Payment Certifier and Contract Considerations in Construction Projects

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is the purpose of the Builders Lien Act according to the text?

  • To encourage lawsuits between contractors and subcontractors.
  • To secure financial interests of contractors and workers until they are fully paid. (correct)
  • To ensure that all improvements are done for free.
  • To provide security to architects and engineers only.

What is the ultimate remedy available to lien claimants who remain unpaid?

  • Seeking alternative dispute resolution.
  • Negotiating a new contract with the owner.
  • Court-supervised sale of the lands. (correct)
  • Initiating a lawsuit based on the contract.

Which of the following interests cannot be liened under the Builders Lien Act?

  • Highways or roads
  • Leases
  • Provincial Crown and municipal lands
  • Federal Crown interests (correct)

Who has lien rights for their services under the Builders Lien Act?

<p>Architects and engineers with a 'prime' consulting contract (C)</p> Signup and view all the answers

What do lien claimants need to rely on in the absence of the Builders Lien Act?

<p>Their contractual rights through lawsuits (A)</p> Signup and view all the answers

Which types of interests can the lien security created by the Act attach to?

<p>Nearly all registered or equitable interests in land (D)</p> Signup and view all the answers

How is 'completed' defined under the Act?

<p>When substantially completed or performed (B)</p> Signup and view all the answers

What is the purpose of a 'threshold formula' mentioned in the text?

<p>To prevent premature or frivolous applications for completion (C)</p> Signup and view all the answers

When can the relevant lien holdback be safely released according to the text?

<p>After 55 days of abandonment or termination of the head contract (B)</p> Signup and view all the answers

What is the significance of missing or defective items in an improvement, as mentioned in the text?

<p>They may jeopardize the performance of the improvement (C)</p> Signup and view all the answers

What must architects be aware of in order to properly certify completion of a subcontract?

<p>The subcontract's terms (B)</p> Signup and view all the answers

When can the owner's holdback from the contractor be progressively released according to the text?

<p>55 days after the head contract meets the statutory definition of 'complete' (A)</p> Signup and view all the answers

What does the 'certification of completion for lien purposes' entail according to the text?

<p>It requires a different analysis than other certifications (C)</p> Signup and view all the answers

When must a lien be filed in the case of a single contractor (head contractor) engaged to do substantially all the work?

<p>45 days after substantial completion of the head contract (A)</p> Signup and view all the answers

In which situation is the lien filing deadline not based on the completion of a 'head contract'?

<p>Owner sells the strata lot (A)</p> Signup and view all the answers

What is the cost of filing a lien at the Land Title Office?

<p>$5 per title (A)</p> Signup and view all the answers

What action will cause a lien to be automatically extinguished?

<p>Not initiating a lawsuit to enforce the lien within one year (D)</p> Signup and view all the answers

When does the issuance of a Certificate of Completion trigger the lien filing period?

<p>When requested by the contractor or subcontractor (C)</p> Signup and view all the answers

What is required to retain lien holdback monies by both owners and contractors?

<p>Depositing the monies into a dedicated trust account (A)</p> Signup and view all the answers

In what situation will the issuance of a Certificate of Completion not extend the lien and holdback periods?

<p>When completion has already occurred according to Act definitions (C)</p> Signup and view all the answers

What is architects' responsibility regarding legal disputes between owners, contractors, and subcontractors?

<p>To remain neutral and not 'take sides' (D)</p> Signup and view all the answers

'Payment certifier' architects may find themselves responsible for preparing what under the Act?

<p>A Certificate of Completion (C)</p> Signup and view all the answers

In construction management projects with multiple contracts, when should a lien be filed?

<p>45 days after substantial completion of the improvement (A)</p> Signup and view all the answers

Who is responsible for requesting the publication of an advertisement of completion?

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

What is the importance of using forms of agreement consistent with provincial legislation?

<p>To ensure the agreement is legally binding (B)</p> Signup and view all the answers

What does the term 'lien holder' refer to under the Act?

<p>A person entitled to a lien (C)</p> Signup and view all the answers

When is the builders lien holdback typically triggered in a construction contract?

<p>Once triggered by Substantial Performance of the work (A)</p> Signup and view all the answers

In what situation do CCDC 5A, 5B, and 17 contracts attract their own holdback trust account?

<p>When handled on their own merits (B)</p> Signup and view all the answers

Under what circumstances do the Act's holdback provisions not apply?

<p>When a design-build stipulated price contract is used (A)</p> Signup and view all the answers

Which type of construction contracts are CCDC 2 and CCDC 3 considered to be?

<p>Stipulated Price Contracts (B)</p> Signup and view all the answers

What is General Condition 5.6 under CCDC 2 2008 related to?

<p>Builders Lien Holdback Release (C)</p> Signup and view all the answers

What is the main purpose of the standard owner/contractor form of contract?

