Lare Section 1 - Ajn

Front 1

Acceleration Cost

Back 1

Cost incurred by a contractor when he must employ more manpower/hours (at the owners request or need) in order to finish the project ahead of schedule. (may not be granted if the contractor contributes to cause of delays)

Front 2

Acceptance

Back 2

Act of a person who receives something with the intention of retaining it, such intention being evidenced by a sufficient act (such as an owner selecting a bid) - (See CONTRACT)

Front 3

Active Interference

Back 3

Action by one party to a contract that causes the other party to not complete the contracted work on time or as established by the contract writing. Positive action must be performed by the interfering party as opposed to passive negligence.

Front 4

Actual Damages (Actual Loss)

Back 4

The real and true value of the total loss suffered (as opposed to liquidated damages which are estimated as anticipated loss in the future)

Front 5

Addenda

Back 5

Formal changes or clarifications to the contract documents issued during the bid period. They become official parts of the CD's and are legally binding.

Front 6

Acts of God

Back 6

Events causing a project delay that are not caused by the owner or contractor. These delays result in adjustments to the contract duration but not the contract amount.

Front 7

Additional Work

Back 7

Construction work that was not recognized at the contract award but that must be performed in order to deliver a project as planned.

Front 8

Adverse weather

Back 8

Unexpected weather conditions for a particular location at a particular time of year that impede construction progress.

Front 9

Advertisement

Back 9

A public announcement to solicit bids for a construction project.

Front 10

Agency Agreement

Back 10

An arrangement between a principal and an agent by which the agent agrees to perform certain tasks for the principal. The principal is bound by the actions of the agent.

Front 11

Liability Insurance

Back 11

Part of the general insurance system of risk financing to protect the purchaser (the insured) from the risks of liabilities imposed by lawsuits & similar claims.

It protects the insured in the event he is sued for claims that come within the coverage of the insurance policy.

Front 12

Strict Liability

Back 12

Liability without fault -

Legal responsibility for an injury that can be imposed on the wrongdoer without proof of carelessness, negligence, ignorance or fault. (common in defective manufactured products)

Front 13

Standard

Back 13

General recognition and conformity to established practice:

a type, model or combination of elements accepted as correct or perfect

Front 14

Caveat emptor

Back 14

A caution - proclaims that the buyer must perform due diligence.

Literally: "let the buyer beware"

Front 15

Agent

Back 15

A person authorized by another to act for him or her.

One who is employed to represent another in business and legal dealings with third persons.

Typical relationships involve 3 parties: Principle, Agent, Third Party.

Front 16

Bid Depository

Back 16

A clearing house for subcontractors to submit their bids for a particular project and for prime contractors to receive bids from the various subcontractors.

Front 17

Commercial Impracticability

Back 17

The doctrine that recognizes that, in some instances, contract performance may become too costly/difficult (impossible) & excuses the party from performing required duties.

Front 18

Supplemental Services

Back 18

Services requested by the owner, which may exceed the basic services being performed. (ex: models, special renderings, videos, etc.)

Front 19

Certification

Back 19

Process by which CLARB formally recognizes a certificate holder's education, experience, examination & professional conduct as meeting or exceeding their standards (not national licensure, but makes reciprocity in other states easier)

A recognition that the candidate is "above average" in competency.

Front 20

Hold Harmless Clause

Back 20

Statement that an individual/organization is not liable for damages/injuries caused to the individual signing the contract.

Process by which one party seeks to protect itself from any claims by a plaintiff who has been injured or suffered a loss.

(similar to Indemnification which requires one party to reimburse the second party for losses/damages described in the provision)

Front 21

Quality Control Group

Back 21

The group of personnel assigned to implement quality control during the construction phase.

Front 22

Insurance - Commercial General Liability

Back 22

Personal injury on office equipment, office theft, etc.

Front 23

Insurance

Back 23

Often required by law & contracts

Front 24

Attachment

Back 24

Seizing property by judicial order.

A remedy by which the plaintiff acquires a lien on the property of the defendant for satisfaction of judgement.

