Term
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Definition
| Consist of contract, supplementary conditions of contract; drawings, specifications, & addenda issued before execution of contract (if any), any other documents specifically listed in agreement, & modifications issued after execution of contract |
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Term
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Definition
| Change order, written amendment to contract signed by both parties, written interpretation issued by designer, or written order for minor change in work |
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Term
| Are bidding documents part of the contract? |
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Definition
| No, but they are bound in the project manual |
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Term
| What determines the type of contract documents that should be used? |
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Definition
| how the design project is accomplished, its size and complexity, & specific responsibilities of the designer |
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Term
| What is the simplest type of project type? |
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Definition
| An owner hires a designer to perform a limited scope of work. example: select furniture & finishes |
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Term
| what type of scope of work would be appropriate for the simplest project type? |
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Definition
| designer works under a letter of agreement with the owner, completing the design work & preparing furniture & finish selections/specs which are then given to various vendors/contractors - the owner contracts with vendors directly to have work completed |
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Term
| What is an example of a larger project type? |
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Definition
| The designer may be owner's primary consultant, contracting w/ other consultants such as architects, structural engineers, electrical engineers, mechanical engineers to develop dwgs & specs for job |
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Term
| What would be an appropriate scope of work for a larger more complex project? |
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Definition
| Project may consist of interior construction & FF&E. The designer completes design & preparation of drawings & specs wi/limits of state laws & local building code regulations & has other design consultants do design work in their particular area of expertise. * Commonly used for commercial projects |
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Term
| What is another example of a way a designer could be incorporated into a design project? |
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Definition
| they work as a consultant to an architect on a project or with architect but separate contract to owner |
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Term
| When working with an architect, generally what are the architect's responsibilities and what are the designer's responsiblities? |
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Definition
| architect: interior construction, designer: FF&E |
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Term
| What types of projects are most common examples of architects & designers working together? |
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Definition
| Commercial projects wher the extent of structural work & local laws require that certain drawings be prepared & stamped by a licensed architect |
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Term
| What are the 2 types of contracts for interior design projects that involve construction & furnishings? |
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Definition
| Construction contract & FF&E contract |
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Term
| Who does the owner directly contract with for construction & FF&E? |
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Definition
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Term
| Who writes an owner-contractor agreement? |
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Definition
| Can be written by designer's attorney, provided by owner, or standard professional association forms may be used |
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Term
| If there is a construction contract and an FF&E contract, how many contractors are there? |
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Definition
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Term
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Definition
| completes interior construction such as partitions, doors, lighting, finishes, whatever else is specifically included |
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Term
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Definition
| typically furniture dealer, may sometimes be furniture manufacturer or other design pros |
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Term
| Why are 2 contracts needed (construction & FF&E)? |
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Definition
| because the construction contracts are governed by common law that regulates services & FF&E contracts are goverened by statutory law that regulates sale of goods |
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Term
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Definition
| Typically covers only movable items such as furniture, appliances, rugs, lamps, & accessories |
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Term
| What type of contract are applied finishes generally covered under? |
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Definition
| Typiclly the construction contract, but on smaller projects or projects w/furniture as well as specialty finishes, FF&E contracts may cover some applied finishes. |
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Term
| What are the two standard association agreement forms? |
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Definition
| 1) Standard form of agreement between owner & contractor for FF&E. 2)Abbreviated form of agreement between owner & contractor for FF&E where Basis of payment is a stipulated sum |
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Term
| Who are the standardard association agreement forms developed by? |
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Definition
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Term
| What do contract documents include? |
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Definition
| agreement, conditions of contract, drawings, schedules & specifications, all addenda, & all modifications issued after execution of agreement |
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Term
| What are some provisions common to all contracts? |
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Definition
| description of work, time of commencement & substantial completion, & contract sum |
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Term
| What does work normally include? |
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Definition
| What is described in contract documents, primarily drawings & specifications |
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Term
| WHere are any exculusions described? |
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Definition
| In the owner-contractor agreement as well as other contract documents when they are identified as being the responsibility of other parties |
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Term
| What is the construction completion time measured by? |
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Definition
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Term
| What are some ways the commencement date is assigned? |
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Definition
| It can be a specific calendar date specified in agreement or can be date when contractor is give a notice to proceed letter by owner |
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Term
| How is the time of substantial completion expressed? |
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Definition
| with a specific calendar date or by # of calendar days from date of commencement. |
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Term
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Definition
| stage in the progress of the work when the work or designated portion thereof is sufficiently completed according to contract documents so the owner can occupy/utilize the site though a few minor items may remain to be completed or corrected |
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Term
| When may completion time be extended as provided for in the general conditions? |