<p>To enable consistent lien holdback percentage stipulation (D)</p> Signup and view all the answers

What additional action might be required to use CCDC 3 with BC lien legislation?

<p>Supplementing the standard form of agreement (C)</p> Signup and view all the answers

If a project owner is the provincial government, to whom does the holdback interest accrue after the holdback period expires?

<p>Contractor (C)</p> Signup and view all the answers

Who is responsible for the administration of holdback trust accounts as per the text?

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

Who can be designated as the payment certifier as per the Act?

<p>Architect, engineer, or other person (B)</p> Signup and view all the answers

What entities are exempted from the requirement to open a holdback account as per the Builders Lien Public Bodies Holdback Exemption Regulation?

<p>Local governments, school boards, colleges and universities (C)</p> Signup and view all the answers

What additional duties and responsibilities does the Act mention with regard to payment certification?

<p>Multiple holdbacks, formula for completion determination, time lines for certification (D)</p> Signup and view all the answers

Who should act as the payment certifier for subcontracts according to common practice mentioned in the text?

<p>Head contractor and owner acting together (C)</p> Signup and view all the answers

How can a role as a payment certifier be acquired according to the text?

<p>&quot;By specific inclusion in the client-architect agreement&quot; (D)</p> Signup and view all the answers

"What happens if an architect issues only a 'Certificate of Completion' without being the payment certifier throughout a project?"

<p>&quot;Not fulfilling statutory obligations&quot; (A)</p> Signup and view all the answers

What is NOT an exemption from opening a holdback account?

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

What is one of the two important caveats to an architect’s lien rights mentioned in the text?

<p>Architects or engineers engaged by each other do not have lien rights against each other. (B)</p> Signup and view all the answers

What did British Columbia’s courts rule regarding architects' lien rights in relation to construction commencement?

<p>Lien rights are contingent upon construction having commenced. (A)</p> Signup and view all the answers

What does the Act define as an 'improvement' regarding architects' lien rights?

<p>Any work done, alteration, or addition to land. (B)</p> Signup and view all the answers

What is the purpose of a lien holdback according to the text?

<p>To address incomplete work or deficiencies in construction. (A)</p> Signup and view all the answers

Who is entitled to share pro rata in a fund when claiming under the same contractor or subcontractor?

<p>All unpaid lien holders except workers. (C)</p> Signup and view all the answers

What does 'services' include under the Act regarding lien rights?

<p>'Services' encompass work provided by architects or engineers before construction begins. (C)</p> Signup and view all the answers

What qualifies as a contractor under the Act in relation to lien rights?

<p>'Contractor' is someone engaged by an owner concerning an improvement project. (D)</p> Signup and view all the answers

What are 'subcontractors' defined as under the Act regarding lien rights?

<p>'Subcontractors' refer to persons engaged by a contractor or another subcontractor for work on an improvement project. (C)</p> Signup and view all the answers

What percentage must owners and contractors retain as holdbacks under the Act?

<p>10 (C)</p> Signup and view all the answers

'Improvement' includes which of the following under the Act regarding lien rights?

<p><strong>Physical alterations</strong> made on land. (C)</p> Signup and view all the answers

Why is it recommended to use the standard General Condition 3.7 of CCDC-2/08 according to the text?

<p>To ensure proper review and certification based on subcontract terms (B)</p> Signup and view all the answers

What is the architect's role when subcontracts involve work largely of an engineering nature?

<p>To rely on the project's professional engineer(s) (D)</p> Signup and view all the answers

Why are schedules of values required to be prepared by the 'parent' contractor according to the text?

<p>To represent subcontract prices accurately (C)</p> Signup and view all the answers

When is it possible to receive numerous applications for certification of completion by every subcontractor?

<p>When there are tight deadlines and coincidental timelines (A)</p> Signup and view all the answers

What is the specific lapse of time within which a payment certifier must respond to an application for certification of completion according to the text?

<p>10 days (C)</p> Signup and view all the answers

What happens if the payment certifier fails to deliver copies to relevant parties within 7 days of certifying a contract complete?

<p>Exposure to liability (C)</p> Signup and view all the answers

Why does the architect not undertake to be the payment certifier for subcontracts largely of an engineering nature?

<p>'Parent' contractors are better suited for this role (C)</p> Signup and view all the answers

What is one reason for separate certification of completion for some subcontractors mentioned in the text?

<p>'Parent' contractor's coordination needs (C)</p> Signup and view all the answers

Why does the text emphasize that schedules of values need to be accurately prepared by the 'parent' contractor?

<p>'Parent' contractor's general conditions representation (B)</p> Signup and view all the answers

What could be a consequence of overloading the payment certifier(s) with numerous applications for completion certifications?

