reject work that does not conform to these.
192
What is a claim in interior design?
This is a demand or assertion by the contractor or owner seeking payment of money, and extension of time, or an adjustment in interpretation of the contract terms.
193
What are two common types of construction claims?
Two common types are
claims for additional time
claims for concealed or unknown conditions
194
What are six things the interior designer is NOT responsible for during contract administration?
During this phase of a project, the designer is NOT responsible for
the means, methods, or techniques of construction
safety on the job site
fabrication, shipment, or installation of construction elements or furnishings
acts or omissions of contractors, subcontractors, or suppliers
stopping the work if there are problems
receipt, inspection, and acceptance of furniture or fixtures
195
What is a construction change directive?
This is a written order, prepared by the interior designer, directing the contractor to make a change before the owner and contractor have agreed on the amount of adjustments in cost, time, or both.
196
What are six common reasons why a designer might withhold payment to a contractor?
This action may be taken because
the work is defective
the contractor failed to pay the subcontractors
the contractor has damaged property of the owner or another contractor
third-party claims have been filed
evidence exists that the work will not be completed on time
the contractor failed to conform to the contract documents
197
What is a punch list (known in Canada as a deficiency list)?
This is a list of items made by the interior designer during the final inspection. It includes anything that needs to be completed or corrected by the contractor if not in accordance with the contract documents.
198
What is a purchase order?
This is a document sent to a manufacturer or vendor that lists all the items to be purchased along with the prices, catalog numbers, and shipping information.
199
What is required from a manufacturer after it receives a purchase order from the designer?
A confirmation or acknowledgement is required from the manufacturer after receiving this from the designer.
200
What is a packing list?
This is a detailed list of item descriptions and quantities in a shipment that is attached to one of the items shipped.
201
What is a drop ship order?
This is a request to ship furniture or other goods to an address different from the address of the company placing the order.
202
What is a bill of lading?
This is a document that lists the contents of a shipment from a manufacturer or vendor.
203
What is a freight bill?
This is the invoice from a shipping company.
204
What is a sales agreement?
This is a document signed by the client that obligates the client to pay for the various items listed in the agreement.
205
If all bids on a project exceed the owner’s budget, what four options are available to the owner?
If this happens, the owner can
rebid (or renegotiate) the contract
authorize an increase in construction costs
work with the designer to reduce the scope of the project
abandon the project
206
What are seven of the items the contractor must submit to the owner during project closeout?
During this phase of a project, the contractor must give the owner
the bonds
all warranties
any extra stock of materials
a set of record drawings
the certificate of occupancy
documentation required by the final application for payment
maintenance contracts and equipment operating instructions
207
What are the five basic activities of project management?
This task involves five basic activities.
planning monitoring coordinating and directing documenting closing out a project
208
What are the two common ways to notify prospective contractors that a project is being bid?
The two common ways to accomplish this are to
advertise for bids in local newspapers and trade journals
send invitation to bid forms to prospective bidders
209
What is an addendum?
This is a written or graphic document issued by the interior designer before the execution of the contract that modifies or interprets the bidding documents by additions, deletions, clarifications, or corrections.
210
Under what conditions can a contractor propose substitutions during bidding?
Bidders must request written approval of these at least 10 days before bid opening. The request must include documentation showing that the proposal meets the requirements of the contract documents.
211
What seven types of information are typically included in the instructions to bidders?
This document typically gives information about
procedures for submitting bids where to obtain bidding documents procedures for opening bids submittals required with the bids bidders' representation statements required bonds procedures for issuing addenda and other modifications
212
What is big security?
This is a certified check, cashier’s check, or bid bond requested by the owner to ensure that the successful bidder will fulfill the contract.