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257 Cards in this Set
- Front
- Back
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What is the main purpose of A201? |
To define the rights & responsibilities of the architect, owner & contractor DURING CONSTRUCTION |
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Name the 4 different A-series AIA contractor documents. |
A101: Owner/Contractor - stipulated sum A102: Owner/Contractor - Cost + Fee (with GMP) A103: Owner/Contractor - Cost + Fee (without GMP) A401: Contractor/Subcontractor |
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What two things are the G series of AIA contracts principally used for? |
Making payments to the contractor Changes in work |
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Who prepares for Entitlement Phase? |
A/E team |
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What are the four types of contract document Modifications? |
Written amendment signed by both owner & contractor Change Order Construction Change Directive Minor change in work (ASI) |
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What does "Work" mean? |
It means everything to complete the project:-
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What items are considered Instruments of Service? |
Anything the architect produces in the creative act of designing the building.
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Does the organization of the specifications dictate how the contractor should divide work among subs? |
No |
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How would the misuse of the Instruments of Service affect the owner's rights and obligations? |
If someone misuses the documents and gets hurt.
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If someone makes a copy of the Instruments of Service, even fora legitimate reason, what must be included on the copy? |
The copy shall bear the copyright notice on the drawings, if it exist. |
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How do project teams decide the protocols to be used when transmitting digital data? |
They develop their own protocols, using A201, Digital Data Protocol Exhibit as a guide |
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According to A201, who technically is considered the Owner? |
The entity who contracts with the contractor |
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Does the owner need to own the land or building? |
No, they can be a tenant, for example. The owner would be considered the landlord |
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What is the purpose of designating an owner's representative? |
Because the owner may not be involved in the day-to-day activities of the project |
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Upon request, how many days does the owner have to furnish legal description of site to contractor, for mechanic's liens purposes? |
15 days |
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When can the contractor request proof that the owner can pay for the project? |
Prior to commencement of the Work |
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What are some examples of proof showing owners ability to finance the project? |
A loan commitment letter, government appropriations document, etc. |
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What are the some reasons the contractor will ask owner to proof ability to pay? |
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In terms of approvals, permits, fees, etc - who pays for what between contractor and owner? |
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How many copies of the Contract Documents is the owner required to give the contractor? |
1 copy |
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Does the owner have the right to stop the Work if the contractor fails to comply with the contract documents? |
Yes |
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After starting the work back up again, after the Owner stops it, what must the contractor do wrong to have the owner take over the work?: |
Defaults, or neglects to remedy the problem that caused the stop |
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What are the procedures for the owner carrying out the Work? |
Owner gives 10 day notice to tell contractor to proceed.
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If the architect doesn't specifically reject something, or has approved payment for something, does that relieve the contractor from making sure it complies with the contract documents? |
No, the contractor is required to comply with the contract documents, regardless of what the architect has or hasn't caught |
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Beginning commencement of the Work is a sign that the contractor has done what 3 things? |
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What 3 things should a contractor do before commencing on a certain portion of the Work? |
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If the contractor knows of an error or omission, and doesn't report it,what could happen? |
They may be liable to cover the costs that went into fixing the problem |
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If the contractor knows of an error or omission, and doesn't report it, Why would the contractor not report it? |
Because if they held off, it might take more office labor to fix the problem, which they could then rake in more money in profit. |
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How should the contractor notify the architect of errors/omissions, or non-conformance with code? |
Through an RFI |
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What would the contractor have to pay, to either owner or architect, if they discover errors, omissions, non-compliance with code, or field dimensions not matching perfectly, and don't report it? |
They might be liable to pay for damages that would not have happened had they reported the error. |
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What is the only scenario where the contractor would not control means & methods? |
If it specifically says so in the contract documents. |
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If the contractor is given instructions for how to do means & methods for something. What are they required to evaluate it for? |
Review it for safety |
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If the contractor is given instructions for how to do means & methods for something. What if they determine it to be safe? |
They take responsibility for the safety? |
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If the contractor is given instructions for how to do means & methods for something. What if they determine it not to be safe? |
They should let the owner & architect know that they don't find it safe |
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If the contractor is given instructions for how to do means & methods for something. What if they determine it not to be safe, report it to the owner, but then are told to do it anyway? |
The owner would be liable for any damages who would then probably sue the architect, if it was the architect who said to proceed |
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Who is responsible for the acts and omissions of the contractors employees and subcontractors? |
The contractor |
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What are the responsibilities for changes in the work that would affect cost or time for contractor, owner, architect? |
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What are the requirements on the contractor regarding quality of materials used in the Work? |
That materials and equipment will be of new and good quality - or - a quality specified in the contract documents.
