Term
| What are the four C's for effective communication? |
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Definition
Clear. Use proper grammar and simple sentence construction to avoid ambiguity.
Concise. Eliminate unnecessary words, but not at the expense of clarity, correctness,
or completeness.
Correct. Present information accurately and precisely. Carefully select words that
convey exact meanings.
Complete. Do not leave out important information.
(PDPG 11.3.5) |
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Term
| What are the two major groups of Construction Documents? |
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Definition
| They include two major groups of documents: procurement documents and contract documents. (PDPG 11.1.2) |
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Term
| Define Procurement Documents |
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Definition
| Documents used to obtain pricing from prospective contractors. |
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Term
| What are competitive bidding docs called? |
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Definition
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Term
| What are negotiated bid docs called? |
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Definition
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Term
| List the 8 typical elements of contract documents. |
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Definition
Contracting forms
Project forms
Conditions of the contract
Revisions
Clarifications
Modifications
Specifications
Study Module No. 5 |
Page 3
Contract drawings (PDPG 11.1.2) |
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Term
| What is the purpose of a specification? |
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Definition
| to Define the quality requirements for products, materials, and workmanship upon which the contract is based and requirements for administration and performance of the project. PDPG 11.3 |
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Term
| What elements are typically included in Procurement Requirements? |
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Definition
Solicitation
Instructions for procurement
Available information
Procurement forms and supplements
Addenda
(PDPG 11.4) |
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Term
| Are procurement requirements usually a part of a contract? |
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Definition
| No. but they are included as part of the project manual. |
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Term
| Define Contracting Requirements. |
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Definition
Contracting requirements define the processes, rights, responsibilities, and relationships of the parties to the contract and include the following:
Contracting forms
Project forms
Conditions of the contract
Revisions
Clarification
Modifications
(PDPG 11.5) |
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Term
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Definition
| An offer to perform a contract for work and labor or supply materials or goods at a specific price. A bid is a response to a solicitation such as an invitation to bid or advertisement for bid. (PDPG 11.4.2) |
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Term
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Definition
An offer from one party to another, of terms and conditions with reference to some work, which if accepted can form a contract. A proposal implies an opportunity for more
Study Module No. 5 | Page 4
consideration by the recipient and is sometimes utilized when project cost or other conditions will be determined by negotiation. A proposal is usually in response to a request for proposal. (PDPG 11.4.2) |
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Term
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Definition
| Guaranties that if a bid is accepted within the specified time, the bidder will enter into a formal agreement with the owner (usually 30 to 90 days from the opening of the bids) and will furnish the required construction performance and payment bonds. The purpose of the bid security is to compensate the owner for damages incurred if the selected bidder does not accept the contract award. (PDPG 11.4.3.1) |
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Term
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Definition
| A contract between two or more parties represents a promise to be performed for consideration. Common law has recognized performance under such contract to be an enforceable duty. A contract may be oral or written. Oral contracts can be difficult to enforce because there is no record of exact terms. (PDPG 5.3) |
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Term
| List the 3 typical contract forms: |
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Definition
Notice of award
Agreement
Attachments to the agreement
(PDPG 11.5.2) |
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Term
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Definition
| The owner may issue a notice of award if preparation of the actual contract might be delayed. This procedure is required when a challenge period is required by statute. A notice of award establishes the beginning of the challenge period. (PDPG 11.5.2.4) |
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Term
| Define: Contract Agreement |
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Definition
| The written document signed by each party and is the legal instrument binding the parties to the contract. The agreement defines the relationships and obligations existing between the parties. By reference, the agreement includes all other contract documents, such as the drawings and specifications. (PDPG 5.4) |
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Term
| What is the purpose of Conditions of the contract? |
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Definition
| The conditions of the contract most clearly establish the responsibilities for construction contract administration and contractor project management. The conditions of the contract identify the basic rights, procedural and contractual responsibilities, and relationships between the parties involved in the performance of the contract. (PDPG 11.5.4.2) |
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Term
| What are the three components for project team coordination? |
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Definition
| Organization, Execution and Quality Assurance |
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Term
| List 5 issues that can result from incomplete coordination: |
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Definition
Duplications
Omissions
Discrepancies
Division 01 responsibility
Terminology differences
(PDPG 5.9) |
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Term
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Definition
| Written or graphic instruments issued to clarify, revise, add to, or delete information in the original procurement documents or in previous addenda. (PDPG 11.3.12.2) typically addenda are issued before the opening of bids/proposals |
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Term
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Definition
| A written instruction to the contractor issued AFTER execution of the agreement. It authorizes an addition, deletion, or revision to the project in consideration of an adjustment in the contract sum, contract time, or both. A change order is used for changes to the contract documents that affect contract sum or time. (PDPG 11.3.12.3 and 13.9.2.4) |
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Term
| Define: Construction Change Directive |
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Definition
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Term
| Define Constructon Change Directive |
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Definition
Directs the contractor to make a change in the project before the owner and contractor have agreed upon the proposed changes in contract sum or contract time.
