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222 Cards in this Set

  • Front
  • Back

drawings, diagrams, schedules + other data, specifically prepared for work by the contractor or subcontractor, etc.

SHOP DRAWINGS

prevents contractor from sueing architect or owner in event of poor performance of work - bodily, injury, sickness, disease, death, or other personal property (not the work itself)

INDEMNIFICATION

shop drawings, product data, and samples from the contractor to review for expressed design concept

SUBMITTALS

part of the architects' services - to alter the work - may alter contract sum + time

CHANGE ORDER

requires additional fees from the architect to prepare additional drawings

CHANGE IN SERVICES

multi-party litigation - must be agreed upon in writing by all parties involved - usually better for arbitration to be held separately to avoid unnecessary complexity + complications

JOINDER

w/out invalidating the contract, the owner may order changes consisting of additions, deletions or other revisions - contract sum + time adjusted - used when change order cannot be obtained due to limited time or disagreement

CONSTRUCTION CHANGE DIRECTIVE

time, including authorized adjustments, allotted for substantial completion of work

CONTRACT TIME

point at which the work or designated portion can be occupied or used as intended - usually the contractor makes this call, but must be agreed upon inspection by architect

DATE OF SUBSTANTIAL COMPLETION

establishes date which work can be occupied - owner makes payment of any retainage

CERTIFICATE OF SUBSTANTIAL COMPLETION

max $ figure that the insurance company will pay - covered in the Contract Documents or by by law, whichever is greater

LIMITS OF LIABILITY

includes everything but specifically excluded risks

ALL RISK

names specific risks and excludes all others

NAMED PERIL

right to "stand in the shoes" of another and to claim whatever rights the original person had

SUBROGATION

the execution of agreement to cancel or legal obligation in return for something less than or different from the legal duty owed

ACCORD + SATISFACTION

an accident or event that is the result of natural causes without human intervention, that could not have been prevented by reasonable foresight

ACT OF GOD

a law suit brought in court for enforcement of a legal right

ACTION

one who is trained in the mathematics and statistics of insurance and calculates premiums, reserves, and other values

ACTUARY

a party added to the coverage of an insurance policy with the right of recovery but without the obligation to pay the premium or meet the terms of the policy

ADDITIONAL NAMED INSURED

one who settles insurance claims

ADJUSTER

an insurance company licensed and authorized to do business in a specific state and subject to regulation by the state insurance commission

ADMITTED CARRIER

submitted by contractor to the architect - payrolls, bills for materials, and equipment - voluntary written statement of facts, confirmed by oath of the maker and before an authorized officer

AFFIDAVIT

relationship where agent has authority to represent or act for another person, called a principal

AGENCY

the total amount payable under a policy regardless of the number of claims - usually annual

AGGREGATE LIMIT

a statement in a claim or pleading asserting something expected to be substantiated or to be proven in court

ALLEGATION

settling dispute without resorting to litigation (arbitration, mediation, out-of-court, etc)

ALTERNATIVE DISPUTE RESOLUTION (ADR)

state laws that invalidate contract clauses related to a party being indemnified or held harmless for damages

ANTI-INDEMNIFICATION STATUTES

consultation, investigation, research


general development of site plans


studies and specifications


supervision of development of landscape


plan, preserve, enhance, + arrange land forms


project manager coordinates time, $, people etc


review work

GENERAL DUTIES OF LANDSCAPE ARCHITECT

plan + design of vegetation, circulation, + other features to fulfill aesthetic and functional reqs


formulate graphic + written criteria to govern construction process


prepare, review, + analyze masterplan + site plan


prepare feasibility studies, probable construction costs, public hearing schedules, etc

LANDSCAPE ARCHITECT SPECIFIC DUTIES

identify substitutions


responses to questions from prospective bidders to provide clarifications + interpretations to the bidding documents


(during bidding + within the contract)

ADDENDA

method of alternative dispute resolution where parties contractually agree to have an arbiter rule on the merits of their claims

ARBITRATION

an impartial person chosen by the parties to solve a dispute who is normally vested with the authority to make a binding decision

ARBITRATOR

an agreement where a party becomes responsible for the risk involved

ASSUMPTION OF RISK

one who has been insured by an insurance company

ASSURED

an arbitrator's decision, as distinguished from a decision, order or verdict in a court action

AWARD

a temporary insurance agreement that obligates the several parties of the contract if the loss insured against occurs before the policy is written