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Definition
| When the circumstances are beyond the control of the contractor |
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Term
| If a particular completion date is important to the owner what type of provisions may be included? |
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Definition
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Term
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Definition
| Moneys paid by the contractor to owner for every day project is late - represent actual anticipated losses owner will incur if project not completed on time |
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Term
| What type of provision is a liquidated damage provision often accompanied by? |
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Definition
| a bonus provision so the contractor receives payment for early completion - also based on realistic cost savings owner will realize for early completion |
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Term
| What happens if a penalty clause (diff from liquidated damages) is included? |
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Definition
| A bonus provision must be included |
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Term
| What does the contract sum state? |
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Definition
| The compensation the contractor will receive for doing work. |
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Term
| What are progress payments based on? |
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Definition
| applications for payment submitted by contractor |
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Term
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Definition
| owner makes periodic payments, usually monthly to contractor |
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Term
| What defines how progress payments are made? |
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Definition
| owner contractor agreement |
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Term
| In the standard AIA/ASID forms, when is the amount due for a progress payment? |
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Definition
| In any period based on a % of completed work & any materials purchased & stored but not yet incorporated into work, less any moneys already paid |
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Term
| What is withheld til the final completion of the work? |
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Definition
| A certain % of each payment, usually 10% |
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Term
| Why is a % of each payment withheld til final completion of work? |
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Definition
| It is protection of owner against incomplete/defective work on part of the contractor |
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Term
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Definition
| Percentage of payment withheld by owner til contractor's final completion of the work. |
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Term
| What must a contractor do to receive progress payments? |
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Definition
| submits application for payment to designer listing completed work & stored materials |
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Term
| What is the designer's part in helping the contractor receive progress payments? |
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Definition
| Must review the application for payment, verifies correct, recommends payment to the owner |
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Term
| What does the designer do if work completed (listed in the application for payment) is disputed? |
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Definition
| May choose not to certify payment of all or a portion of amount til problem is resolved |
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Term
| What is one of the most important parts of the entire set of contract documents? |
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Definition
| The General Conditions of the Contract for Furniture, Furnishings, & Equipment |
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Term
| Where is the General Conditions of the Contract for FF&E incorporated? |
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Definition
| Specifically referenced in the owner-designer agreement as well as the owner-contractor agreement |
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Term
| What are some topics included in the General Conditions of a contrac? |
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Definition
| Definitions, & execution of contractor, subcontractors, insurance, termination of contract, & misc provisions |
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Term
| What is a shortened version of the General Conditions? |
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Definition
| in the Abbreviated Form of Agreement between Owner & Contractor for Furniture, Furnishings, & Equipment Where the Basis of Payment Is Stipulated Sum |
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Term
| When is it ok to use the shortened version of the General Conditions? |
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Definition
| when the scope of a project doesn't require a separate version of the General Conditions. |
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Term
| What do you have to be familiar with if you're selling furniture & accessories to clients rather than just specifying them? |
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Definition
| The Uniform Commercial Code Law (espcially article 2) |
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Term
| What does the Uniform Commercial Code Law govern? |
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Definition
| Buying & selling of furniture & other goods for an inderior design project if specific written provisions arent otherwise included in the contract |
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Term
| Where is the Uniform Commercial Code Law applicable? |
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Definition
| in all states except Louisiana |
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Term
| Uniform Commercial Code (UCC): |
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Definition
| Establishes regulations for buying & selling, along with othert types of transactions of goods that are defined as tangible & movable items |
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Term
| Why was the Uniform Commercial Code written? |
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Definition
| to provide consistent rules for commerce in the U.S. |
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Term
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Definition
| sales contracts, product liability, warranties, ownership (title), risk |
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Term
| What will a state law do in some cases regarding the UCC? |
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Definition
| May override some provisions of the UCC |
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Term
| What should a designer know about the UCC? |
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Definition
| provisions of UCC & state laws where they are acting as the reseller of furniture/furnishings |
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Term
| What is the contractor in an FF&E agreement responsible for? |
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Definition
| ordering, delivering, & installing goods described in the contract *also frequently warehouses goods between time delivered & installed |
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Term
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Definition
| Furniture specifications developed by the designer |
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Term
| When is an invoice from the furniture manufacturer sent to the contractor for payment? |
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Definition
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Term
| What regulates deliveries? |
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Definition
| The Uniform Commercial Code and the Interstate Commerce Commission |
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Term
| What type of carriers can furniture/accessories be shipped by? |
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Definition
| common carriers, contract carriers, private carriers |
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Term
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Definition
| Those who offer services to the public. The company is responsible for goods they ship |
