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Quiz #2 Construction Law and Contract Admin

Terms in this set (68)

Discrepancies between different parts of the contract documents or between the documents and the actual conditions.
ambiguities
A change or changes so large or numerous that the total scope of the project is significantly altered.
Cardinal Changes
A legal bar preventing a person from asserting or acting something contrary to previous statements or actions.
Estoppel
A contractual requirement placed on the Contractor to pay for the estimated costs to the Owner for not being able to use the structure for its intended use by the completion date of the project.
Liquidated Damages
A discrepancy in the contract documents that a reasonable and experienced Constructor should recognize and therefore should not be cause for an increase change order.
Patent Ambiguity
A part of the contract that states in what order different sections or documents in the contract will be relied upon. This becomes particularly important when dealing with ambiguities.
Precedence Clause
A section of the contract that details all the documents that are to be included as part of the whole contract. This may also detail the work required to be completed.
Scope Clause
The concept that if a Constructor relied upon the documents supplied by the Owner, the Constructor cannot be held liable for design errors.
Spearin Doctrine
The date when the Owner can move into the building or use the structure for its intended purpose.
Substantial Completion
A recommended way to perform certain work on a project. Often a Design Professional may have an understanding of best practices of executing the work, but for liability reasons will not give them in writing on the contract documents.
Means and Methods
An encumbrance placed upon a property to secure interest in the property for work or materials supplied to the property but not paid for.
Mechanics Lien
A clause requiring the Constructor to increase personnel, material, and/or equipment on the project in order to meet a specific schedule.
Acceleration Clauses
A part of a contract that removes all responsibility of a party for any costs associated with a delay, even if that delay is caused by that party.
No Damages for Delay Clause
A requirement within the contract for one party B to hold another party A harmless and protect against damages even if those damages are caused by Party A.
Broad Form Indemnification
A clause relieving one party of responsibility for damages due to actions or lack of actions that are not the fault of the other party to the contract.
Exculpatory Clause
A provision in the contract to end the contract without cause.
Termination for Convenience
Exculpatory clauses shift the risk for these, which are when actual conditions that are different from what was expected.
Differing Site Conditions
In the absence of an approved change order for accelerating the work or extending the schedule, the Contractor incurs additional costs to meet the project schedule end date.
Constructive Acceleration
An entity that can be held responsible for clean-up of hazardous waste.
Potentially Responsible Party
A set of rules to establish a set of standards regulating commerce within and between the 50 states and D.C.
Uniform Commercial Code
A type of property insurance that indemnifies against loss while the structure is under construction.
Builder's Risk Insurance
Coverage, usually for professionals, such as architects or engineers that insurance against acts of negligence.
Errors and Omissions Insurance
Other parties named and protected under the term of an insurance policy other the one that has taken out the insurance coverage.
additional insured
This type of insurance extends coverage to a specific part of the insurance or underlying policy, and sticks to the exact terms of the original policy.
Excess Insurance
This leader's actions can be characterized as tending toward the principles of cunning, treachery, and duplicity, and his name is now used to describe a certain type of leader that leads with fear over compassion.
Machiavelli
This theory of motivation identifies that an individual has levels of requirements to meet satisfaction and only when the lower level is satisfied the higher can be met.
Maslow's Hierarchy of Needs
Estoppel is a bar preventing a party to act in a manner contrary to the way it has acted in the past
True
A "flow down" clause places responsibility of contract requirements on a lower-tier entity
True
Float can only be used by the Contractor
False
Design Professionals are required by the Owner to give the Constructor the best "means and methods" for accomplishing the construction
False
Parol evidence is given by a party to avoid further litigation
False
The Spearin Doctrine relieves Design Professionals from responsibility for errors in the design
False
Substantial completion is when the Owner can use the structure for its intended purpose
True
A change or series of changes so large or numerous that the total scope of the project is significantly altered
Cardinal Change
A discrepancy in the Contract documents that could not be known at the time the bid proposal was put together
Latent Ambiguity
Usually oral testimony that contradicts the written Contract
Parol Evidence
Acceleration clauses cannot require a Constructor to perform work in a manner that is more costly than originally planned
False
An exculpatory clause shifts responsibility for actions done or caused by one party to another party
True
Contracts can contain indemnity clauses requiring another party to assume the costs for damages done by another party
True
A Constructor cannot be held responsible for hidden conditions
False
An Owner cannot delay the whole or a portion of the work without compensating the Constructor
False
A requirement to increase production on a project to meet the original or a newly specified completion date
Acceleration Clause
A requirement within the Contract for Party B to hold Party A harmless and protect against damages even if those damages are caused by Party A
Broad Form Indemnification
A type of property insurance that indemnifies against loss while the structure is under construction
Builder's Risk Insurance
A situation or circumstance different than what has been shown on the drawings or described in the Contract documents
Differing site conditions
The ______ clause is a part of a Contract that requires one party to assume responsibility for the loss of another party
Indemnity
Costs agreed to be subtracted from amounts due if the Contract is not completed on schedule is called retainage.
False
An entity that can be held responsible for clean-up of hazardous waste is the potentially responsible party.
True
A provision within a contract to terminate the Contract under certain specified circumstances
Termination for Cause
The Owner can carry the Builder's Risk insurance instead of the Contractor
True
Commercial General Liability Insurance is based on the statistical averages that accidents occur
True
The average experience modifier is 1.0
True
Paying under the table is an attempt to avoid payroll and other costs related to the amount of payroll paid
True
You can never waive subrogation rights
False
Unemployment insurance protects the worker if they become unemployed through no fault of their own
True
A worker will have to sue an employer for injuries incurred while on the project
False
Additional Insured are the other parties named and protected under the term of an insurance policy
True
Covers incidents that occurred during or before the policy so long as they are reported during the terms of the policy
"Claims made"
Protects a company against loss due to accidents that injure another's person or property
Commercial General Liability
Coverage, usually for professionals, such as architects or engineers, that insures against acts of negligence
Errors and Omissions Insurance
Protects the purchaser from the "excess" costs not covered by an underlying policy
Excess insurance
A factor related to previous claims that is applied to the standard costs of some insurance, such as workers' compensation insurance
Experience Modifier
Insurance that covers parties against claims made during the term of the policy regardless of when the claims were made
Occurrence policy
The right of a party (such as an insurance company) to seek restitution for payments made from the party responsible for the loss
subrogation
"Umbrella" insurance is additional insurance that provides additional coverage in any areas where other insurance limits are exceeded by a claim
True
A form of insurance that compensates workers when they become unemployed through no fault of their own
Unemployment insurance
The assurances by one party to a Contract that the installation will remain in operation and without flaw for an agreed period of time or corrective measures will return the installation to its proper and original condition or working order
warranty
Insurance that covers workers against injury and any resulting loss of income without the need to bring suit against the employer for such compensation
Worker's Compensation Insurance
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