Shared Flashcard Set

Details

LARE Section 1
LARE section 1
221
Architecture
Professional
03/03/2013

Additional Architecture Flashcards

 


 

Cards

Term
indemify
Definition

indemnity clauses - 

hold client harmless, transfers all responsibility to designer, regardless of if caused by designers' negligence.

 

underwrites, hold harmless the client.

 

A contractual obligation by which one person or organization agrees to secure another against loss or damage from specified liabilities.

 
Term
2 most common contract clause issues
Definition

indemification.

 

and guarantees for things and work that are beyond the designers' control.

Term
lump sum, fixed price
Definition

linked to contract defined deliverables.

 

payment milestones linked to milestone complete - 50% package= 50% invoice.

Term
retainage
Definition

lump sum contract. Amount withheld by the client to ensure project completion. Usually a percentage such as 10%.

 

usually less project management finacially - less backup required.

Term
T and M, Cost Plus
Definition

labor plus OCD's (other direct expenses)

 

labour rates can be fully loaded (including salary rated expenses (SRE's) such as overhead and profit built into the hourly rates.

 

used when it is difficult to determine the scope of work in advance.

 

 

Term
dispute resolution - partnering
Definition

series of facilitator lead team building sessions that include the owner, contractor, and design professional.

 

preventative.

 

start at pre-project, meetings throughout project

 

define common goals, improve communication, act as a team.

 

cooperation and communication.

 

establish collaborative project objectives in a mission statement.

 

establish a issues resolution procedure.

 

win-win problem solving.

 

establish criteria for measuring if objectives are being met.

 

 

 

 

Term
dispute resolution - mediation
Definition

voluntary.agreement to settle a dispute out of courts, between the parties. Non-binding and not court enforcable.

 

a third party mediator acts as facilitator and go between.

 

recommended by AIA's standard form agreement as first step in dispute resolution.

Term
dispute resolution - arbitration
Definition

both sides present to a qualified arbitrator (often a professional in a related field).

 

arbitrators often members of AAA (american arbitration association.

 

most contract clauses call for arbiration to be binding arbitration - arbitrator's decision is court enforceable.

 

arbitrators are not judges - they are not bound to receive or not receive certain types of evidence or testamony (hearsay  etc). Do not even need to abide by terms of contract.

 

Term
construction costs sources
Definition

RS Means,

 

ENR (engineering news record)

Term
politically correct value engineering
Definition
designing to cost.
Term
35% submittal
Definition
preliminary design - general layout, appearance, systems.
Term

design budget breakdown

 

30% package

 

75% package

 

100% package

Definition

30% = 25% fee

 

75% = 40% fee

 

100% = 35%

 

the  last 10% of work can take 20% of Budget.

 

Term
brokerage
Definition

 

where general contractor subs all the work.

 

diminished incentive to manage the project, as none of the work will be done by the contractor's own effort.

 

many contracts limit the amount that can be subcontracted.

Term
general contract approach
Definition

seperate design, bid, build phases.

 

clearly defined roles for each of the contracting parties.

 

minimizes the contractual liability for cost overruns.

 

disadvantage - slower process, more expensive, inherent adversarial relationships between the different parties.

 

 

Term

seperate contracts method

(owner as general contractor),

multiple prime contracts method

Definition

where owner lets contracts directly to specialty contractors.

 

advisable if the owner has skills to manage/administer the contracts; if the required specialty work is restricted to a few types. It is less advisable when there is many work items invovled.

 

saves the owner the general contracting fee - but risky.

 

variation = a firm is hired as management firm.

 

legal entaglements can arise from this arrangement - as management firm does not have the same power as a general contractor.

 

 

 

Term
self performance method
Definition

owner does some work in house.

 

Term

design-build method

design construct

turnkey construction

Definition

single contract for design and build.

 

design should have a higher degree of constructability

 

can be bid on just a narrative of the project.

 

can be bid as an established target cost or guaranteed maximum price (GMP) that is not to be exceeded. Common for these to be written as cost plus a fixed fee with a GMP. 

 

less chance of owner involved in conflict between designer and builder.

 

faster delivery - construction can begin before design completes.

 

Particularly attractive with large and technically complex projects.

 

cons - fewer checks and balances, less control by owner.

 

less adversarial.

 

 

Term
professional construction management method
Definition

owner hires a construction management (CM)firm to manage project on their behalf, often from pre-design stage. CM is an agent of the owner.

 

fees often include incentive.Often a cost plus fixed fee contract. (costs plus a stated multiplier to cover travel, traning, inspections etc)

 

often working with a GMP (guaranteed maximum price)

 

CM is not responsible for means and methods of construction.Only rarely, and in potential conflict of interest, does the CM actually perform any labour.

 

Does not guarentee construction cost, time or quality.

 

Role is to ensure a project is delivered according to plans and specs.

 

advisable on large or complex projects

Term
construction management at risk (CM at risk)
Definition

CM as an independent contractor (not an agent of the owner).

 

CM is "at risk" as an indepdent contractor - CM must compensate the owner when established performance standaards are not met.

 

some similarities to general contract approach - CM role is similar to a general contractor (GC).  Difference is that CM is contracted during pre-design/design phase.

 

as referred to as the CM/GC approach

 

often cost plus a fixed fee with a GMP.

Term

what types of project are most appropriate for a general contract approach?

 

what are some advantages and disadvantages of the general contract approach?

Definition

types of projects:

-where owner does not have CM/GC skills.

 

Advantages:

- clearly defined roles.

- gives owner firm price

-minimises contractual liability to owner for cost overruns and late project delivery.