Front 25

Termination for Default

Back 25

Gives a customer the right to unilaterally terminate the contractor if he fails to perform according to the specified terms.

[The contractor is generally not entitled to any payment for the unfinished part of the contract and, instead, may be liable for (1) repayment of monies advanced, (2) liquidated and other damages, and (3) excess cost incurred by the customer in completing the contract under a new contractor.]

Front 26

Redress

Back 26

Rreceiving satisfaction (compensation) for any injury sustained.

Front 27

Certificate of Payment

Back 27

Document verified by LA that the noted work has been satisfactorily completed and is approved for payment by owner.

Front 28

Litigation

Back 28

The process of settling a contract dispute through court because both parties feel the other is 100% at fault.

Front 29

Mutuality of Assent

Back 29

Agreement by both parties to a contract. (established by showing and offer & acceptance)

Front 30

Doctrine of Gratuitous Service

Back 30

Holds that volunteered and free services carry the same duty of care as services solicited and paid for.

Front 31

Observation of Construction

Back 31

LA's duties during construction - implies that the contractor is primarily responsible for the construction process NOT the LA. (as opposed to "supervision", "inspection", "superintendence.")

Front 32

Project Manual

Back 32

Construction Package in booklet form - includes contract documents (CD's), general & technical specifications. May include smaller drawings.

Front 33

Building Codes

Back 33

Cover the construction, renovation, & improvements of buildings, including: fire, safety & structural requirements.

Front 34

CD's

Back 34

Construction Documents - drawings, specifications, other written documents

Front 35

Quality Control Plan

Back 35

Implementation plan for application of quality assurance (QA/QC) policies during construction phase.

Front 36

Field Change Order

Back 36

Document issued by the architect directing the contractor to build some portion of the project in a manner different form that described in the plans/specs. (May be requested by architect, owner, or contractor).

Issued when the modifications will not affect the contract sum or time.

Front 37

Agency Shop

Back 37

a business that formally agrees with a union that all employees must pay union dues weather or not the workers are union members. (Dues compensate the union for services which benefit all the workers)

Front 38

Alternates

Back 38

An itemization of selected items of work for which bidders are asked to provide prices which will add or subtract from the base bid. (Gives owner greater flexibility.)

Front 39

Alternative Dispute Resolution technique (ADR)

Back 39

A means used for settling conflicts by means of an alternative procedure to formal litigation.

Front 40

Arbitration

Back 40

A well-established alternative to litigation in which the conflict is resolved by an impartial third party or an impartial panel of selected individuals.

Front 41

As-Built Drawings

Back 41

Project drawings that show all data concerning the actual in-place locations of all constructed items. (including anything that differs from original CD set)

Front 42

Balanced Bid

Back 42

A unit price bid that accurately reflects the actual anticipated price of each item of work to be performed.

Front 43

Bid Bond

Back 43

A surety instrument that guarantees to the owner that the bearer, if awarded the contract, will enter into a binding contract under terms of which they bid.

Front 44

Bid Peddling

Back 44

aka Bid Shopping

The effort by a bidder, usually a subcontractor, to determine their bid's standing relative to other bids. If the bid is not the lowest bid, they my reassess the amount originally quoted and submit a lower bid before the deadline for submittal.

Front 45

Bilateral Contract

Back 45

An agreement made through the mutual promise of the contracting parties.

Front 46

General Conditions

Back 46

aka Boilerplate

Outlines the basic rights and responsibilities roles of the parties to a construction agreement.

Provides guidance on how to handle various problems/circumstances that may arise during construction.

Front 47

Bonding Capacity

Back 47

The maximum amount of uncompleted construction work that a contractor can have under contract (above which no bonds will be provided).

This is the most important factor by which to prequalify a bidder.

Front 48

Brokerage

Back 48

A situation in which the general contractor subcontracts all of the work on a project.

Front 49

Builders Risk Insurance

Back 49

Construction insurance that provides coverage specifically for a project that is under construction. (Considered fire insurance, though other types of losses are generally covered.)

