1
Q
The Contract Documents are between what parties? A201
A
between the Owner and Contractor
2
Q
The Contract Documents consist of: A201
A
- The Agreement
- Conditions of the Contract (General, Supplementary and other Conditions)
- Drawings
- Specifications,
- Addenda issued prior to execution of the Contract
- other documents listed in the Agreement
- Modifications issued after execution of the Contract.
3
Q
A Modification is ? A201
A
(1) a written amendment to the Contract signed by both parties,
(2) a Change Order
(3) a Construction Change Directive
(4) a written order for a minor change in the Work issued by the Architect.
4
Q
How can the contract be amended? A201
A
Only by a modification
5
Q
The Contract Documents creates a contractual relationship between? A201
A
The Owner and the Contractor
6
Q
The Contract Documents does not create a contractual relationship between? A201
A
1) between the Contractor and the Architect or the Architect’s consultants, (2) between the Owner and a Subcontractor or a Sub-subcontractor, (3) between the Owner and the Architect or the Architect’s consultants or
(4) between any persons or entities other than the Owner and the Contractor
7
Q
The Work: A201
A
The term “Work” means the construction and services required by the Contract Documents, and includes all other labor, materials, equipment and services provided or to be provided by the Contractor.
8
Q
The Project A201
A
The Project is the total construction of which the Work performed under the Contract Documents may be the whole or a part and which may include construction by the Owner and by separate contractors.
9
Q
The Drawings A201
A
The Drawings are the graphic and pictorial portions of the Contract Documents showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules and diagrams.
10
Q
The Specifications A201
A
The Specifications are that portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services
11
Q
Instruments of Service A201
A
Are representations of creative work performed by the Architect and the Architect’s consultants. Instruments of Service may include, without limitation, studies, surveys, models, sketches, drawings, specifications, and other similar materials.
12
Q
Who has ownership of Drawings, Specs, and other Instruments of Service A201
A
The Architect and the Architect’s consultants shall be deemed the authors and owners of their respective Instruments of Service
13
Q
Contractor and Subcontractors relationship to Drawings, Specs & Instruments of Service
A
- The Contractor, Subcontractors, Sub-subcontractors, and material or equipment suppliers shall not own or claim a copyright in the Instruments of Service.
- The Contractor, Subcontractors, Sub-subcontractors and material or equipment suppliers are authorized to use and reproduce the Instruments of Service provided to them solely and exclusively for execution of the Work. 3. The Contractor, Subcontractors, Sub-subcontractors, and material or equipment suppliers may not use the Instruments of Service on other projects or for additions to this Project outside the scope of the Work without the specific written consent of the Owner, Architect and the Architect’s consultants
14
Q
When can a contractor request the owner provide evidence that they can financially fulfill their obligations. A201
A
Prior to commencement of the Work, the Contractor may request in writing that the Owner provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract. Thereafter, the Contractor may only request such evidence if
(1) the Owner fails to make payments to the Contractor as the Contract Documents require;
(2) a change in the Work materially changes the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner’s ability to make payment when due.
15
Q
Owners Right to Stop the Work A201
A
- If the Contractor fails to correct Work
2. repeatedly fails to carry out Work in accordance with the Contract Documents
16
Q
Owner’s Right To Carry Out The Work A201
A
If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within a ten-day period after receipt of written notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner may correct such deficiencies.
17
Q
What does a contractor do when they discover errors in the contract documents? A201
A
the Contractor shall promptly report to the Architect any errors, inconsistencies or omissions discovered by or made known to the Contractor as a request for information in such form as the Architect may require
18
Q
Contractors responsibility in relation to local codes etc.
A201
A
The Contractor is not required to ascertain that the Contract Documents are in accordance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities but the Contractor shall promptly report to the Architect any nonconformity discovered by or made known to the Contractor as a request for information in such form as the Architect may require.
19
Q
Supervision and Construction Procedures A201
A
The Contractor shall be solely responsible for, and have control over, construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work under the Contract
20
Q
When can a Contractor make substitutions? A201
A
The Contractor may make substitutions only with the consent of the Owner, after evaluation by the Architect and in accordance with a Change Order or Construction Change Directive.
21
Q
The Contractor warranties that: A201
A
- The Contractor warrants to the Owner and Architect that materials and equipment furnished under the Contract will be of good quality and new unless the Contract Documents require or permit otherwise.
