Podcast
Questions and Answers
What is required for mutual intent in a contract?
What is required for mutual intent in a contract?
Which of the following represents consideration in a contract?
Which of the following represents consideration in a contract?
Which of the following statements about capacity to contract is true?
Which of the following statements about capacity to contract is true?
What happens if a contract is for an unlawful purpose?
What happens if a contract is for an unlawful purpose?
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Which characteristic makes a contract void?
Which characteristic makes a contract void?
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Who are the typical parties involved in a construction contract?
Who are the typical parties involved in a construction contract?
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What is NOT included in the Contract Documents?
What is NOT included in the Contract Documents?
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Which element is necessary for a contract to be enforceable?
Which element is necessary for a contract to be enforceable?
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What does the acceptance of an offer need to be considered binding?
What does the acceptance of an offer need to be considered binding?
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What is the primary role of a Consultant in a construction contract?
What is the primary role of a Consultant in a construction contract?
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Which element implies that both parties are willing to enter into a contract?
Which element implies that both parties are willing to enter into a contract?
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What type of problems does the ‘Conditions of Contract’ address?
What type of problems does the ‘Conditions of Contract’ address?
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Why is it preferable to document an offer in writing?
Why is it preferable to document an offer in writing?
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What is the primary focus of contract administration?
What is the primary focus of contract administration?
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Which responsibility involves the establishment of the legal framework for contract performance?
Which responsibility involves the establishment of the legal framework for contract performance?
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What does managing parties to the contract entail?
What does managing parties to the contract entail?
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What is involved in implementing sanctions to ensure performance?
What is involved in implementing sanctions to ensure performance?
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Which responsibility is primarily concerned with resolving disputes?
Which responsibility is primarily concerned with resolving disputes?
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In which component is contract administration linked with construction management?
In which component is contract administration linked with construction management?
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What is the purpose of enforcing provisions/procedures of the contract?
What is the purpose of enforcing provisions/procedures of the contract?
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Which responsibility involves preparing for a legal agreement from its inception?
Which responsibility involves preparing for a legal agreement from its inception?
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Study Notes
Contract Administration
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Topic 1: Construction Contracts
- A construction contract is a legally binding agreement, typically between an Owner and a Contractor.
- It's usually written.
- The Owner decides on the project, provides requirements, and pays the Contractor.
- The Contractor is responsible for constructing the project according to the contract documents.
- In many cases, the Owner hires Consultants to prepare the documents and manage the contract.
Contract Documents
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Content
- Details of the work and the payments the Owner will make to the Contractor.
- Conditions of contract, outlining responsibilities and obligations of both parties.
- Addresses unexpected problems, defining which party handles delays or extra costs.
- Specifications, drawings, and bill of quantities.
Contract Elements
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To be enforceable:
- Offer and acceptance.
- Mutual intent.
- Consideration (something of value exchanged).
- Capacity to contract (both parties able to fulfill responsibilities).
- Legality (the contract's purpose is not illegal).
The Offer or Proposal
- An offer is a promise to perform a task with specific conditions.
- Offers can be verbal but are preferably written.
- Construction contracts are usually written with standard formats.
The Acceptance
- Acceptance transforms the offer into a binding contract.
- Acceptance involves execution or signing by the other party.
- Acceptance must be clear, unambiguous, and unconditional.
Mutual Intent
- Parties must agree, in contract, to do what the contract states.
- Usually, a letter of intent is issued to describe the interest in the contract.
- A letter of intent isn't legally binding until a formal letter of acceptance.
Consideration
- Each party provides something of value to the other.
- Examples include payment of money, performance of work, or supplying goods.
Capacity
- A contract must be made by parties capable of carrying out their intended roles.
- Corporations are limited by their stated powers; contracts exceeding those powers are unenforceable.
Legality
- Illegal contracts are not enforceable.
- Contracts cannot violate municipal regulations or public policy.
- Void contracts create no legal rights or recourse.
Topic 2: Contract Administration Responsibilities
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Definition
- The method/process of managing a legal agreement between two or more parties from start to finish.
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Responsibilities
- Planning for contract: Establishing the legal framework of the project for the parties involved.
- Putting Contract in Place: Defining the legal framework to govern the parties' relationship.
- Managing the Contract: Handling and managing the contractual agreement reached by the parties.
- Enforcing provisions/Procedures of Contract: Managing and enforcing contractual provisions and procedures.
- Managing Parties to the Contract: Handling the roles, responsibilities, rights, duties, and liabilities of involved parties.
- Implementing Sanctions to Ensure Performance: Using methods to enforce contractual promises or compensate for non-performance.
- First Line Dispute Resolution: Settling disagreements between parties before escalating.
- Linkage between Project and Construction Management: Ensuring contracts effectively integrate with the project and construction management processes.
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Description
Explore the key components of contract administration, including construction contracts, contract documents, and essential elements for enforceability. This quiz delves into the roles of Owners, Contractors, and Consultants in the contract process, ensuring clarity and compliance throughout. Perfect for those studying contract management.