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Term
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Definition
| Provide services only to certain companies they choose to do business with |
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Term
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Definition
| Companies who own & operate own trucks to move their own merchandise. Responsibility for furniture during shipment depends on who owns goods |
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Term
| Who generally bears the responsibility of damage/loss during shipment? |
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Definition
| Whoever has title to the furniture |
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Term
| Who assigns the risk to seller/buyer for shipping? |
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Definition
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Term
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Definition
| The manufacturer pays for loading goods on truck/train. FOB is usually followed by the word factory or destination. Ex: "FOB Factory" title is transfeered @ factory |
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Term
| What happens if goods are FOB Factory? |
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Definition
| The buyer pays transportation costs & the manufacturer isn't responsible for loss/damage during shipping |
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Term
| For "FOB Destination", who is responsible for shipping & recovering damage/loss during shipping? |
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Definition
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Term
| FOB Factory Freight Prepaid: |
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Definition
| FF&E contractor owns furniture but supplier pays shipping charges |
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Term
| What contractor takes care of the shipping details? |
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Definition
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Term
| What should the designer be aware of concerning shipping? |
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Definition
| the shipping terms to verify that the client is protected from loss during shipment & storage & all costs included in the budget |
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Term
| What is the final process of shipment? |
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Definition
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Term
| Who is responsible for insepection of furniture & other goods on site? |
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Definition
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Term
| What don't the designer's responsibilites include concerning install? |
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Definition
| receipt, inspection, & acceptance on behalf of owner |
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Term
| What article of the General Conditions states the designer's roles/responsibilites in contract admin? |
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Definition
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Term
| What are some of the designer's duties & responsibilites? |
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Definition
| Acts as owner's rep, advises & consults with owner. Assists owner in coordinating schedules for delivery & installation. Visits project as necessary to become familiar with progress of work & determine if work is proceeding according to contract documents. Keeps owner informed of progress & quality of work. |
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Term
| To what extent may the designer act on behalf of the owner? |
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Definition
| To the extent provided in the contract documents. |
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Term
| Since the designer coordinates scheduling for delivery & install, are they responsible for the wrongdoings of the contractor or any supplier to perform their duties? |
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Definition
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Term
| What is the designer's responsibility towards progress of work? |
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Definition
| keep the owner informed but not required to make exhaustive/continuous inspections |
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Term
| On the job site what does the designer not have control over & what are they not responsible for? |
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Definition
| Doesn't have control over means, meathods, or procedures of construction, procurement, shipment, delivery, install. They are not responsible for the safety precautions or acts of omission of contractor, subcontractor, or suppliers. |
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Term
| What can the designer do if they notice work that doesn't conform to contract documents? |
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Definition
| They can recommend to the owner to reject the work |
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Term
| Does the designer have the authority to reject nonconforming work, to stop work, or to terminate the contract on behalf of the owner? |
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Definition
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Term
| Why does the designer review shop drawings & other submittals? |
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Definition
| For the limited purpose of checking for contonnance with the design concept expressed in the contract document |
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Term
| During the job progression, what are the interior designers allowable duties towards changing the contract? |
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Definition
| prepares change orders & may authorize minor changes in work that doesn't involve adjusting the contract sum or contract time & aren't inconsistent with the intent of the contract documents |
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Term
| When does a designer interpret & decide on matters concerning the requirements of the contract documents & performance of work? |
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Definition
| If it is requested by the owner or contractor |
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Term
| What happens if the designer's interpretation is not acceptable in a constract dispute between owner & contractor? |
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Definition
| There are provisions in the General Conditions for Arbitration |
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Term
| Who's final decision is it concerning matterns related to aesthetic effect? |
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Definition
| The designers if it is consistent with the intent shown in contract docs |
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Term
| What are the responsibilites of the designer as the job comes to a close? |
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Definition
| They conduct the final inspection to determine dates of substantial completion & final completion & issues a final certificate for payment |
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Term
| Where are the duties & responsibilites of the owner specified in the General Conditions? |
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Definition
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Term
| What can the owner be initially responsible to determine financial state? |
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Definition
| Must furnish evidence, @ requst of contractor, that financial arrangements have been made to fulfill owner's obligations under the contract - to pay contractor |
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Term
| What kinds of drawings must an owner furnish?: |
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Definition
| All describing physical characteristics of the job & must furnish, free of charge, 3 copies of drawings & project manual required for completion of work |
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Term
| What 3 things must the owner provide on the job site? |
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Definition
| 1)Access to the area & work @ reasonible times 2) Suitable space for receipt & storage of material, furniture, & equipment. 3)Temporary utilities on job site & vertical transportation necessary for execution of work |
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Term
| what can the owener do if the contractor fails to correct work that is not in conformance with contract documents or persistently fails to carry out such work? |