- The Contractor further warrants that the Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit.
22
Q
What happens if the Contractor encounters conditions at the site that are either subsurface or concealed or unusual or unknown physical conditions? A201
A
- The Contractor shall promptly provide notice to the Owner and the Architect before conditions are disturbed and in no event later than 21 days after first observance of the conditions. 2. The Architect will promptly investigate the conditions and, if the Architect determines that they differ materially from the Contract Documents the Architect will recommend an equitable adjustment in the Contract Sum or Contract Time, or both.
- If the Architect determines that the conditions at the site are not materially different from those indicated in the Contract Documents and that no change in the terms of the Contract is justified, the Architect shall promptly notify the Owner and Contractor in writing, stating the reasons.
- If either party disputes the Architect’s determination or recommendation, that party may proceed as provided in Article 15.
23
Q
What happens if a body, burial site, archeological site or wetlands are found on site? A201
A
- the Contractor shall immediately suspend any operations that would affect them and shall notify the Owner and Architect.
- Upon receipt of such notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume the operations. 3. The Contractor shall continue to suspend such operations until otherwise instructed by the Owner but shall continue with all other operations that do not affect those remains or features.
- Requests for adjustments in the Contract Sum and Contract Time arising from the existence of such remains or features may be made as provided in Article 15.
24
Q
Superintendant A201
A
- The superintendent shall represent the Contractor, and communications given to the superintendent shall be as binding as if given to the Contractor.
- The Contractor shall not employ a proposed superintendent to whom the Owner or Architect has made reasonable and timely objection.
- The Contractor shall not change the superintendent without the Owner’s consent, which shall not unreasonably be withheld or delayed.
25
What schedules must the contractor supply? A201
1. promptly after being awarded the Contract, shall prepare and submit for the Owner’s and Architect’s information a Contractor’s construction schedule for the work.
2. The Contractor shall prepare a submittal schedule
26
The submittal schedule shall be? A201
1. Be submitted for the Architect’s approval. 2. be coordinated with the Contractor’s construction schedule
3. allow the Architect reasonable time to review submittals.
27
What happens to the contractors documents at the end of a project? A201
They shall be delivered to the Architect for submittal to the Owner upon completion of the Work as a record of the Work as constructed.
28
Are Shop Drawings, Product Data and Samples part of the Contract Documents? A201
Shop Drawings, Product Data, Samples and similar submittals are not Contract Documents. Their purpose is to demonstrate the way by which the Contractor proposes to conform to the information given and the design concept expressed in the Contract Documents
29
Shop Drawings A201
Shop Drawings are drawings, diagrams, schedules and other data specially prepared for the Work by the Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor to illustrate some portion of the Work.
30
Product Data A201
Product Data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams and other information furnished by the Contractor to illustrate materials or equipment for some portion of the Work.
31
Samples A201
Samples are physical examples that illustrate materials, equipment or workmanship and establish standards by which the Work will be judged.
32
What happens when the Architect receives Submittals not required by the contract documents? A201
They may be returned by the Architect without action.
33
Contractors resposibilities for Shop Drawings, Product Data, Samples and Submittals A201
The Contractor shall review for compliance with the Contract Documents, approve and submit to the Architect in accordance with the submittal schedule approved by the Architect
34
By the contractor submitting shop drawings, Product data, Samples and similar submittals the contractor is? A201
the Contractor represents to the Owner and Architect that the Contractor has:
(1) reviewed and approved them,
(2) determined and verified materials, field measurements and field construction criteria related thereto, or will do so
(3) checked and coordinated the information contained within such submittals with the requirements of the Work and of the Contract Documents.
35
Use of Site A201
The Contractor shall confine operations at the site to areas permitted by applicable laws, statutes, ordinances, codes, rules and regulations, and shall not unreasonably encumber the site with materials or equipment.
36
Cutting and Patching A201
The Contractor shall be responsible for cutting, fitting or patching required to complete the Work or to make its parts fit together properly and all areas requiring cutting, fitting and patching shall be restored to the condition existing prior to the cutting, fitting and patching, unless otherwise required by the Contract Documents.
37
Cleaning Up A201
1. The Contractor shall keep the premises and surrounding area free from accumulatio rubbish caused by operations under the Contract.
