Questions and Answers
What is a construction contract?
A contract between two parties where one undertakes to do something for pay and the other undertakes to pay.
What factors contribute to the importance of a construction contract?
Who is responsible for the subcontractor's work?
The original contractor.
The contractor may only provide labor, while the employer provides materials.
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What happens if the contractor provides materials?
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What must the contractor do if the employer provides materials?
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The contract can be terminated without warning if the work is performed defectively and cannot be fixed.
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What is a possible outcome if the work can be repaired?
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The engineer and the contractor are responsible for the facility during ____ years.
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What is the period after which guarantee claims are forfeited?
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Any condition that exempts the engineer and contractor from liability is valid.
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What happens if the employer does not receive the work after an official warning?
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Study Notes
Construction Contract Law
- A contract involves two parties: one provides a service for payment, while the other pays for that service.
- Key aspects of construction contracts include financial value and time duration, influenced by external parties like consulting engineers and subcontractors.
Subcontractor Role
- Subcontractors are engaged by the original contractor to fulfill certain tasks and the contractor remains responsible for their work.
Responsibilities of Contractor and Employer
- Contractors may either provide labor only, with the employer supplying materials, or provide both labor and materials.
- If the contractor supplies materials, they must ensure quality and guarantee it to the employer.
- When materials are supplied by the employer, contractors must handle them appropriately, report usage, and return any leftover materials.
Liability for Damaged Materials
- Contractors are liable for any materials rendered unusable due to negligence or technical incompetence, responsible for compensating the employer for wastage.
Work Quality and Contract Terms
- If a contractor’s work is defective and unfixable, the contract can be terminated immediately without notice.
- For fixable defects, the contractor may be given an opportunity to repair or the contract may be rescinded, allowing another contractor to perform repairs at the existing contractor's expense.
Duration of Liability
- The engineer and contractor share responsibility for the facility for a period of ten years following project completion.
- Types of liability include full destruction, partial destruction, and defects that negatively impact the facility.
Nullification of Liability Exemptions
- Any contractual clause that seeks to exempt the engineer and contractor from liability is considered void.
Time Limit on Guarantee Claims
- Guarantee claims are forfeited if filed more than three years after demolition of the structure.
Acceptance of Work by Employer
- If the employer fails to officially accept the completed work without valid technical reasons after receiving a formal warning, the work is deemed to have been accepted.
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Description
This quiz covers lectures 03 and 04 of ASU 113, focusing on the ethical and legal considerations in construction contract law. Explore the relationship between employers and contractors, the financial implications, and essential contract elements. Test your understanding of professional ethics and the governing regulations in the construction industry.
