CEP Contract Documentation & Legal Considerations 5 — Questions and Answers
Question 1: Under AIA contract documents, what is the architect's role during the construction phase?
- Direct supervisor of all construction workers on site
- Owner's representative who administers the contract, reviews submittals, and certifies payments (Correct answer)
- Guarantor of the contractor's work quality and schedule
- The party responsible for obtaining all building permits
Correct answer: Owner's representative who administers the contract, reviews submittals, and certifies payments
During construction, the architect acts as the owner's representative, administering the contract, reviewing submittals, interpreting contract documents, and certifying progress payments.
Question 2: An estimator identifying 'changed conditions' (differing site conditions) in a contract claim should know that Type I differing site conditions refer to:
- Unknown physical conditions at the site that differ materially from those indicated in the contract documents (Correct answer)
- Conditions that differ materially from those ordinarily found in the type of work contracted for
- Environmental contamination discovered after excavation begins
- Weather conditions that exceed historical averages
Correct answer: Unknown physical conditions at the site that differ materially from those indicated in the contract documents
Type I differing site conditions are physical conditions that differ materially from those represented in the contract documents, such as subsurface conditions unlike what borings indicated.
Question 3: A contractor's 'claim' under the Contract Disputes Act (CDA) must include which essential element?
- Notarized signatures from all subcontractors
- A sum certain (definite dollar amount) and be submitted in writing to the contracting officer (Correct answer)
- Approval from the project surety
- A certified cost accounting system audit
Correct answer: A sum certain (definite dollar amount) and be submitted in writing to the contracting officer
Under the Contract Disputes Act, a valid claim must be in writing, demand a sum certain, and be submitted to the contracting officer; claims over $100,000 require contractor certification.
Question 4: What does 'indemnification' in a construction contract require the indemnifying party to do?
- Provide additional insurance coverage to the project
- Hold harmless and defend the indemnified party against specified losses, claims, or damages (Correct answer)
- Perform the work at no cost if quality standards are not met
- Submit to binding arbitration for any disputes
Correct answer: Hold harmless and defend the indemnified party against specified losses, claims, or damages
Indemnification requires the indemnifying party to protect the other party from financial loss or legal liability arising from specified events, including defending against lawsuits.
Question 5: Which of the following best describes an 'integrated project delivery' (IPD) agreement?
- A contract where the owner, designer, and contractor share risks and rewards through a multi-party agreement (Correct answer)
- A standard design-bid-build contract with BIM requirements
- A federal procurement method for indefinite quantity contracts
- A subcontract template standardized by the AGC
Correct answer: A contract where the owner, designer, and contractor share risks and rewards through a multi-party agreement
IPD is a multi-party collaborative delivery method where the owner, architect, and contractor jointly share risks, rewards, and responsibilities through a single integrated agreement.
Question 6: A 'force majeure' clause in a construction contract typically allows the contractor to:
- Increase the contract price due to inflation
- Obtain time extensions for delays caused by unforeseeable events beyond the contractor's control (Correct answer)
- Terminate the contract for prolonged supply chain disruptions
- Substitute materials without owner approval during emergencies
Correct answer: Obtain time extensions for delays caused by unforeseeable events beyond the contractor's control
Force majeure clauses excuse performance or allow time extensions when extraordinary events beyond either party's control—such as natural disasters, wars, or pandemics—cause project delays.
Question 7: When reviewing a contract's 'warranty' provisions, an estimator should understand that the implied warranty of workmanship requires the contractor to:
- Provide a 10-year warranty on all structural elements regardless of contract language
- Perform work in a skillful and workmanlike manner consistent with industry standards (Correct answer)
- Warranty all owner-furnished equipment installed by the contractor
- Match the specifications of any competing contractor's warranty
Correct answer: Perform work in a skillful and workmanlike manner consistent with industry standards
The implied warranty of workmanship holds contractors to a standard of performing work with reasonable skill and competence consistent with accepted industry practices.
CEP Contract Documentation & Legal Considerations 5
Under AIA contract documents, what is the architect's role during the construction phase?