2. At completion of the Work the Contractor shall remove waste materials, rubbish, the Contractor’s tools, construction equipment, machinery and surplus materials from and about the Project.
3. If the Contractor fails to clean up as provided in the Contract Documents, the Owne shall be entitled to reimbursement from the Contractor.
38
Access to Site A201
The Contractor shall provide the Owner and Architect access to the Work in preparation and progress wherever located.
39
ADMINISTRATION OF THE CONTRACT is by who? A201
The Architect will provide administration of the Contract as described in the Contract Documents and will be an Owner’s representative during construction until the date the Architect issues the final Certificate For Payment.
40
During site visits, the Architect will keep the Owner reasonably informed about? A201
The progress and quality of the portion of the Work completed, and report to the Owner (1) known deviations from the Contract Documents and from the most recent construction schedule submitted by the Contractor, and (2) defects and deficiencies observed in the Work.
41
Architects responsibilities for site visits? A201
The Architect will visit the site at intervals appropriate to the stage of construction, or as otherwise agreed with the Owner, to become generally familiar with the progress and quality of the portion of the Work completed, and to determine in general if the Work observed is being performed in a manner indicating that the Work
42
Communications by and with the Architect’s consultants shall be through the? A201
Architect
43
Communications by and with Subcontractors and material suppliers shall be through the? A201
Contractor
44
Certificates for Payment A201
Based on the Architect’s evaluations of the Contractor’s Applications for Payment, the Architect will review and certify the amounts due the Contractor and will issue Certificates for Payment in such amounts
45
Rejection of work, inspection and testing of work by Architect. A201
The Architect has authority to reject Work that does not conform to the Contract Documents. Whenever the Architect considers it necessary or advisable, the Architect will have authority to require inspection or testing of the Work in accordance with Sections 13.5.2 and 13.5.3, whether or not such Work is fabricated, installed or completed.
46
Architect's role in Contractor’s submittals A201
1. The Architect will review and approve, or take other appropriate action upon, the Contractor’s submittals such as Shop Drawings, Product Data and Samples.
2. only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents.
3. Review of such submittals is not conducted for the purpose of determining the accuracy and completeness of other details such as dimensions and quantities, or for substantiating instructions for installation or performance of equipment or systems, all of which remain the responsibility of the Contractor as required by the Contract Documents.
4. The Architect’s review shall not constitute approval of safety precautions or, unless otherwise specifically stated by the Architect, of any construction means, methods, techniques, sequences or procedures.
47
When does the Architect perform Inspections? A201
The Architect will conduct inspections to determine the date or dates of Substantial Completion and the date of final completion
48
Architect's role in regard to requests for information. A201
The Architect will review and respond to requests for information about the Contract Documents. The Architect’s response to such requests will be made in writing within any time limits agreed upon or otherwise with reasonable promptness. If appropriate, the Architect will prepare and issue supplemental Drawings and Specifications in response to the requests for information.
49
List of Subcontractors A201
1. The Contractor, as soon as practicable after award of the Contract, shall furnish in writing to the Owner through the Architect the names of persons or entities (including those who are to furnish materials or equipment fabricated to a special design) proposed for each principal portion of the Work.
2. The Architect may reply within 14 days to the Contractor in writing stating whether the Owner or the Architect has reasonable objection to any such proposed person or entity.
3. Failure of the Owner or Architect to reply within the 14 day period shall constitute notice of no reasonable objection.
50
Effect on Contract Sum or Time when a subcontractor is rejected by the owner. A201
If the proposed but rejected Subcontractor was reasonably capable of performing the Work, the Contract Sum and Contract Time shall be increased or decreased by the difference, if any, occasioned by such change, and an appropriate Change Order shall be issued before commencement of the substitute Subcontractor’s Work.
51
How does the construction schedule and Work get organized when there are separate Contractors for different divisions of work.? A201
The Owner shall provide for coordination of the activities of the Owner’s own forces and of each separate contractor with the Work of the Contractor, who shall cooperate with them. The Contractor shall participate with other separate contractors and the Owner in reviewing their construction schedules. The Contractor shall make any revisions to the construction schedule deemed necessary after a joint review and mutual agreement.