Front 50

Buy American Act of 1933

Back 50

Law that requires the use of US produced or mined goods unless a local shortage exists.

Front 51

Calendar days

Back 51

Time unit used to define the duration of construction.

Front 52

Cardinal Change

Back 52

A change order of such a magnitude that the original scope of the project is altered to an extent that constitutes a new contract.

Front 53

Certificate of Insurance

Back 53

Written document that serves as evidence that a particular insurance policy is in force.

Front 54

Change Order

Back 54

A directive (usually authorized in writing by the owner & agreed to by architect & contractor) to alter or modify some aspect of a project. Usually comes with adjustment to the contract amount and/or duration.

Front 55

Clayton Act of 1914

Back 55

Law that specifically removed unions from falling under the Sherman Anti-Trust Act (which outlaws monopolies)

Front 56

Closed Shop

Back 56

a business that formally agrees with a local union to hire only union members - Outlawed by 1947 Taft-Hartley Act

Front 57

Closed Specification

Back 57

A specification that is expressly restrictive in stating that only one or two products will satisfy quality requirements (or when performance is so narrowly prescribed that only one or two products satisfy requirements).

Illegal (in principle) for public works projects as the express inclusion of one item implies exclusion of all others, thereby eliminating competition.

Front 58

Collective Bargaining

Back 58

Process by which employers and employees hammer out a labor agreement. (ex. Employers negotiate with union about wages, hours, work practices, safety, etc.)

Front 59

Completion Date

Back 59

The time of construction (not a duration, but rather, a specific date by which construction must be complete).

Front 60

Compliance Officer

Back 60

Title of an OSHA employee responsible for enforcing OSHA regulations through site inspections.

Front 61

Complimentary Bid

Back 61

A bid that is not prepared in earnest but is presented to appear to be a serious bid. - Usually generated through collaboration with another bidder who does submit a serious bid.

Front 62

Condemnation

Back 62

The exercise of the eminent domain to seize private property.

Front 63

Consideration

Back 63

An essential ingredient to a contract that implies something of value, commonly a states sum of money.

Front 64

Constructive Acceleration

Back 64

An increase in the pace of construction that is not a result of a directive but is done by inference. (ex. denial of a legitimate request for a time extension such as for an excusable delay or change order.)

Front 65

Constructor

Back 65

The party (aka prime or general contractor) who has primary responsibility for construction of a project.

Front 66

Contract Duration

Back 66

A labor agreement negotiated for a specified period.

Front 67

Contractor-caused delays

Back 67

Construction delays caused by or under the control of the contractor - no contract adjustment are associated with such delays.

Front 68

Contributor negligence

Back 68

Careless acts of an injured person that accompany the careless acts or physical conditions under the control of a second party.

Front 69

Cost-of-Living Provisions

Back 69

Provision used when wages do not keep pace with other costs during periods of high inflation.

Front 70

Cost-plus Contract

Back 70

A contract in which the contractor is reimbursed for specified incurred costs, with an additional allowance provided for overhead and profit.

Front 71

Counteroffer

Back 71

The rejection of an offer followed by another proposal. This proposal forms a new offer. The roles of the negotiating parties are changed with the new offer.

Front 72

Craft Union

Back 72

A labor union in which all the member perform the same type of work.

Front 73

Davis Bacon Act of 1931

Back 73

A law that states that the prevailing wages for an area shall be paid on all federally funded and federally assisted projects above $2,000.

Front 74

Dedication

Back 74

Permission granted to the public to use a parcel of land for a specified use.

Front 75

Design-Build Method

Back 75

aka Turnkey construction

The owner has a single contract for both the design and the construction of a project.

Front 76

Designer

Back 76

The party responsible for translating the concept of a project into a document that can be used as a guide for its construction.

Front 77

Design Specifications

Back 77

"How to" specifications that state exactly what the contractor is to do in order to satisfy a quality requirement. Includes dimensions, installation instructions, etc.

