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modification, written ammendment to the contract signed by both parties, a written interpretation issued by the interior designer, or a written order for a minor change in the work. |
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the owner-contractor agreement; the genral conditions of teh contract, the drawings, specs, and addenda issued before execution of teh contract; any other documents specifically listed in the agreement; and modifications issued after execution of the contract |
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if there are two contracts, one for construction, and one for FF&E there are... |
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two contractors. One being the construction contractor who completes the interior construction. The other, the FF&E contractor; who is typically a furniture dealer, or in some instances a furniture mfg or design professional. |
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two different contracts becuase |
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construction contracts are governed by common law that regulates services, and FF&E contracts are goverened by statuatory law that regulates teh sale of goods. |
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the Standard Form of Agreement Between Owner and Contractor for Furnishings, Furniture, and Equip. |
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Abbreviated Form of Agreement Between Owner & Contractor for FF&E Where the Basis of Payment is a Stipulated Sum. |
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specifies that the contract documents include the agreement, conditions of contract (general, supplementary, and other conditions), the drawings, the schedules and specifications, all addenda, adn all modifications issued after the execution of the agreement. |
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Some provisions common to all contracts |
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description of work, the time of commencement & substantial completion, and the contract sum. |
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the stage in the progress of the work when the work or a designated portion thereof is sufficiently complete according to the contract documents so the owner can occupy or utilize teh site though a few minor items may remain to be completed or corrected. |
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moneys paid by the contractor to the owner for every day the project is late. they represent the actual anticipated losses the owner will incur if the project is not completed on time. many times accompanied by a bonus provision so the contractor receives payment for early completion. |
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If a penalty clause (different from liquidated damages) is included in the contract then... |
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a bonus provision must also be included |
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certain percentage of each payment (usually 10 percent) that is withheld until final completion of the work, as a protection of teh owner agains incomplete or defective work on the part of the contractor. |
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A275- The General Conditions of the Contract for Furniture, Furnishings, and Equipment |
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one of the most important parts of the entire set of CD's. incorporated by specific reference into the owner-interior designer agreement as well as the owner-contractor agreement. |
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Uniform Commercial Code. Relates to the sale of furniture/accessories/goods to clients, rather than just specifying them. Applicable in all states except Louisiana. Was written to provide consistent rules for commerce in the US. Establishes regulations for the buying, selling, and other types of transactions of goods that are defined as tangible and movable items. Governs such things as sales contracts, product liability, warranties, ownership, and risk |
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In some cases the UCC may: |
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take precedent over the contract. in other cases, state laws may override some provisions of the UCC. |
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Interstate Commerce Commission. Regulates the delivery of goods. |
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those who offer services to the public. |
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provide service only to certain companies they choose to do business with |
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companies who own and operate their own trucks to move their own merchandise. if common carrier is used, they are responsible for the goods they ship. if a private carrier is used, the responsibility for the furniture during shipment depends on who owns the goods. |
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free on board. and is followed by either "factory" or destination |
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means the title is transferred at the factory, the buyer pays the transportation costs, and the mfg is not responsible for loss or damage during shipping. often referred to as shipment contract. |
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means the seller (mfg) is responsible for shipping and for recovering any damage or loss during shipment. often referred to as destination contract. |
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FOB factory-freight prepaid |
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means the FFE contractor owns the furniture, but the supplier pays the shipping charges. |
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once installed/delivered the designger's responsibility's do NOT include |
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receipt, inspection, and acceptance on behalf of the owner. |
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Article 2 of General Conditions |
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designer's roles and responsibilities in contract administration. |
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the designer acts as the owner's rep |
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& advises and consults with the owner, adn may act on behalf of the owner to the extent provided in the cds. assists the owner in coordinating schedules for delivery and intsallation but is not responsible for the malfeasance of the contractor or any supplier to perform their duties. |
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interior designer does not |
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have control over the means, methods, or procedures of construction, procurement, shipment, delivery, or installation. also not responsible for the safety precautions or acts of omission of the contractor, sub, or supplier. does not have the authority to reject nonconforming work, to stop the work, or to terminate teh contract on behalf of the owner. |
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specifies duties, rights, and responsibilities of the owner. among these is to furnish evidence, at the request of the contractor, that financial arrangements have been made to fulfill the owner's obligations under the contract. |
