Construction Law and Project Delivery Vocabulary

Vocabulary study cards covering essential terms, definitions, legal doctrines, and contract clauses from the exam review transcript.

Reverse auction

Live, Internet-based auction where contractors bid down price to provide products or services.

Tort

A civil wrong other than breach of contract.

Contract

A set of promises, the breach of which the law provides a remedy.

Merger (integration) clause

A contract clause intended to confirm the contract is the final and complete agreement between the parties.

Design-Build

A project delivery method that provides a single point of responsibility.

Early Contractor Involvement (ECI)

A procurement method providing early involvement, lower cost, clear ownership early in project, higher performance, and quality.

Design-Bid-Build

The traditional approach to construction where the owner has design and price before construction begins.

Public-Private Partnership (P3)

A collaboration where public and private sectors share resources and risks.

Engineer of Record (EOR)

The entity in a P3 project holding the ethical responsibility of ensuring the adequacy and accuracy of stamped design documents.

Availability payments

Payments in P3s used to compensate developers based on facility availability.

Responsible bidder

A bidder in public competitive bidding who possesses adequate financial resources, a satisfactory performance record, and business ethics.

Nonresponsive bid

A bid in public construction projects that fails to acknowledge an amendment that imposes new legal obligations.

No-damages-for-delay clause

Limits the subcontractor's delay damages to the percentage of the amount paid by the owner.

Flow-down clause

[C]ontractor shall have the same rights and privileges as against the Sub-contractor…as the Owner in the General Contract has against the Contractor.

Performance Bond

Can face claims and damages beyond the express penal sum of the bond.

Pay-If-Paid

The GC obligation to pay its subcontractor only as they are paid by the owner.

Force majeure

A clause excuses nonperformance by either buyer or seller that is caused by an act of God, war, strike by a common carrier, or other causes beyond control of parties.

Promissory estoppel legal doctrine

Subcontractor's or supplier's quote cannot be changed or withdrawn when the general contractor or upper-tier subcontractor has reasonably relied on the quote in preparing its bid to the owner.

Bid shopping

Actions taken by the prime contractor after award of the prime contract to reduce subcontractor prices by shopping the lowest bid in a particular trade from subcontractor to subcontractor.

Pay-When-Paid Clauses

Obligates prime contractor to make payment to subcontractor when it is paid by owner.

TIFIA

Credit assistance in the form of secured loans for qualifying transportation projects.

UNCITRAL

Promote competitiveness, international trade, integrity of public procurement process.

FCPA

Prohibit companies from making corrupt payments, directly or through a third party, to foreign officials.

Preferential treatment

Selected to further a socioeconomic or political interest.

WIFIA

Environmental Protection Agency administer loan program for clean water and wastewater treatment projects.

Jessica Lunsford Act

Intended to protect children from sexual predators.

UNIDROIT

Principles establish a consistent body of law for International Commercial Contracts.

Intentional tort

A category of civil wrongs that includes assault, fraud, and trespassing.

FCPA Criminal Penalty

Maximum fine of $5\text{ million}$ for companies per accounting violation under the U.S. Foreign Corrupt Practices Act.