Front 78

Differing Site Conditions

Back 78

Physical conditions on a site that differ from the bidding documents or from what would reasonably be expected.

Front 79

Disputes Review Board

Back 79

Panel of experts selected on a project to render decision on disputes brought to it for consideration.

Front 80

Dividends

Back 80

Monetary return made by insurance companies to clients who have kept losses to an acceptably low level. (Also, profits of corporations shared with its stockholders.)

Front 81

Double-breasted Operation

Back 81

Where a union shop company and an open shop company are owned by the same parent firm. Common ownership can be legitimate, however, care must be exercised to ensure that one firm is not established as an interim means of absorbing the other.

Front 82

Easement

Back 82

A restricted use of private land granted to another party. (ex. right to cross a parcel to access another; right to install, maintain, monitor utility lines, etc.)

Front 83

Eichleay Formula

Back 83

A means by which delay reimbursement can be made to the contractor to compensate for home office overhead. (controversial approach, not widely accepted)

Front 84

Eminent Domain

Back 84

The right of the federal, state government or other public agency to take possession of private property for public purposes. Owner should be compensated for property.

Front 85

Estoppel

Back 85

The legitimate, though implied, formation of a contact as evident through the actions of the parties involved. When one party places reliance on the other (based on that party's actions) the secondary party cannot subsequently deny that an agreement exists.

Front 86

Exclusions

Back 86

Specific items stated in an insurance policy for which no coverage is provided.

Front 87

Exculpatory Provisions

Back 87

Contract clauses that shift liability from one of the contracting parties to the other. In the absence of such a clause, the shift in risk will not occur.

Front 88

Excusable delays

Back 88

Delays for which time extensions are granted. Such delays typically include "acts of God" and owner-caused delays.

Front 89

Executed contract

Back 89

An agreement in which both parties have fully performed in accordance with the contract terms.

Front 90

Executory Contract

Back 90

An contract made by two parties in which the terms are set to be fulfilled at a later date.

Front 91

Experience Modification Rating

Back 91

A factor, unique to the company, that reflects the past claims history of that company. Used to increase or decrease the basic insurance premium charges.

Front 92

Expiration Date

Back 92

Date on which a labor agreement ends.

Front 93

Express Contract

Back 93

An agreement in which the terms of the agreement (verbal or written) are clear, concise, explicit and definite.

Front 94

Express Warranty

Back 94

Statement in a contract that defines the contractors promise or guarantee that an owner relies on.

Front 95

Indemnification

Back 95

Contract provision which requires one party to reimburse the second party for losses/damages described in the provision. (compensation for damages OR exemption from liability)

Ex: Medical Malpractice insurance. Errors & Omissions Insurance

Similar to Hold Harmless Clause

Front 96

Bid Form

Back 96

Form given to a bidder to fill out, sign and submit.

Generally contains:

1. Bid Price (including any alternates proposed)

2. Completion time

3. Verification of bidders site visit

4. Acknowledgement of Addenda received

Front 97

Liquidated Damages

Back 97

The amount paid to the owner (by contractor) if the project is not completed on time (usually specified as a fixed sum per day).

Must represent a reasonable measure of "actual damages" suffered by the owner.

ex. contractor fails to finish a restaurant project on time which results in a loss of potential revenue for the owner. The contractor pays that loss of potential revenue.

Front 98

Post-Construction Evaluation

Back 98

Used as a learning tool for future projects

Performed after users have had a chance to experience the project.

ex. determine if the outdoor-use are is meeting the owner's needs.

Front 99

Special Conditions

Back 99

See General Conditions or Boiler Plate

Conditions apart from the general conditions that are specific to a particular project. (They modify the General Conditions)

Front 100

Advantages of direct selection & negotiation with a single contractor

Back 100

1. allows contract negotiations to take place before CD's are finished

2. allows project to be built with less detailed CD's (because there won't be any bids)

(May not provide cheapest bid, and still requires construction by architect)

Front 101

Instruction to Bidders

Back 101

Instructions for preparing and submitting bids for a construction project. (Included in the bidding documents).