(PDPG 11.3.12.3 and 13.9.2.3) |
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Term
| Define: Minor Changes in the Work |
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Definition
| Instructions or interpretations not involving adjustment to the contract sum or contract time. Such changes are made by the architect’s supplemental instructions directing the contractor to make stated modifications. The architect’s supplemental agreement does not require an owner’s signature. (PDPG 11.3.12) |
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Term
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Definition
| A promise that a proposition of fact is true, a promise that certain facts are truly as they are represented to be and that they will remain so, subject to any specified limitations. (PDPG 11.3.18.1) |
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Term
| What do Purchase Warranties cover? |
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Definition
| Cover products only. (PDPG 11.3.18.1) |
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Term
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Definition
A warranty as to full performance covering both labor and materials. (PDPG
11.3.18.1) |
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Term
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Definition
| Any affirmation of fact or promise made that relates to the goods or installation and becomes a part of the bargain that the goods or installation shall conform to the affirmation of promise. (PDPG 11.3.18.1) |
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Term
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Definition
| Guarantor. One who makes a guaranty; one who becomes secondarily liable for another’s debt or performance in contrast with a strict surety who is primarily liable to the principle debtor. (PDPG 11.3.18.1) |
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Term
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Definition
| One who makes a warranty; any supplier or other person who gives or offers to give a written warranty or who is or may be obligated under an implied warranty. (PDPG 11.3.18.1) |
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Term
| Define: Correction Period |
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Definition
| Contractors are typically required to provide a one-year correction period for the facility. This requirement may vary depending on the type of facility and construction contract. (PDPG 11.3.18.3) It does NOT affect the warranty of work. |
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Term
| What are the two types of Implied Warranty under the UCC? |
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Definition
Implied warranty of merchantability that goods are fair, average, and medium quality
Implied warranty of fitness meaning the proposed item should be fit for its intended
purpose (PDPG 11.3.18.4) |
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Term
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Definition
| A contractual relationship that exists when one party (the insurer), for a consideration (the premium), agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils). (PDPG 11.3.20.1) |
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Term
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Definition
| rotection from loss arising out of any fortuitous causes other than those perils or causes specifically excluded by name. This in contrast to other policies that name the peril or perils insured against. (PDPG 11.3.20.1) |
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Term
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Definition
| Covers losses during the construction phase arising from the insured risks of fire, windstorm, collapse, and theft. The policy is designed to cover all property that has been or will be incorporated into the project. Builder’s risk insurance is available in a named peril or an all-risk policy. (PDPG 11.3.20.3) |
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Term
| What is the difference between a CLAIMS-MADE POLICY and an OCCURRENCE insurance policy? |
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Definition
| Policies written under a claims-made basis will cover claims made (reported or filed) during the year the policy is in force for any incidents that may occur that year or during any previous period the policyholder was insured under the claims-made contract. This form of coverage is in contrast to the occurrence policy that covers today’s incident regardless of when a claim is filed, even one or more years later. (PDPG 11.3.20.2) |
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Term
| What is Completed Operations Insurance? |
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Definition
| A form of liability insurance that provides coverage for bodily injury and property damage arising out of the operations that have been completed or abandoned provided the accident occurs away from the premises owned or rented by the insured. (PDPG 11.3.20.1) |
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Term
| Define: Comprehensive General Liability (CGL). |
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Definition
| A broad form of liability insurance usually covering business organizations to protect them against liability claims for bodily injury and property damage arising from operations, products and completed operations, and independent contractor, but excluding coverage for liability arising from the use of automobiles. (PDPG 11.3.20.1) |
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Term
| What is a Hold-Harmless Agreement? |
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Definition
| A contract under which legal liability of one party for damages is assumed by the other party. (PDPG 11.3.20.1) |
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Term
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Definition
| To restore in whole or part the victim of a loss by payment, repair, or replacement. (PDPG 11.3.20.1) |
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Term
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Definition
| The assignment to an insurer by terms of the policy or by law, after payment of loss, of the rights of the insured to recover the amount of the loss from one legally liable for it. (PDPG 11.3.20.1) |
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Term
| Define: Liability Insurance |
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Definition
| Liability policies protect the named insured from losses arising out of legal liability to others caused by the insured activities. (PDPG 11.3.20.2) |
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Term
| Why is Owner's Protective Liability Insurance important? |
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Definition
| Additional coverage may be appropriate to cover the same hazards as those covered by the contractor’s general liability insurance. (PDPG 11.3.20.2) |
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Term
| Define: Contractor’s General Property and Equipment Insurance. |
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Definition
| Covers the cost of loss of tools and equipment to build the project. (PDPG 11.3.20.3) |
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Term
| Define: Umbrella Excess Liability |
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Definition
| Provides a layer of insurance above the limits carried in the contractor’s other liability policy. (PDPG 11.3.20.3) |
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Term
| What are the three types of construction bonds? |
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Definition
Bid bonds
Performance bonds
Payment bonds (PDPG 11.3.19) |
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Term
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Definition
| A bond protecting the owner from losing the benefit of an accepted bid. |
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Term
| What is a Performance bond? |
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Definition
