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Concurrent Delays
delays caused by both owner and contractor
Construction acceleration
owner doesnt give valid time extension forcing contractor to speed up
Directed acceleration
when owner tells contractor to speed up
Excusable delay
delay not contractors fault (owner, weather, strikes)
Non-Excusable Delay
delay that is Contractor’s fault (including subcontractors/suppliers)
Liquidated damages
establishes the damages contractor pays if work is completed after completion date
No Damage for Delay Clause
clause that contractor may not recover damages for delays only time extensions
Noncompensable delay
delay where contactor not at fault and gets more time but not money
Notice to proceed
official communication of owner telling contractor to start
Prospective and Retroactive approach
methods to determine if damage clauses are resonable
Majority Approach
prospective approach applied at time contract was signed
Additional Insured
a party added to another partys insurance
Bid Bond
bond ensuring owner is compensated if lowest bidder refuses to enter contract
Builders risk insurance
covers physical damage to building during construction
Commercial Liability Insurance
covers third party injury caused by construction
Damage Bond
bond where a surety(person of responsibility) pays owner if contractor fails to execute the contract
Professional liability insurance
covers claims over negligence in design
Forfeiture Bond
bond where owner reciever liquidated damages if bidder refuses to sign contract
Miller Act
requires performance and payment bonds on federal projects
Payment Bond
Bond that guarantees pay to subs
Performance Bond
bond that guarantees contractor completes project or pay
Subrogation
right to insurance companies to seek reinbursement from resposible party
Surety Bond
three-party agreement where the surety guarantees the performance or payment obligations of the principal to the obligee.
Application for Payment
Formal request from contractor detailing amount of work completed and requesting payment. Based on schedule of values
Mechanic’s Liens
legal claim filed against property by contractors who have not been paid. If unpaid there may be a force sell of property. State statue and not public projects
Pay-If-Paid
payment clause where subs are paid when contractor is paid. Courts require this clause to be explicit and unambiguous
Progress Payments
periodic payments made to contractor as work is completed. Based on percentage of work completed
Retainage
percent of each progress payment withheld by owner until project completion
Schedule of Values
detailed breakdown of all work items and values. Updated as project goes along
Stop Notice
statutory remedy that allows sub to place claim on funds against owner not property when not paid. Owner must stop paying contractor.
Anticipatory Breach
breach that occurs when a party refuses to perform contracted duties before performance is due
Express Warranty
contractural promises that the work will meet specific standards or include certain materials
Implied warranty
unwritten legal obligations requiring construction be performed completely and habitually. Includes warranty of habituality
Material breach
breach that is a significant violation of contract and causes other party to terminate contract
Minor breach
breach that does not defeat overall purpose and non-breaching party must continue but sue for damages
Negligent misrepresentation
tort claim where a party, design professions, has wrong drawings causing another party financial harm
Statue of limitations
legal time to bring a claim. Begins when defect is discovered
Statue of repose
law that doesnt allow claims after a certain time even if defect is discovered
Termination for cause
ending a contract due to not paying, bad performance etc.
Termination of conveneience
owner terminating without cause. Contractor is compensated for work performed etc
Unfair/Deceptive Trade Practice Act
state laws designed to protect consumers when there is misleading information like false promises and timelines
Warranty of habituality
new homes are safe and suitable for living
Final completion
occurs when all work is done. Triggers final payments and waiver of all claims in most cases
Punch list
list of all minor outstanding items
Substantial completion
point where project is completed enough for owner to use as intended
Uniform Commerical Code
set of laws governing transactions involving goods in construction
Clerk of the Works
inspects the workmanship, quality and safety of work on construction sites
limit of liability
max amount insurance pays for a covered loss
underwriting
process where insurance company evaluates a contractor to determine if a bond can be issued
surety, principal, obligee
three parties in a tripartitie relationship
indemnity provisions
shifts liability from contractor to sub when contractor is sued due to sub
Breach of Contract
common law standard for termination
proximate cause, breach, obligation, duty
4 parts of Negligence (PBOD)
fiduciary
somone acts on behalf of another
fraud, statue of limitation
defenses to a contract
Agency Relationship
cilent, agent, representative
interrogations and depositions
2 parts of the discovery phase of a lawsuit
mutual agreement
Formation fo contract needs
parol evidence
agreement that not in contract that can be used in court
personal, property, economic
3 interests that are protected in tort law
privity
a legal agreement
strict liability
contractor is a fault and lable for damages without having to prove uit
clause
a restrictive covenant
deed
document that transfers entire title of a property