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Definition
| The owner may order the contractor to stop wrok until the cause for the order is eliminated |
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Term
| What does the owner have the right to do if the contractor fails in duties to correctly carry out work? |
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Definition
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Term
| How long does the contractor have upon receiving a written notice to commence corrections for work not in conformance with contract docs? |
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Definition
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Term
| What is the contractor soley responsible for? |
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Definition
| fabrication, delivery, installation means, methods, techniques, & procedures, & coordinating all portions of the work |
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Term
| What are some of the contractors duties that fall under his sole responsibilities? |
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Definition
| visiting & inspecting project premises before shipment & install to confirm that everything is ready for work. Must report all problems to the owner. Responsible to owner for acts & omissions of all subcontractors & other people performing work under a contract w/contractor |
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Term
| What is a contractor not responsible for? |
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Definition
| Not responsible to ascertain that the contract documents conform to building codes, ordinances, & other regulations |
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Term
| What happens if a contractor notices variance -things that don't comply to codes,etc. |
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Definition
| Must notify designer in writing |
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Term
| What happens if a contractor doesn't give notice to the designer & proceeds to perform work knowingly in variance w/ some regulation? |
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Definition
| The contractor assumes full responsibility for such work & must bear all costs to correct the situation. |
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Term
| What are the constractor's responsibilities regarding the schedule? |
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Definition
| To provide schedule for owner & designer's information, to keep it current, & to conform to it. Must cooperate with owner & designer in coordinating schedule with schedule of other contractors doing work |
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Term
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Definition
| to secure against loss or damage |
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Term
| What is the indemnifcation clause intended to protect? |
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Definition
| the owner & designer against a situation where a person is injured due to negligence of contractor or contractor's agents |
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Term
| What is the indemnification clause also intended to protect? |
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Definition
| Owner/architect against claims from property damage other than to work itself |
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Term
| What does the indemnification clause state? |
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Definition
| The contractor shall indemnify & hold harmless the owner, designer, & their agents & employees against claims, damages, & expenses arising out of performance of the work |
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Term
| What doesn't the indemnification clause relieve the designer of? |
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Definition
| Their liability for errors in drawings, specifications, or administration of contract |
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Term
| Does the owner have the right to perform work related to the project with their own forces & award separate contracts for certain work? |
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Definition
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Term
| If the owner exercises their right to perform work related to the project with their own forces what must they provide? |
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Definition
| Coordination of their own forces & to act with the same obligations & rights as any contractor would have |
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Term
| Which article specifies the precedures/responsibiites for installation of FF&E? |
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Definition
| Article 7 of AIA/ASID A271: |
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Term
| What are the owner's responsibilities towards installation regarding facilites? |
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Definition
| Must make adequate facilites available for delivery, unloading, @ storage of FF&E. & Must make sure all delivery/staging areas & route used to delivery furniture are free of obstacles or other trades that might impede contractor |
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Term
| What must the owner provide the contractor with regarding the use of unloading facilites & elevators? |
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Definition
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Term
| What must the owner do upon delivery of FF&E? |
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Definition
| Inspect work upon delivery for purposes of identifying materials, furniture, & equipment & to verify quantities |
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Term
| What is the owner's inspection of FF&E not construed as? |
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Definition
| the final inspection or as constituting acceptance of taking charge/control over item delivered even if partiall paid for |
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Term
| What happens if an owner notices damage of FF&E? |
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Definition
| They must notify contractor, who should then have opportunity to correct the problem |
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Term
| What happens if work/furniture is later found to be defective or not in accordance with contract documents? |
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Definition
| The owner may revoke acceptance |
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Term
| What are the owner's responsibilites regarding the contractors schedule? |
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Definition
| to abide by agreed critical dates in the progress schedule |
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Term
| What happens if the owner fails to fulfill obligations according to progress schedule dates? |
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Definition
| They are responsible for any costs/penalites incurred by the contractor |
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Term
| Must installation security must the owner provide? |
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Definition
| Security against loss/damage of furniture & equipment stored @ site between the dates of delivery & final acceptance by owner |
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Term
| What are the contractor's responsibiites of the contractor regarding route for delivery? |
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Definition
| Select route to be used with in the project premises for delivery from the point of delivery to final placemnt |
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Term
| Must must the contractor tell the owner about installation? |
|
Definition
| Any special equipment/services required for proper installation of work |
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Term
| What are the contractors responsibilities to complete work? |
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Definition
| Must do all cutting, fitting, & patching required to complete work & must not alter work of others without first getting written consent of owner. Must provide labor & means & methods of carrying out work according to prevailing labor conditions on site |
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Term
|
Definition
| period from starting date estimated in agreement to time of substantial completion, including any authorized adjustments |
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Term
| After the time contract is issued, how is the contractor expected to proceed? |
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Definition
| expeditiously with adequate work forces & to complete work wi/allotted time |
