10 Questions
What is the main purpose of establishing lines of authority in construction projects?
To benefit the project by ensuring necessary decisions are made
What happens if on-site representatives are not designated and given the necessary authority?
Breakdown in communication leading to confusion
In construction projects, which entities are involved in decision-making processes?
Corporations, partnerships, or business associations
What is the consequence of establishing lines of authority in a haphazard manner?
Likelihood of misunderstandings and disputes will increase
When is an agency relationship established in construction projects?
When one party designates another to act on its behalf
What type of authority is established by contract documents explicitly stating an individual's decision-making authority?
Express Authority
In public construction projects, why is the existence of actual authority important?
To shield public agencies from liability
How can private organizations protect themselves regarding authority delegation?
By designating authorized individuals and disclaiming responsibility
What may lead to the constructive waiver of a contractual disclaimer regarding authority?
Persistent conduct inconsistent with the contract terms
What is a common form of ratification in the context of authority delegation at a job site?
Silence or acquiescence
Explore the concept of establishing lines of authority in construction projects, involving organizations like owners, contractors, subcontractors, and suppliers. Understand the significance of organizational decision-making in the daily operations of construction contracts.
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