Construction Contracts Quiz

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Questions and Answers

Which contract type is best suited when the scope of work and cost are not clearly defined?

  • Cost Plus (correct)
  • Construction Management
  • Unit Price
  • Design Build

In a Unit Price contract, how is the overall cost determined?

  • By fixed price agreement.
  • Based on the total project cost estimate.
  • By multiplying the unit price by the final quantity of materials or work. (correct)
  • Through a cost plus calculation.

Which contract type involves a contractor providing site management, administrative, and technical services?

  • Construction Management (correct)
  • Design Build
  • Cost Plus
  • Unit Price

In a Construction Management contract, who does the contractor work with directly?

<p>The owner and consultants. (B)</p> Signup and view all the answers

Which contract type is often used for 'fast track' construction projects?

<p>Construction Management (D)</p> Signup and view all the answers

What is a key characteristic of a Design Build contract?

<p>The contractor both designs and constructs the project. (B)</p> Signup and view all the answers

In a Design Build contract, who typically retains the consultants for the project?

<p>The contractor (D)</p> Signup and view all the answers

Which of the following contract types is most likely to be used if the client wants quality and speed over cost?

<p>Construction Management (A)</p> Signup and view all the answers

What are the three main sections that constitute the legal requirements of a contract?

<p>Agreement, general conditions, and supplementary conditions (B)</p> Signup and view all the answers

What is the primary prerequisite for initiating the tendering phase of a project?

<p>Completing all Construction Documents and ensuring they are ready. (A)</p> Signup and view all the answers

Which part of the contract establishes the legal terms of reference between the owner and the contractor?

<p>Agreement (B)</p> Signup and view all the answers

What is a critical step to ensure clarity in construction documents before a tender is issued?

<p>Having the documents reviewed by an independent party. (C)</p> Signup and view all the answers

In the context of tendering, what is an essential aspect of a sound plan?

<p>Covering all foreseeable necessary parts. (A)</p> Signup and view all the answers

What does a QA/QC review in the context of issuing construction documents primarily aim to ensure?

<p>The documents are complete, accurate, and ready for bidding. (B)</p> Signup and view all the answers

In addition to the rights and responsibilities of signing parties, which of the following is specifically addressed in the General Conditions?

<p>Dispute resolution processes (B)</p> Signup and view all the answers

What is the main purpose of Supplementary Conditions in a contract?

<p>To provide additional requirements to the general conditions (C)</p> Signup and view all the answers

Prior to proceeding with the tendering phase, what crucial step should a designer take regarding their client?

<p>Discuss, review, and get approval from the client for moving forward. (D)</p> Signup and view all the answers

Which entity typically develops standard construction contracts in Canada?

<p>The Canadian Construction Documents Committee (CCDC). (D)</p> Signup and view all the answers

Why is it important for the Construction Documents to be fully complete before the tendering phase?

<p>To enable contractors to provide accurate and comprehensive bids. (D)</p> Signup and view all the answers

Which of the following fall within the administrative aspect of Supplementary Conditions?

<p>Non-legal procedural requirements like material quality and handling (A)</p> Signup and view all the answers

What is the primary characteristic of a Stipulated Sum (CCDC2) contract?

<p>The project is agreed to be completed for a fixed price determined before tender. (D)</p> Signup and view all the answers

What might be a consequence of skipping the QA/QC review phase before issuing documents for tender?

<p>Potential for costly errors, omissions, and inaccurate bids. (D)</p> Signup and view all the answers

What is the difference between 'arbitration' and 'mediation' in dispute resolution?

<p>Arbitration makes a binding decision, mediation suggests solutions (A)</p> Signup and view all the answers

What action might an owner take if a contractor's bid is substantially lower than other bids?

<p>Meet with the contractor to review their bid and confirm its validity. (A)</p> Signup and view all the answers

In a Stipulated Sum (CCDC2) contract, who generally bears the responsibility for cost overruns?

<p>The general contractor. (B)</p> Signup and view all the answers

What does the term 'addenda' refer to, in the context of a Stipulated Sum contract?

<p>Changes or modifications to the original tender documents issued after they're released. (C)</p> Signup and view all the answers

Which document may provide additional information, including drawings, after the initial invitation to bid?

<p>Addenda (B)</p> Signup and view all the answers

In the overall project timeline, immediately after the design phase is completed, what phase is the project ready to enter?

<p>The tendering or bidding phase. (A)</p> Signup and view all the answers

Which of the following can lead to the disqualification of a bid?

<p>Missing mandatory site visits, submitting late, or having errors in the submission. (D)</p> Signup and view all the answers

What is the typical role of the designer with respect to the client once the Construction Documents are completed?

<p>To discuss, review, and obtain client approval to proceed to the next phase. (D)</p> Signup and view all the answers

What is the payment structure in a Cost Plus a Fee contract?