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If there are damages or defects to the work, will that push back the beginning of the 10-year warranty period? |
Yes, if there are issues with the quality of the materials that can push back the 10-year warranty. |
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Who pays for tests, inspections & fees during design? |
Owner |
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Who prepares docs for building permit? |
A/E team |
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Who picks up building permit? |
Owner/Contractor |
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Who pays for building permit? |
Contractor |
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Who coordinates tests, inspections & fees during construction? |
Contractor |
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Who pays for tests, inspections & fees during construction? |
Contractor |
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What is the procedure that the contractor should follow if they encounter subsurface, or other, conditions different from what is in the Contract Documents and what would normally be expected at the site? |
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What are the steps that must be taken by Owner & Contractor should human burials, archaeological sites or wetlands be found? |
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What is an allowance? |
If something isn't figured out yet for a certain material leave money in the bucket for it later |
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How is an allowance different than the budget for that item (concrete, for example)? |
It can be the same ($1m for concrete in budget, $1m allowance) |
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What costs does an allowance cover? |
Cost of materials or equipment |
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What does an allowance not cover? |
Labor, Loading/Unloading, Overhead, Profit |
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How long does the architect have (in either of itself or speaking for the owner) have to object to the contractor's choice of superintendent? |
14 days |
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If the architect or owner make a reasonable objection to the superintendent, can the contractor keep them? |
Generally, no |
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Is the contractor allowed to change superintendent's w/o the owner's approval?. No. Why is this rule put into place? |
Because the contractor may want to move the super off the project to serve its interest elsewhere, thus hurting the project. |
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Does the contractor need to provide a construction schedule to the owner and architect for information only, or for their approval? |
For their information only
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Can the contractor exceed the overall construction timeline laid out in the contract documents? |
No |
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What happens if the contractor doesn't submit a schedule of submittals for the architect's review? |
The contractor will not be granted any increases in Contract Sum or Contract Time as a result of slow reviewing of submittals. |
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Are shop drawings meant to be generic, or project specific? |
Project specific |
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Where should instructions regarding the handling of shop drawings and submittals be located? |
In Division 1 |
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What is the purpose of submittals? |
They are to illustrate to the architect how the contractor intends to building the project according to the contract documents. |
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Why do submittals not carry as much weight as the contract documents? |
The owner doesn't see them, so they don't have the same level of mutual agreement as the contract documents |
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What should the contractor check/approve submittals for? |
Contractor: dimensions, quantities, more detailed things |
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What should the architect check/approve submittals for? |
Architect: design intent |
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Once the contractor submits submittals to the architect, what does that mean that they've done? What does this mean? |
It means that the contractor says they're correct, and is thus liable if they're not |
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Is the contractor completely liable for deviations in the work as a result of incorrect submittals? |
Yes |
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The architect is not liable for deviations in the work as a result of incorrect submittals. Why? |
Because the submittals are part of the contractors Instruments of Service, and the architect is only checking for design intent. |
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What is the only way that the contractor can deviate from the contract documents? |
ASI, CCD or Change Order (i.e. something that is documented) |
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On a submittal re-submission, is the architect only required to review items they marked up the first time? |
Yes |
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On a submittal re-submission, if anything else changes, what should the contractor do? |
Notify the architect, otherwise the architect isn't liable for the changes |
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Describe the steps for a contractor to follow a performance or reference spec |
A&E staff make performance or reference spec
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Why would a contractor or owner want to use a performance spec? |
Because they can achieve substantial savings by allowing the contractor to pick the system (since they're more knowledgeable). The contractor can thus maybe make more profit |
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If the contractor needs to cut or patch another portion of the owner's property, or another contractor's ongoing work, what are they required to do? |
