Project Management and Documentation Flashcards

What does 'substantial completion' mean in a construction contract?

Answer: When the project is sufficiently complete for the owner to occupy or use it for its intended purpose

Substantial completion is reached when the project is functionally usable for its intended purpose, even if minor items remain incomplete.

An ICC contractor's bid bond serves which purpose?

Answer: It guarantees the contractor will enter into the contract if awarded the bid

A bid bond ensures that if a contractor is awarded the project, they will honor the bid price and execute the contract.

What is the primary function of a construction lien in Illinois?

Answer: To secure payment by placing a legal claim against the property

A mechanics lien allows unpaid contractors, subcontractors, and suppliers to place a legal claim against the property to secure payment.

In Illinois, what is the deadline for a general contractor to file a mechanics lien after project completion?

Answer: 4 months

Under the Illinois Mechanics Lien Act, a general contractor must file a lien within 4 months of completing work.

What does a 'notice to owner' document accomplish for subcontractors on Illinois construction projects?

Answer: It informs the owner that the subcontractor exists and may have lien rights

A notice to owner preserves a subcontractor's lien rights by informing the property owner of their involvement in the project.

Why should an ICC contractor always obtain a signed lien waiver from subcontractors before issuing final payment?

Answer: It confirms the subcontractor waives their right to file a lien once paid

A signed lien waiver confirms that upon receiving payment, the subcontractor releases their right to place a lien on the property.