<p>Counter-productive outcomes and delays (A)</p> Signup and view all the answers

What legal obligation does an architect have towards a subconsultant?

<p>To pay the subconsultant monies due under the agreement (C)</p> Signup and view all the answers

Under what circumstances is an architect not subject to builders lien holdback?

<p>When the architect is a prime consultant engaged by a client (A)</p> Signup and view all the answers

What ethical duty does an architect have even if paid by their client for the subconsultant's earnings?

<p>To pay the corresponding monies to the subconsultant (D)</p> Signup and view all the answers

What is emphasized as important for architects when reviewing construction for conformance?

<p>Rendering decisions impartially (B)</p> Signup and view all the answers

What is NOT a part of the standard references on contract administration mentioned in the text?

<p>CCDC-25 A Guide to Payment Processing (B)</p> Signup and view all the answers

What do architects rely on in order to stay informed about laws applicable to their profession according to the text?

<p>Other knowledgeable professionals and qualified persons (A)</p> Signup and view all the answers

What must architects do when reviewing construction for conformance, according to the text?

<p>Render decisions impartially (C)</p> Signup and view all the answers

What does the Practice Guideline recommend architects do in terms of obtaining legal advice?

<p>Obtain legal advice and consult with professional liability insurers (A)</p> Signup and view all the answers

What should architects do in light of changes to legislation according to the text?

<p>Consult their own legal, accounting, or insurance representatives for professional advice (C)</p> Signup and view all the answers

What is the ethical duty of an architect, even if they have been paid by their client for the subconsultant's earnings?

<p>To pay the corresponding monies to the subconsultant. (A)</p> Signup and view all the answers

What does an architect's legal obligation entail in relation to a subconsultant?

<p>To fulfill the agreement by paying monies due under the agreement. (B)</p> Signup and view all the answers

When reviewing construction for conformance, what must architects do according to the text?

<p>Keep apprised of laws applicable to their profession and render decisions impartially. (B)</p> Signup and view all the answers

What is emphasized for architects in terms of legal disputes between owners, contractors, and subcontractors?

<p>Maintain impartiality and stay informed about laws applicable to their profession. (B)</p> Signup and view all the answers

What is one of the responsibilities of architects regarding construction conformance reviews?

<p>To render decisions impartially and keep apprised of laws applicable to the practice of their profession. (D)</p> Signup and view all the answers

What should architects do in light of changes to legislation according to the text?

<p>Obtain legal advice and consult with their professional liability insurers. (D)</p> Signup and view all the answers

When do architects have an ethical duty to pay corresponding monies to a subconsultant?

<p>Regardless of whether they have been paid by the client for the subconsultant. (A)</p> Signup and view all the answers

'Payment certifier' architects may find themselves responsible for preparing what under the Act?

<p>'Certificate of Completion' only. (C)</p> Signup and view all the answers

What is NOT a reason for separate certification of completion for some subcontractors mentioned in the text?

<p>To expedite payment processes by applying general completion certificates (A)</p> Signup and view all the answers

What is an architect's ethical duty when they have been paid by their client on account of a subconsultant's earnings?

<p>To pay the corresponding monies to the subconsultant. (C)</p> Signup and view all the answers

What is the legal obligation of an architect towards a subconsultant?

<p>To pay the subconsultant monies due under the agreement. (D)</p> Signup and view all the answers

What role should architects undertake regarding legal disputes?

<p>Stay neutral and not get involved in legal disputes. (E)</p> Signup and view all the answers

What must architects do when reviewing construction for conformance, as per the text?

<p>Render impartial decisions and consider applicable laws. (D)</p> Signup and view all the answers

Why are architects encouraged to obtain legal advice, according to the text?

<p>To avoid legal disputes and ensure compliance with laws. (B)</p> Signup and view all the answers

'Completed' under the Act is defined as:

<p>'Completed' based on substantial performance without defects. (A)</p> Signup and view all the answers

What is one of the reminders given to architects regarding their decisions when reviewing construction for conformance?

<p>They must keep apprised of laws applicable to their profession while reviewing conformance. (B)</p> Signup and view all the answers

What is one significant aspect of architects' responsibility mentioned in the text?

<p>They need to render impartial decisions while reviewing construction conformance. (B)</p> Signup and view all the answers

When should architects rely on other knowledgeable professionals and qualified persons, according to the text?

<p>When it benefits the project and helps ensure compliance. (D)</p> Signup and view all the answers

Why are architects recommended to consult with their professional liability insurers?

<p>To ensure they have adequate insurance coverage. (A)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Payment Adjustments and Code Combinations
14 questions
Payment Security Standards Quiz
11 questions

Payment Security Standards Quiz

RevolutionaryDulcimer avatar
RevolutionaryDulcimer
Use Quizgecko on...
Browser
Browser