Get270 - Project Management - Contracts

Front 1

Name the 3 contracting parties involved in any construction project.

Back 1

1) Owner
2) Designer
3) Builder

Front 2

Name 5 essential elements to a contract.

Back 2

1) Mutual agreement
2) Genuine intent
3) Legal capacity
4) Consideration
5) Lawful purpose

Front 3

This person may possess legal rights to land.

Back 3

Owner

Front 4

This person prepares drawings and specifications, coordinates the builder selection process, and supervise construction

Back 4

Designer

Front 5

What are two ways to obtain contract prices?

Back 5

1) Negotiated

2) Competitive bid (Tendering)

Front 6

Name the 4 major types of construction contracts.

Back 6

1) Lump Sum
2) Unit Price
3) Cost Plus...
4) Design-Build

Front 7

It has the advantage of stating exactly what is being purchased for exactly what price.

Back 7

Lump Sum

Front 8

This type of contract requires minimal supervision and profits the higher efficient contractors.

Back 8

Lump Sum

Front 9

This type of contract should not be used in 'fast-track' construction.

Back 9

Lump Sum

Front 10

Give at least two advantages and disadvantages of a lump sum contract.

Back 10

Reduction of contract supervision. Higher profit for higher efficiency.
Costly if engineer misses something in his design. No incentive for early completion.

Front 11

When would you use a unit price contract?

Back 11

For jobs involving definable operations for which it is difficult to determine exact quantities of the actual work. E.g. paving, piling, pipelining, excavation, sewer & water

Front 12

With this type of contract, the consulting engineer could change his design without having to issue work orders.

Back 12

Unit Price

Front 13

Pull-backs from this type of contract include close supervision for measurement and payment, and that the cost of work is unknown until the work is completed.

Back 13

Unit Price

Front 14

Name 3 clauses that can be "attached" to a Cost Plus contract.

Back 14

1) Fixed Fee (with bonus and penalty clauses)
2) Sliding or Target Fee
3) % of Cost

Front 15

Give an advantage and disadvantage of a Design-Build contract

Back 15

Adv: Used for fast-track projects, good for trustworthy working relationships
Disadv: Don't know costs until project starts

Front 16

If you are able to start work before plans are finalized and you have maintained good relations with the municipality during the project, what contract type would you use?

Back 16

Cost Plus Fixed Fee