 

Disadvantages:

- moves slower, extends schedule.

the owner does not have an friendly agent in contractual arrangements.

- tight bids and small profit margins create adversarial relationship between all parties.

- inflexibile, exposes owner to greater probability of claims.

Term
give an example where seperate contracts approach might be successfully used.
Definition

-where owner has in-house capability to act as GC, has a GC license.

 

- where the specialty work is limited to a few types of construction (limited amount of contracts)

Term

discuss the critisisms of a public agency performing construction services by the self-performance or force account method.

 

what type of work suits force accounts?

Definition

critized by other contractors as unfair - public agency may bid on work low, without accounting for some overhead costs.

 

quality and performance is not driven by profit or accountablity.

 

suited to on-going contracts such as maintenance.

Term
force account work
Definition

another name for self-performance method.

no contracts are written - all work done in house.

Term
what type of work is particularly suited to design build?
Definition

during periods of high inflation - since the project moves quickly.

 

attractive for large and complex projects.

 

hard on public projects due to formalized bidding and control process being a poor fit for the flexibility and short-cuts of design build.

Term
what are the advantages of using the professional construction management approach?
Definition

professional CM on behalf of owner. represents the owners interests more than a design firm with incentive to design a more expensive building.

 

advisable for large complex projects when construction expertise is needed during the design phase.

 

allows flexibility to change design as it evolves.

 

can allow for a certain amount of fast tracking.

Term
what types of contracts lend themselves to fast-tracking.
Definition

design-build,

 

construction management

 

 

Term
describe how the different contracting approaches differ in terms of allocating risk
Definition

general contract - for owner, minimizes cost overrun and late project delivery liabliity. Riskier in terms of conflict between parties. Risky to take the lowest bidder. General contractor assumes risk to deliver project on budget.

 

separate contracts - owner assumes greater risk.

 

self-performance - quality and management risks to owner.

 

design-build risk - fewer checks and balances, less control by owner.

 

construction management - CM is not responsible - manages others responsibility on behalf of client.

 

construction management at risk - CM is at risk as an independent contractor, contractually obligated to provide standards to owner.

Term
common-law principles
Definition
in cases of litigation, courts seeks guidance from precedent cases, for cases wherno formal laws exist.
Term
contract execution, contract executory
Definition

executed - when the contracted work has been completed.

 

executory - when some portion of the agreement remains undone.

Term
bilateral contract
Definition
mutual promises by contracting parties.
Term
unilateral contract
Definition
where only one of the parties makes a promise.
Term
express contract
Definition
terms of agreement are clear and precise. Usually written
Term
implied contract
Definition
terms of agreement are establish through inference and dedution. Terms must be implied from the actions of the contracting parties.
Term
joint arrangement
Definition

individuals are joined, in a legal and liability sense, as one party in the action.

 

 

 

Term
several, separate or severed - multiparty arrangement
Definition

each party has a liability that is separate from that of any other parties.

 

 

Term
joint and several
Definition

binding of individuals as a unit, and also having each indivdual accept separate (several) accountabilty.

 

in cases of default, the "other" party could sue either jointly or separately.

 

 

Term
elements of a contract
Definition
offer and acceptance, meeting of the minds, consideration, lawful subject matter, competant parties.
Term
meeting of the minds
Definition
both contracting parties agree on the basinc meaning and legal implications of the contract.
Term
unreality of consent
Definition

discovery that there was infact no meeting of the minds in a contract. Grounds for nulifying a contract.

 

if mistakes of fact are involved (fraud, misrepresentation, mutual error, duress, etc).

 

 

Term
adhesive contracts
Definition

where one party had more power than another (GC over sub-contractors).

 

binding.

 

 

Term
consideration
Definition

something of value, the reason for a contract.

 

 

Term
estoppal
Definition

a contract is binding in spite of no formal agreement. A contract exists by behaviour or actions of parties involved.

 

 

Term
promissory estoppel
Definition

promissory estoppel prevents one party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise.

 

common = subcontractor withdrawing a bid after GC has won contract based on that bid.

 

 

Term
assignment of contracts
Definition

when one party transfers the rights or obligations of the agreement to another party, who only became involved after the original agreement was made.

 

most construction contracts are assignable.

 

cannot place the second party in a worse position.

 

can be used to assign payment directly to a creditor.

 

 

Term
what general rule is followed when one party to a contract wants to cancel the contract, even though the second party has already performed a portion of or all the obligations under the contract?
Definition
the contract is still executory.
Term
give a construction example of unilateral and bilateral contracts.
Definition
Term
condemnation
Definition
same thing as eminent domain.
Term
right of way vs easement
Definition

right of way - property is owned (either purchased or condemned by eminent domain)

 

easement - a right to use, not owned.

 

 

Term
zoing controls may include:
Definition

minimum size

types of buildings

height

number of stories

lot coverage

density

use

 

essentially the master plan of a city to regulate the use of land

used to ensure a orderly development of commuinty

 

and maintain the quality of life (health and welfare)

 

zoning requirements place restrictions of the use of the property - limits property rights

Term
mechanic's liens
Definition

right created by law that permits workers and materials suppliers who provide improvements to real property, to place a clam on that land if they are not paid.

 

secures a right to the property until the debt is paid.

 

an attachment to the land.

 

for general contractors to file a lien - writen contract required.  - will usually opt for a civil suit for breach of contract instead.

 

 released at time of substantial completion (check - from practice exam)

Term
dedication
Definition

mutual agreemetn granting by an owner the use of private property for the public.

 

no transfer of ownership.