BINDER

failure to comply with the terms or conditions incorporated in an insurance policy, frequently resulting in a restriction of coverage or voiding the policy all together

BREACH OF INSURANCE CONTRACT

failure to perform an obligation created by law or by contract

BREACH OF DUTY or NEGLIGENCE

written argument, prepared by a lawyer, setting forth the facts, legal points, + authorities to persuade a court about the merits or defenses to a claim

BRIEF

representative of the buyer of liability + other insurance who deals with agents in arranging coverage required by the customer

BROKER

form of property insurance that covers damage to property under construction

BUILDERS' RISK INSURANCE

dut of a party to substantiate an allegation or issue in order to convince a "trier of fact" of the merits of the party's claim

BURDEN OF PROOF

max amt. of insurance that a company can write or max net premiums a company can book

CAPACITY

an insurance company formed by one or more entities to insure specific risks

CAPTIVE

company claims adjustor's estimate of the potential liability of a claim subject to coverage by the policy

CASE RESERVES

facts sufficient to justify a court in rendering a judgement

CASE OF ACTION

a demand for money, services or property based upon a right usually found in contract or by operation of law

CLAIM

a policy that covers only those claims that are made against the insured during the policy period

CLAIMS-MADE POLICY

rule that prevents a defendant from introducing into evidence the fact that a plaintiff has received benefits from their injury or from other sources

COLLATERAL SOURCE RULE

a legal doctrine that bars further litigation of issues in a case previously decided by other courts

COLLATERAL ESTOPPEL

the sum of the incurred loss and company expense divided by the earned premium

COMBINED RATIO

a broad form of liability insurance usually covering business organizations to protect them from liabilitiy claims for injury arising out of their operations

COMMERCIAL GENERAL LIABILITY INSURANCE


(CGLI)

the body of principles and rules of action that derive their authority solely from usages and customs or from the judgements of the courts

COMMON LAW

the proportional sharing of liability between a plaintiff and defendant for damages based upon the percentage of negligence of each

COMPARATIVE NEGLIGENCE

an agreement, written or oral, between two or more parites creating legal rights and duties that something shall, or shall not, be done


requires "consideration" to be legally binding

CONTRACT

the failure of the plaintiff to exercise ordinary care, thereby contributing to his or her own injury

CONTRIBUTORY NEGLIGENCE

pre-trial testimony in the form of oral questions and answers, by a party or witness, that is taken under oath and may be used during a trial or arbitration proceeding

DEPOSITION

period of time allowed an insured to identify and report to the carrier losses or claims


DISCOVERY PERIOD

degree of care that a person of ordinary prudence and diligence would exercise under the same or similar circumstances


negligence is the failure of using this

DUE CARE

the right of one or more parties to make lawful and beneficial use of the land of another, created by an expressed or implied agreement

EASEMENT

a legal bar preventing a person from asserting a legal position b/c of their conduct or other reason created by operation of law

ESTOPPEL

a contract provision where one party assumes certain legal liabilities on behalf of the other party


synonymous with "indemnification"

HOLD HARMLESS AGREEMENT

negligence not directly attributable to one person but that is of a second person who is in privity with the first



vicarious liability

IMPUTED NEGLIGENCE

an agreement by one party to pay certain specified losses or damages incurred by another party



synonymous with 'hold harmless'

INDEMNIFICATION

uniting two or more elements into one



two parties in an indemnification

JOINDER

defect not discoverable by the exercise of ordinary skill and care

LATENT DEFECT

legal mechanism that allows a person or party to attach the property of another as security for payment of labor, materials or goods + services to enhance the value of the property

LIEN

amounts stipulated in advance for damages to be recovered for breach of contract

LIQUIDATED DAMAGES

relationship between net earned premiums + net losses incurred

LOSS RATIO

effort by an independent party to assist others in reaching the settlement of a controversy or claim



the mediator advises + consults, cannot impose a settlement only guide the parties to achieve their own

MEDIATION

the doing of an act that is contrary to law or contractual obligation



any failure in professional duty resulting in injury

MALFEASANCE



MALPRACTICE

failure to exercise that degree of care that an ordinary careful + prudent person would exercise under the same or similar circumstances

NEGLIGENCE

an insurance contract where coverage is provided for losses stemming from an event when the insurance policy was in force even if the claim is not made for several years

OCCURANCE INSURANCE

max % of premium income that can be expended by an insurance company to pay claims without the loss of profit

