Podcast
Questions and Answers
Which of the following must be included in a change order?
Which of the following must be included in a change order?
What can result from the owner issuing a suspension order?
What can result from the owner issuing a suspension order?
Which reason is NOT valid for contract termination by the owner?
Which reason is NOT valid for contract termination by the owner?
What defines liquidated damages in a construction contract?
What defines liquidated damages in a construction contract?
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What does retainage refer to in the context of progress payments?
What does retainage refer to in the context of progress payments?
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What is a Request for Information (RFI)?
What is a Request for Information (RFI)?
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Which of the following may NOT contribute to construction delays?
Which of the following may NOT contribute to construction delays?
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What does the term 'substantial completion' refer to?
What does the term 'substantial completion' refer to?
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Which of the following delays is considered excusable?
Which of the following delays is considered excusable?
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Under which circumstances would a contractor request a time extension?
Under which circumstances would a contractor request a time extension?
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What is the primary purpose of the Notice to Proceed?
What is the primary purpose of the Notice to Proceed?
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What is the role of a subcontractor in a construction project?
What is the role of a subcontractor in a construction project?
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Which of the following is NOT a purpose of the pre-construction conference?
Which of the following is NOT a purpose of the pre-construction conference?
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What process is involved in shop drawings approval?
What process is involved in shop drawings approval?
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What document is issued to preserve bid prices when a project is delayed for reasons other than the owner's fault?
What document is issued to preserve bid prices when a project is delayed for reasons other than the owner's fault?
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Who typically participates in the pre-construction conference?
Who typically participates in the pre-construction conference?
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Which of the following tasks is NOT part of construction contract administration?
Which of the following tasks is NOT part of construction contract administration?
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What type of information do shop drawings typically contain?
What type of information do shop drawings typically contain?
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What must a contractor do to receive progress payments in a unit-price contract?
What must a contractor do to receive progress payments in a unit-price contract?
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What happens to any profit saved on a job completed under a lump-sum contract?
What happens to any profit saved on a job completed under a lump-sum contract?
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What is required from the contractor in a Cost Plus Fixed Fee (CPFF) contract?
What is required from the contractor in a Cost Plus Fixed Fee (CPFF) contract?
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When might retainage be withheld during the payment process?
When might retainage be withheld during the payment process?
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What must a contractor show when submitting a request for payment?
What must a contractor show when submitting a request for payment?
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In what situation is a contractor liable for additional costs in a lump-sum contract?
In what situation is a contractor liable for additional costs in a lump-sum contract?
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How is the total bid amount determined in a unit-price contract?
How is the total bid amount determined in a unit-price contract?
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What distinguishes a Cost Plus Fixed Fee contract from other types?
What distinguishes a Cost Plus Fixed Fee contract from other types?
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What indicates the official start date for a construction project?
What indicates the official start date for a construction project?
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What is the purpose of a change order in a construction contract?
What is the purpose of a change order in a construction contract?
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Which of the following is NOT a reason for issuing a change order?
Which of the following is NOT a reason for issuing a change order?
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What must occur if a change in the project is needed?
What must occur if a change in the project is needed?
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What is one consequence of a contractor remaining mobilized on site longer than planned?
What is one consequence of a contractor remaining mobilized on site longer than planned?
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Which of these clauses is integrated with the change clause to address serious problems?
Which of these clauses is integrated with the change clause to address serious problems?
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What does a change order typically require after the execution of a contract?
What does a change order typically require after the execution of a contract?
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What is a potential issue that can result from contract changes?
What is a potential issue that can result from contract changes?
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Study Notes
Construction Phase
- Notice to Proceed: Starts the contractor's right to access the owner's property after contract award.
- Letter of Intent: Issued when the project is delayed, to avoid losing bid prices.
- Pre-Construction Conference: Communication forum for the owner, designer, general contractor, specialty contractors, and municipal authorities.
- Subcontracts: Specialty contractors work under contract directly with the general contractor, not the owner.
- Construction Contract Administration (A/E) - Review submittals, shop drawings, observe construction, prepare change orders, interpret contracts, certify pay requests, and inspect work.
- Submittals/Shop Drawings: Material samples, product data, certifications, and calculations are reviewed and approved by the architect before construction.
- Shop Drawings: Contain information about products used in the project and must be approved by the owner or designer.
- Request for Information (RFI): Written communication to track questions and answers.
- Time Extensions: Delays affect project completion and can be caused by the owner, unexpected weather, or other unforeseen circumstances.
- Delays: Can be excusable (compensable or non-compensable) or non-excusable.
- Reasons for Delays: Design changes, owner-required changes, late approvals, unexpected weather, labor issues, unexpected site conditions, and material delivery delays.
- Substantial Completion Date: The date the facility is sufficiently complete for the owner to use.
- Time Provisions: The start and completion dates are defined in the contract.
- Change Clause: Mechanism for adjusting plans, specifications, and incorporating contractor suggestions.
- Change Order: A written order signed by the owner and architect to change the work, adjust the contract sum or time.
- Change Order Procedures: Owner communicates the change to the contractor, contractor responds with a price quotation, owner accepts or negotiates.
- Suspension of Work: Issued by the owner and can be costly to the contractor.
- Termination: Contract termination can occur due to owner failure to pay, court orders, or unwarranted delays.
- Liquidated Damages: Pre-determined amount payable to the owner for failing to complete the project on time.
- Progress Payment: Periodic payments to the contractor (e.g. monthly), with a percentage held back as retainage to ensure project completion.
- Basis for Payment Amount: Determined by the type of contract used (lump-sum, unit-price, or cost plus fixed fee).
Payment
- Lump-Sum Contract: Fixed price with no additional cost to the owner unless changes are approved.
- Unit-Price Contract: The contractor bids a price per unit based on the engineer's estimate and the quantity of work.
- Cost Plus Fixed Fee (CPFF): The contractor is reimbursed for actual costs plus a fixed fee for profit.
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Description
Explore key concepts and processes involved in the construction phase of a project. This quiz covers important elements such as notices to proceed, contracts, and the roles of various stakeholders. Test your knowledge on construction administration and communication in this essential phase.