 

May be done in writing or may be implied by continued use (after 10 years, it can not be denied).

Term
prescription
Definition

hostile acquisition.

 

private property that has been used by the public for a prescribed period of time, can be acquired by the public.

Term
second tier liens (mechanics)
Definition

sub contrators  - must notify owner. (notice to owner)

 

in most states, mechanic's liens are given to contractors and material suppliers who may or may not have a direct contractual agreement with the owner of the land. In fact, this is often the norm because in most cases, the owner of the land contracts only with a general contractor (often called a "prime contractor"). The general contractor, in turn, hires subcontractors ("subs") and material suppliers ("suppliers") to perform the work. These subs and suppliers are entitled to liens on the owner's property to secure their payment from the general contractor.

Term

discharging a lien

 

how?

 

who is paid first?

 

Definition

by payment of debt, 

 

or foreclosure,

 

or claimant can demand judicial foreclosure (forced foreclosure).

 

workers and suppliers are paid first, then contractors and sub-contractors

 

state law controls whether designers can file liens or not.

Term
ensuring payment on a public project
Definition

usually liens are not allowed or effective.

 

can file a stop notice. Upon notice, the owner will make no further payments to the general contractor until the claimant has been paid.

 

or, requirement that a GC furnish a payment bond as a condition of entering a contract.

Term
functional diagrams
Definition
Term
topographic map
Definition

 

A topographic map is a detailed and accurate graphic representation of cultural and natural features on the ground.
Term
liquidated damage penalty
Definition
Generally, contracts that involve the exchange of money or the promise of performance have a liquidated damages stipulation. The purpose of this stipulation is to establish a predetermined sum that must be paid if a party fails to perform as promised (IE: failing to meet schedule)
Term
third party claim
Definition
damages to someone who was not party to contracgt
Term
Notice of Commencement
Definition

File a Notice of Commencement before beginning any home construction or remodeling project. Record the form with the Clerk of the Circuit Court in the county where the property being improved is located. Post a certified copy at the job site, too. The Notice notes the property owner’s intent to begin improvements, the location of the property, description of the work and the amount of bond (if any). It also identifies the property owner, contractor, surety, lender and other pertinent information.

A property owner who fails to record a Notice of Commencement or incorrect information on the Notice could result in having to pay twice for the same work or materials. Request a list of all subcontractors and suppliers who have a contract with the contractor to provide services or materials to the property.

Term
Releases of Lien:
Definition

Prior to making any payment, the property owner should receive a Release of Lien from every supplier, contractor and subcontractor, which covers the materials used and the work performed on the project. The Release of Lien is a written statement that removes the property from the threat of lien. If the contract requires partial payments be made before the work is completed in full, then get a Partial Release of Lien covering all workers and materials used up to that point in time.

Before final payment, obtain an affidavit from the contractor that specifies all unpaid parties who performed labor or services, or provided materials to the property. Make sure the contractor obtains releases from all of these parties before making final payment.

Term

agency agreements

 

difference between agency and independence

Definition

consists of a principal and an agent.

the principal hires the agent to represent them in certain specified business dealings with third parties.

 

ideally created by expressed contract - but can be by ratification or by estoppel.

 

must be a meeting of the minds, consideration and other requirements of a binding contract.

 

 

architect/engineer/construction manager can act as owner's agent. Generally though, principals (owners) will have contractors be independent contractors (not agents). The difference: principals direct the methods and acts of the agent; but principals only state the required results for an independent contractor.

 

 

Term
contigent liability
Definition

an injured third party is not affected by a contract between the two other parties.

 

the owner may be held liable or have contingent liablity for damages sustained by a third party due to contractor's actions.  A GC may have contingent liability due to subcontractor's actions.

 

if a consultant is judged to be independent, a third party can seek recovery directly from them.

Term
independent contractors
Definition

are held solely accountable for their actions, methods, means, sequences, and safety.

 

contractors are typically independent contractors.

 

liability for work performance lies with contractor.

 

 

Term
ratification
Definition

Ratification is a principal's approval of an act of its agent where the agent lacked authority to legally bind the principal.

 

In contract law, the need for ratification can arise in two ways: where the agent attempts to bind the principal despite lacking the authority to do so, and where the principal authorizes the agent to make an agreement, but reserves the right to approve it. An example of the first situation is where an employee not normally responsible for procuring supplies contracts to do so on the employer's behalf. The employer's choice on discovering the contract is to ratify it or to repudiate it.

 

 

Term
proprietorships
Definition

owner is personally responsible for any liabilities.

 

owned by an individual.

 

the firm and the individual are legally the same.

 

 

Term
partnership
Definition

association of 2 or more.

 

not considered a separate legal entity apart from the individual owners (does not need to file income tax)

 

each partner is an agent for the other partners

 

partners are liable for any debts created by partners for the partnership.

 

 

Term

limited partnership

 

Definition

generally - contributes cash or property and shares in profits and losses

 

but provides no services and has no vote in matters of management.

 

has limited liability

Term
joint ventures
Definition

popular in construction

 

a form of temporary partnership, often project specific

Term
corporations
Definition

legal entity (artifical tax paying individual)

 

owned by one or more individuals.

 

limits liabilities of owners.

 

owners pay income tax only on profits.

 

 

Term

torts

 

 

Definition

disputes from issues not addressed by statuatory law or contract obligations.

 

Wrongs against others that do not involve contracts.

 

common law interpretation is required.

 

may result from action or inaction by a party who had a duty to prevent the damage.

 

a tortuous act violates a social norm.

 

an action can be both a tort and a crime.