Get written permission from either, or both if needed |
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If the owner has to clean up after the contractor after the job is done, should they get reimbursed from the contractor? |
Yes |
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Where are the two locations where a contractor is required to allow access by the owner and architect? |
Work happening on site Work happening off-site |
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Are royalties and licensing fees part of the contract sum?. Yes. What is the exception to this? |
If the copyright or license infringement takes place in the contract documents |
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If the Contractor is responsible for something bad happening in the execution of the work, do they have to hold harmless the Architect & Owner? |
Yes |
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If the Contractor is 80% responsible, and someone under their care is 20% responsible, how much is the contractor required to pay? |
80% |
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Worker gets hurt, sues Contractor, Owner & Architect. Is contractor relieved of responsibility for compensating worker? |
No |
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For the architect's role to be restricted (lessened), modified (neural), or extended (increased), who must sign off? |
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If an architect is terminated, does the contractor have a right to object another architect the owner may select? |
Yes, since they came into the project under the assumption that the first architect would be on the project |
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How often does the architect need to visit the site during construction? |
As many times as the architect deems reasonable, based on the status of construction |
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Can the owner specify an amount of time the architect need to visit the site during construction? |
Yes, they can |
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What is the purpose of the architect making general observations of the work? |
To notify the owner of the general progress (looking out for the owner) |
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Contractor wants to talk to owner, who should they go through |
Architect (if Contractor talks to Owner w/o architect present, Contractor may take advantage of Owner) |
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Contractor wants to talk to architect's consultants, who should they go through |
Architect (if Contractor talks to consultant w/o architect present, Contractor may take advantage of consultant) |
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Owner or architect wants to talk with other GC's (if applicable), subs or suppliers, who should they go through? |
Contractor |
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Does the architect have the authority to reject work or require testing? |
Yes |
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If an architect approves a specific item in an assembly, are they approving the entire assembly (for shop drawings)? |
No |
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Just like the contractor isn't responsible for the accuracy of the architect's instruments of service, the architect isn't responsible for the contractor's instruments of service (submittals, product data, etc) |
ok |
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Is the architect the person who prepares changes to the contract documents?. Yes. What if there is a third-party initial decision maker? |
It is still the architect's responsibility to prepare the docs |
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If an architect clarifies intent with an RFI response that was not clearly discernible in the contract documents, is the contractor bound to it? |
No..It require a change order |
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If an architect clarifies intent with an RFI response that was clearly discernible in the contract documents, is the contractor bound to it? |
Yes |
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After signing the construction contract, how long does the contractor have to submit names of subs & suppliers to the owner & architect? |
As soon as is practicable |
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How long does the architect have to make an objection to the names of subs & supplierson behalf of either themselves or the owner? |
14 days |
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If a sub-contractor is rejected by owner or architect who is reasonably capable of completing the work, what happens? |
A change order will be issued to increase or decrease project cost and/or time (which the contractor would want) |
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If the subs were not reasonably capable of completing the work, what happens? |
A change order will not happen |
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If a sub-contractor is rejected by owner or architect, but no timely list of subs was made available early on (so this issue would happen later), what would happen? |
A change order will not happen |
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By what terms are the subcontractors bound to the contractor? |
By the same terms that the contractor is bound to the owner |
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Is the contractor allowed to modify A401 and include language that would prejudice (create ill-will or ill-acts) towards owner or architect? |
No |
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Should sub-contractors be encourage to create a similar agreement with similar terms to their sub-sub-contractors? |
Yes |
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If a contractor defaults, is the owner entitled to keep the sub-contractors as well as their original bid prices? |
Yes |
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If the contractor defaults, the owner entitled to keep the sub-contractors as well as their original bid prices. What is the only way that these bid prices can be changed (reduced)? |