<p>Payment based on actual costs incurred, plus a percentage or fixed fee. (B)</p> Signup and view all the answers

In the bidding process, when does the review of bids by the owner typically take place?

<p>After contractors submit their bids but before contracts are signed. (D)</p> Signup and view all the answers

What does 'substantial completion' signify regarding a project site?

<p>The space is ready for its intended use (B)</p> Signup and view all the answers

Which step occurs immediately before issuing construction documents for bidding?

<p>Completion of a QA/QC check and client approval. (A)</p> Signup and view all the answers

What fundamental elements are included in the basis of a contract or tender?

<p>An offer and Acceptance. (D)</p> Signup and view all the answers

What is a valid reason a contractor might choose to withdraw from the bidding process?

<p>If they realize they miscalculated something in their bid. (C)</p> Signup and view all the answers

What role might interior designers have during the bid review process?

<p>They may provide assistance to the owners in evaluating the bids. (B)</p> Signup and view all the answers

What is the primary purpose of Assignment #1 in the INTD 3502 course?

<p>To review available resources and observe site safety from the public domain. (B)</p> Signup and view all the answers

According to the material, what is NOT a requirement for the technical report?

<p>Sentences within the report can be avoided to speed up writing. (C)</p> Signup and view all the answers

What key information should be included in the header/footer of each page of the technical report?

<p>Page number, document title, and author. (A)</p> Signup and view all the answers

What is the main goal when using graphics in the technical report?

<p>To enhance the report's legibility and understanding of the information. (B)</p> Signup and view all the answers

What should be done when citing information in the technical report?

<p>All external sources that are used to gather information should be listed. (C)</p> Signup and view all the answers

What is the expected activity for the following week (Week 4)?

<p>A lecture focusing on the topic of mobilization. (A)</p> Signup and view all the answers

What specific instruction is given regarding the language used in the technical report?

<p>Language should be precise and succinct, avoiding unnecessary words. (C)</p> Signup and view all the answers

What is the purpose of observing a construction site for Assignment #1?

<p>To identify observable aspects of site safety from a public view (B)</p> Signup and view all the answers

Flashcards

Tendering/Bidding Phase

The stage in the construction process where the project is deemed ready to be built and contractors are invited to submit proposals to complete the work.

QA/QC Review

A thorough review process to ensure that all construction documents are accurate and complete before they are sent to potential contractors.

Construction Document

An official document that describes all details of the project including specifications, blueprints, and estimated costs.

Tender

A written proposal submitted by a contractor outlining their bid to carry out the construction project.

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Contractors

Individuals or companies who submit tenders to complete the construction project.

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Client Approval

The approval process by the client to move forward with the tendering phase.

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Why is the QA/QC Review important?

They are crucial because ensuring accuracy can prevent costly mistakes down the line.

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Why is Tendering essential?

The tendering process ensures fair competition and helps the client choose the best value contractor for the project.

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Bid Process

The process of selecting a suitable construction company for a project.

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Bid Withdrawal

When a company who has been invited to participate in a bidding process decides not to submit a bid or withdraws their bid.

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Bid Disqualification

Reasons why a bid might be rejected, such as missing documents, errors in submission, absence from mandatory site visits, or submitting bids after the deadline.

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Bid Review

The process of reviewing and comparing bids submitted by different construction companies.

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Contract Signing

The final step after the bid review, where the chosen company signs a legal contract to fulfill the project.

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Stipulated Sum Contract

A contract type where the contractor performs the work for a predetermined fixed price, including all costs and profit.

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Cost Plus a Fee Contract

A contract type where the contractor is paid for the actual cost of work plus a percentage or fixed fee.

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CCDC

Canadian Construction Documents Committee, an organization that develops standard construction contracts.

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Tendering

The process of selecting the best contractor for a project by comparing tenders.

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Construction Contract

An agreement between the client and contractor outlining the terms and conditions of the project.

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Bidding Phase

The stage in a construction project where contractors submit their tenders for consideration.

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Addenda's

Changes or modifications to the original tender documents.

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Agreement (Contract)

The legal terms of reference between the owner and contractor, outlining responsibilities, timelines, and financial obligations.

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General Conditions

A section of the contract that identifies all major parties involved and establishes their roles, rights, and responsibilities. It outlines the administration process for managing the project.

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Supplementary Conditions

Additional requirements to the general conditions that may or may not have an impact on the project contract.

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Arbitration

A process that involves a neutral third party who makes decisions to resolve disagreements arising from the contract.

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Mediation

A method of negotiating and resolving disputes through facilitated discussions with a neutral third party.

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Post Tender Addenda

Additional information provided after the bids are submitted but before the contract is awarded.

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Substantial Completion

A milestone in the construction process that marks the point when the project is considered ready for use.

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Unit Price Contract

An agreement where the price is based on a set cost per unit, like a door. This type of contract is common for projects with repetitive materials where the exact quantity might change.

