Types of Construction Contracts

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Questions and Answers

What aspect does the 'Construction by Owner or Others' clause address?

Safety concerns

Awarding subcontracts to specialty contractors

Owner's right to perform construction work or award separate contracts (correct)

Payments and completion specifications

Which clause specifies the conditions under which parties may terminate or suspend the contract?

Time and Schedule Requirements

Changes in the Work

Termination or Suspension of the Contract (correct)

Protection of Persons and Property

Who among the following cannot give consent to a contract?

Insane persons (correct)

Demented persons

Emancipated minors

Deaf-mutes who know how to write

What does the 'Uncovering and Correction of Work' clause specify?

How and when the contractor is responsible for uncovering or correcting unacceptable work Signup and view all the answers

What do Design Specifications primarily ensure?

Consistent approach to the development process Signup and view all the answers

What is the main purpose of Technical Specifications?

Serve as a blueprint for design and development Signup and view all the answers

In a construction contract, what do the contract documents define?

Roles, responsibilities, and work under the contract Signup and view all the answers

What aspect does the 'Protection of Persons and Property' clause primarily address?

Addressing safety concerns for owner's property and project personnel Signup and view all the answers

Which aspect does the 'Insurance and Bonds' clause deal with?

Dealing with insurance and bonding requirements Signup and view all the answers

What is one of the advantages of a lump-sum contract from the owner's perspective?

Known cost up front Signup and view all the answers

What is included in the project manual of a construction contract?

Specifications and quality of work Signup and view all the answers

When are change orders typically anticipated in a lump-sum contract?

During project execution Signup and view all the answers

How are most drawings created in modern times?

Through CAD software Signup and view all the answers

Which clause addresses how changes are authorized and processed, a contentious area between owner and contractor?

Changes in the Work Signup and view all the answers

Why can handling drawing sets for larger projects be physically challenging?

Because they are too large in size Signup and view all the answers

What must happen if one party in a contract is unable to read and alleges mistake or fraud?

The terms of the contract must be fully explained to that party Signup and view all the answers

What type of contract is described in the text?

Lump-sum contract Signup and view all the answers

How does a contractor benefit from cost savings resulting from superior performance by the construction management team?

Contractor solely benefits Signup and view all the answers

What happens if there are errors or omissions in the plans and specs after signing a lump-sum contract?

The owner pays extra without any change order Signup and view all the answers

What happens if there are cost overruns due to poor management or rework under a lump-sum contract?

Contractor absorbs the loss Signup and view all the answers

Which type of specification references national or state building codes and standards?

General Provisions Signup and view all the answers

What information does the Design Description Specification provide?

Record of decisions made during the design process Signup and view all the answers

What role do Concept Specifications play in a project?

Act as a foundation for further detailed planning Signup and view all the answers

What is the purpose of process specifications?

To guide the implementation of technical procedures Signup and view all the answers

In what way do Construction and Manufacturing Specifications differ from other types of specifications?

They maintain clear standards while allowing for flexibility Signup and view all the answers

How do Technical Specifications help in maintaining consistency throughout a project?

By providing clear instructions for meeting desired criteria Signup and view all the answers

Which component is NOT part of the anatomy or parts of a specification?

Compliance Signup and view all the answers

What is the role of standard specifications?

To serve as a reference point for meeting common expectations Signup and view all the answers

What are the actions involved in specification writing?

Plan, Research, Draft Signup and view all the answers

What do prescriptive specifications primarily focus on?

Describing materials and installation techniques Signup and view all the answers

Study Notes

Unemancipated minors, insane or demented persons, and deaf-mutes who do not know how to write cannot give consent to a contract.
Parties unable to read or understand the language of the contract can allege mistake or fraud, and the person enforcing the contract must show that the terms were fully explained.

Construction Contract Documents

A construction contract is an agreement between the owner and the contractor and is enforceable by law.
Construction contract documents are written documents that define the roles, responsibilities, and work under the contract and are legally binding on the parties.

Components of Contract Documents

The two major components are:
- Drawings: define the quantity of the work (length, width, area, volume, etc.)
- Project manual: includes specifications and defines the quality of the work.

Subcontracts and Subcontractor Relations

Deals with awarding subcontracts to specialty contractors by the general contractor.

Key Provisions of Construction Contract

Changes in the work: how changes are authorized and processed.
Time and schedule requirements: project startup, progress, and completion relative to the project schedule.
Payments and completion: how the contractor will be paid, progress payment procedures, and withholding and failure-to-pay issues.
Protection of persons and property: addresses safety concerns for owner's property and project personnel.
Insurance and bonds: deals with insurance and bonding requirements.
Uncovering and correction of work: specifies how and when the contractor is responsible for uncovering or correcting unacceptable work.
Miscellaneous provisions: addresses various matters like successors and assigns issues, tests and inspections, and interest on delayed payments.
Termination or suspension of the contract: conditions under which parties may terminate or suspend the contract.

Lump-Sum Contract

The contractor agrees to complete the work specified in the plans and specs for a single fixed amount of money.
The cost is known up front, but flaws, errors, or omissions in the plans and specs will result in a change order.

Change Orders

Requests made by the owner to add features to or subtract features from the scope of the project.
Results in extra work and/or extra time, both of which result in extra cost to the owner.

Technical Specifications

Serve as a blueprint or roadmap, providing clear instructions to ensure that the final product or project meets the desired criteria.
Types of specifications:
- Concept specifications
- Design specifications
- Design description specification
- Construction and manufacturing specifications
- Process specifications
- Standard specifications

Anatomy of a Specification

Identity
Revision reference
Title
Introduction
Description
Performance
Construction
Reliability
Quality assurance
Packaging and storage
Standard and specifications
Records

Specification Writing

Plan
Research
Outline
Write
Edit
Review
Obtain approval