If work is terminated for more than 30 days, the contractor will deduct payment to the sub to compensate for losses from suspension |
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If contractor defaults, is owner required to still fully compensate subs for work done? |
Yes |
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If a GC defaults, will an owner typically take on the GC role?. If not, what will they do? |
No. Hire another GC |
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If contractor defaults, is owner still obligated to pay the (old) subs the same for past work and future work on the project? |
Yes, they need to pay them the same amount |
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If an owner hires multiple prime contractors, who's responsibility is it to coordinate them? |
The owner, either through their project management staff, or through a consultant |
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True or false: In a multi-prime GC arrangement, each contractor is required to coordinate their schedule with the other contractor's schedules. |
True |
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If the owner carries out work as a contractor, are they entitled to the same rights and responsibilities as that afforded to the contractor under A201? |
Yes |
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If there are multiple contractors, and one contractor has to build on top of the work of another, what are they required to do (if they find any defects in the work)? |
Notify the architect before beginning about said defects |
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If one contractor cannot perform their work because of delays or improper scheduling of another contractor, what can they ask for from the owner? |
Reimbursements for money spent because of delays (which owner would then get from other contractor) |
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If one contractor is slowing down the work of another contractor, what will that contractor have to give to the owner? |
Money, which the owner will then give to the contractor |
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In a multi-contractor situation, what are the responsibilities of each contractor with regard to cutting & patching? |
They will be held to the same standards set forth for the main contractor in A201 |
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In a multi-contractor situation, if there is a disagreement regarding who is responsible for clean-up in different areas, what does the owner have the right to do? |
Clean the site |
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In a multi-contractor situation, if there is a disagreement regarding who is responsible for clean-up in different areas,Who decides who pays for the cleanup? |
The architect allocates who is responsible |
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Who prepares a change order? |
The architect prepares a change order (since it's a change to the contract documents) |
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What must be agreed to by Owner, Architect & Contractor for change order? |
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If there is no change to the contract sum or contract time, what should be marked down? Why? |
A $0 change or a 0 day change in time should be marked down. It prevents disagreements later to do this - like if the contractor directed change order that would actually decrease time or sum (which the contractor would not want) |
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Can a Construction Change Directive change things within the general scope of the project? |
Yes |
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Can a Construction Change Directive change things outside of the general scope of the project?. No. Who would need to be contacted if this work was to go through? |
The surety would need to be contacted to make sure they will still be covering the contractor for this change. |
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What does a Construction Change Directive give the owner a unilateral right to do? |
Make changes to the work, regardless of who else agrees |
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What are the three ways to price a Construction Change Directive? |
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If a unit price was quoted for a small $/unit cost, and then the number of units used in the project significantly decreased (like hotel rooms), thereby giving a huge financial inequity to the owner, what happens? |
The unit price should be changed |
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Does the contractor need to sign a Construction Change Directive for it to be in effect?. No. What if they do? |
It becomes a change order |
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If there is a disagreement on the cost of a Construction Change Directive, who makes an initial decision? |
The Architect |
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What if either of the parties disagree with the architect initial decision? |
They can appeal |
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What is the purpose of having an initial cost (as determined by the architect) written down? |
The owner's lender needs to approve the Construction Change Directive cost increase |
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When does 'Contract Time' end? |
At substantial completion |
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Where does it say when 'contract time' begins? |
In A101 |
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Where does it say when 'contract time' begins. What if the contractor doesn't start work on this day? |
Doesn't change anything. Contract time still begins then. |
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When using the term 'time is of the essence' what does it mean if the owner or contractor are late on on something? |
It means that technically it's a breach of contract. |
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If the effective date on the insurance has not happened yet, can the contractor begin Work? |
No |
