LARE LARE Bidding and Contract Administration 4 — Questions and Answers
Question 1: When is a Request for Information (RFI) most appropriately used during construction?
- When the contractor wants to substitute a specified material
- When the contractor needs clarification on ambiguous or incomplete contract documents (Correct answer)
- When the owner wants to add scope to the project
- When the landscape architect identifies a code violation
Correct answer: When the contractor needs clarification on ambiguous or incomplete contract documents
An RFI is the contractor's formal mechanism to request clarification on unclear, conflicting, or missing information in the contract documents.
Question 2: Under a stipulated sum (lump sum) contract, who bears the risk if material costs rise significantly after contract execution?
- The owner, through an escalation clause
- The contractor, who must complete work for the agreed price (Correct answer)
- Both parties equally through a shared savings provision
- The bonding company through a cost escalation rider
Correct answer: The contractor, who must complete work for the agreed price
In a stipulated sum contract, the contractor assumes the risk of cost escalation because they agreed to complete the defined scope for a fixed price.
Question 3: A substitution request from the contractor proposes an alternative irrigation system. The landscape architect should evaluate it based primarily on:
- The contractor's preference and installation experience
- Whether the substitute is equal in quality, performance, and compatibility (Correct answer)
- The manufacturer's representation that products are equivalent
- Whether the substitute is less expensive than the specified product
Correct answer: Whether the substitute is equal in quality, performance, and compatibility
Substitution approval requires the landscape architect to evaluate whether the proposed substitute meets all performance, quality, and compatibility requirements of the specified product.
Question 4: Which document establishes the official start of the contractor's time to complete the project?
- Notice of award
- Contract execution date
- Notice to proceed (Correct answer)
- Mobilization authorization
Correct answer: Notice to proceed
The notice to proceed (NTP) is the owner's written authorization for the contractor to begin work and typically marks day one of the contract duration.
Question 5: In the context of LARE Section D, 'substantial completion' is best defined as:
- When 95% of the contract value has been paid to the contractor
- When the project is sufficiently complete that the owner can use it for its intended purpose (Correct answer)
- When all punch list items have been corrected by the contractor
- When the certificate of occupancy has been issued by the building department
Correct answer: When the project is sufficiently complete that the owner can use it for its intended purpose
Substantial completion occurs when the work is sufficiently complete per the contract documents that the owner can occupy or use the project for its intended purpose.
Question 6: A landscape contractor submits a claim for additional compensation due to an owner-directed change. The claim includes overhead and profit. What percentage of overhead and profit is typically specified in AIA general conditions for owner-directed changes?
- 5% overhead and 5% profit
- 10% overhead and 10% profit (Correct answer)
- 15% overhead and 5% profit
- 20% overhead and 10% profit
Correct answer: 10% overhead and 10% profit
AIA Document A201 typically allows contractors to add 10% for overhead and 10% for profit on the cost of changes to the work.
Question 7: Which of the following best describes the role of the landscape architect during the bidding phase?
- Negotiating the contract price directly with preferred contractors
- Issuing addenda, answering questions, and ensuring a fair and open bid process (Correct answer)
- Evaluating contractor financial statements and bonding capacity
- Pre-qualifying subcontractors on behalf of the owner
Correct answer: Issuing addenda, answering questions, and ensuring a fair and open bid process
During bidding, the landscape architect facilitates the process by issuing addenda, responding to bidder questions, and ensuring all bidders receive equal information.
LARE LARE Bidding and Contract Administration 4
When is a Request for Information (RFI) most appropriately used during construction?