52
How can Changes in the Work be accomplished ? A201
after execution of the Contract, and without invalidating the Contract, by Change Order, Construction Change Directive
53
Who signs a Change Order? A201
shall be based upon agreement among the Owner, Contractor and Architect
54
Who signs a Change Directive? A201
requires agreement by the Owner and Architect and may or may not be agreed to by the Contractor
55
Who has to agree to a minor change in work? A201
The Architect has authority to order minor changes in the Work not involving adjustment in the Contract Sum or extension of the Contract Time and not inconsistent with the intent of the Contract Documents. Such changes will be effected by written order signed by the Architect and shall be binding on the Owner and Contractor
56
A change order that agrees upon the following: A201
.1 The change in the Work;
.2 The amount of the adjustment, if any, in the Contract Sum; and
.3 The extent of the adjustment, if any, in the Contract Time.
57
When is a A Construction Change Directive used? A201
A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order.
58
If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods: A201
.1 Mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to permit evaluation;
.2 Unit prices stated in the Contract Documents or subsequently agreed upon;
.3 Cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or
4. the Architect shall determine the method and the adjustment on the basis of reasonable expenditures of those completing the work.
59
When a contractor signs a construction change directive? A201
A Construction Change Directive signed by the Contractor indicates the Contractor’s agreement therewith, including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order.
60
If the Contractor does not respond promptly or disagrees with the method for adjustment in the Contract Sum as a result of the Construction Change Directive: A201
the Architect shall determine the method and the adjustment on the basis of reasonable expenditures and savings of those performing the Work attributable to the change, including, in case of an increase in the Contract Sum, an amount for overhead and profit as set forth in the Agreement
61
Contract Time A201
the period of time, including authorized adjustments allotted in the Contract Documents for Substantial Completion of the Work.
62
term “day” A201
shall mean calendar day unless otherwise specifically defined.
63
Contract Sum A201
is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents.
64
SCHEDULE OF VALUES A201
Where the Contract is based on a stipulated sum or Guaranteed Maximum Price, the Contractor shall submit to the Architect, before the first Application for Payment, a schedule of values allocating the entire Contract Sum to the various portions of the Work. It shall be used as a basis for reviewing the Contractor’s Applications for Payment.
65
Application for Payment A201
the Contractor shall submit to the Architect an itemized Application for Payment prepared in accordance with the schedule of values
66
What does The Contractor warrants in relation to the Application for Payment? A201
1. Title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment.
2. The work be free and clear of liens, claims, security interests or encumbrances
67
When does a Certificate for Payment have to be issued? A201
within seven days after receipt of the Contractor’s Application for Payment unless the Architect notifies the Contractor and Owner in writing of the Architect’s reasons for withholding certification in whole or in part
68
The issuance of a Certificate for Payment will not be a representation that the Architect has: A201
(1) made exhaustive or continuous on- site inspections to check the quality or quantity of the Work,
(2) reviewed construction means, methods, techniques, sequences or procedures,
(3) reviewed copies of requisitions received from Subcontractors and material suppliers and other data requested by the Owner to substantiate the Contractor’s right to payment, or
(4) made examination to ascertain how or for what purpose the Contractor has used money previously paid on account of the Contract Sum.
69
Under what circumstances can an Architect withhold a certificate of payment in whole or part? A201
.1 defective Work not remedied;
.2 third party claims filed or reasonable evidence indicating probable filing of such claims
.3 failure of the Contractor to make payments properly to Subcontractors or for labor, materials or equipment;
.4 reasonable evidence that the Work cannot be completed for the unpaid balance of the contract sum
.5 damage to the Owner or a separate contractor;
.6 reasonable evidence that the Work will not be completed within the Contract time
.7 repeated failure to carry out the Work in accordance with the Contract Documents
70
PROGRESS PAYMENTS A201
After the Architect has issued a Certificate for Payment, the Owner shall make payment in the manner and within the time provided in the Contract Documents, and shall so notify the Architect
71
When the Contractor considers that the Work, or a portion thereof which the Owner agrees to accept separately, is substantially complete the contractor? A201
the Contractor shall prepare and submit to the Architect a comprehensive list of items to be completed or corrected (punch list). The Contractor shall proceed promptly to complete and correct items on the list. Failure to include an item on such list does not alter the responsibility of the Contractor to complete all Work in accordance with the Contract Documents.
72
Upon receipt of the Contractor’s punch list the Architect: A201
make an inspection to determine whether the Work or designated portion thereof is substantially complete.