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If the effective date on the insurance has not happened yet, can the contractor begin Work?. No. What is the exception to this? |
The exception is if the owner gives instructions to do so in writing |
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If the contractor is delayed for reasons outside their control are they allowed an increase in the contract time? |
Yes, it would be a change order |
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The contractor is delayed for reasons outside their control and is allowed an increase in the contract time. Who determines how many days? |
The architect (in collaboration with the owner), because they are the ones that set the initial timeline |
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If a contractor asks for more money up front than what they've done (front loading), why is that particularly problematic from an owner's point of view? |
Because if the contractor defaults, they will be paid more than what they should have |
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What does a schedule of values determine? |
It determines when they will submit applications for payment |
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How much time does the contractor have before each scheduled date for application for payment, to turn in an application for payment? |
The contractor needs to submit the application for payment at least 10 days before the schedule of values date |
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True or False: Applications for payment are only for payments meant to be made to subcontractors or suppliers. |
True |
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When does the title (ownership) of materials for the project become the owners? |
When the owner has paid the contractor for them |
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Upon receiving an application for payment, what are the options the architect has? |
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Upon receiving an application for payment, how long does the Architect have to review it? |
Within 7 days of receipt of application |
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When an architect issues a certificate of payment, what are they stating has been done? |
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Can certifications for payment be reversed later? |
Yes |
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What is the schedule of values date? |
They are predefined dates for when the GC should be paid. |
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How long before that date does the contractor need to submit an Application for Payment? |
10 days before |
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How much time is then given the Owner to pay a Certificate of Payment?. 3 days. What happens if payment isn't made on time? |
Interest will accrue |
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How long does a GC have, once receiving payment, to pay subs? |
7 days |
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Does the sub have a right to be paid even if the owner hasn't paid the GC? |
Yes |
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If GC is asking for money for 50% of steel
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True |
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What is the process for the owner confirming that subs have been paid? |
Owner has suspicion that subs have not been paid
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What happens (with regards to sub payments) if the GC cannot provide a full payment bond to cover the full construction cost? |
GC cannot provide bond to cover entire cost
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Contractor turns in pay app 10 days before schedule of values date
Contractor can start up work when paid
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ok |
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Why is the architect the decider of when a project has reached substantial completion? |
Because the contractor wants substantial completion to come sooner
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Who initiates when substantial completion has been reached? |
The contractor |
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Who initiates when substantial completion has been reached?. The contractor Who accepts it, or doesn't accept it? |
The architect, by reviewing the punch list |
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What are the 4 main parts of the construction contract (between contractor and owner)? |
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Why do the architect and contractor not have a contractual relationship with each other? |
Because if architect was contracted with owner, and contracted with contractor, it would be hard for architect to act as agent of owner. |
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Who bears sole responsibility for interpreting the intent of the contract documents? |
The Architect |
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Who proposes when the project has reached substantial completion? Contractor. How do they do this? |
The contractor submits a punch list (a list of small items that need to be finished before final payment) |
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Who decides when substantial completion has been achieved? |
The Architect, after inspecting when the contractor proposes substantial completion has been reached. |
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The Architect decides when substantial completion has been achieved. Why is the Architect the decider on this matter? |
As the designer, the architect is in the best position to decide when the building is fit for use and occupancy. |
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What might happen if the contractor keeps failing the inspections? |
The architect could ask for additional services, and the owner may charge that to the contractor |
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Who prepares the certificate of substantial completion? |
The Architect |
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What are the main things that are included in the certificate of substantial completion? |