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furnish all drawings describing the physcial characteristics of the job and must furnish, free of charge, three copies of the drawings and project manual required for the completion of teh work. Additionally, the owner must provide 1)access to teh area of work at reasonable times; 2) suitable space for the receipt and storage of materials, furniture and equipment, and 3) temporary utilities on teh job site and verical transportation necessary for the execution of the work |
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contractor's responsibility |
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fabrication, delivery, adn install means, methods, techniques, and procedures, and for coordinating all portions of the work. also responsible for the acts and omissions of all subs and other people performing work under a contract with the contractor. |
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it is not the contractor's responsibility |
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to ascertain that the cds conform to building cods, ordinances, and other regulations. however, if contractor notices some variance, he or she must notify teh designer in writing. if the contractor does not give this notice and proceeds to perform work knowingly in variance with some regulation, the contractor assumes full responsibility for such work and must bear all costs to correct the situation. |
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to secure agains loss or damage, and the indemnification clause is intended to protect teh owner and designer against situations where a person is injured due to the negligence of the contractor or the contractor's agents. |
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under the indemnification clause |
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the contractor shall indemnify and hold harmless the owner, int. designer, and their agents and employees against claims, damages, and expenses arising out of perfomance of the work. the clause does not relieve teh designer of his/her liability for errors in the drawings, specs or admin of the contract. |
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Article 7 states the owner's responsibilties include |
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1. adequate facilities for delivery, staging, and storage 2. all delivery and staging free of obstacles or other trades that may impede the contractor 3. provide contractor with firm schedule for use of unloading facilities and elevators. 4. inspect the work upon delivery for sole purpose of id materials, furniture, an equipment & verify quantities 5.abide by agreed critical dates in progress schedule. 6. provide security agains loss or damage of furniture stored at site between dates of delivery and final acceptance by owner. |
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Article 7 contractors responsibility |
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1. select the route to be used within the project premises for delivery. 2.tell the owner about any special equimpment or services required for proper delivery 3.do all cutting, fitting, or patching required to complete the work and not alter work of others without first getting the written consent of the owner 4. provide labor and means and methods of carrying out the work according to labor conditions on the job site. |
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period from the starting date established in teh agreement to the time it relates to contractual matters |
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price quotes and contracts between owner and contractor are established in one of two ways |
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negotiated contract: the owner with the possible assistance of the designer selects a contractor to do the work adn then has the contractor look at the drawings and work up a price quote. BID Contract: drawings adn specs are completed by teh designer adn sent to several contractors who bid on the work defined by teh cds |
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bidding is open to any contractor or restricted to a group of contractors who have been prequalified by the owner. usually based on info submitted by contractors concerning financial qualifications, personnel, experience, references, size, bonding capability, etc. |
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request included in the bidding documents asking the contractor to supply a price for some type of variation from the base bid. Are called add-alternates if they add to the base bid, or deduct-alternates if they reduce the base amount. |
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set costs for certain portions of the work based on individual quantities such as linear feet or sq. yds of material. |
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written or graphic document issued by the designer before the execution of the contract that modifies or interprets the bidding documents by additions, deletions, clarifications, or corrections. |
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if all bids exceed the project budget adn the owner-designer agreement fixes a limit on construction the owner has one of four options |
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1. to rebid 2. to authorize an increase in construction costs and proceed 3.to work with designer in revisting the scope 4. abandon project |
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bidding documents include |
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1. advertisement or invite to bid 2. instructions to bidders 3. bid forms 4. bid security info 5. requirements for performance bond 6. requirements for labor and materials payment bond |
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used to ensure that the successful bidder will enter into a contract with the owner. may be a certified check, cashier's check, or bid bond. if the successful bidder does not enter into an agreement, the bid security may be retained adn compensates for the difference between the low bid and teh next lowest bidder. the amount of the bid security is either a fixed price or as a percentage of the bid; usually about 5 percent of the estimated costs of the work or of the bid price. |
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statement by a surety company that obligates teh surety to complete construction of the project should the contractor default on his or her obligations. |
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labor and material payment bond |
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usually required along with performance bond to protect the owner against payment for labor and materials. |
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what could the designer suggest the owner require of the contractor to avoid liens against the proeject |
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what could the designer suggest the owner require of the contractor to avoid liens against the proeject |
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under what circumstances does the owner have to prove to the contractor evidence of the owner's financial resources to complete the project under the AIA/ASID General Conditions of the Contract? |
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whenever the contractor asks for such evidence. |
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