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LARE SECTION 1
Terminology for LARE Section 1
171
Architecture
Graduate
03/01/2016

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Term
Imputed Knowledge
Definition
Knowledge of a fact known by hearing it from someone else
Agency Relationship: The principal receives information from the agent/LA
Term
Construction Management
Definition
Control of the time, cost and quality from start to finish
Term
Builder
Definition
Can be used interchangeably with Contractor

To build/erect structures, controls the construction
Term
Impossibility of Performance
Definition
Unforeseen factors make it impossible to proceed.
Term
Active Interference
Definition
One party in the contract causes delays to the other party of the contract interfering with completing on time
Action is taken towards the interfering party
Term
Unified Bid
Definition
Bidders can bid on one or as many of the bid packages presented
Term
Differing Site Conditions Clause/Changed Conditions Clause
Definition
Physical conditions of the site are different than what was originally represented causing an increase of time/costs. The contractor would be compensated
Term
Impracticability: Commercial
Definition
A document that recognizes a contract performance so costly that it is impossible
Term
Liquidated Damages
Definition
A specific sum of money allocated to a bond so that either party cannot breach their agreement.
The owner holds on to this for every day past the designated completion date
You do not get your full bond back if you finish behind schedule
Term
Liability
Definition
Bound/obliged by law
Term
Delay Damages
Definition
Money lost because of a time extension beyond what was decided in the contract
Term
Interference
Definition
LA/Owner is not to interrupt the Contractor, they may file suit on grounds of interference
Term
Inspection Team
Definition
People responsible for the quality of the project
Term
Consequential Damage
Definition
Damage/loss based on the results of an act by a party involved in the contract
Term
Compensatory Damages
Definition
Repair/Replacement of a loss caused by another party
Term
Actual Damages
Definition
Substantial damages, party is compensated
Term
Damages
Definition
Compensation for loss etc. This can be recovered in the courts.
Term
Custom
Definition
Can apply to techniques and methods of construction
Term
Material Variance
Definition
A deviation from what was originally spec'd in the original drawings. This may cause a bid to be rejected
Term
Fraud/Fraudulent
Definition
Intentional lie/altering the truth to trick another
Term
Boiler Plate
Definition
Term used for the standard legal conditions at the front of a construction contract (i.e. general conditions)
Term
Board of Contract Appeals
Definition
Independent administration boards to decide all public contract disputes. Does not deal with private
Term
Promissory Estoppel
Definition
A document holding a subcontractor to its bid to a prime contractor
Term
Exclusivity of Contract Provisions
Definition
How to deal with a breach of contract is written in the contract
Term
Adversary
Definition
Parties in the contract do not trust eachother
Not a good thing
Term
Mutuality of Assent
Definition
Confirmation by 2 parties to perform a duty towards each other
This is what a contract is about
Term
Misrepresentation
Definition
Not understand what is right
Term
Punitive Damages
Definition
Usually in Anti-trust actions, the amount is awarded in court to be 3x the actual damage
Term
Insurance
Definition
One party covers the butt of another party in case of loss on a specified subject
Term
Injunction
Definition
A court of equity cannot allow a party to do wrongful acts
Term
Idemnification
Definition
Process where one party protects itself from any claims by the plaintiff.
Term
Incorporated Papers
Definition
Two documents that are inerpreted together as an agreement. i.e. Use another documents terms and conditions. Or stating in your planting spec's to refer to BCSLNA planting standards for planting your shrubs
Term
Parole Evidence Rule
Definition
When parties put their agreement in writing, previous oral agreements are incorporated in writing as well. Contract ma not be modified by parole evidence (verbal) unless writing is ambiguous
Term
Redress
Definition
Receiving satisfaction for an injury
Term
Parole Evidence
Definition
Oral/verbal evidence given by a witness in court. Evidence that is outside of the contract
Term
Lien
Definition
Claim/charge on property for payment of debt
Subcontract can put a lien on general contractor if the project is done and they are not paid yet. If general contractor cannot pay, their surety can and that is very bad.