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Term
| How may the contract time be extended? |
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Definition
| by a change order if delays occur beyond the contractor's control |
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Term
| What are considered elements beyond the contractor's control? |
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Definition
| Acts or neglects of owner/designer, labor disputes, fire, unavoidable casualties, or transportation delays |
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Term
| What article of the general contract specifies procedures for paying the contractor? |
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Definition
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Term
| What do the general conditions state about the title to all work, materials, and equipment? |
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Definition
| the title covered by an approval for payment and will pass to the owner. They (contractor) are free of liens & other encumbrances |
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Term
| Who is responsible for onsite safety & precautions against damage to persons & property? |
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Definition
| Contractor exclusively responsible |
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Term
| What does damage to persons & property include? |
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Definition
| contractor's employees, other people affected by work, work itself, FF&E, & adjacent property |
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Term
| What happens if damage to work, is sustained due to inadequate protection? |
|
Definition
| The contractor must repair or correct it |
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Term
| What doesnt damage to persons & property include? |
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Definition
| damages caused by acts of owner/designer |
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Term
| Why might changes in the work need to be made? |
|
Definition
| usually due to unforseen conditions or requests by owner |
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Term
| What is a Change Order based on: |
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Definition
| written agreement among the owner, contractor, & designer concerning extent of change & its cost & schedule implications |
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Term
| When is a change order always required? |
|
Definition
| When there is a modification of contract cost or time |
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Term
| Who must sign a change order? |
|
Definition
| owner, contractor, & designer |
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Term
| What must happen before certain portions of the work are covered or enclosed (if stated in the contract)? |
|
Definition
| These portions are to be observed by the designer |
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Term
| What happens if the contractor proceeds with covering certain portions of work before the designer has observed these portions? |
|
Definition
| The contractor must uncover them & no additional charge on request by designer |
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Term
| IF the work is in accordance with contract docs but there was no mention in contract that work must be observed before covering it, can the designer still request that the area be uncovered? |
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Definition
| Yes, but the cost must be borne by the owner through a change order |
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Term
| If the designer asks for an area to be uncovered covered, under a contract that did not specify that a designer must first observe before covering, what happens if uncoforming work is found? |
|
Definition
| The contractor is responsible for any additional costs |
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Term
| What happens if a designer rejects work for failing to conform to the requirements of contract documents? |
|
Definition
| The contractor must correct the recommended work & bear the cost of such corrections such as testing, inspections, & compensation for designer's services connected w/ the correction |
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Term
| Even though an owner can choose to accept nonconforming work, what must they do to show acceptance? |
|
Definition
| must write a change in contract since the nonconforming work entails a change in the contract |
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Term
| How must a written change in the contract occur? |
|
Definition
| a written change order & contract sum may be reduced if appropriate |
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Term
| Each job (contract wise) must be customized to accomodate what? |
|
Definition
| different clients, government regulations, & local laws |
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Term
| What 4 places can information unique to each project be included? |
|
Definition
| 1)Bidding requirements (if related to bidding) 2)Owner-contractor agreement (if relates to contractural matters) 3) supplementary Conditions (if it modifies the general conditions) 4) In Division 1 (gen req) of specs in project manual |
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Term
| What form did the AIA/ASID jointly produce that suggests what types of modifications are typically required for contracts? |
|
Definition
| form A571: Guide for Interiors Supplementary Conditions |
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|
Term
| What may clients have their own standard forms for? |
|
Definition
| General conditions and requirements for modifications |
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|
Term
| Which for should you use regarding modifications? |
|
Definition
| Whichever is most appropriate |
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Term
| Modifications to the general or supplementary conditions should only be done with advice of who? |
|
Definition
|
|
Term
| What 2 ways are Price quotes & contracts between owner & contractor established? |
|
Definition
| 1) Negotiated contract 2) Bid Contract |
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Term
|
Definition
| Owner (w/possible assistance from designer) selectsa contractor to do work & then has the contractor look @ dwgs & work up price quote |
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Term
| How may negotiated contractors be selected? |
|
Definition
| baed on previous working relationship, recommendations of others, or both |
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Term
|
Definition
| Drawings & specifications are completed by designer (& other consultants (if needed)) & then sent to several general contractors who bid on work defined by contract documents |
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|
Term
| How will owner select a contractor based on a bid contract? |
|
Definition
| based on cost as well as experience, schedule, & other criteria |
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|
Term
| Why is competitive bidding for construction & FF&E popular with owners? |
|
Definition
| it usually results in the lowest cost |
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|
Term
| For what agencies is bidding usually mandatory for? |
|
Definition
|
|
Term
| HOw must bidding be defined? |
|
Definition
| with in clearly defined guidelines to protect owner from disreputable contractor/unethical bidding practices |
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|
Term
| How have bidding procedures been standardized? |
|
Definition
| in various industry association docs. example: AIA doc A771 Instructions to Interiors Bidders |
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|
Term
| What is the purpose of prequalification in bidding? |
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Definition
| To select only those contractors who meet certain standards of reliability, experience, financial stability, & performance |
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Term
| What are the 2 ways owners can open bid to contractors? |
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Definition
| 1)Open to any contractor 2)restricted to list of contractors prequalified by owner |
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Term
| Once standards of prequalification have been met, what is an owner better able to do? |
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Definition
| review contractors bids based primarily on price, personnel & completion time |
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Term
| What is prequalification usually based on? |
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Definition