| A bond guaranteeing that if the contractor defaults, the surety will either complete the contract in accordance with its terms or provide sufficient funds, up to the penal amount of the bond, to fund the completion. (PDPG 11.3.19.5) |
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Term
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Definition
| The payment bond, sometimes referred to as the labor and materials payment bond, guarantees the subcontractors, material suppliers, and others providing labor, material, and equipment to the project will be paid. (PDPG 11.3.19.6) |
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Term
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Definition
| The obligee is the person for whose benefit the bond is written. (PDPG 11.3.19.1) |
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Term
| What is an Indemnity Agreement? |
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Definition
| An agreement between the principal and the surety whereby the principal guarantees the surety that the surety will incur no loss by reason of its providing the bond. (PDPG 11.3.19.1) |
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Term
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Definition
| The legal right of a party, such as a subcontractor, to claim a security interest in the project or have it sold for payment of a claim. (PDPG 11.3.19.1) |
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Term
| What part of the contract documents contains "Available Information"? |
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Definition
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Term
| An affirmation of fact or promise made by the seller to the buyer that relates to the goods and becomes a part of the basis of a bargain creates _________. |
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Definition
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Term
| As a result of the widely held misconception that a contractor's responsibility for defective work lasts only for the one year guaranty period, what term do the AIA use instead of guaranty in their contract documents? |
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Definition
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Term
| Under the AIA 201, who provides property insurance covering the work? |
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Definition
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Term
| A variety of policies providing broad protection is... |
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Definition
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Term
| Coverage for both bodily injury or property damage is.... |
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Definition
| Owners and Contractors Protective Liability (OCP) |
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Term
| The maximum limit of liability payable is... |
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Definition
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Term
| A contractual relationship synonymous with assurance is... |
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Definition
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Term
| Broad form of business insurance excluding automobiles... |
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Definition
| Comprehensive General Liability |
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Term
| Right to recover from one legally liable is... |
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Definition
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Term
| Part 2 of a basic worker's compensation policy is... |
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Definition
| Employer's Liability Insurance |
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Term
| Cover's loss or damage to a building under construction... |
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Definition
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Term
| Indemnifies person with interest in physical property... |
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Definition
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Term
| To restore in whole or in part the victim of a loss by payment, repair or replacement is... |
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Definition
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Term
| A contract under which legal liability of one party for damages is assumed by the other party to the contract is... |
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Definition
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Term
| What are the three types of hold harmless agreements? |
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Definition
| Limited form, intermediate form and Broad form. |
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Term
| Restoration to the victim of a loss up to the amount of the loss is... |
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Definition
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Term
| List the three procurement activities: |
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Definition
| Bidding, Negotiating, Purchasing |
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Term
| What 6 items are included in procurement documents? |
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Definition
1.Drawings
2. specification
3. procurement requirements
4. contracting requirements
5. resource drawings
6. pre-contract revisions (addenda) |
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Term
| contract documents include what 3 things? |
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Definition
| Contracting requirements, drawings and specifications |
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Term
| List 10 types of documents that could be Available Information. |
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Definition
Preliminary schedules
budget information
existing condition information
survey information
environmental assessment
existing material information
existing haz material info
geophysical data
geotechnical data
permit applications |
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Term
| A separate contract by third party (analogous to a surety bond) who assumes responsibility in case the principal fails to perform is... |
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Definition
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Term
| An assurance by the principal that it will assume stipulated responsibilities for completed portions of a project. |
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Definition
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Term
| A manufacturer _________ its material, whereas the construction contractor provides a third-party ___________ for those same materials and a ______________ for the construction contractor's own workmanship installing them. |
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Definition
| warrants, guaranty, warranty |
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Term
| List several reasons construction warranties are usually required. |
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Definition
1. to protect against faults, defects or failures
2. to provide a remedy for non-conformance after completion and acceptance
3. to give recourse against additional parties
4.to extend the manufacturer's responsibility beyond the end of the correction period
5. To allow a remedy beyond the normal statute of limitations |
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Term
| What six separate limits of liability are covered in general liability policies? |
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Definition
General aggregate limit
products/completed operations aggregate
personal and advertising injury limit
each occurrence limit
fire damage limit
medical expense limit |
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Term
| What are the two types of Builder's risk insurance? |
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Definition
| Named peril and all-risk. |
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Term
| What party often obtains builder's risk insurance? |
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Definition
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