 

 

Term

conditions for a tort

 

Definition
  1. one party owes a duty to another party.
  2. That party does not conform
  3. second party is harmed by the act or failure to act
  4. there is a clear causal relationship between the act and the harm.

 Torts may be categorized in several ways, with a particularly common division between negligent and intentional torts.

 

Term
types of tort damage
Definition

 

 

physical injury, destruction of property, and defamation of character.

 

unlawful entry

libel or slander

destruction or seizure of property

copyright or patent use

failure to exercisse care

 

 

Term
standard of care
Definition

conduct that is expected of someone acting in a given capacity - that can reasonably be expected of other professionals in a similar situation.

 

 

Term
negllgence
Definition

when a legally protected interest is violated or invaded.

 

may be a tort.The difference between negligence and an intentional tort is that in negligence the acts leading to injury are neither expected nor intended. Negligence claims must prove that personnel should have foreseen and prevented the injury by exercising proper care.

Term
attractive nuisance
Definition

unprotected construction site dangers attracting children and causing harm.

 

 

Term

surety bond

 

the miller act

 

Definition

bond purchased by a contractor - guarantee the contractor will fulfill the terms of a contract.

 

A surety bond is a contract among at least three parties:

  • The obligee - the party who is the recipient of an obligation,
  • The principal - the primary party who will be performing the contractual obligation,
  • The surety - who assures the obligee that the principal can perform the task

 

The assumption is if a surety company has investigated the strength and responsibility of a contractor, they are good contractors.

 

A GC may require each subcontractor to provide a surety bond.

 

 The miller act - surety bonds are required of contractors for all federal projects.

Term
bid bond
Definition

an assurance a contractor will enter into a binding construction contract if awarded.

 

A bid bond is issued as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid.[1]

The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds.[2] The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.

Term
performance bond
Definition

type of surety bond, assures that a surety will stand behind the contractor if they do not perform.

 

 

Term
payment bond
Definition

gives protection to the owner if subcontractors and suppliers are not paid by the prime contractor.

 

prevent liens.

 

A payment bond is a surety bond posted by a contractor to guaranty that his subcontractors and material suppliers on the project will be paid.[1] They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. [2] They are often required in conjunction with performance bonds.

 

Term
bonds and design-build, design work.
Definition

better covered by liability insurance. For design build - seperate the functions. Design covered by liability insurance, build covered by surety bonds.

 

Better/simpler to write teh bond so it does not cover negligence, erros or omissions in design, or warranty of design.

Term
base bid plus alternates
Definition

can make low bid selection confusing

 

 

Term

"lowest"

"responsible"

bidder submitting a

"regular"

bid

Definition

lowest - lowest base cost.

 

responsible - determined by qualification process, often a surety bond (bid, performance). pre or post qualification. Pre qualified - invited bids.

 

regular bid -

have acknowledged receipt of all addenda,

have submitted bid bond

 

 

 

Term
acceptable and non acceptable reasons to withdraw a low bid
Definition

unacceptable:

error of judgement

 

 

acceptable:

error of fact, material error, mistakes

 

grounds to nullify the bid since there were no meeting of minds.

 

 

Term
licensed contractors
Definition

not usually a requirement as a contractor, but it means they can have conflicts resolved in the court system - a benifit to a contractor.

 

in some cases a exam is required.

 

 

Term
construction agreement
Definition

can include:

construction documents

specs

addenda

general conditions

performance bond form

 

 

contract documents

Term
general conditions
Definition

boilerplate

 

standards available (AIA, et)

 

Term
suplementary conditions
Definition

also know as special provisions or special conditions

 

amend or supplement general conditions

 

 

Term

technical specifications:

 

general,

products

execution

Definition

qualitative requirements, not easily shown in drawings.

general - ground rules for work to be performed and defines scopeo f work

 

products - describes the product / material / equipment, and the development and manufacturing process to be used in producting them.

 

execution -  describes preparation, workmanship, installation, erection, and application procedures, along with quality requirements and performance criteria.

 

 

Term
resolving incongruences within specs/drawings
Definition

means of resolution often spelled out in special provisions.

 

often specs will govern.

 

or may state architect will resolve.

Term
CSI
Definition

Construction specifications institute

 

divisions by discipline and phase in construction

Term

Professional liability insurance (PLI),


professional indemnity insurance (PII)

but more commonly known as errors & omissions (E&O)

Definition
a form of liability insurance that helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit
Term

design specifications

 

(material and workmanship specs,

method and materials specs,

prescriptive specs)

Definition

dictates what and how

 

owner takes on responsibility for results.

Term
performance specifications
Definition

specifies results or performance, rather than specific methods or materials (may offer suggestions).

 

Responsibility rests with the contractor.

 

 

Term
performance and design specs
Definition

instructs contractor how to do a task, and requires a warrenty from the contractor.

 

contractor only bound by design portion, not performance portion, or either or, not both.

 

avoided.

Term
closed specifications
Definition

specific item or system.

 

can be either design or performance (highly prescriptive to disallow all but one brand)

 

in public works projects, at least 3 options must be provided to avoid being considered a closed spec.

 

Closed spec regarded as reducing competition and raising prices - often not allowed in public projects.

 

 

Term
proprietary specs
Definition

type of closed, design spec

no allowance for alternatives

 

Term
multiple proprietary specs
Definition

may be open (at least 3 options) or closed.

multiple options spec'ed

 

 

Term
open specifications
Definition

nonrestrictive , provide wide variety of choices.

desired by owners as allows most chace of a lowest price.

Term
or equal specs
Definition

modification of proprietary spec... specifics followed by "or equal"

 

to be avoided as defining equal is difficult if contested.