| Info submitted by contractors concerning their financial qualifications, personnel, experience, references, size, bonding capacity, & any special qualities that make them especially suited for project under construction |
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Term
| What are prequalifications often based on for public work? |
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Definition
| financial assets & size of firm |
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Term
| What are ways to advertise/notify to prospective bidders |
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Definition
| 1)advertise in newspapers & trade journals 2)For prequalified bidders, invitation to bid is sent to prospective bidders |
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Term
| What should an advertisement in newspaper/trade journals for bids contain? |
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Definition
| States project name, location, & fact that bids are being accepted. Gives brief discription of project, time & place for receiving bids, where documents can be obtained, conditions for bidding & other pertinent info |
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Term
| What way of advertising bids is required for public work and common for private work too? |
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Definition
| newspaper/trade journal advertisements |
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Term
| WHat does an invitation to bid contain? |
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Definition
| Same information as in advertising. |
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Term
| What should you ensure when sending invitations to prequalified bidders? |
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Definition
| That there are enough bidders to encourage price competition |
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Term
| Why is FF&E usually done on a prequalified bid basis? |
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Definition
| Since there are usually few dealers that can bid on the same furniture |
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Term
| Before the invitations to prequalified bidders are sent out, what does the designer usually do? |
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Definition
| Notify the bidders ahead of time |
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Term
| Where are bid documents generally made available? |
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Definition
| Through designer's office |
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Term
| What does bidder usually receive? |
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Definition
| prints of dwgs, specs, bidding docs, bid forms, other required items |
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Term
| What is a bidder generally required to do for each document take? |
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Definition
| To put deposit down. This is returned when documents are returned in usable condition after bidding |
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Term
| If a contractor requires extra documents over a certain number, what can they do? |
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Definition
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Term
| How are bid documents usually made available in large cities? |
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Definition
| documents are put on file in a central planning room where subs & material suppliers can review them. |
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Term
| When will contractors often request substitutions be considered for some materials? |
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Definition
| When there are proprietary specs or limited list of acceptable manufacturers |
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Term
| If material substitutions are being accepted what should be clearly defined in instructions to bidders? |
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Definition
| procedures for reviewing submissions |
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Term
| How far in advance should bidders usually submit requests for approval? |
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Definition
| at least 10 days before bid opening |
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Term
| What must a substitution request include? |
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Definition
| name of material or equipment for which substitution submittled along with complete back-up info about proposed substitutiion |
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Term
| who bears the burden of proof of the merit of substitution? |
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Definition
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Term
| After the designer reviews submissions what can they do? |
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Definition
| either reject it or approve it |
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Term
| What happens if a designer approves the substitution submission? |
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Definition
| they issue an addendum stating this & sends to all bidders |
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Term
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Definition
| request included in bidding documents asking contractor to supply price for some type of variation from base bid |
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Term
| What's an example of alternates? |
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Definition
| change in materials or level of quality of a material, deletion of some component, or add of some construction element |
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Term
| What are the benefits of alternates? |
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Definition
| allow the owner flexibility in modifying cost of a project. Allows owner to select certain options based on firm prices rather than preliminary estimates |
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Term
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Definition
| if it adds to the base of bid |
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Term
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Definition
| If it reduces base amount |
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Term
| What is the disadvantage to alternates? |
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Definition
| Requires more time for designer & bidders so should be used carefully & shouldn't be a substitute for conscientious cost estimating & reasonable design for base-bid amount |
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Term
| What should &shouldn't alternates be used for? |
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Definition
| Should: arrive at lowest overall bid . Shouldn't: be manipulated to favor one bidder over another |
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Term
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Definition
| set costs for certain portions of work based on individual quantities such as linear feet or sq yardage of installed material |
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Term
| Where would unit prices be listed? |
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Definition
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Term
| What are unit prices the basis for |
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Definition
| determining changes to the contract |
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Term
| What will happen if unit prices are used when work is deleted from the contract? |
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Definition
| amount of credit is usually less than price for added quantity of same item |
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Term
| Spaces should be provided in a bid form for: |
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Definition
| both add & deduct amounts when applicable |
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Term
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Definition
| Written or graphic document issued by designer before execution of contract that modifies or interprets the bidding documents by additions, deletions, clarifications or corrections |
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Term
| What always happens during the bidding process? |
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Definition
| ?'s that need answers, errors discovered, & changes owner/designer decides to make SO addendas are instruments to do this |
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Term
| When are addendas issued? |
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Definition