PERMISSIBLE LOSS RATIO

the amounts that an insurance company allocates for the fullfillment of its policy obligations - includes all future losses

POLICY RESERVE

retroactive coverage for negligent acts occurring prior to a claims made policy period as long as the claim was made during the policy period

PRIOR ACTS COVERAGE

damages separately awarded in addition to compensatory - b/c of finding of malicious or wonton misconduct on the part of the defendant, serving as deterant to others

PUNITIVE DAMAGES

frequency x severity



claims per unit exposure

PURE PREMIUM

transferring insurance from one to another



- each transaction treated separately, both insurer + reinsurer can accept or reject



- reinsurer accepts specific types of risk

REINSURANCE AGREEMENTS

additional premium collected to offset unexpected claims - is returnable to policy holder along with interest at a specified rate

RESERVE PREMIUM

enables groups to purchase or provide liability insurance for individuals or groups with similar liability exposures

RISK RETENTION ACT

government entities cannot be sued without their consent

SOVERIEGN IMMUNITY

legal time limitation of the right to bring an action on a specified cause of action after which no suit can be maintained



suit must be brought in period starting from event in statute (date of substantial completion)

STATUTE OF REPOSE

legal time limitation of right to bring an action on a specific cause



normally starts from date of injury

STATUTE OF LIMITATIONS

decision of a court w/out hearing evidence usually b/c the pleadings show no issue of fact

SUMMARY JUDGEMENT

obligation by the (surety) to guarantee performance by another (principal) of a specified obligation for the benefit of a third party (obligee)

SURETY BOND

process by which an insurance company determines whether or not and on what basis it will accept an application for insurance

UNDERWRITING

model statute dealing with commercial transactions that does not normally apply to professional services

UNIFORM COMMERCIAL CODE (UCC)

reliquishment by an insured of the right of its insurance carrier to collect damages paid on behalf of the policy holder

WAIVER OF SUBROGATION

insurance system where liability is imposed by statute on an employer who must provide benefits to employees or their dependents as a result of job-related injuries or death

WORKERS' COMPENSATION

each item includes cost of materials + labor plus profit

BALANCED BID

changes occurring after construction contract has been signed

CHANGE ORDER

tries cases in mortgages, fraud, etc.

COURT OF EQUITY

right of the state to take property for public use

EMINENT DOMAIN

contract termination



new principals = same obligation


same principals = new obligation

NOVATION

not in gov't projects



awards contractor for early completion + penalizes for delayed completion

PENALTY BONUS CLAUSE

calls for an item by brand name and adds the words 'or equal' or 'approved equal'

PROPRIETARY SPECIFICATION

a person who has a legal title or ownership

PROPRIETORSHIP

equalizes the legal responsibilities of labor organizations and employers

TAFT-HARTLEY ACT



LABOR-MANAGEMENT RELATIONS ACT

requires mechanics + laborers to recieve the prevailing wage as determined by the secretary of labor

DAVIS-BACON ACT

illustrations, standard schedules, performance charts, brochures, diagrams + other info furnished by the contractor



usually from catalogs to highlight materials to be used

PRODUCT DATA

contractor + designer agree to provide a finished building at a given time



all the owner has to do is _______________



many HUD projects are this

TURNKEY CONTRACT

in multiple prime construction contracts, solicitation for bids permits bidders to bid on either one or as many of the bids as presented

UNIFIED BID

must appear that the contract was made and intended for a third party's benefit

THIRD PARTY BENEFICIARY



a private or civil wrong or injury

TORT

a party held liable to a third party by its negligent activities. the third party may recover damages where the circumstances reveal the injurty was foreseeable

THIRD PARTY LIABILITY

one who commits or is guilty of a tort

FEASOR

clause in construction contracts which allows owner to suspend work



an adjustment is necessary for the increased costs associated

"SUSPENSION OF WORK" CLAUSE

manual labor that federal (HUD) agencies require when constructing their houses



"mutual help"

SWEAT EQUITY

liability without fault



neither negligence nor care



knowledge nor ignorance will save the defendant

STRICT LIABILITY

when a party has complied w/ the requirements of a writing to the degree that it is essentially the same as what was required



the opposite of material variance

SUBSTANTIAL CONFORMITY

where a contract has been honestly performed in its material and substantial particulars

SUBSTANTIAL PERFORMANCE

an amount of $ estimated by a fixed % agreed to in the contract withheld by the owner to assure performance of the prime contractor



usually 10%



the prime then withholds from the subs etc

RETAINAGE

that standard which a professional must exercise to the degree of care expected from a reasonably competent professional of the same discipline

