Flashcards
Chapter 5 - Contract Administration
Flashcards do conjunto (44)
- 15-1 How is a negotiated contract different from a bid (or tendered) contract?With the former, the owner selects a contractor to do the work, and the two
discuss the cost and terms of the contract.
With the latter, several contractors view the contract documents and submit cost
proposals. - 25-2 What are the two common ways to notify prospective contractors that a project is being bid?1. Advertise for bids in a local newspapers and trade journals
2. Send invitation to bid forms to prospective bidders. - 35-2 What are the two common ways to notify prospective contractors that a project is being bid?The two common ways to accomplish this are to:
• Advertise for bids in a local newspapers and trade journals
• Send invitation to bid forms to prospective bidders. - 45-3 What is an addendum?This is a written or graphic document issued by the interior designer before the
execution of the contract that modifies or interprets the bidding documents by
additions, deletions, clarifications, or corrections. - 55-4 Under what conditions can a contractor propose substitutions during bidding?Bidders must request written approval of these at least 10 days before bid
opening. The request must include documentation showing that the proposal
meets the requirements of the contract documents - 65-5 If all bids on a project exceed the owner’s budget, what four options are available to the owner?• Re-bid (or renegotiate) the contract
• Authorize an increase in construction costs
• Work with the designer to reduce the scope of the project
• Abandon the project - 75-6 What seven types of information are typically included in the instructions to bidders?• Procedures for submitting bids
• Where to obtain bidding documents
• Procedures for opening bids
• Submittals required for the bids
• Bidders’ representation statements
• Required bonds
• Procedures for issuing addenda and other modifications - 85-7 What is bid security?This is a certified check, casher’s check, or bid bond requested by the owner to
ensure that the successful bidder will fulfill the contract. - 95-8 What is a performance bond?This is a statement by the surety company that obligates the surety company to
complete construction of the owner’s project if the contractor defaults. - 105-9 What is the purpose of a labor and material payment bond?This is used to guarantee payment for labor and materials on a project if the
contractor defaults or otherwise fails to make payments. - 115-10 What are five of the most common variables that can affect the cost of a project when bidding occurs?• Actual costs to the contractor and subcontractors
• Current competitiveness of the market
• Project schedule
• Desire of a contractor to get the job
• Level of profit required by the contractor - 125-11 At an owner’s request, a contractor my include alternates in the bid documents. What is an alternate?This is a construction item that could, at the owner’s discretion, be substituted for
a similar item in the base bid to reduce project costs - 135-12 What is a unit price?This is a set cost for providing a portion of the construction work that is based on
an individual quantity, such as per unit or square foot. - 145-13 In regard to interior design, what is an allowance?This is a set amount of money that the interior designer estimates will cover the
cost of a particular item (construction or furnishing) when that cost cannot be
determined precisely at the time of the bid or negotiated proposal. - 155-14 What are the four primary advantages of negotiating a contract?• The owner can use a specific contractor
• A realistic project cost is developed form the beginning
• The contractor can assist in reducing the cost of the project
• The contractor can point out potential problems in the design. - 165-15 What are four types of written modifications that can be made after the execution of a contract?• A change order
• An amendment to the contract
• A written order for minor changes in the work
• A written interpretation by the interior designer - 175-16 What two types of contracts are typically used on large commercial interior design projects?• Construction contract
• Contract for furniture, fixtures, and equipment - 185-17 What are six basic components of an owner-vendor agreement (or ownercontractor agreement)?• The agreement
• The conditions of the contract (general, supplementary, and other)
• The drawings
• The specifications
• All addenda
• All modifications issued after the execution of the agreement. - 195-18 What is retainage (also called holdback in Canada)?This is a percentage (usually 10%) of each payment to a contractor or vendor that
is withheld by the owner for the purpose of protecting the owner against
incomplete or defective work. - 205-19 What form does a vendor or contractor use to request a payment from the owner?An Application for Payment form is used for this.
- 215-20 In regard to interior design, what is substantial completion?In a construction project, this is the stage when the work, or a designated portion
of it, is sufficiently complete according to the contract documents that the owner
can occupy or use the site, even though a few minor items may yet need to be
finished or corrected. - 225-21 What are liquidated damages?These are moneys paid by the contractor to the owner for everyday the contractor
is late at completing the project - 235-22 How is the Uniform Commercial Code (UCC) important to interior design projects?This document governs the sale of goods in the United States and is applicable to
the purchase and delivery of furniture and other moveable items. - 245-23 What does “FOB factory” mean?This means that the title for goods purchased is transferred at the factory. The
manufacturer pays for loading the goods onto a truck or train, and the buyer pays
the transportation costs and is responsible for damage during shipping. - 255-24 Who is responsible for making the acceptance inspection of furniture fixtures?The owner is responsible for the aspect of FF&E delivery.