 

mitigate by including "or approved equal".

Term
reference specs
Definition

establish a performance by stating a standard. State a quality level, and how it should be measured.

 

Term
standard specs
Definition

an entire set of tested specs, adopted widely, modified only for distinct conditions

 

Term
submittals
Definition

designer should indicate when required.

 

Could include cut-sheets, calcs, certificates, manufacturere's instructions, methods, etc.

 

submittals are not generally required by proprietary, closed specs

Term
shop drawings
Definition

needed where final site measurements are required, or where detail required cannot be economically produced by architect, or where desire for leaving flexibility to contractor.

 

type of submittal

 

Term
unit price contracts
Definition

prcing for units of work is determined before the start of construction.

contractor only provides a unit price in bid

 

contract type used when tasks as well defined but not necssarily quantities

Term
irregular bid
Definition
A non-conforming bid is a bid which does not meet all of the requirements of the Invitation to Bid. In some instances, depending on the extent and nature of the non-conformance, the lessee may be permitted under applicable law to entertain such a bid. In other instances, a lessee may not have the authority to accept a non-conforming bid and would be required by law to reject it.
Term

cost plus construction contract

 

good when?

Definition

contractor is reimbursed for direct expdnditures plus an allowance for overhead and profit.

 

good when uncertainties exist (remodels), schedule does not allow complete CD's, high trust level. Private sector - does not work well for competitive bidding.

 

Term
job order contracts (JOC)
Definition
on call contracts, often used by public agencies. Often unit price based.
Term
change orders
Definition
essentially contract modifications, mini-contracts. A change issued by an owner.
Term
field change
Definition

if a change order has no effect on schedule or contract amount

 

usually minor. can often be authorized in the field without direct owner approval.

Term
change proposal
Definition
contractor's proposed price and duration for a change being considered by an owner.
Term

cardinal changes

 

potential problem for public contracts

Definition

a major change made by the owner during construction that is beyond the scope of the original contract.

 

- a change that alters the essential identity of the project.

- manner, amount, or method is drastically changed.

 

On public projects, in theory, these should be reissued as a new contract and be awarded by competitive bidding. A competitor can sue to bar payment.

Term

change order

- issued by

Definition

change order,

should always be in writing.

should be signed by owner.

 

 

Term
extra work
Definition
work outside the contract. Work that neede not be perfomed in order to satisfy the terms of the original drawings and specs.
Term
additional work
Definition

work that must be undertaken to meet contract requirements, without whichthe work requested in original contract could not be completed.

 

to be additional, and accompanied by additional payment:

- should not have been anticipated.

- was not open to observation

could not be readily discovered until work under the contract was undertaken.

Term
changed conditions, differing conditions
Definition

differing conditions discovered after construction work begins - different sub base materials, survey errors, etc from those in the contract documents, or what the contractor should have reasonably anticipated.

 

these conditions must also result in a change in cost of construction with additional work ("extra work")

 

 

 

 

Term
consensusDOCS
Definition
ConsensusDocs is a family of standard contract documents written and endorsed by a coalition of 38 leading construction industry organizations (the ConsensusDocs Coalition).[1] ConsensusDocs offers more than 100 different design and construction contract documents covering all methods of project delivery.[2] The DOCS in ConsensusDocs is an abbreviation for the Design, Owner, Contractor, Subcontractor and Surety organizations represented in the ConsensusDocs Coalition. The ConsensusDocs mission is to advance the design and construction industry by identifying and utilizing best practices and fairly allocating risks to all parties.
Term
winter exclusion or exception period
Definition

a block of time in the winter months during which no contract time (working day contracts) is consumed/counted.

 

Term
working day contracts
Definition

typically extend construcgtion durations for severe weather delays.

 

 

"working day" is not universally defined.

 

 

Term
project schedule
Definition

contractor required to submit to owner showing critical path schedule, sequence of work, how work will meet number of working days or completion date specified in contract.

 

 once accepted by owner, both are bound to meet obligations to keep schedule.

Term
controlling item
Definition

critical path portions of a schedule. Completion of controlling items are points to confer with owner to allow progress to continue.

 

 

Term
float
Definition

In project management, float or slack is the amount of time that a task in a project network can be delayed without causing a delay to:

  • subsequent tasks ("free float")
  • project completion date ("total float")

 

Term
working days
Definition

typically, any day except sat, sun, holidays on which the contractor performs or could have performed work.

 

typically exclude days where weather precludes work.

 

Term
notice of intent or notice to proceed
Definition
written authorization from the owner to start work.
Term

liquidated damages

 

difference to penalty

Definition

compensation to the owner if contractor does not meet deadlines.

best if contractually agreed before hand.

based on reasonable anticipated costs to the owner of a delay.

 

penalty - a sum above the anticipated cost to the owner. Usually only used if there is also a bonus clause for finishing early.

 

 

 

 

 

Term
3 types of delays
Definition

1) caused by contractor or it's agents

2) caused by owner or its agents

3) caused by force majerure or acts of God

 

 

Term

substantial completion to contract documents

- incomplete, or imperfect work

Definition

courts may not support request to remove and re-do if the cost to do so is substantially more than the need to correct the defect.

 

Term
incentive / disincentive specification
Definition

owner will pay less for lower quality, more for higher quality. owner will accept work of differing quality.Will include qualifiers of minimum, where work would need to be redone.

 

 

Term
latent and patent defects
Definition

a latent defect is a construction fault that could not have been discovered by a reasonably thorough inspection.

 

patent defect - discoverable by inspection.