Term
Mechanic's Lien
Definition
Claim for securing work performed and materials
Term
Waiver Lien
Definition
Signifies everything has been paid, the contract is complete and the lien is removed
Term
Partial Waiver of Lien
Definition
Document that certifies a portion of the total amount due to the subcontractor has been paid.
Term
Termination For Default
Definition
Contractors contain specific provisions itemizing events of default
Term
Warranty of Specifications
Definition
the spec's are free from default, implied warranty
Term
Judicial
Definition
Belongs to the office of a judge
Term
Turnkey Contract
Definition
Contractor and design agree to provide a finished building at an agreed upon price. All the owner has to do is 'turn they key'
Term
Waiver
Definition
Intentional release of a known right. This is bad, legal consequence
Term
Uncertainty
Definition
State/quality unknown or vague
Term
Unconstitutional
Definition
Legislation conflicts with recognized general principle, beyond the legislature to change
Term
Warranty
Definition
Promise that what is created will work
Term
Regulation
Definition
rule for management/government by a superior authority
Term
Risk Shift Techniques
Definition
Including items such as indemnification clause, no damage for delay, surety clause in contract. This is not great for an owner to include, this is in favour of the contractor
Term
Security
Definition
Protection. Bonds are considered security against default by bidder/contractor
Term
Uniform Commercial Code
Definition
Body of law the governs sale of goods
Term
Statute
Definition
Law that must be followed within that jurisdiction
Like a bylaw but legit penalties
Term
Statute of Frauds
Definition
Unless a contract is in writing, it is not legit in court
Term
Unjust Enrichment
Definition
Document that one cannot be profitable at the expense of another
Term
Termination
Definition
The End
Term
Third Party Beneficiary
Definition
Must appear in the contract, no 3rd party beneficiary
Term
Tort Feasor
Definition
Wrong-doer, commits tort. This is a bad person who does bad things
Term
Strict LIability
Definition
liability without fault
Term
Patent/Latent Test
Definition
Determines if damage was latent (hidden) and beyond control or if damage was patent (visible) and within control of the observer.
Latent Damage is unforeseen
Patent Damage someone is at fault
Term
OHSA
Definition
Federal act for safety and health in the work place
Term
Plaintiff
Definition
The party that complains/sues
Term
Precedent
Definition
A previous example of the same situation to act as a rule for future guidance.
Term
Privity
Definition
Relationship between parties involved in contract
Term
No Privity Rule
Definition
No 3rd party liability, cannot approach the bench if you are not involved in the contract
Term
Protest
Definition
Declaration made by a party concerned in an act about to be/already done
they are unhappy
Term
Punitive Damages
Definition
Inflicting punishment
Term
Quasi-Judicial
Definition
Action of public admin officers to investigate and exercise discretion of judicial nature
OHSA is one of these
Term
General Conditions
Definition
Portion of contract documents that define terms and standard stuff
Term
Implied Agency
Definition
Agency relationship created by the acts of parties based on proof of other facts
Term
License
Definition
Certificate/document allowing you to do something
Term
Implied Agency
Definition
Created by acts of the parties involved isolated from proof of other facts
Term
Contractual Duty
Definition
What you are responsible within the contract. The 'duty'
Term
Contribution
Definition
sharing the loss of payment/funds among several people
Term
Flow-Down Clause
Definition
A contract between sub and prime contractor. Performance of sub tied to prime in the same manner as the prime is tied to the owner
Term
Finalty of Decision
Definition
the decision from a settlement of a dispute is final
Term
Capacity
Definition
Ability to perform acts, necessary for entering into a contract
Term
Case Law
Definition
Using precedent cases to prove your point
Term
Change
Definition
Revisions made to original contract
Term
Court of Equity
Definition
Court administers justice, obligation is ethical rather than jural
Term
Equitable Doctrine
Definition
Sustainable only in a court of equity
Term
Exculpatory Language
Definition
A party suffers a loss but cannot take legal action
Term
Economic Loss
Definition
Loss of profits or loss due to a delay in the contractor's schedule
Term
Acceleration Cost
Definition
This is given to a contractor when the project is interfered with by the owner. For instance the contractor must employ extra man power because of an owner's delay. Sometimes these costs are not granted
Term
Document
Definition
Records that may be used to prove the facts (receipts, emails)
Term
Continuous Treatment
Definition
Uninterrupted series of events
Term
Discovery
Definition
Something previously unknown has been revealed.
