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Last updated 9:17 PM on 9/15/26
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9 Terms

1
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Promissory estoppel

is a legal idea that can hold a bidder to their bid even without a signed contract, if the owner relied on that bid in good faith.

2
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Flow-down clauses:

Terms from the prime contract often "flow down" to the subcontract — meaning subs are bound by some of the same rules/obligations the general contractor agreed to with the owner.

3
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Pay-when-paid

the sub gets paid within a reasonable time after the GC gets paid (timing condition).

4
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Pay-if-paid

the sub only gets paid if the GC gets paid at all (this shifts more risk to the sub — much stricter).

5
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CM (Construction Manager) – Agency:

A construction manager works as the owner's advisor/agent, but doesn't hold the trade contracts directly.

6
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Program Management

Managing multiple projects or a whole program of work for an owner, not just one job.

7
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CM/GC (also called CM at Risk)

The construction manager acts more like a general contractor and takes on risk for the cost/schedule, while also advising during design.

8
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DB (Design-Build)

One single company (or team) handles both the design AND the construction, instead of the owner hiring them separately. This overlaps design and construction to save time.

9
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Spearin doctrine

which says if an owner gives you the design/specs, the owner is responsible if that design turns out to be flawed)