STANDARD OF CARE

relationship between two parties



in the 1800s it was used to settle cases when no privity (no contract) existed



has been replaced by third-party liability

PRIVITY (NO PRIVITY RULE)

receiving satisfaction for any injury sustained

REDRESS

determines whether the damage was:



hidden beyond control of the observer - contractor is liable



visible within control of the observer - owner is liable

PATENT/LATENT TEST

party which complains or sues in a personal action suit

PLAINTIFF

federal act for responsibility in the work place

occupational safety and health act (OSHA)

evidence taken from outside the contract writing



usually oral or verbal



contract cannot be modified or changed by this

PAROL EVIDENCE RULE

certifies that a portion of the total amount has been paid and so that money cannot be used as a lien against the property

PARTIAL LIEN WAIVER

order or commend from a higher court to a lower court to act

MANDATE OR MANDAMUS

a charge, security or encumbrance



a claim or charge on property for payment of some debt, obligation or duty

LIEN

claim for securing the priority of payment of the price or value of the work performed and materials furnished in erecting a building or making improvements to the land

MECHANIC'S LIEN

contractural obligation by which one person agrees to secure another against loss or damage from specified liability



bringing in someone to protect your ass

INDEMNIFICATION

writ from court of equity forbidding a defendant to do some act which is unjust or injurius to the plaintiff



estoppels are these types of procedures

INJUNCTION

doctrine recognizes in some instances, contract performance may become so costly that its impracticability makes it an impossibility

COMMERCIAL IMPRACTICABILITY

a contract referring to another instrument that the two parties intend to make part of their understanding

INCORPORATED PAPERS

not the prime contractor



the builder of the portion of the building which is considered the general portion or landscape architectural portion

GENERAL CONTRACTOR


must be inherent in the nature of the act to be performed rather than personal to the contract



the facts that make it impossible must not have been foreseeable



the person being excused must have been in no way responsible for the impossibility

IMPOSSIBILITY OF PERFORMANCE

same performance standards are required from owner to prime as are prime to subcontractors

FLOW DOWN CLAUSE

the face value of a contract

FOUR CORNER RULE

when patient enters hospital and 'signs their life away'



indemnification clauses + disclaimer clauses are considered this

EXCULPATORY LANGUAGE

person holding the position of a trustee or character analagous to that in respect to the trust and confidence involved



LA + Owner are in this type of relationship with the contractor

FIDUCIARY

equitable doctrine holding the promisor bound to a promise if injustice can be avoided only by enforcement of the promise



holding a subcontractor to its bid



also called an estoppel

PROMISSORY

whena remedy for a breach is included as a part of the contract, that remedy is considered exclusive of other remedies provided by law

EXCLUSIVITY OF CONTRACT PROVISIONS

an allegation that shows the defendant's facts are insufficient for the plaintiff to proceed

DEMURRER

administers justice granted in the precepts of the conscience, not in any sanction of positive law

COURT OF EQUITY

sharing of a loss among several debtors

CONTRIBUTION

failure to perform a legal duty

DEFAULT

the cause, motive, price, or impelling influence which induces a contracting party to enter into a contract

CONSIDERATION

includes an offer, acceptance, and consideration on the part of both parites, the capacity of both parties to contract, a state of mind (mutually of assent), and a "meeting of the minds"



both are in harmony with each others intentions

CONTRACT

legal status granted to a LA in the quasi-judicial role as arbitrator in settling disputes between the owner and the contractor

IMMUNITY

conspiracy or concert of action between 2 or more persons for fradulent or deceitful purposes

COLLUSION

representative for business deals



LA's are representatives to owner

AGENT

sum of money set aside by owner to remove a particular portion of work from competitive bidding

ALLOWANCE

modifications to the contract issued during the bid period



eventually become official parts of the contract and are legally binding

ADDENDA

arms length buddy



binding agreement in contract



relationship of mistrust

ADVERSARY

a private reprimand issued by a jursidictional registration board for violation of professsional conduct rules



same as 'censure'

ADMONITION

method of identifying and verifying the firm's statement of assets, liabilities, and capital, and the firm's financial transactions during a fiscal period

AUDIT

accounts receivable divided by an average day's billings

AVERAGE COLLECTION PERIOD

$ value of anticipated revenues from projects contracted but as yet unearned

BACK LOG

a form of bid security executed by the bidder as principal to guarantee the bidder will enter into a contract w/in a specified time