Term
Constitution
Definition
A provincial/national rule. Any act that is opposed to it is null. i.e. bylaws are useless against this if they conflict
Term
Consideration
Definition
Reason or material cause of a contract
Term
Disclosure
Definition
Uncovering what is secret
Term
Disclaimer
Definition
announcing interest
Term
Deviation
Definition
change made in the progress of work
Term
License
Definition
Certificate/document allowing you to do something
Term
Reject Any/All Bids
Definition
The owner can reject any bids because they feel like it
Term
Guaranty
Definition
Collateral agreement you will get your shit done
Term
Invitation to Bid
Definition
Solicitation for competitive bids
Term
Competitive Bidding
Definition
When you submit a sealed proposal to the owner to be considered. This is mandatory on public works projects, but private owners do not have to do this.
Term
Building Code
Definition
Various models, enacted into local law. Is everything up to proper standards etc.
Term
Fast Track Method
Definition
Allows contractor to start work on earlier phases before plans for the entire project are completed. I.e. Maple Heights
Term
Fiduciary
Definition
LA and owner in fiduciary relationship in respect to the contractor
Term
Implied Warranty
Definition
A promise is established even if interference from nature
Term
Alternate
Definition
Material/method used in place of what was originally spec'd. THERE IS A COST DIFFERENCE. Change Orders would be required. Owner makes this decision
Term
Allowance
Definition
sum of money set aside by the owner to remove a portion of work from the competitive bidding. Also can be used for allowance of error (money etc.)
Term
Bid Depository
Definition
Receive bids from various contractors
Term
Release of Lien
Definition
Document releasing the contractor right to lien. Everything has been paid, call the hit off.
Term
Merchantability
Definition
Something sold, and will be used for what it was sold for.
Term
Quality Assurance Plan
Definition
Plan to make sure everything is of a quality standard
Term
Hold Harmless Clause
Definition
Also Indemnification Clause
Term
Immunity
Definition
Exempt from duties required by law
Term
Foreign Corporation
Definition
Organization that is not in the state/jurisdiction it is performing to work.
Term
Field Order
Definition
Issued by LA to direct the contractor to change a portion of building different than what is done in the plan. Only issued if no cost/time difference than the original
Term
Acceptance
Definition
Someone offering something to someone else with the intention of person number 2 retaining it
Term
Implied
Definition
Intention does not have to be written out
Term
Certificate
Definition
Written/signed document establishing a fact is true
Term
Caveat
Definition
A caution
Term
Implied Contractual Provisions
Definition
Provisions that do not exist in the written document but exist because it is implied
Term
Claim
Definition
Action initiated by one of the parties in the contract towards another
Term
Collusion
Definition
Action between 2 or more people for fraudulent or deceitful purposes. Conspiracy
Term
Default
Definition
Failure to perform
Term
Change Order
Definition
Document issued by LA directing the contractor to build something differently than the original contract. Has an effect on price and time.
Issued to CONTRACTOR by LA, not valid until signed by OWNER
Term
Certificate of Payment
Definition
Issued by LA to certify contractor has finished their work. (Sometimes called an L3). Presented to the owner for payment to the contractor
Term
Certificate of Substantial Completion
Definition
Issued by LA when a portion of the project is complete
Term
Certificate of Occupancy
Definition
Issued by building inspector to certify the structure can be used
Term
Bid
Definition
Offer to perform a contract for the work, labour or supplying materials at a specific price
Becomes a contract when the owner accepts the bid
Term
Bid Rejection
Definition
Turning away a bid because it was an improper submission, or the owner can decide to turn it down
Term
Addenda
Definition
Modification to the contract documents during the bid period.