 

 

 

Term

worker's compensation

compensation - if who is at fault

Definition

compensation regardless of fault

 

Term
common law and statute law
Definition

common law - construed from usuage or custom.

statute law - legislated

 

Term
signs of unethical behaviour
Definition
  • giving one party an advantage not enjoyed by others
  • or put others at a disadvantage
  • dishonest or disceptive
  • causes harm or damage
  • likely to alter judgement of someone who should remain impartial

 

Term
errors and ommisions
Definition
responsibility of the individual team member
Term
letter agreement contract
Definition

written by consultant.

generally produced from a master form.

 

Preliminary contractual document which, with or without specifying the agreed to price or amount, authorizes a contractor to begin immediately with the job or project. A letter contractobligates the customer (principal) to either prepare the final (definitive) contract within the specified timeframe, or to reimburse the contractor for costs incurred under the letter.

Read more: http://www.businessdictionary.com/definition/letter-contract.html#ixzz2PyShpEke

Term
bid allowance
Definition
used to assign a dollar amount to work that has not been specifically detailed
Term
change directive
Definition

in form contract documents, they will almost always allow an Owner to issue an interim change directive. And in almost every circumstance, in the case of non-agreement over a change, the Owner is allowed to require the Contractor to proceed forward while the dispute is pending.

 

Change Order: Everybody Agrees
Prepared by the Architect sign by the Owner, Contractor and Architect

Change Directive: in the absence of total agreement
Without invalidating the contractor

 

Construction Change Directive - is a written order prepared by the Architect - and signed by only the Owner and Architect, directing a change in the work, as well as a proposed basis for adjustment in Time, Cost - or both. The Construction Change Directive is used in the absense of total agreement on the terms of a Change Order.

The Contractor executes the CCD, although they may not agree with the terms of the directive. Disagreement may be centered around Time, Cost, or both - but the agreement is to complete the work based on the terms of the Directive - and work out the final terms of the adjustment after the work has been completed.

Term
change order
Definition
Change Order - is a written order completed by the Architect, and signed by both the Owner, and the Contractor. This form describes the date, the change (sometime by reference to other forms such as construction bulletins or requests for information), the amounts involved, the time increase or decrease, and a recap of the status of the original contract as affected by cost or time - and requires agreement among the Owner, Architect and Contractor. Each change order is a contract that requires the same legal consideration as any contract.
Term
change order request
Definition
if the change does involve adjustments to time, money, or both - these requests for adjustment result in the contractor generating a Change Order Request (COR) . The result of these requests become either a Change Order (CO), or a Construction Change Directive (CCD).
Term
minor change directive
Definition
If the change is minor, the Architect generally has the authority to order minor changes in the work via a Construction Change Directive, as long as it does not involve adjustments in the contract sum, the contract completion time, or the collateral performance.
Term
contractor retainage
Definition
released after final acceptance
Term
all-risk-builder's insurance
Definition
Builders risk insurance covers property for projects under construction, renovation or repair. The insurance policy will generally cover an accidental loss, damage to property, or destruction of property, which can be identified, and which is not specifically excluded from the policy coverage. If there is a claim for damage to a structure during construction, the policy will usually cover both the cost of clean-up and salvage, in addition to the cost to repair the structure and property. Because of the multitude of players in any given project, the policy will usually protect the property owner, the mortgage company, general contractor, and the subcontractors. The policy may even cover the engineers and the architects.
Term
general liability insurance
Definition
general contractor liability insurance that provides protection against claims with regard to property damage, personal injury or negligence

 

contractors need to purchase general liability insurance. The insurance typically protects the assets of the construction site against lawsuits stemming from maiming or death, damage to property, equipment failure, theft, fires and explosions, and contractual liabilities.

Read more: Definition of a Contractor's General Liability Insurance | eHow.com http://www.ehow.com/info_8268002_definition-contractors-general-liability-insurance.html#ixzz2PybSNxOQ

Term
protective liability insurance
Definition

 Liability coverage for negligent acts of contractors and subcontractors hired by the insured

 

 

Endorsement to owners, landlords, and tenants liability policy, manufacturers and contractors liability insurance, or other liability policies for business firms that provide liability coverage for an insured who is sued because of negligent acts or omissions of an independent contractor or subcontractor resulting in bodily injury and/or property damage to a third party.

Read more: http://www.answers.com/topic/owners-and-contractors-protective-liability-insurance#ixzz2PycJ7v1l

Term
site inspections vs site observation
Definition
look this one up
Term
notice to proceed
Definition

by owner.

 

also/or by LA??

Term
independent contractor (as relationship to client / role in project)
Definition
As Independent Contractor
An independent contractor is one who contracts to do
something for another according to its own means and meth-
ods and not under control of the employer except as to the
end result.
During the time the architect is conferring with the owner,
designing the project, preparing the contract documents, and
administering the contract, the architect’s relationship to the
owner is as an independent contractor. The architect contracts
with the owner to furnish architectural services for which the
owner agrees to pay a fee. The architect’s and owner’s duties are

spelled out in the owner-architect agreement

Term
LA as agent of owner
Definition

Agent of the Owner

An agent is one who has the authority to act for another,
called the principal.
After a contract has been entered into between the owner
and the contractor, the architect’s position changes. During the
construction period, when the architect deals with the contractor
and others in behalf of the owner, the architect is serving as the
owner’s agent. This is provided for in the owner-architect agree-
ment (B141-1997, subparagraph 2.6.1.3) and in the general con-
ditions (A201-1997, subparagraph 4.2.1). However, the archi-
tect’s powers to obligate the owner are restricted to the extent
provided in the owner-architect agreement.
Term
typical CA duties
Definition