Front 102

Construction Change Directive

Back 102

Used in the absence of a total agreement on the terms of a change order. Owner & architect agree in writing, contractor may or may not agree. Written prior to agreement / adjustment to contract sum & time.

Becomes a change order once signed by the contractor (if there is a change in contract sum/time)

Front 103

Cost Plus Fee Agreement

Back 103

An agreement where the contractor or architect is reimbursed for costs (direct and indirect) and paid a fee for services. (Guaranteed max price usually set).

(useful when CD's aren't complete at the time of construction contract negotiation).

Front 104

Substantial Completion

Back 104

The date, certified by the architect, when the construction is sufficiently completed (according to CD's) so that the owner can occupy the project. The following happens at_____:

1. Owner may occupy the premises.

2. Warranty for project begins.

3. Time for final completion is established.

4. Last progress payment is requested.

Front 105

Pre-qualification of a contractor for bidding

Back 105

Typically requires "evidence of insurability"

Front 106

Punch List

Back 106

aka Deficiency list.

List prepared by the architect of the work to be completed or corrected by the contractor.

Contractor is responsible to produce??? (answer on 2006 CLARB exam)

Front 107

Project Closeout Evaluation

Back 107

Evaluate construction for conformance including:

1. Observation & punch lists

2. Conditional acceptance

3. Maintenance period

4. Certificate of Compliance

Front 108

Police Power

Back 108

The right of the community to regulate the activities of private parties to protect public interests (Ex. building codes, animal codes)

Front 109

Descriptive Specification

Back 109

Defines exact properties of materials and methods of installation w/o using proprietary (brand) names.

Front 110

Performance Specification

Back 110

Defines required results, criteria by which it will be judged & method by which it can be verified. Contractor is free to choose materials & method.

Great for projects where site is being rehabilitates & existing conditions need to be matched.

Front 111

Proprietary Specification

Back 111

Calls out actual brand names, model #'s, etc.

Open = allows substitutions

Closed = no substitutions

Front 112

Cluster Zoning

Density Zoning

Back 112

Does away with individual lot dimensions. Controls # of units per acre. Provides developer with flexible approach to site design.

Keeps average density throughout, space saved is used for community purposes. Reduces development costs.

Front 113

Subsidence

Back 113

When withdrawal demand on an aquifer exceeds the recharge capacity. Causes the surface ground above to compress and sink.

Front 114

Construction Change Directive

Back 114

Owner & architect agree to changes in work. (Contractor had not agreed yet). Written prior to agreement/adjustment to contact sum/time. Once signed, it becomes a change order.

Front 115

Minor changes in the Work

Back 115

Do not involve changes in contact sum/time & are consistent with CD's intent. Signed by architect & become binding on contractor & owner.

Front 116

Fast Tracking

Back 116

If owner wants the change made quickly (without delaying completion), issue a change directive & work out details of the time & sum later.

Front 117

Final Payment (due after contractor submits):

Back 117

1. Affidavit that payroll, bills for materials & equipment & other bills have been paid.

2. Certificate evidencing insurance after final payment will remain in force & is currently in effect.

3. Written statement that contractor knows no reason why insurance wouldn't be renewable.

4. Consent of surety, if any, to final payment.

5. Data establishing payment of obligation (receipts, lien releases).

Front 118

Unit Price

Back 118

Quantities are unknown (unfair for bidders to take on risk).

Owners pay for work done (determined by actual measured quantities).

Can be used in competitive bid or negotiated contracted (direct selection)

Front 119

Reason for a Contractor to rescind a bid:

Back 119

1. mistake or great financial error

2. neither party has been injured

3. Error relating to a material feature of project has occurred

Front 120

Reasons to terminate contractor:

Back 120

1. Contractor has gone bankrupt.

2. Contractor fails to pay subcontractors.

3. Contractor persistently disregards local ordinances.

Front 121

General Specifications

Back 121

indicates where to deliver & store materials on site