CDS Contract Administration & Documentation Flashcards

What is retainage in a demolition contract?

Answer: A percentage of each progress payment held back until substantial completion

Retainage is a percentage (typically 5–10%) withheld from each progress payment as financial security until the project is substantially complete.

A Schedule of Values is used in demolition contracting to:

Answer: Break down the contract price by work item for progress billing purposes

A Schedule of Values allocates the total contract price to specific work items, forming the basis for each progress payment application.

Which contract type places the greatest financial risk on the demolition contractor?

Answer: Lump Sum (Fixed Price)

In a lump-sum contract, the contractor bears the risk of cost overruns since the price is fixed regardless of actual costs incurred.

What milestone triggers substantial completion on a demolition project?

Answer: The work is sufficiently complete for the owner's intended use of the site

Substantial completion occurs when the work is sufficiently complete per the contract so the owner can use or occupy the site for its intended purpose.

Under the federal Miller Act, payment and performance bonds are required for public works contracts exceeding:

Answer: $100,000

The Miller Act requires payment and performance bonds on federal construction contracts exceeding $100,000 to protect subcontractors and suppliers.

A liquidated damages clause in a demolition contract specifies:

Answer: A predetermined daily monetary penalty for unexcused delays past the completion date

A liquidated damages clause establishes a predetermined daily penalty the contractor owes the owner for each day of unexcused delay beyond the completion date.