CET 421 Construction contracts Midterm

Private owner

single owner or company owning a project

Public owner

government run project

clear specs, site access, proper financing

3 basic owner duties for starting construction contract

design specs

specs that note the materials, installation and procedures

performance specs

desired outcome of a function of the project

Spearin Case

basic principle of _____ is if contractor follows specs and plans, owner is resposible for defects

implied warranty of good

construction must be to industry standadrd and complete even if not stated in contract

implied warranty of habitability

ensures construction is up to proper living standards

apparent authority

when a person appears to have power and acts on behalf of the owner

strict liability

holds someone responsible for damages or injuries even if they were not negligent or at fault.

litigation

resolving disputes through court

diversity of citizenship

when parties are from diff states so its a federal issue

tort

civil wrong that causes harm

offer, acceptance, consideration

in order to have a contract, what three things are required

Statue of Frauds

contracts over $500 need to be in wiritng

integration clause

final agreement between parties. no more alterations of contracts verbally

third-party benefeciary

not a direct party to contract but benefits from itmay sue to enforce the contract under certain conditions.

breach of contract

failure to perform as specified in a contract.

bidding services

gathering and reviewing proposals

economic loss doctrine

legal rule that limits compensation for purely financial losses

express authority

person given power to act on behalf of owner

frauds

intentional lies

negligence per se

when someone breaks a rule/law meant to protect people

negligent misinterpretation

when someon gives bad info that causes harm

collective bargaining

unions and employers negotiate wages, work conditions, etc.

doctrine of substantial performance

as long as contractor did work according to specs and drawings to a reasonable degree, they are entitled pay

Fraudulent misinterpretation

purposly givng false information that can cause harm

CM agency

project delivery method where CM acts as advisor to owner w/o financial risk

CM at Risk

CM hired to take on financial responsibility

Design-Bid-Build

most common delivery system. Owner hires designer then puts its out to bid for contractors

design-build

project delivery where one firm handles design and construction

Integrated Project Delivery

Collaborative project delivery

Value Engineering

replacing items to save costs in construction

constructability review

process of evaluating a project's design for ease of construction and cost-effectiveness.

multi-prime contracting

multiple CM hired for differetn aspects of project

construction loan

short term loan for building costs. usually repaid after project is finished

cost plus

owner pays actual construction plus extra fee for contractors profit

cost plus fixed fee

cost plus contract where contractors receives predetermined rate

cost plus with guanteed maximum price

cost plus contract where CM is reimbursed but agrees to a max price cap

lump sum

fixed price contract for a specific scope of work. contractor does takeoffs

time and materials

contract where owner pay for actual labor and materuials used with a markup

unit price

contract work priced per unit. owner does takeoffs

bid package

set of documents given to bidders w proj plans, specs and contract terms

bid protest

a formal objection by a bidder regarding the award or proposed award of a contract, usually based on perceived unfairness in the bidding process.

Brooks Act

standard law for selecting design professions based on qualifications over price

Doctrine of Mistake

allows for a void of contract or corrections if significant mistake was made

little brooks act

state-level version of the Brooks Act, ensuring that professional services for public projects are selected based on qualifications.

mistake of fact

legal rule that allows contract adjustments or cancellations when one party makes an honest and material mistake about key facts.

prequalification

contractors submit credentials to prove they meet experience, financial, and technical requirements before bidding.

Quantum meruit

price for a portion of work without a contract

responsible bidder

contractor that meets all qualifications, financial requirements, and performance standards to complete the project successfully.

responsive bidder

contractor that follows all directions

RFP

request for proposal from contractors

RFQ

request of qualifications from contractor