| during bidding process before bids are submitted |
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Term
| What should happen when an addenda is issued? |
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Definition
| It should be sent to all bidders wi/4-5 days before receipt of bids to give all bidders ample opportunity to study documents & modify proposals accordingly |
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Term
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Definition
| Meeting w/designer, owner, architect, engineering consultants & bidders so bidders can ask ?s & designer/owner can emphasize particularly important conditions of project |
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Term
| What should happen to the notes someone should take on items discussed? |
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Definition
| a copy should be sent to all bidders, even if not in attendance |
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Term
| What does assisting the owner in evaluating bids include? |
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Definition
| Looking for lowest contract sum. Reviewing prices for alternates, substitutions, list of proposed substitutions, qualification statements, & other documents requested by instruction to bidders |
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Term
| What does the owner have the right to do in bid selection? |
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Definition
| reject any or all bidders, to reject bids not accompanied by required bid bond or other document, & to reject bid that is in anyway incomplete or irregular |
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Term
| If all bids exceed the project budget & owner-designer agreement fixes limit on construction costs, what are the owners 4 options? |
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Definition
| 1)Rebid (or renegotiate if it is negotiated contract) 2)Authorize increase in construction cost & proceed w/project 3)Work w/designer in revising scope of project to reduce costs 4) Abandon project |
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Term
| What is often the result of rebidding? |
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Definition
| Seldom results in significant reduction in cost unless bidding market place is changing rapidly |
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Term
| IF a scope is revised, there are extra costs for designer to modify documents unless: |
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Definition
| there are contract provisions specifying responsibility for changing dwgs or specs if project comes in over budget |
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Term
| What is the budgetary advantage of having alternates ? |
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Definition
| Having flexible methods of deleting/substituting maaterials or construction elements to reduce the project cost if bid is too high |
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Term
| What are ways bidding documents are usually prepared? |
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Definition
| By designer using standard forms or provided by owner. Many commercial clients experienced i building have developed own forms/procedures |
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Term
| Where are bidding documents usually kept? |
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Definition
| bound into project manual |
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Term
| Are bidding documents a legal part of the contract documents? |
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Definition
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Term
| What do bidding documents usually include? |
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Definition
| advertisement or invitation to bid, instruction to bidders, bid forms, bid security info, request for a performance bond (if req), request for a labor & material payment bond (if required) |
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Term
| What are other documents that are sometimes added to the bidding documents? |
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Definition
| qualification forms, subcontractor list form, requests for certificates of insurance & compliance w/ applicable laws & regulations, & info available to bidders like dwgs of existing construction |
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Term
| What does the bidding package include? |
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Definition
| dwgs, specs, gen & supplementary conditions of contract, addenda issued before receipt of bids, & forms of agreement between owner & contractor |
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Term
| What do instructions to bidders outline? |
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Definition
| procedures/requirements that bidders must follow in submitting bids, how bids will be considered, & submittals required of successful bidders |
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Term
| What standardized instructions to bidders are often used? |
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Definition
| AIA doc A771, Instructions to Interior Bidders |
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Term
| Who must the bid forms be signed by? |
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Definition
| someone legally empowered to bind the contractor to the owner in a contract |
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Term
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Definition
| Used to ensure successful bidder will enter into contract w/owner |
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Term
| Is bid security mandatory? |
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Definition
| owner might not require it on small design contracts and it is sometimes waived on larger projects |
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Term
| Who's final decision is it about need for a bid security? |
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Definition
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Term
| What are forms of bid security? |
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Definition
| certified check, cashier's check, bid bond |
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Term
| What happens when a successful bidder doesn't enter into an agreement with the owner? |
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Definition
| the bid security can be retained & compensates for difference between low bid & next lowest bidder |
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Term
| How is the amount for the bid security decided? |
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Definition
| Either set as fixed price or as % of bid; usually 5% of estimated cost of work or of bid price |
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Term
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Definition
| statement by a surety company that obligates surety of company to complete construction of project should the contractor default on their obligations |
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Term
| What happens if the contractor defaults on their obligations? |
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Definition
| the surety company may complete constrution by hiring another contractor or supply additional $ to defaulting contractor to allow construction to proceed |
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Term
| When are performance bonds mandatory? |
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Definition
| for public work & adviseable on private work |
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Term
| What is the cost of a performance bond? |
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Definition
| % of construction costs about 3% & ultimately paid by owner because it's included in the total amount of the contract price |
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Term
| What should the designer/owner verify about performance bonds? |
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Definition
| that it is written by a surety able to issue bonds in particular state where the work is to take place |
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Term
| What doesn't a performance bond gaurantee? |
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Definition
| payment for labor/material by defaulting contractor |
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Term
| what happens in caes of non payment by owner for labor/materials? |
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Definition
| there could be liens against the property of litigation by subcontractors & material suppliers |