Spending one day per week on site, attending a meeting and observing the

progress of construction
• Responding to questions from the contractors and material suppliers
• Reviewing shop drawings and submittals
• Reviewing and certifying monthly applications for payment
• Authoring clarifications and minor changes to the documents
• Assisting consultants with construction administration duties
• Record keeping
• Project closeout responsibilities
Term

differences between

  • cost of construction
  • estimate of probable cost
  • cost not to exceed
Definition
Term
addendum
Definition

include:

addendum number and date issued.

project id

changes

 

issued to correct errors in plans or specs

Term
notice of award
Definition
Term
asla code of conduct - mandatory?
Definition

no, except for those stated as rules.

otherwise, are "shoulds"

Term
sunsetting
Definition
periodic review of licensing laws (every 10 years)
Term

Certification of Payments

Schedule of Values

Definition

issuance of payment certificates by architect.



Schedule of Values
The basis for calculating the owner's progress payments to the contractor is the schedule of values. This is an allocation of the total contract price among each of the segments of the work. It is prepared by the contractor and submitted for the architect's review and approval before the first payment.


Term
Applications for Payment
Definition

The contractor will submit an application for payment at whatever intervals (usually monthly) are set out in the contract. (A101-1997, Article 5 and A201, 9.3.1) No particular form is required, but AIA Document G702 is very handy for this purpose, as it also includes an Architect's Certificate for Payment. (See Sidebar) AIA Document G703 is a continuation sheet on which to enter the schedule of values, percentages of work completed, and the balance to finish. 

The amount of the application will be the sum of the values of all work completed to date, less the agreed retainage, and less all previous payments. (A101, 5.1.6)

The contractor should complete the form and sign it in the presence of a notary public, if notarization is required by the owner. The contractor should also submit any data required by the owner or architect substantiating the contractor's right to payment. (A201, 9.3.1)

After receipt of the payment, the contractor is obligated to pay each subcontractor its proper proportion of the payment. (A201, 9.6.2) This provision may seem idealistic since the owner and architect will not really know how the contractor actually distributes the payment. However, if requested by a subcontractor, the architect is obligated to reveal the amounts that have been paid to the contractor for that subcontractor's work. (A201, 9.6.3) From there, it is up to each subcontractor to look out for its own interests. Some architects and owners require written lien releases from all subcontractors and suppliers whose work is included in the previously approved schedule of values.



The architect may also nullify the whole or part of previously approved certificates if necessary to protect the owner from losses for which the contractor is responsible.

Term
retainage
Definition
Retainage. 
Retainage (or retention) is a sum retained by the owner from each payment to the contractor. This is to provide some financial cushion to the owner in the event it is needed to correct the contractor's work or if the contractor defaults and the owner must find other contractors to finish the work of the contract. The retainage is later paid to the contractor after the final submissions have been accepted by the owner. (A201, 9.8.5 and 9.10.2)
Term

Owner's Progress Payments
Definition
Upon receipt of the architect's certificate, the owner is obligated to pay the certified sum to the contractor within the time limits set out in the contract. The owner should notify the architect when the payment is made. (A201, 9.6.1)

Failure of payment. If the architect fails to issue the certificate through no fault of the contractor, or if the owner fails to pay within the time specified, the contractor, after giving the notices required in the contract, is entitled to stop the work until payment has been received. Then, the contractor is entitled to a contract time extension, and to be paid the reasonable costs of shut-down, delay, and start-up, plus interest. (A201, 9.7.1) Interest on late payments is provided for in the contract. (A101, 7.2 and A201, 13.6)
Term
final certificates
Definition
Final Certificate
When the contractor submits the final application for payment, the architect should make a final inspection. When the architect is satisfied that the work is acceptable under the terms of the contract documents, and that the contract is fully performed, the architect should issue the final certificate. The sum certified, however, will not come due until the contractor submits to the architect the documents listed and described in A201, 9.10.2, consisting of proofs that materials and labor have been paid for and that specified insurance is in effect. (B141, 2.6.6.1)

Normally, the architect's construction administration duties end at the certificate of final completion.
Term

Final Payment
Definition
The final payment constitutes a waiver of claims by the owner except those arising from unsettled liens and other claims arising out of the contract, failure of the work to comply with the contract documents, and terms of specified warranties. (A201, 9.10.4) 

Acceptance of the final payment by the contractor constitutes a waiver of all claims except those that were previously made and that remain unresolved.
Term
slander
Definition
spoken untrue defamatory statement
Term
libel
Definition
written untrue defamatory statement
Term
negligence
Definition
person fails to perform according to the norm expected of somone in that position
Term
strict liabilty
Definition

A rule specifying strict liability makes a person legally responsible for the damage and loss caused by his or her acts and omissions regardless of culpability

 

In tort law, strict liability is the imposition of liability on a party without a finding of fault (such as negligence or tortious intent). The claimant need only prove that the tort occurred and that the defendant was responsible.

Term
As an agent with a fiduciary responsibility to a principal:
Definition
you have the legal power to bind the principal to the decisions you make with a third party
Term
gantt chart = horizontal bar chart
Definition
Term
consideration
Definition

Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract.

 

In common law it is a prerequisite that both parties offer consideration before a contract can be thought of as binding.

Term
indirect costs
Definition

Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product). Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those cost which are not directly related to production.