- 265-25 Who has the authority to stop construction?On the construction project, only the owner can authorize this action.
- 275-26 What is the contract time?This is the period from the starting date established in the agreement to the time
of substantial completion - 285-27 What is a change of order?This is a form used to authorize a change in contract time, contract cost, or both,
made after the execution of the contract. It is generally prepared by the interior
designer and must be signed by the designer, contractor, and owner. - 295-28 What part of a contract agreement may be used to include unique contract elements that modify the General Conditions of the Contract for Construction?In a contract agreement, the Supplementary Conditions are used to modify these
- 305-29 What are the five basic activities of project management?• Planning
• Monitoring
• Coordinating and directing
• Documenting
• Closing out a project. - 315-30 What is involved in generating a fee projection?In this process, the total fee the designer will receive, after amounts for profit,
overhead, and other expenses are deducted, is allocated to the schedule and to the
various staff members who will be completing the project. - 325-31 What are shop drawings?These are detailed drawings, diagrams, and other data, prepared by the
subcontractor or supplier, that show exactly how the provider intends to supply
and install work to meet the contractor and interior designer for approval. - 335-32 What is the basic process for getting approval on submittals from subcontractors or suppliers?• First, the submittal is sent to the general contractor, who reviews it and
then sends it to the interior designer for approval.
• If the submittal also requires a review by one of the designer’s consultants,
it is sent back to the consultant for review.
• The submittal is then sent back to the contractor, who returns it to the
party who originally made the submittal. - 345-33 What are the interior designer’s obligations during construction observation?• Become generally familiar with the progress and quality of the work
• Keep the owner informed about the progress of the work
• Endeavor to guard the owner against defects in the work
• Determine, in general, if the work is progressing in such a way that it is in
accordance with the contract documents. - 355-34 Who has the authority to reject work that does not conform to the contract documents?The interior designer can reject work that does not conform to these
- 365-35 In regard to interior design, what is a claim?This is a demand or assertion by the contractor or owner seeking payment of
money, an adjustment or interpretation of the contract terms - 375-36 What are two common types of construction claims?• Claims for additional time
• Claims for concealed or unknown conditions - 385-37 How is mediation different from arbitration?Mediation-, a neutral third party facilitates an agreement between the
disputing parties, but the agreement is not binding.
Arbitration- the third party hears arguments and renders a decision according
to specified rules, and the decision is binding. - 395-38 What are six things the interior designer is NOT responsible for during contract administration?• The means, methods, or techniques of construction
• Safety on the job
• Fabrication, shipment, or installation of construction elements of
furnishings
• Acts or omission of contractors, subcontractors, or suppliers
• Stopping the work if there are problems
• Receipt, inspection, and acceptance of furniture or fixtures - 405-39 What is a construction change directive?This is a written order, prepared by the interior designer, directing the contractor
to make a change before the owner and contractor have agreed on the amount of
adjustments in cost, time, or both. - 415-40 What are the six common reasons why a designer might withhold payment to a contractor?• The work is defective
• The contractor failed to pay the subcontractors
• The contractor has damaged the property of the owner or another
contractor
• Third-party claims have been filed
• Evidence exists that the work will not be completed on time
• The contractor failed to conform to the contract documents - 425-41 What are the five of the responsibilities of the owner during furniture installation?• Providing facilities for delivery, unloading, and staging
• Providing a route from the delivery point to the final placement point
• Giving a firm schedule to the contractor for unloading facilities
• Paying for costs due to the owner’s failure to conform to the schedule
• Providing security - 435-42 What is a punch list? (known in Canada as a deficiency list)?This is a list of items made by the interior designer during the final inspection. It
includes anything that needs to be completed or corrected by the contractor if not
in accordance with the contract documents. - 445-43 What are seven of the items the contractor must submit to the owner during project closeout?• The bonds
• All warranties
• Any extra stock of materials
• A set of record drawings
• The certificate of occupancy
• Documentation required by the final application for payment
• Maintenance contracts and equipment operating instructions
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- IDFX NCIDQ FlashCards sobre Chapter 5 - Contract Administration, criado por Rianna Straw em 19-06-2016.
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- Rianna Straw
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