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Term
| Why is a labor & material payment bond usually required with a performance bond? |
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Definition
| To protect the owner against result of non payment of labor/materials due to a contractor's default |
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Term
| Interpretation or correction of bidding documents: |
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Definition
| requires the contractor to carefully study the documents, examine the site & location conditions, & report to designer any errors, inconsistencies, or ambiguites discovered. |
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Term
| Modification or withdrawl of bid: |
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Definition
| bids can't be modified after designated time & date. However, prior to this, bid may be modified or withdrawn by making notice in writing over the signature of the bidder. Withdrawn bids can be resubmitted if they're in full conformance w/ the instructions to bidders |
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Term
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Definition
| Sometimes owner wnats contractor to submit to designer a contractor's qualification statement. |
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Term
| What must the contractor furnish to the owner post-bid: |
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Definition
| 1) a designation of the work to be performed w/ the contractor's own forces 2)names of manufacturerers & suppliers of the principal products proposed for use on the project 3)names of persons or companies proposed to perform major portions of the work |
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Term
| why should the bid price ideally be fairly close to the estimated amount? |
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Definition
| when the designer has been doing a reasonable job of tracking design changes & has a good idea of component costs |
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Term
| What is the price a contractor is willing to submit to an owner dependent on? |
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Definition
| actual cost of subcontractor bids, cost of the contractor's own labor & materials, cost of equipment rental, & the contractor's indirect costs, overhead, & profit |
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Term
| What is an example of how the marketplace can affect bidding? |
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Definition
| If the local economy is depressed, contractors, subcontractors, & material supplires may be willing to lower pries or reduce profit margins in order to get work & simply stay in business |
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Term
| What is the one variable of the bidding process that the designer & owner have control of? |
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Definition
| the set of contract documents |
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Term
| What might poorly prepared drawings & specifications do during the bidding process? |
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Definition
| can raise questions in mind of contractor about what is specifically required, what may simply be implied, & what is omitted. SO to cover possible unforseen items, the contractor may add extra $ to the bid |
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Term
| How does a complete & clearly coordinated set of documents help during the bidding process? |
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Definition
| gives the contractor confidence in the scope & quality of the specified materials & extent of work required. Contractor then includes only items shown in documents |
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Term
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Definition
| a set amount of $ estimated by the interior designer to cover a particular material or piece of equipment when the cost for that material or equipment can't be determined precisely @ the time of the bid or negotiated proposal |
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Term
| what do allowances provide for in the bidding process: |
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Definition
| a way to allocate some amount of $ for an item in the bid, even if the exact quantity or quality of the item isn't known |
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Term
| where is an allowance stated ? |
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Definition
| in the appropriate section/sections of the specifications, so all bidders are using the same amount in their bids |
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Term
| what must a contractor add to the allowance? |
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Definition
| cost for unloading, handling, & installing the item as well as costs for the contractor's overhead & profit. |
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Term
| What happens if costs for the allowance are more or less than the original estimate? |
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Definition
| the contract sum is adjusted accordingly by change order |
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Term
| How is the contractor with which the owner negotiates be selected? |
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Definition
| 1)the owner may know exactly which contractor they want to do porject based on previous work with contractor, referral, or reputation. 2)Owner selects several possible ontractors to be interviewed. |
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Term
| What happens during bid opening: |
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Definition
| bids read aloud, & presene/absence of any required supporting documentation s noted. Designer usually prepares a bid log to note base bid amount, amounts of alternates, whether receipt of any addenda was aknowledged, & other pertinent info |
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Term
| how long should the bid evaluation/determination take? |
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Definition
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Term
| How are contract documents complementary? |
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Definition
| what is required by one is as binding as if required by all of them |
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Term
| What does Article 4 of AIA 175ID list? |
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Definition
| requirements for payment, including net days from approval of application for payment, criteria for deposits, discounts, special orders, cancellation, restocking, & final payment |
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Term
| Duties & responsibilites of the vendor: |
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Definition
| ordering, delivering, & installing the goods described in the contract. |
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Term
| Vendors responsibility to visit project site: |
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Definition
| at site review contract documents to become familiar w/ the conditions under which the work will be performed & to correlate personal observations w/ requirements of the contract documents |
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Term
| Vendors responsibilites to ensure completion of the work: |
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Definition
| must supervise work & pay for labor, materials, FF&E, & other facilites neccessary for the completion of the work |
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Term
| Vendor's time line responsibilites to client/designer: |
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Definition
| must prepare a work schedule for review & provide for final clean up of work |
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Term
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Definition
| vendor takes on risk of loss of furniture & fixtures until the owner accepts it after final inspection or upon payment in full to vendor, whichever occurs first |
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Term
| Vendor's role in delivery & install: |
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Definition
| responsible for delivery & install & must work according to the vendor's progress schedule or @ a time agreed upon by the owner & interior designer |
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Term
| Vendor's time responsiblilites: |
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Definition
| Responsible for completing the work by the date agreed to in the contract documents & must provide adequate work forces to do the job |
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