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What is the order for parties to sign the certificate of sub. completion? |
Architect Contractor Owner Surety |
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Does the contractor get retainage for all work completed that's in accordance with the contract documents?. Yes What about work on the punch list? |
The contractor will get retainage for work on the punch list at certificate of final completion |
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Can the owner occupy a space before substantial completion?. Yes Who must sign an agreement accepting this? |
Owner, Contractor, Insurer |
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Who needs to inspect the space before issuing a certificate of temporary occupancy? |
Owner, Architect, Contractor, AHJ |
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If the owner occupies a space before it's substantially complete, are they in effect, accepting that the work in that space is in accordance with the contract documents? |
No |
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Does the architect issue a final certificate of payment? |
Yes |
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Does the architect issue a certificate of final completion? |
No, because there will inevitably be small things the contractor will still have to come back and fix |
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What 4 things must the contractor include in their application for final payment? |
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What can be done if a subcontractor refuses to give up their lien? |
The Contractor can take out a bond to cover the amount of the lien |
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If final completion is delayed for causes beyond contractors control, can they still be released final payment and retainage?. Yes Will surety need to sign off in some situations? |
Yes (if surety could be hurt if they don't verify) |
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Does final payment end all rights given to the owner (w/ regards to the contractor)?. No What right still exists past final completion? |
1-yr. correction warranty for work not in accordance with contract documents |
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If a contractor or subcontractor has any liens or claims still outstanding at final application of payment, what do they need to do? |
State them in writing at the time of application of final payment |
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Is the contractor responsible for notifying owner and users of safety precautions to take around construction areas? |
Yes |
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If damage is done to person or property, through the fault of the contractor, and there is property insurance present, will the contractor need to pay? |
No |
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What is the role of the superintendent? |
To be the contractor's principal representative at the site. |
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If any party gets injured because of act or omission by another party, what is the maximum amount of days that a written report must be made in writing? |
21 days |
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If the contract documents recognize a hazmat on site, and instruct the contractor to remove or encapsulate, is the contractor required to do so? |
Yes |
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If the contract documents don't recognize a hazmat, and reasonable measures can be taken to remove and encapsulate, is the contractor required to do so? |
Yes |
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If the contract documents don't recognize a hazmat, and reasonable measures cannot be taken to remove and encapsulate, is the contractor required to do so? |
No |
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If there is a hazmat related disagreement between owner and contractor, what is the first line of conflict resolution? |
Mediation (skips Architect/IDM) |
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Is the owner responsible for materials and substances brought to the site, for the project?. Yes. When would the contractor be responsible for them, if they result in damage or person or property? |
If it's through the contractor's fault |
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If a government agency forces the contractor to pay for remediation of a hazmat, simply because they are the ones working at the site, what is the owner required to do, under A201? |
Hold harmless and repay the contractor |
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Can the contractor act, w/o authorization, in the event of an accident to persons or property?. Yes. What gives them this right? |
Because they are controller of means, methods & techniques |
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In an insurance and legal context, what is the difference between bodily injury and personal injury? |
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What are the different things that a contractor needs to have insurance to cover? |
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What are the minimum limits of liability that must be kept? |
The minimum required by the contract documents, or by state law, whichever is more stringent. |
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If a contractors insurance is set to expire, how many days written notice does the contractor need to give the owner before expiration? |
30 days |
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Insurance companies will often limit how much money they'll pay out in aggregate for a client. If the contractor is about to reach that limit, because of other projects, what must the contractor do? |
Notify the owner |
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Is the contractor typically required to cover the owner, architect, and architect's consultants against third party suits if the contractor was negligent?. Yes During what period does this insurance need to cover? |
During construction |
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Is the owner required to maintain property insurance (different from bodily, personal, auto, workers comp, professional liability, etc - pays money should MATERIALS OR THE PROPERTY be damaged) on the project?. Yes If so, how much? |