BID BOND

form prescribed by the bidding requirements to be completed, signed and submitted as the bidder's bid

BID FORM

the duty of a party to substantiate an allegation or issue in order to convince a trier of fact of the merits of the party's claim



necessary in order to prevail in a claim

BURDEN OF PROOF

expenditure made for fixed (long term) assets such as land, buildings, furnishings, and equipment

CAPITAL EXPENDITURE

the proportional sharing of liability between a plaintiff and defendant for damages based on the percentage of negligence of each

COMPARATIVE NEGLIGENCE

agreement under which the contractor is reimbursed for stipulated direct + indirect costs of performance of the agreement + in addition is paid a fee for services

COST PLUS FEE AGREEMENT

schedule or diagram of events expected to occur and operations to be performed in completing a given process

CRITICAL PATH METHOD (CPM)

current assets divided by current liabilities

CURRENT RATIO

value of the firm's assets in excess of its liabilties

EQUITY

correction of a printing typographical or editorial error

ERRATUM

estimate of the probability of loss from some hazard, contingency, or circumstance



to signify the estimate of an insurer's liability under a policy from any one loss or accident

EXPOSURE

an affirmation of fact or promise expressly made by the warrantor



any description of materials or equipment



a sample or model can create this

EXPRESS WARRANTY

surety bond that reimburses an obligee named in the bond for loss sustained by reason of dishonest acts of an individual or entity covered by the conditions of the bond

FIDELITY BOND

compensations for professional services or construction services on a lump-sum basis



not effected by project scope or other variables except as designated

FIXED FEE

one cannot pratice what is defined as the body of knowledge of landscape architecture without a valid license

PRACTICE ACT

one may not use the title 'landscape architect' without a valid license

TITLE ACT

periodic reviews to justify and validate licensure status



that it is necessary to protect the public health, safety and well fare

SUNSET LAW

licensure board can be controlled by solely landscape architects



vs



other licensed professionals (arch, engineer, etc)

INDEPENDENT BOARD



VS



JOINT BOARD

state's recognition of the validity of one's license in another state

RECIPROCITY

a written agreement of the seller not to contest ownership of a piece of real property

QUIT CLAIM

method to designate certain rights of other parties to use a portion of the project property for access



utility construction + maintenance, or temporary construction

EASEMENT OR COVENANT

a means to protect the owner against incompetent, irresponsible, and financially troubled contractors



assures owner that the surety company will guarantee the faithful performance of the contractor

SURETY BONDS

a guarantee that the contractor will perform all required work per the bid documents if the bid proposal is accepted

BID BOND

dumping soil on wetlands w/out a gov't permit



destroying private property such as a fence, structure or trees on an adjacent property

REASONS FOR A THIRD PARTY CLAIM

provides the owner with a guarantee that the contractor will execute the work



protects the owner from defective work by the contractor



if work is defective, surety company will find another contractor or pay owner 100% of the contract bid

PERFORMANCE BOND

protects workers, subcontractors and material suppliers



assures they will get paid for work performed or materials supplied



w/out this bond, owner must pay liens

LABOR + MATERIALS PAYMENT BOND

used for consulting services between a landscape architect and a client or between the LA and other consultants



subconsultant contracts should always reference the prime contract

DESIGN SERVICES CONTRACT

gov't agencies + construction institutions:



AGC - associated general contractors


AIA - american institute of architects


ASCE - american society of civil engineers



all have these type of standard docs

CONSTRUCTION CONTRACTS

outlines services provided by LA:



BASIC: project programming, SD-CD documentation, CA, includes deliverables of each phase



ADDITIONAL: post construction evaluation, display model marketing, market brochure, maintenance programming



includes milestone dates for each phase

SCOPE OF WORK

locates elements, shape, form + size, dimensioning + layout, details

DRAWING

type/quality of materials, methods of installation, testing and inspection

SPECIFICATION

describes in a logical manner the materials needed and the methods of their installation



greatest degree of control

DESCRIPTIVE SPECS

used when intent is to replicate existing conditions



remodeling, restoration, phased construction



contractor selects materials + installation methods

PERFORMANCE SPECS

prepared by the manufacturer of the materials, supplies, + equipment to be used on a project



can be incorporated in total or adapted + rewritten

PROPRIETARY SPECS

standardized specs by national testing laboritories:



UBC - uniform building code


ASTM - american society for testing materials


ANSI - american national standards institute


CSI - construction specification institute


AIA, AGS, etc

REFERENCE SPECS

items to be reviewed during CA:



bonds, subcontractors materials + equipment


product data + samples, shop dwgs, material test results, warranties + equipment manuals, field measurement data, maintenance manuals

SUBMITTALS

verifying limits of work, staking existing trees + other features, verifying location of proposed elements critical to intent of design

FIELD OBSERVATION

issued when changes to elements of the project design affect the contract sum or imply an extension of the contract

CHANGE ORDER

5-10% of the payments to the contractor held to ensure owner that contractor work is completed satisfactorily

RETAINAGES

federal + state statutes to protect trade and commerce from unlawful restraints and monopolies



prevents bid rigging

ANTI-TRUST LAWS

document issued by the LA directing the contractor to erect some portion of the building in a manner different than described in the original plans + specs



--- if it does not have an effect on price and/or time, it is a _________

CHANGE ORDER



FIELD ORDER

when all construction is complete + ready for inspection



work may be occupied as intended

SUBSTANTIAL COMPLETION

items found not to be in conformance to the drawings + specifications

PUNCH LIST

contractor required (in most construction contracts) to submit a revised set of drawings noting any changes

AS-BUILT DRAWINGS

the act or process of taking, apprehending, or seizing person or property by virtue of a writ, summons, or other judicial order + and bringing the same into the custody of the law



ATTACHMENT

improvement to an estate or site that adds an additional value

BETTERMENT

an offer to perform a contract for work labor or for supplying materials at a specified price

BID

clearinghouse for bidders (subcontractors) to submit their bids for a particular project and for prime contractors to receive them

BID DEPOSITORY

owner + landscape architect reserve the right to reject, but rejection can risk of interfering with the bidder's right to do work or defamation of the character of the bidder

BID REJECTION

quasi-judicial board to decide all public contract disputes (only public)

BOARD OF CONTRACT APPEALS

standard legal conditions inserted at 'the front end' of a construction contract



'general conditions'

BOILER PLATE

document issued by the building inspector certifying that the structure conforms to all relevant code sections and is safe to use



same as certificate of substantial completion

CERTIFICATE OF OCCUPANCY

document issued by LA that the contractor has adequately performed



presented to the owner for payment

CERTIFICATE OF PAYMENT

cost incurred by contractor when project is interfered with by owner so that the contractor must employ more man power or work for more hours in order to complete on time

ACCELERATION COST

an estimated amount calculated as anticipated loss at a future time



as opposed to actual damages

LIQUIDATED DAMAGES

written for 10% of the bid figure



guarantees the contractor will execute the contract if it is offered to him or her

BIDDER'S BOND

written for 50% of the bid



guarantees the contractor will perform according to the plans and specifications

PERFORMANCE BOND

written for 50% of the bid



guarantees the contractor will pay for the labor, materials and equipment costs involved in the construction

PAYMENT BOND

guarantees the plant maintenance will be conducted according to the contract



only used when the maintenance period is to be lengthy

MAINTENANCE BOND

guarantees recovery of loss suffered by the owner through theft on the part of the contractor's employees

FIDELITY BOND

identifies parties, statement of work to be performed, statement of the contract sum, time of performance, signatures



including:


1. construction dwgs


2. specifications


3. conditions


4. forms


5. addenda


6. modifications


7. bidding requirements

THE AGREEMENT

date which work is evaluated by the contractor for payment



should normally be not less than ten days prior to the payment date

CUT-OFF DATE

30 days after substantial completion

DUE DATE FOR FINAL PAYMENT

owners retain 5-10% of the earned sums to ensure performance of the contract

RETAINAGE

the party who has the primary obligation to perform uner the bond



contractor

BONDING PRINCIPAL

principal (contractor) guarantees the surety that the surety will incur no loss by reason of its providing the bond



provides 'leverage' over the principal

INDEMNITY AGREEMENT

limits amount of the guarantee



100% of the contract sum

PENAL AMOUNT

the bonding company



party that guarantees the performance of the principal



bound to the principal's obligations if they fail to perform



recommended to use corporate rather than individual, and in the state of the project

SURETY

person for whose benefit the bond is written



the owner



a dual may include the general contractor

OBLIGEE

legal right of a party to control the property of another, or have it sold for payment of a claim (take your possesions)

LIEN