73
If the Architect inspects for Substantial completion and finds items that were either not listed or not completed on the contractors punch list: A201
The Architect shall notify the Contractor so the contractor can complete or correct such items. The Contractor shall then submit a request for another inspection by the Architect to determine Substantial Completion.
74
when the Architect determines the work is substantially complete they: A201
the Architect will prepare a Certificate of Substantial Completion that shall establish the date of Substantial Completion, shall establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, and shall fix the time within which the Contractor shall finish all items on the list accompanying the Certificate
75
When do warranties begin? A201
Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work
76
Who signs the Certificate of Substantial completion?
the Owner and Contractor
77
Retainage in relation to Substantial Completion: A201
Upon acceptance and consent of surety, if any, the Owner shall make payment of retainage applying to such Work. Such payment shall be adjusted for Work that is incomplete or not in accordance with the requirements of the Contract Documents.
78
The Owner may occupy or use any completed or partially completed portion of the Work at any stage under the following conditions? A201
consented to by:
1. The contractor
2. the insurer
3. authorized by public authorities having jurisdiction over the Project.
79
Process for Final Completion and Final Payment A201
1. Contractor’s written notice that the Work is ready for final inspection
2. Contractor submits final Application for Payment
3. Architect will promptly make such inspection
4. when the Architect finds the Work acceptable under the Contract Documents and the Contract fully performed, the Architect will promptly issue a final Certificate for Payment
80
Final payment nor any remaining retained percentage shall not become due until the Contractor submits to the Architect: A201
(1) an affidavit that payrolls, bills for materials and equipment, and other indebtedness connected with the Work for which the Owner or the Owner’s property might be responsible or encumbered (less amounts withheld by Owner) have been paid or otherwise satisfied,
(2) a certificate evidencing that insurance required by the Contract Documents to remain in force after final payment is currently in effect and will not be canceled or allowed to expire until at least 30 days’ prior written notice has been given to the Owner,
(3) a written statement that the Contractor knows of no substantial reason that the insurance will not be renewable to cover the period required by the Contract Documents,
(4) consent of surety, if any, to final payment and
(5) , if required by the Owner, other data establishing payment or satisfaction of obligations, such as receipts, releases and waivers of liens, claims, security interests or encumbrances arising out of the Contract, to the extent and in such form as may be designated by the Owner.
81
If a Subcontractor refuses to furnish a release or waiver required by the Owner: A201
the Contractor may furnish a bond satisfactory to the Owner to indemnify the Owner against such lien
82
The making of final payment shall constitute a waiver of Claims by the Owner except those arising from: A201
.1 liens, Claims, security interests or encumbrances arising out of the Contract
.2 failure of the Work to comply with the requirements of the Contract Documents
.3 terms of special warranties required by the Contract Documents.
83
Who needs to carry liability insurance? A201
The owner and the contractor
84
CONTRACTOR’S LIABILITY INSURANCE shall cover? A201
.1 Claims under workers’ compensation, disability benefit and other similar employee benefit acts that are applicable to the Work to be performed;
.2 Claims for damages because of bodily injury, occupational sickness or disease, or death of the Contractor’s employees;
.2 Claims for damages insured by usual personal injury liability coverage;
.5 Claims for damages, other than to the Work itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom;
.6 Claims for damages arising out of ownership, maintenance or use of a motor vehicle;
85
Who has to carry property insurance and for how long A201
1. The Owner shall purchase and maintain property insurance written on a builder’s risk “all-risk” or equivalent policy form
2. Such property insurance shall be maintained until final payment has been made
86
The amount of property insurance covers? A201
The amount of the policy shall be in the amount of the initial Contract Sum, plus value of subsequent Contract Modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis without optional deductibles.
87
What does property insurance cover? A201
shall be on an “all-risk” or equivalent policy form and 1. Shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned by enforcement of any applicable legal requirements
2. shall cover reasonable compensation for Architect’s and Contractor’s services and expenses required as a result of such insured loss.
3. Portions of the Work stored off the site, and also portions of the Work in transit.
88
Who does property insurance cover? A201
Owner, the Contractor, Subcontractors and Sub- subcontractors in the Project.