 

Costs usually allocated indirectly

  • Utilities
  • Rent
  • Audit and legal
  • Administrative staff
  • Equipment rental
  • Fuel
  • Maintenance
  • Generator
  • Security
  • Telephone
  • Bill expense
Term
direct costs
Definition

Direct costs are directly attributable to the cost object. In construction, the costs of materials, labor, equipment, etc, and all directly involved efforts or expenses for the cost object are direct costs.

 

 

Costs usually charged directly

  • Project staff
  • Consultants
  • Project supplies
  • Publications
  • Travel
  • Labour
  • Material
  • Directors Salary

Costs either charged directly or allocated indirectly

  • Telephone charges
  • Computer use
  • Project clerical personnel
  • Postage and printing
  • Miscellaneous office supplies
  • Overhead
Term
direct labor costs vs direct payroll costs
Definition

direct payroll costs:

Payroll is the share of labor costs that goes directly to employees in their paychecks, or is withheld from their paychecks to cover their personal taxes.


direct labor costs: also include the employer's matching contribution to social security and medicare funds. It also includes unemployment insurance and industrial insurance taxes. These are direct labor costs because they accrue directly on the sums that you pay your employees in exchange for their labor.


Term
componants of a bid package
Definition

submited by contrator in response to invitation to bid.

 

bid documentation (cost estimates and bid tabulations)

Term
scope of services vs work plan
Definition
Term
supplementary conditions
Definition
Specifications which modify the standard specifications
Term
which type of specification offers the LA the most control
Definition
descriptive
Term
site inspections
Definition

There are only 2 inspections: at substantial completion and final completion.

 

In the first of these two inspections, the architect is looking at the “completed” work to determine if it appears to be “substantially” complete.

 

 

Term

practice and title act

 

Definition
A title act will allow anyone to perform landscape architectural services as long as they are not identified as a landscape architect. A practice act prohibits unqualified individuals from calling themselves landscape architects and from practicing the profession.
Term
liscensure
Definition
used when the profession is regulated by a practice act
Term
registration
Definition
Term
certification of LA's
Definition
used when regulated by a title act
Term
CLARB
Definition

 

The Council of Landscape Architectural Registration Boards (CLARB) is dedicated to ensuring that all individuals who affect the natural and built environment through the practice of landscape architecture are sufficiently qualified to do so.

 

establish standards for education, experience and examination required for the professional licensure of landscape architects.

Term

charts:

bar chart

milestone chart

CPM chart

wall chart

Definition

bar chart is a simple type of gantt chart

[image]

 

milestone chart - shows only milestones

[image]

 

 

 

 

 

 

 

 

CPM chart (PERC)

[image]

Term
punch list
Definition
The lender
often holds a 10 percent retainer until the construction administrator prepares a punch list
that includes all the work that the contractor needs to address before the project is complete.
Once completed, the punch list is sent to the contractor and owner along with a certificate of
substantial completion. This acknowledges that the job is substantially complete and that the
contractor can begin billing for monies retained from the construction fee. In signing the certificate,
the contractor acknowledges that it will complete all the work on the punch list. A
portion of the monies will continue to be retained until the punch list items are completed.
Term
comprehensive liability insurance
Definition
?Policy providing businesses with coverage for negligence-based civil liability in: (1) bodily injury and property damage liability,
Term
types of torts
Definition

libel and slander

negligence

trespass

nuisance

violation of riparian rights

violation of land or air rights

Term
Does the design professional’s approval of a submittal relieve the contractor of any obligations under the contract documents?
Definition

The short answer is…it depends. The default provisions in most contract documents is that approval of submittals by the design professional does not relieve the contractor of its contractual obligations.

 

With each submittal, Contractor shall give [the design professional] specific written notice of any variations, that the Shop Drawing or Sample may have from the requirements of the Contract Documents. This notice shall be both a written communication separate from the Shop Drawing’s or Sample Submittal; and, in addition, by a specific notation made on each Shop Drawing or Sample submitted for review and approval of each such variation. [Emphasis added]

 

Therefore, to be relieved of contractual responsibilities, the following must occur: (1) the contractor must identify the variation in a written communication to the design professional separate from the submittal; (2) the contractor must identify the variation in the submittal; and (3) the design professional must give the contractor written approval of the variation. Without all three of these elements, the approval of the variation by the design professional will not relieve the contractor of its contractual responsibilities.

Term

contract administration

construction observation

Definition

contract administrators should “observe”, not “inspect” the work in progress.

 

Within this framework the landscape architect contract administrator “observes” the construction and provides quality control, the contractor “manages” construction costs and schedules and the building inspector “inspects” the site development for compliance with approved documents and minimum standards.

 

Interpretation and clarification to the contract documents and adjustments due to changes in actual field conditions are consistent with the design if made by a representative of the design firm as contract administrator on the project.

Term

prescriptive specifications

design specifications

method and materials specifications

Definition

descriptive of the process and material contractor must use.

 

still may not result in desired effect, but if contractor followed spec, they are not liable for performance. 

 

 

Term
closed specifications
Definition

can be either a design or performance specification (describing qualifiers that only fit one product).

 

Often public projects require at least 3 product choices to be considered an open specification.

Term
or approved equal specifications
Definition
architect is liable if a substitute is accepted and laeter proves to be inadequate
Term
alternates
Definition

can create challenges with 'low bid wins' projects'  - what has been costed may vary between bids. Ask to submit a base bid, then with alternates

 

 

Term
types of construction bonds
Definition
Term
when can a bid be withdrawn or modified?
Definition
Bids may be modified or withdrawn by written notice or in person by a bidder if the request is received prior to the exact hour and date set for the bid opening.
Term
what assurance does an owner have that the contractor will move forward with the bid?
Definition
Bid Bond
Supporting users have an ad free experience!