Cost of Work + contract modifications + value of stuff supplied by those other than the contractor (or multiple contractors) |
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Can the owner choose not to purchase property insurance?. Yes What do they then need to do? |
Inform the contractor |
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What does the contractor then have the right to do? |
Take out property insurance that would cover the contractor, sub, sub-sub, and enact a change order that the owner would have to pay for the cost of the insurance |
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What if the owner does not purchase the insurance and does not tell the contractor? |
Then the owner essentially becomes the insurer of the contractor and will need to pay for any property damage |
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What are deductibles? Think about why it's called that |
The amount the insured needs to pay before the insurance company will pay it's part. (It's called that because it deducts, from the insurance company's point of view, the amount that the insurance company has to pay) |
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Who would pay the deductible on an owner's insurance policy? |
The owner |
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Does the owner's property insurance need to cover materials stored off-site or in-transit? |
Yes |
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If Contractor wants extra parts to be added to owner's property insurance, who pays for that? |
Contractor |
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Is the owner required to provide a copy of all property insurance policies to the contractor? |
Yes |
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If policy is set to expire, how much notice does owner need to give contractor?. 30 days If it expires, and something bad happens that is contractors fault, who will pay for bad thing? |
Contractor, which they cannot let happen |
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What exactly is subrogation? |
The right to "stand in the shoes" of another and assume their risks or rewards (like contractor paying money back to insurance company for screwing up) |
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What does it mean then when it says Waiver of Subrogation? |
Waiver of subrogation means they waive the "right" to subrogate - to pay money back to insurance company (if insurance company sues) |
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In terms of insurance, what does it mean when we say the owner has fiduciary responsibilities to contractor, architect or lender? |
It means that any money which the owner receives from the insurance company - that is due to another party - the owner must pay money to that party |
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If damage happens to property --> owner gets money from insurance company --> owner has 1 of 2 options, what are they? |
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If a question arises where a contractor is being asked to provide a payment or performance bond after the contract for construction is signed, what is the issue here? |
Any bond requirements need to be presented to the contractor before signing of the construction contract (during bidding or on the Contract Documents) Reason being that the contractor has to figure this into their costs |
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Is the contractor required to provide it's bonding information to its subs, sub-subs, or material suppliers? |
Yes, if requested |
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If the contract documents say not to cover work, and the contractor covers it, who pays for it to be uncovered so it can be inspected by the architect? |
Contractor |
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If the contract documents have no restrictions about covering work, and architect wants work to be uncovered and inspected, who pays if work is correct?. Owner If work is incorrect? |
Contractor |
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If work is discovered to not conform to contract documents before substantial completion, will it need to be corrected?. Yes. After substantial completion?. Yes. If it is only in process, but known before being finished that it will not comply? |
Yes, it will need to be corrected |
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What are the 3 different types of warranties, and what is the penalty for each if broken? (2 by the contractor and 1 by suppliers or manufacturers) |
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If the contractor performs corrective work within the 1-year time-frame, and then that work is found to be defective sometime later after the initial 1-yr time-frame, is the contractor obligated to fix it?. No. Can the owner sue the contractor though for the cost to fix it? |
Yes, the contractor just doesn't have to come out and fix it |
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If the contractor is correcting an issue, during the 1-yr correction period, and destroys other parts of the owner's property, who bears the cost to fix it? |
Contractor |
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What instrument would be used to carry out an owner-acceptance of non-conforming work? |
Change order |
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An owner-acceptance of non-conforming work. What would this do to the contract sum? |
Likely reduce it |
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An owner-acceptance of non-conforming work, which result in change order to reduce contract sum. Is this outcome something the contractor would generally want? Why? |
No, because with each dollar paid to the contractor, part of it is profit theoretically (because of contractor markup) |
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For notice to have been legally served (if, say, owner is trying to send something to contractor) who are the people who are allowed to have received the notice? |
The actual individual, a member of the firm, or an officer of the firm.