89
If the Owner does not intend to purchase property insurance? A201
the Owner shall so inform the Contractor in writing prior to commencement of the Work. The Contractor may then effect insurance that will protect the interests of the Contractor, Subcontractors and Sub-subcontractors in the Work, and by appropriate Change Order the cost thereof shall be charged to the Owner.
90
Partial occupancy in relation to surety: A201
Partial occupancy shall not commence until the insurance company or companies providing property insurance have consented to such partial occupancy
91
BOILER AND MACHINERY INSURANCE A201
The Owner shall purchase and maintain boiler and machinery insurance required by the Contract Documents or by law, which shall specifically cover such insured objects during installation and until final acceptance by the Owner
92
LOSS OF USE INSURANCE A201
The Owner, at the Owner’s option, may purchase and maintain such insurance as will insure the Owner against loss of use of the Owner’s property due to fire or other hazards, however caused.
93
WAIVERS OF SUBROGATION A201
The Owner and Contractor waive all rights against
(1) each other and any of their subcontractors, sub- subcontractors, agents and employees, each of the other, and (2) the Architect, Architect’s consultants, separate contractors and any of their subcontractors, sub-subcontractors, agents and employees, for damages caused by fire or other causes of loss to the extent covered by property insurance
94
PERFORMANCE BOND AND PAYMENT BOND A201
The Owner shall have the right to require the Contractor to furnish bonds covering faithful performance of the Contract and payment of obligations
95
UNCOVERING OF WORK that is covered contrary to the architects request A201
If a portion of the Work is covered contrary to the Architect’s request or to requirements specifically expressed in the Contract Documents, it must, if requested in writing by the Architect, be uncovered for the Architect’s examination and be replaced at the Contractor’s expense without change in the Contract Time.
96
Uncovering of Work that has not been previously requested to examine by the architect: A201
If a portion of the Work has been covered that the Architect has not specifically requested to examine prior to its being covered, the Architect may request to see such Work and it shall be uncovered by the Contractor. If such Work is in accordance with the Contract Documents, costs of uncovering and replacement shall, by appropriate Change Order, be at the Owner’s expense. If such Work is not in accordance with the Contract Documents, such costs and the cost of correction shall be at the Contractor’s expense
97
Rejection of Work A201
The Contractor shall promptly correct Work rejected by the Architect or failing to conform to the requirements of the Contract Documents, whether discovered before or after Substantial Completion and whether or not fabricated, installed or completed. Costs of correcting such rejected Work, including additional testing and inspections, the cost of uncovering and replacement, and compensation for the Architect’s services and expenses made necessary thereby, shall be at the Contractor’s expense.
98
Work is found to be not in accordance with the requirements of the Contract Documents after Substantial Completion. A201
if, within one year after the date of Substantial Completion of the Work or designated portion thereof the Contractor shall correct it promptly after receipt of written notice from the Owner to do so unless the Owner has previously given the Contractor a written acceptance of such condition. During the one-year period for correction of Work, if the Owner fails to notify the Contractor and give the Contractor an opportunity to make the correction, the Owner waives the rights to require correction by the Contractor and to make a claim for breach of warranty.
99
ACCEPTANCE OF NONCONFORMING WORK A201
If the Owner prefers to accept Work that is not in accordance with the requirements of the Contract Documents, the Owner may do so instead of requiring its removal and correction, in which case the Contract Sum will be reduced as appropriate and equitable. Such adjustment shall be effected whether or not final payment has been made.
100
TESTS AND INSPECTIONS required by the contract documents A201
1. the Contractor shall make arrangements for such tests and approvals with an independent testing laboratory or entity acceptable to the Owner
2. The Contractor and shall bear all related costs of tests, inspections and approvals
3. The Contractor shall give the Architect timely notice of when and where tests and inspections are to be made so that the Architect may be present for such procedures.
101
when does the owner have to pay for TESTS AND INSPECTIONS A201
(1) tests, inspections or approvals that do not become requirements until after bids are received or negotiations concluded
(2) tests, inspections or approvals where building codes or applicable laws or regulations prohibit the Owner from delegating their cost to the Contractor.
(3) if additional tests required by the architect, owner or authorities having jurisdiction come into effect after the contract documents are in effect.
