Contract and Project Management Flashcards

Which document typically takes precedence in cases of conflict between the project drawings and the specifications?

Answer: The contract documents should specify the order of precedence; if silent, notes on drawings often govern

Most contracts establish a hierarchy in the order of precedence clause; absent that, most jurisdictions give precedence to more specific written specifications over graphic drawings.

A contractor submits a schedule of values at the start of a project. What is the primary purpose of this document?

Answer: To allocate the contract price among work components for progress payment purposes

A schedule of values breaks down the contract sum into component line items so that progress payments can be calculated based on percentage of completion for each item.

Under the AIA A201 General Conditions, what is the contractor's obligation when it discovers work that it believes is concealed and contrary to the contract documents?

Answer: Promptly notify the architect before disturbing the condition

AIA A201 requires the contractor to promptly notify the architect upon discovering concealed or unknown conditions before proceeding, preserving the right to a claim.

What is 'front-loading' in the context of a schedule of values, and why do owners object to it?

Answer: Assigning disproportionately high values to early work items to receive more cash early; owners risk overpaying if the contractor defaults

Front-loading inflates early payment amounts beyond the actual value of work completed, leaving the owner financially exposed if the contractor abandons the project.

An electrical contractor is working under a design-build contract. Which responsibility is unique to design-build compared to design-bid-build?

Answer: Assuming liability for both design errors and construction defects

In design-build, the contractor assumes responsibility for both design and construction, eliminating the owner's ability to blame the designer separately from the builder.

What is the significance of a 'substantial completion' date on a construction project?

Answer: It marks when the project is sufficiently complete for the owner's intended use, typically triggering warranty periods and retainage release

Substantial completion is the stage when the work is sufficiently complete for the owner to use it for its intended purpose, and it typically starts warranty periods and triggers partial or full retainage release.

A contractor experiences a 30-day delay due to the owner failing to provide timely access to the site. The contractor properly notifies the owner. What relief is typically available?

Answer: A time extension to the contract completion date and potentially additional compensation for extended overhead

Owner-caused delays typically entitle the contractor to both a time extension and compensation for extended general conditions and overhead costs.