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Construction Management Contract

A contract where the contractor manages the entire construction process, oversees planning, design, and construction. They work with the owner and consultants (including the interior designer).

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Fast Track Construction Management Contract

A construction management contract used for projects with tight deadlines. The contractor prioritizes speed and quality, with cost being secondary.

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Design-Build Contract

The contractor is responsible for both the design and construction of the project. They choose the consultants and work directly with the client.

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Time and Materials Contract

A contract where the scope of work and cost are not defined in advance. The client pays for the contractor's time and materials used.

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Cost Plus Contract

Similar to a Time and Materials contract, this type of contract is used when the exact scope and cost of a project can't be determined easily.

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CCDC5 Contract

A type of Construction Management contract that involves the contractor handling all the aspects of construction and working closely with consultants, including interior designers.

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CCDC4 Contract

A type of contract where the price is based on the quantity of each specific item used on the project.

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Design Team Tasks

Members of a design team are responsible for tasks such as developing design concepts, creating drawings, and coordinating with other professionals involved in the project.

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Review Document Assignment

A research assignment that requires students to analyze and summarize available resources related to a construction site.

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Site Safety Observation

The process of identifying and documenting site safety measures that are visible from a public area.

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Technical Report Writing

A formal written report that presents findings and analysis of a specific topic, typically using a structured format with an introduction, body, and conclusion.

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Mobilization

The process of gathering and organizing resources and personnel necessary to begin a project.

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Quiz

A short test designed to assess a student's understanding of specific concepts.

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Bibliography

A collection of resources referenced in a report, typically listed alphabetically at the end of the document.

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Study Notes

INT 3502 Site Studies - Week 3

  • Course instructor: Claudina Sula
  • Topics covered: Tenders/Bidding Phase, technical report writing, introduction to assignment #1
  • Bidding phase is dependent on completion of construction documents
  • Designers must complete Quality Assurance/Quality Control (QA/QC) review of all documents for accuracy
  • Client approval is needed for project progression.
  • A 'tender' is the process where entities invite suppliers to formally submit proposals for goods or services
  • In construction, this process selects the contractor based on best value for money
  • Designers are responsible for the accuracy and integrity of project documents
  • Mistakes can have significant financial and legal consequences
  • The importance of understanding all aspects of construction site in relation to designs to avoid financial issues
  • Crucial to communicate intent behind the designs and details of research and documented specifications.
  • Clear, well-resolved information is vital to avoid ambiguity in drawings and specifications
  • Importance of clear communication and avoiding ambiguity in design communications
  • Understand that what may be clear to you isn't necessarily to someone else
  • Get someone to check your work and pay attention to language clarity
  • Good plans achieve good results: cover all bases
  • Different types of tenders exist and evolve
  • Clients decide on contract type before issuing a tender to a contractor
  • Contracts involve offer and acceptance between client/owner and contractor
  • Types of construction contracts covered include Stipulated Sum, Cost Plus a Fee Contract, Unit Price, Construction Management, and Design Build
  • The methods are tied to the Canadian Construction Documents Committee (CCDC)
  • Bid documents include invitation to bid, definitions (explaining terminology), instructions to bidders, bid forms, general conditions, supplementary conditions, specifications, drawings, addenda and schedules.
  • Legal requirements of contracts are divided into agreements, general conditions, and supplementary conditions.
  • Agreement is between the owner and contractor, outlining legal terms, obligations, and responsibilities regarding the project milestones
  • General conditions specify the relationship, rights, obligations, and how the contract will be handled. 
  • Supplementary conditions outline supplementary requirements for the agreement.
  • Bids can be open (public) or closed (private). Various bidding methods exist (low bid, best value, qualifications-based)
  • Important to get separate pricing, alternates and cash allowances when pricing projects
  • Bonding is an assurance against financial loss or inadequate performance. Bid bonds and Performance bonds are common.
  • Bidders have the right to withdraw, including if their bid is too high or if there are errors
  • Bids can be disqualified for errors, not submitting required documents, late submissions, etc
  • Owners review bids and then choose the preferred contractor, and contracts are subsequently signed
  • Next week covers mobilization and a quiz is scheduled.

Technical Report Writing

  • Use word processing software for editing
  • Include page numbers, document titles, and author names on headers/footers.
  • Employ concise and direct language in the report.
  • Use bullet points for detailed responses.
  • Include a title page and table of contents.
  • Cite all references used in the report
  • Visual aids (graphics) help with report understanding
  • Organize the report with an introduction, body, and conclusion (if appropriate)
  • Include appendices and bibliography where necessary.

Assignment #1

  • Review available documents and resources related to construction sites.
  • Study and analyze construction sites in public areas without physically entering them. -Document any visible safety aspects you identify
  • Practice implementing good report-writing methods.

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