102
TERMINATION of the contract BY THE CONTRACTOR A201
The Contractor may terminate the Contract if the Work is stopped for a period of 30 consecutive days (unless such interruption is contemplated by the Project Schedule or the phasing of the Project) through no act or fault of the Contractor or a Subcontractor, Sub-subcontractor or their agents or employees or any other persons or entities performing portions of the Work under direct or indirect contract with the Contractor
103
Under what circumstances can a contractor terminate the contractor? A201
.1 Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped;
.2 An act of government, such as a declaration of national emergency that requires all Work to be stopped;
.3 Because the Architect has not issued a Certificate for Payment and has not notified the Contractor of the reason for withholding certification as provided in Section 9.4.1, or because the Owner has not made payment on a Certificate for Payment within the time stated in the Contract Documents; or
.4 The Owner has failed to furnish to the Contractor promptly, upon the Contractor’s request, reasonable evidence as required by Section 2.2.1.
104
TERMINATION BY THE OWNER FOR CAUSE A201
.1 repeatedly refuses or fails to supply enough properly skilled workers or proper materials;
.2 fails to make payment to Subcontractors for materials or labor in accordance with the respective agreements between the Contractor and the Subcontractors;
.3 repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; or
.4 otherwise is guilty of substantial breach of a provision of the Contract Documents
105
Process of Owner terminating the contractor A201
1. Obtain certification by the Initial Decision Maker that sufficient cause exists to justify such action
2. giving the Contractor and the Contractor’s surety 7 days written notice
106
When the Owner terminates the contractor they can do the following: A201
.1 Exclude the Contractor from the site and take possession of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor;
.2 Accept assignment of subcontracts
.3 Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work.
107
What happens to the contractors and payment when the Owner terminates that Contract? A201
1. the Contractor shall not be entitled to receive further payment until the Work is finished.
2. If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for the Architect’s services and expenses made necessary thereby, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor.
3. If such costs and damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner.
4. The amount to be paid to the Contractor or Owner, as the case may be, shall be certified by the Initial Decision Maker
108
SUSPENSION BY THE OWNER FOR CONVENIENCE A201
1. The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work in whole or in part for such period of time as the Owner may determine.
2. The Contract Sum and Contract Time shall be adjusted for increases in the cost and time cause by suspension, delay or interruption
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TERMINATION BY THE OWNER FOR CONVENIENCE A201
The Owner may, at any time, terminate the Contract for the Owner’s convenience and without cause.
110
What must the contractor due when terminated by the owner for convenience? A201
Upon receipt of written notice from the Owner of such termination for the Owner’s convenience, the Contractor shall
.1 cease operations as directed by the Owner in the notice;
.2 take actions necessary for the protection and preservation of the Work; and
.3 except for Work directed to be performed prior to the effective date of termination stated in the notice, terminate all existing subcontracts and purchase orders and enter into no further subcontracts and purchase orders.
111
payments to contractor resulting in termination by the owner for convenience A201
, the Contractor shall be entitled to receive payment for Work executed, and reasonable costs incurred by reason of such termination, along with reasonable overhead and profit on the Work not executed.
112
NOTICE OF CLAIMS A201
Claims by either the Owner or Contractor must be initiated by written notice to the other party and to the Initial Decision Maker with a copy sent to the Architect, if the Architect is not serving as the Initial Decision Maker. Claims by either party must be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later.
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INITIAL DECISION Maker A201
Claims shall be referred to the Initial Decision Maker for initial decision. The Architect will serve as the Initial Decision Maker, unless otherwise indicated in the Agreement.
114
The Initial Decision Maker will review Claims and take what actions? A201
within ten days of the receipt of a Claim take one or more of the following actions:
(1) request additional supporting data from the claimant or a response with supporting data from the other party,
(2) reject the Claim in whole or in part,
(3) approve the Claim,
(4) suggest a compromise, or
(5) advise the parties that the Initial Decision Maker is unable to resolve the Claim
115
If any of the parties do not agree with the Initial decision makers decision? A201
Either party may file for mediation of an initial decision at any time
116
MEDIATION A201
1 Claims, disputes, or other matters in controversy arising out of or related to the Contract shall be subject to mediation prior to binding dispute resolution.
2. Mediation, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures
3. Request for mediation shall be in writing
4. The parties shall share the mediator’s fee and any filing fees equally.
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ARBITRATION A201
1. binding dispute resolution
2. shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules unless agreed upon otherwise.
3. A demand for arbitration shall be made in writing
4. The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.
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