Term
Zoning
Definition
local codes governing use of land and characteristic of what may be developed
Term
Substantial Completion
Definition
Portion of the project is complete and can be used for its intended use
Term
Option
Definition
Choice with no effect/cost to the owner
Term
Agent
Definition
Person authorized to act for another
Typical Relationship: principal, agent, 3rd party
LA is a REPRESENTATIVE
Term
Betterment
Definition
Improvement that enhances the value. May be permanent or temporary
Term
Negligence
Definition
Failure to exercise a degree of care another company would identify (failure to use common sense)
Term
Statute of Limitations
Definition
Amount of time allowed by a statue for legal action to take place
Term
Responsible Bidder
Definition
Capability to perform contract requirements
Term
Responsive Bidder
Definition
Submitted a bid under a competitive sealed bid
Term
Third Party
Definition
Party not included in the contract
Term
Owner
Definition
Party that initiates the project, will take the title of it when it is completed.
Term
Prime Contractor
Definition
Party signing the contract to directly perform the work.
Term
Project Management
Definition
Organizing construction project from start to finish
Term
General Contractor
Definition
Same as Prime Contractor
Term
Contractor
Definition
Anyone contracted to provide labour and services necessary to complete a project
When hired by owner: Prime
When hired by Contractor: Sub
Term
Field Engineer
Definition
Engineer assigned to a project during the construction
Term
Landscape Architect
Definition
Person/organization hired by owner to design a project
Term
Engineer
Definition
Person with a particular area of expertise in a limited area of building design
Term
Standard
Definition
General recognition, conformity
Term
Supplemental Conditions
Definition
Organization has standard general conditions for inclusion in spec's (i.e. BCSLNA Standard for planting)
Term
Performance Bond
Definition
Assures if the contractor fails, the surety company will complete the performance or pay the damages
Also applicable between prime and sub
Term
Quality Assurance
Definition
policy to make sure that quality will be achieved
Term
Quality Control
Definition
Implement the quality assurance plan, usually during construction
Term
Quality Control Plan
Definition
Implement plan for applying quality assurance policies during the construction phase
Term
Subcontractor
Definition
Party which takes over a portion of the contract from the prime
Term
Bond
Definition
Promise to perform or pay as a penalty
Term
Bid Bond
Definition
Security to ensure the bidder will enter the contract if the award is made
Term
Payment/Materials Bond
Definition
Source of payment for contractors, subcontractors, labour and materials
Term
Sweat Equity
Definition
mutual help in certain federal agency contracts
i.e. building on an indian reserve, using them for labour
Term
Retainage
Definition
Amount of money established by a fixed percentage for security purposes (usually 10%)
Term
Standard of Performance/Care
Definition
Standard a professional must exercise that is on the same level of other professionals
Term
Surety Bond
Definition
Party that takes over if the company they are guaranteeing fails. Must pay or complete the project.
Term
Quality Control Group
Definition
Group assigned to implement quality control during construction
Term
Four Corner Rule
Definition
Form the face value of a written agreement
Drawings, Spec's General Conditions etc.
Term
Contract
Definition
Promise between two or more people an exchange of goods or services, this is legally binding.
Term
Ambiguity
Definition
Doubtful of a meaning of something
Term
Antitrust Laws
Definition
federal and state laws to protect unfair restraints or monopolies (rigging the bids)
Term
Offer
Definition
Creating a legal power of obligation between two parties
Term
Null and Void
Definition
A contract is not binding because something essential is missing
Term
No Damage for Delay
Definition
A clause granting a time extension for delays but no money for compensation
Term
Mandatory Clauses/Provisions
Definition
Clauses that must appear in the contract
Term
Mandate
Definition
Issued by the court, date and time a decision will be made by the court
Term
Mandamus
Definition
This is the verdict from the court, directing a corporation to give back the rights/correct what they did wrong to the complainant
Term
Latent
Definition
Hidden
Term
Judiciary
Definition
Relates to the court of justice
Term
Third Party Liability
Definition
You may be held responsible for things that will affect a third party if you caused damages
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