LARE LARE Project and Construction Management 5 — Questions and Answers
Question 1: A contractor's bid is 20% below the engineer's estimate, and all other bids cluster within 5% of each other. What is the most prudent action for the owner's team?
- Award to the low bidder immediately because the owner saves money
- Investigate the low bid for potential errors or omissions before awarding (Correct answer)
- Reject all bids and rebid the project
- Award to the second-lowest bidder as the low bid appears unreliable
Correct answer: Investigate the low bid for potential errors or omissions before awarding
An unusually low bid may indicate a mathematical error, omitted scope, or a contractor planning to recover costs through change orders; investigation before award protects the owner.
Question 2: During the warranty period, a large tree installed by the contractor dies due to drought conditions. The contractor argues the death is due to owner negligence in watering. The owner says the contractor failed to install a root ball of specified size. Who has initial responsibility for proving the cause?
- The landscape architect, as the neutral party
- The party making the claim (contractor or owner, depending on who seeks relief) (Correct answer)
- The nursery supplier who provided the tree
- The local municipality that approved the planting plan
Correct answer: The party making the claim (contractor or owner, depending on who seeks relief)
In contract disputes, the party seeking relief generally bears the burden of proving their claim; both parties would need documentation of specified root ball size and actual irrigation records.
Question 3: A landscape specification requires that sod be watered within 30 minutes of installation. The contractor installs sod in the morning and waters it 2 hours later due to an equipment malfunction. The sod survives. What should the landscape architect document?
- Nothing, since the sod survived and there was no actual damage
- A non-conformance with the specification, noting the deviation and the equipment malfunction (Correct answer)
- A change order reducing the sod specification to allow 2-hour watering
- A warranty claim against the contractor for potential future sod failure
Correct answer: A non-conformance with the specification, noting the deviation and the equipment malfunction
Specification deviations must be documented regardless of immediate outcome; the record protects all parties if warranty issues arise later and establishes a pattern if repeated.
Question 4: What is the key difference between 'substantial completion' and 'final completion' in construction contracts?
- Substantial completion requires all punch list items to be resolved; final completion does not
- Substantial completion means the owner can use the project for its intended purpose; final completion means all work including punch list is done (Correct answer)
- Substantial completion triggers the warranty period to end; final completion starts it
- There is no legal distinction between the two terms
Correct answer: Substantial completion means the owner can use the project for its intended purpose; final completion means all work including punch list is done
Substantial completion allows the owner to occupy and use the project; final completion occurs after all punch list corrections are made, releasing the final retainage payment.
Question 5: A landscape architect specifies a particular granite paver by manufacturer and product name with 'or approved equal' language. A contractor submits a substitute paver that matches dimensions but has lower PSI compressive strength. Should the landscape architect approve it?
- Yes, because it matches the dimensions and 'or equal' language allows substitution
- No, because 'or equal' requires matching all specified performance criteria, not just dimensions (Correct answer)
- Yes, if the owner does not object to the substitute
- No, only if the paving is in a vehicular area where strength matters
Correct answer: No, because 'or equal' requires matching all specified performance criteria, not just dimensions
'Or approved equal' requires the substitute to meet all specified performance criteria including compressive strength; matching only dimensions does not satisfy the 'equal' requirement.
Question 6: Which document formally transfers risk from the owner to the contractor for site conditions that differ materially from those indicated in the contract documents?
- Geotechnical report disclaimer
- Differing site conditions clause in the general conditions (Correct answer)
- Pre-bid site visit waiver
- Owner-issued Notice to Proceed
Correct answer: Differing site conditions clause in the general conditions
The differing site conditions clause (e.g., AIA A201 Section 3.7.4) defines the process and risk transfer mechanism when contractors encounter conditions materially different from those represented in the contract documents.
Question 7: A landscape architect wants to include a requirement that the contractor provide a 2-year plant establishment warranty. In which section of the project manual should this requirement appear?
- Division 01 — General Requirements (Summary of Work)
- Division 32 — Exterior Improvements (Planting specification) (Correct answer)
- Division 00 — Procurement and Contracting Requirements
- Division 31 — Earthwork
Correct answer: Division 32 — Exterior Improvements (Planting specification)
Warranty requirements specific to planted material should be included in Division 32 planting specifications where they are linked to the specific material performance requirements and installation standards.
LARE LARE Project and Construction Management 5
A contractor's bid is 20% below the engineer's estimate, and all other bids cluster within 5% of each other.
What is the most prudent action for the owner's team?