Construction Contract Administration Flashcards

An architect receives a contractor's Application for Payment that includes a request for payment for materials stored securely at an off-site warehouse. According to AIA A201-2017, General Conditions of the Contract for Construction, which of the following is a prerequisite for the architect to certify this portion of the payment?

Answer: Prior written approval from the Owner for payment of off-site stored materials.

AIA A201-2017, Section 9.3.2, explicitly states that if approved in advance by the Owner, payment may be made for materials and equipment suitably stored off the site. This approval is critical because the Owner is paying for items not yet incorporated into the work and not physically on the project site, which presents a risk. The contractor must also provide documentation that protects the owner's interest, such as proof of insurance and title.

What is the primary legal and contractual significance of the date of Substantial Completion as established by the architect?

Answer: It transfers responsibility for property insurance from the contractor to the owner and marks the beginning of the warranty period.

The date of Substantial Completion is a critical milestone defined in AIA A201. It is the stage at which the work is sufficiently complete for the owner to occupy or utilize it for its intended use. This date triggers several key contractual events: the warranty period (correction period) begins, and the responsibility for utilities, security, and property insurance typically shifts from the contractor to the owner. Final completion and final payment occur after the punch list is complete.

During a site visit, the Owner and Architect agree that a non-structural interior partition should be shifted by six inches to better accommodate a piece of furniture. This change has no impact on the project's cost or schedule. Which document should the architect issue to direct the contractor to make this change?

Answer: An Architect's Supplemental Instruction (ASI)

An Architect's Supplemental Instruction (ASI), often using AIA Form G710, is the appropriate document for ordering minor changes in the work that do not involve an adjustment to the Contract Sum or Contract Time. A Change Order is used when there is agreement on changes to cost and/or time. A Construction Change Directive (CCD) is used to direct a change when there is not yet agreement on cost or time. An RFP is a request for a proposal, not a directive to perform work.

When an architect reviews a contractor's shop drawing submittal for steel stairs, what is the architect's primary responsibility according to AIA A201?

Answer: To confirm the submittal's conformance with the design concept expressed in the contract documents.

According to AIA A201 Section 4.2.7, the architect's review of submittals is for the limited purpose of checking for conformance with the information given and the design concept expressed in the contract documents. The contractor remains solely responsible for details like dimensions, quantities, fabrication techniques, coordination with other trades, and construction means and methods.

While excavating for foundations, a contractor discovers a large mass of rock not indicated in the owner-provided soil borings (which are part of the contract documents). According to AIA A201-2017, what is the contractor's required immediate action?

Answer: Stop work in the affected area and provide prompt written notice to the Owner and Architect.

This scenario describes a concealed or unknown condition. AIA A201-2017, Section 3.7.4, requires that upon encountering such a condition, the contractor must stop work in the area and give prompt written notice to the owner and architect before the condition is disturbed. This allows the architect to investigate the condition and recommend an equitable adjustment to the contract sum or time if warranted.

Under the terms of AIA A201-2017, what is the role of the Initial Decision Maker (IDM) when a claim arises between the owner and contractor?

Answer: To render an initial, impartial decision on the claim as a condition precedent to mediation and binding dispute resolution.

The Initial Decision Maker (IDM), who is the architect by default unless another party is named, is tasked with rendering an initial, impartial decision on claims. This step is a mandatory condition precedent to mediation, meaning it must occur before the parties can proceed to mediation or any subsequent binding dispute resolution like arbitration or litigation. The IDM's decision is not final and binding if either party proceeds to the next step in the dispute resolution process.