Construction Phase Overview
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Construction Phase Overview

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Questions and Answers

Which of the following must be included in a change order?

  • Timeline for project handover
  • Changes required under this order (correct)
  • The contractor's personal information
  • Owner's future project plans
  • What can result from the owner issuing a suspension order?

  • Stabilization of project costs
  • Increase in project funding
  • Automatic contract termination
  • Costly demobilization for the contractor (correct)
  • Which reason is NOT valid for contract termination by the owner?

  • Delays caused by weather conditions (correct)
  • Unwarranted delay by the design professional
  • Owner failure to pay promptly
  • Halting of work by court order
  • What defines liquidated damages in a construction contract?

    <p>Pre-determined damages for breach of contract</p> Signup and view all the answers

    What does retainage refer to in the context of progress payments?

    <p>A percentage of payment held back by the owner</p> Signup and view all the answers

    What is a Request for Information (RFI)?

    <p>A written communication to document questions and answers.</p> Signup and view all the answers

    Which of the following may NOT contribute to construction delays?

    <p>Advanced planning and scheduling</p> Signup and view all the answers

    What does the term 'substantial completion' refer to?

    <p>The date when the construction is usable by the owner.</p> Signup and view all the answers

    Which of the following delays is considered excusable?

    <p>Strikes affecting multiple projects.</p> Signup and view all the answers

    Under which circumstances would a contractor request a time extension?

    <p>Owner's error in design.</p> Signup and view all the answers

    What is the primary purpose of the Notice to Proceed?

    <p>To establish the contractor’s right to access the owner’s property</p> Signup and view all the answers

    What is the role of a subcontractor in a construction project?

    <p>To perform work in a specialty area and contract directly with the general contractor</p> Signup and view all the answers

    Which of the following is NOT a purpose of the pre-construction conference?

    <p>Reviewing shop drawings</p> Signup and view all the answers

    What process is involved in shop drawings approval?

    <p>Approval must come from the owner or designer before use</p> Signup and view all the answers

    What document is issued to preserve bid prices when a project is delayed for reasons other than the owner's fault?

    <p>Letter of Intent</p> Signup and view all the answers

    Who typically participates in the pre-construction conference?

    <p>Owners, designers, general contractors, and municipal authorities</p> Signup and view all the answers

    Which of the following tasks is NOT part of construction contract administration?

    <p>Negotiating with subcontractors</p> Signup and view all the answers

    What type of information do shop drawings typically contain?

    <p>Details about products to be incorporated into the project</p> Signup and view all the answers

    What must a contractor do to receive progress payments in a unit-price contract?

    <p>Submit an engineer's estimate of quantities.</p> Signup and view all the answers

    What happens to any profit saved on a job completed under a lump-sum contract?

    <p>It belongs to the contractor.</p> Signup and view all the answers

    What is required from the contractor in a Cost Plus Fixed Fee (CPFF) contract?

    <p>The contractor's costs must be regularly audited.</p> Signup and view all the answers

    When might retainage be withheld during the payment process?

    <p>When the application for payment is reviewed.</p> Signup and view all the answers

    What must a contractor show when submitting a request for payment?

    <p>Evidence that the price is correct.</p> Signup and view all the answers

    In what situation is a contractor liable for additional costs in a lump-sum contract?

    <p>If the scope of work has not changed.</p> Signup and view all the answers

    How is the total bid amount determined in a unit-price contract?

    <p>By multiplying unit prices by estimated quantities.</p> Signup and view all the answers

    What distinguishes a Cost Plus Fixed Fee contract from other types?

    <p>The contractor is reimbursed for all materials plus a fixed fee.</p> Signup and view all the answers

    What indicates the official start date for a construction project?

    <p>The date established in a notice to proceed</p> Signup and view all the answers

    What is the purpose of a change order in a construction contract?

    <p>To authorize changes in details or conditions of the work</p> Signup and view all the answers

    Which of the following is NOT a reason for issuing a change order?

    <p>Completion of the project ahead of schedule</p> Signup and view all the answers

    What must occur if a change in the project is needed?

    <p>It must be documented in writing.</p> Signup and view all the answers

    What is one consequence of a contractor remaining mobilized on site longer than planned?

    <p>Interference with planned deliveries</p> Signup and view all the answers

    Which of these clauses is integrated with the change clause to address serious problems?

    <p>Dispute clause</p> Signup and view all the answers

    What does a change order typically require after the execution of a contract?

    <p>Reapproval by the architect and contractor</p> Signup and view all the answers

    What is a potential issue that can result from contract changes?

    <p>Disruption of order sequences</p> Signup and view all the answers

    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.

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