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Are the duties listed in the contract documents in addition to normal law, or in lieu of it? |
In addition to it (normal law must still be met) |
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Who bears the cost of coordinating and carrying out tests, inspections & approvals during construction? |
Contractor |
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What if the tests, inspections & approvals only become known after bidding? |
Owner shall bear the cost |
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Who bears the cost if a test, inspection or approval becomes necessary for a part of the construction not called out in the Contract Documents? |
Owner |
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Who secures certificates of testing, inspection or approval?. Contractor. Who is it delivered to? |
Delivered to architect, who then delivers to owner |
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If a payment is past due, does it collect interest?. Yes. What interest rate is used? |
Whatever the prevailing interest rate is at the time or a rate that is agreed upon in the A101 |
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If the architect doesn't approve the pay application, for no reason, or the owner doesn't pay the contractor, for no reason, how many days does the contractor have to wait before suspending their work? |
7 consecutive days |
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How many additional days to terminate the work? |
30 additional consecutive days |
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What are some other reasons why the contractor can terminate the contract? |
Court or AHJ requiring that work be stopped, government declaringnational emergency and for work to stop, owner has not provided proof of ability to pay |
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How many days written notice (in addition to the 7 days (if applicable) + 30 days) does the contractor need to give before terminating? |
7 additional days |
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What are the two scenarios where the contractor can terminate the contract if the owner suspends the work for convenience? |
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Regarding contractor termination: If owner suspends for convenience |
More days than remaining on project schedule, or 120 days per 365 day period (Contractor to give 7 days written notice) |
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If contractor doesn't get paid (by either Architect or Owner, for no reason) |
Contractor needs to wait 7 days
Can then give 7 days written notice before terminating. After 7 days, can terminate |
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If work is stopped through owner not fulfilling other duties under contract documents (different then owner purposefully suspending for 'convenience') |
Work is suspending for 7 days b/c of Owner
Contractor can terminate |
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What are the main points in the process of the owner terminating the contractor |
The Contractor does stuff wrong (breaks laws, repeatedly lacks skilled workers on site, etc) --> IDM must give consent to termination (to protect Contractor and Owner from rash decisions) --> Owner gives Contractor and surety 7 days written notice --> Contractor terminates Owner and confiscates any material and barres Contractor from site --> Owner finishes job by whatever means necessary |
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If Owner terminates Contractor,
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Original contractor |
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If Owner terminates Contractor,
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Original contractor |
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If Owner suspends contract for convenience, what money does Owner owe to Contractor? |
Costs incurred due to suspension |
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If Owner terminates contract for convenience, what money Owner owe to Contractor? |
Money for work done + overhead for work not done + profit for work not done This is a rare instance where Contractor would get paid overhead + profit for work NOT done |
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When must a claim, by Owner vs Contractor, or Contractor vs Owner, be filed (in relation to when the 'event' took place)? |
Within 21 days after event occurred or when the event was noticed to have occurred |
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Do all the details need to be known when initiating the claim (sending it to the other party)? |
No |
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Does the architect and/or IDM need to be copied on transmittal of claim? |
Yes, to both |
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Does work generally need to continue as normal by Owner, Architect, Contractor, during an ongoing claim dispute?. Yes. What situations are an exemption to this? |
If the claim involves issues justifying suspension or termination |
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Delays, which are not the fault of the contractor, are allowed to increase overall contract time only if they effect what? |
Critical path items |
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What must the contractor prove if they want to assert that weather delayed the project? |
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What are the basic similarities between liquidated and consequential damages? |
They both involve indirect loss because of failure to fulfill a contract by the other party (can be revenue lost, expenses gained, reputation lost, etc) |
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What are the basic difference between liquidated and consequential damages? |
Liquidated damages are basically stated at contract signing, while consequential damages are not stated from the beginning |
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Why do contracts try and avoid the allowance of consequential damages? |
Because they can unreasonably lengthen a dispute, and can end up costing both parties a ton |
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Does the A201 forbid claims for consequential damages between Owner and Contractor? |
Yes |
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What options does the IDM have when presented with a claim? |
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Is there a time limit on how long either party has to file for mediation after an Initial Decision has been made? |
Yes, 30 days |
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Does the IDM usually try and resolve most conflicts first?. Yes. If that doesn't work, then what are the parties required to file for? |
Mediation |
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What can the parties also file for at the same time as the mediation? |
Binding dispute resolution (using either arbitration or litigation) |
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Why are they allowed to file for mediation and dispute resolution both at the same time? |
The parties want to avoid statute of limitations issues (not filing for arbitration fast enough), but the AIA wants the parties to try mediation first. This lets both the parties and the AIA to get what they want. |
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Where does mediation usually take place?. At the job-site. Who pays for it? |
Both parties split the cost evenly |
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Why is consolidating different arbitration together allowed? |
To avoid having multiple arbitrations (which cost money) over the same underlying issues, but in different circumstances or with different parties |
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What is consolidating arbitration? |
Combining multiple arbitrations with the same underlying issues together |
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What is joining arbitration? |
Bring in a third party person to 'testify' at the arbitration |
