Cnst 2341 Vocabulary Midterm Review

This set of flashcards covers key vocabulary and definitions relevant to the construction management course for midterm preparation.

Cost Plus

A contract where payment is for material and labor, with a profit factor added.

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Implied Contract

A contract that comes about from the actions of the parties.

Warranty

A confirmation of the quality or performance of a good or service.

Construction Bonds

A legal agreement that protects the owner of a construction project from financial loss if a contractor fails to complete the project or meet the contract's specifications.

Schedule

A timeline for a building project that construction managers use to determine the order and duration of construction activities.

Subcontractor

One who has a contract with a prime contractor to perform a portion of the work.

Supplier

A business that buys, stores, and sells materials, supplies, or equipment for a contract.

Promissory Estoppel

A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; such a promise is binding if justice will be better served by the enforcement of the promise.

Unjust Enrichment

One benefiting unfairly at another's expense.

Quantum Meruit

An action brought for the value of the services rendered to the defendant when there was no express contract as to the purchase price.

Dispute Resolution

The role of courts to peacefully settle disputes and keep order in society.

General Conditions

The indirect costs and procedures that are necessary for a construction project to be successful, but are not directly related to the construction itself.

A101

Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum.

A201

The General Conditions of the Contract for Construction. This agreement sets forth the rights, responsibilities, and relationships of the owner, contractor, and architect under the conventional project delivery.

G702

Application and Certificate for Payment - identifies the project and parties, and summarizes the status of payment under the contract.

G703

Continuation Sheet - a continuation sheet for G702, used to provide a detailed breakdown of the various component of the work.

Lump Sum

A single payment made at a particular time.

Unit Price

A unit rate that gives the cost per unit.

Consequential Damages

Special damages that compensate for a loss that is not direct or immediate.

Liquidated Damages

An amount, stipulated in the contract, that the parties believe to be a reasonable estimation of the damages that will occur in the event of a breach.

Substantial Completion

The point at which all punch list work has been completed and the owner can occupy or take possession of the new facility.

Arbitration

Settling a dispute by agreeing to accept the decision of an impartial outsider.

Mediation

A method of settling disputes outside of court by using the services of a neutral third party.

Litigation

The process of taking legal action.

Contract Documents

The drawings, conditions, terms, and specifications setting forth the requirements for constructing the project.

Specifications

A detailed description of the design and materials used to make something.

Change Order

A written order signed by the contracting officer directing changes that the contract authorizes.

Privity

The contractual relationship between the buyer and the seller.

Shop Drawings

Drawings prepared by the contractor showing how specific portions of the work shall be fabricated and/or installed.

Strict Conformance

The need to adhere to the terms of a construction contract and approved plans.

Risk

The possibility of a loss or negative impact on a project due to a threat or hazard.

Flow Down Provisions

Provide that a subcontractor is subject to the same rights and obligations as the prime contractor.

Statute of Repose

Limits potential liability by limiting the time during which a cause of action can arise.

Indemnification

Restores the insured to their financial position prior to the loss.

Several Contract

Two or more people individually agree to perform obligations.

Certificate of Occupancy

Permission by the municipal inspector to occupy a completed building structure.

Builder's Risk Insurance

Fire and property damage insurance for a project during construction.

Tiers

Refer to the different levels of contractors involved in a project.

Joint Agreement

Union contract covering more than one employer and a union.

Latent Defect

A hidden structural defect that would not be discovered by ordinary inspection.

Patent Defect

A visible defect that can be seen in a reasonably thorough inspection.

Punch List

A list of items to be corrected or completed prior to substantial completion.

Termination for Clause

Outlines the conditions under which parties can terminate the contract.

Termination for Convenience

A unilateral decision to terminate the contract for reasons unrelated to performance.

Subrogation

The process by which an insurer recovers the amount paid from another party.

Liens

A charge or claim which one person has upon the property of another.

Mechanics and Materialmen's Lien

A legal tool that allows contractors to collect payment for their work.

Release and Waiver

An obligation to record a lien release after payment is made in full.

Addenda

Something added, especially a supplement to a book.

Proposal Request

A solicitation for a quotation from a contractor for proposed changes.

Bid Instructions

Contain specifics of how the bids should be completed and submitted.

Agreement

An offer and acceptance.

Pay When Paid

Intended to delay payments to subcontractors until the owner pays the general contractor.

Design-Bid-Build

A process where the owner has separate contracts with an architect and contractor.

Design Build

A process where the owner contracts with one entity for both design and construction services.

Construction Manager at Risk

A project delivery method where a construction manager oversees a project from design to completion.

Turnkey Project

A project where a firm sets up an operating plant for a client and hands over the key when operational.

Integrated Project Delivery

An approach that involves all participants to improve results and maximize efficiency.

Contract

A binding agreement between two or more persons that is enforceable by law.

Consideration

Something of value exchanged for something else of value.

Retainage

A percentage of money held back by the owner to encourage completion of the project.

Uniform Commercial Code

A collection of laws that governs various types of business transactions.

Furnish

To supply with what is needed.

FOB

'Free on Board' or 'Freight on Board', a shipping term indicating responsibility for transporting goods.

Pay if Paid

Condition where the general contractor does not need to pay a subcontractor in case of owner default.

Condition Precedent

A condition that must be met before a party's promise becomes absolute.

DOT

Develop, Operate, and Transfer, a contractual arrangement for building an infrastructure project.

Is a waiver of consequential damages and coordinates with liquidated damage clauses which set a fixed amount of cost per day for delay damages so that the owner can be compensated for delays in achieving substantial completion in a reasonable amount

true

if the owner and contractor wants a method to resolve a dispute that will provide a guarantee of final closure in one proceeding, the best choice is

arbitration

the architect is the owner’s representative on the project but the owner still has the right to inspect and stop the work for alleged defects

true

- owner isn’t required to stop it

article 8.3 addresses time and cost issues. as specifically discussed in class if a contract has a provision where the contractor gets a time extension but not reimbursement for the cost associated with the event warranting the time extension it is called

no damage for delay cause,

- time, no money

AEM v Transtar case taught us everyone’s interest in getting paid. select all follow parties that cam require that the owner provide evidence that they can pay for the project

contractor

Which of the following could have a direct contract with the contractor- subcontractor, supplier, laborer, subcontractor, city inspector

subcontractor and supplier

Shop drawings are detailed descriptions of the work that are review by the architect and therefore are considered part of contract documents

false

- shop drawings show general intent

Select all contract documents- change orders, general conditions, addenda, proposal request, bid instructions, agreement, shop drawings

change orders, general conditions, agreement, addenda

- addenda

changes to docs before contract

- change order

changes to docs after contract

If the owner inspects the work and misses citing a deficiency in plain sight and also pays for defective work in the next pay application, the contractor will be paid his costs in a change order to make any corrections/repairs later

false
- owner inspections doesn’t replace

- statue of repose (10 years after cnst) is still relevant

best clause in an agreement to protect a contractor from liability to claimants with privity including subcontractors to the contractor when an owner goes bankrupt

pay if paid,

- if owner goes broke = no money, subs and gc dont get paid

payments, owner has right to withhold payments from the contractor if it can be determined that there will not be sufficient time to finish the project

true

contracts such as the A201 that many owners and contracts were created by

Architects (AIA)

submittals are approved by architect of record, proof of record only, non binding