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CSI CDT: Module 5:
Construction Documents
81
Architecture
Professional
10/03/2012

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Term
What are the four C's for effective communication?
Definition
 Clear. Use proper grammar and simple sentence construction to avoid ambiguity.
 Concise. Eliminate unnecessary words, but not at the expense of clarity, correctness,
or completeness.
 Correct. Present information accurately and precisely. Carefully select words that
convey exact meanings.
 Complete. Do not leave out important information.
(PDPG 11.3.5)
Term
What are the two major groups of Construction Documents?
Definition
They include two major groups of documents: procurement documents and contract documents. (PDPG 11.1.2)
Term
Define Procurement Documents
Definition
Documents used to obtain pricing from prospective contractors.
Term
What are competitive bidding docs called?
Definition
Bidding docs
Term
What are negotiated bid docs called?
Definition
Pricing docs
Term
List the 8 typical elements of contract documents.
Definition
 Contracting forms
 Project forms
 Conditions of the contract
 Revisions
 Clarifications
 Modifications
 Specifications
Study Module No. 5 |
Page 3
 Contract drawings (PDPG 11.1.2)
Term
What is the purpose of a specification?
Definition
to Define the quality requirements for products, materials, and workmanship upon which the contract is based and requirements for administration and performance of the project. PDPG 11.3
Term
What elements are typically included in Procurement Requirements?
Definition
 Solicitation
 Instructions for procurement
 Available information
 Procurement forms and supplements
 Addenda
(PDPG 11.4)
Term
Are procurement requirements usually a part of a contract?
Definition
No. but they are included as part of the project manual.
Term
Define Contracting Requirements.
Definition
Contracting requirements define the processes, rights, responsibilities, and relationships of the parties to the contract and include the following:
 Contracting forms
 Project forms
 Conditions of the contract
 Revisions
 Clarification
 Modifications
(PDPG 11.5)
Term
Define Bid
Definition
An offer to perform a contract for work and labor or supply materials or goods at a specific price. A bid is a response to a solicitation such as an invitation to bid or advertisement for bid. (PDPG 11.4.2)
Term
Define Proposal
Definition
An offer from one party to another, of terms and conditions with reference to some work, which if accepted can form a contract. A proposal implies an opportunity for more
Study Module No. 5 | Page 4
consideration by the recipient and is sometimes utilized when project cost or other conditions will be determined by negotiation. A proposal is usually in response to a request for proposal. (PDPG 11.4.2)
Term
What is Bid Security?
Definition
Guaranties that if a bid is accepted within the specified time, the bidder will enter into a formal agreement with the owner (usually 30 to 90 days from the opening of the bids) and will furnish the required construction performance and payment bonds. The purpose of the bid security is to compensate the owner for damages incurred if the selected bidder does not accept the contract award. (PDPG 11.4.3.1)
Term
Define contract
Definition
A contract between two or more parties represents a promise to be performed for consideration. Common law has recognized performance under such contract to be an enforceable duty. A contract may be oral or written. Oral contracts can be difficult to enforce because there is no record of exact terms. (PDPG 5.3)
Term
List the 3 typical contract forms:
Definition
 Notice of award
 Agreement
 Attachments to the agreement
(PDPG 11.5.2)
Term
Define: Notice of Award
Definition
The owner may issue a notice of award if preparation of the actual contract might be delayed. This procedure is required when a challenge period is required by statute. A notice of award establishes the beginning of the challenge period. (PDPG 11.5.2.4)
Term
Define: Contract Agreement
Definition
The written document signed by each party and is the legal instrument binding the parties to the contract. The agreement defines the relationships and obligations existing between the parties. By reference, the agreement includes all other contract documents, such as the drawings and specifications. (PDPG 5.4)
Term
What is the purpose of Conditions of the contract?
Definition
The conditions of the contract most clearly establish the responsibilities for construction contract administration and contractor project management. The conditions of the contract identify the basic rights, procedural and contractual responsibilities, and relationships between the parties involved in the performance of the contract. (PDPG 11.5.4.2)
Term
What are the three components for project team coordination?
Definition
Organization, Execution and Quality Assurance
Term
List 5 issues that can result from incomplete coordination:
Definition
 Duplications
 Omissions
 Discrepancies
 Division 01 responsibility
 Terminology differences
(PDPG 5.9)
Term
Define: Addenda
Definition
Written or graphic instruments issued to clarify, revise, add to, or delete information in the original procurement documents or in previous addenda. (PDPG 11.3.12.2) typically addenda are issued before the opening of bids/proposals
Term
Define: Change Order
Definition
A written instruction to the contractor issued AFTER execution of the agreement. It authorizes an addition, deletion, or revision to the project in consideration of an adjustment in the contract sum, contract time, or both. A change order is used for changes to the contract documents that affect contract sum or time. (PDPG 11.3.12.3 and 13.9.2.4)
Term
Define: Construction Change Directive
Definition
Term
Define Constructon Change Directive
Definition
Directs the contractor to make a change in the project before the owner and contractor have agreed upon the proposed changes in contract sum or contract time.

(PDPG 11.3.12.3 and 13.9.2.3)
Term
Define: Minor Changes in the Work
Definition
Instructions or interpretations not involving adjustment to the contract sum or contract time. Such changes are made by the architect’s supplemental instructions directing the contractor to make stated modifications. The architect’s supplemental agreement does not require an owner’s signature. (PDPG 11.3.12)
Term
Define: Warranty
Definition
A promise that a proposition of fact is true, a promise that certain facts are truly as they are represented to be and that they will remain so, subject to any specified limitations. (PDPG 11.3.18.1)
Term
What do Purchase Warranties cover?
Definition
Cover products only. (PDPG 11.3.18.1)
Term
Define: Full Warranty
Definition
A warranty as to full performance covering both labor and materials. (PDPG
11.3.18.1)
Term
Define: Express Warranty
Definition
Any affirmation of fact or promise made that relates to the goods or installation and becomes a part of the bargain that the goods or installation shall conform to the affirmation of promise. (PDPG 11.3.18.1)
Term
Define: Guarantor
Definition
Guarantor. One who makes a guaranty; one who becomes secondarily liable for another’s debt or performance in contrast with a strict surety who is primarily liable to the principle debtor. (PDPG 11.3.18.1)
Term
Define: Warrantor
Definition
One who makes a warranty; any supplier or other person who gives or offers to give a written warranty or who is or may be obligated under an implied warranty. (PDPG 11.3.18.1)
Term
Define: Correction Period
Definition
Contractors are typically required to provide a one-year correction period for the facility. This requirement may vary depending on the type of facility and construction contract. (PDPG 11.3.18.3) It does NOT affect the warranty of work.
Term
What are the two types of Implied Warranty under the UCC?
Definition
 Implied warranty of merchantability that goods are fair, average, and medium quality
 Implied warranty of fitness meaning the proposed item should be fit for its intended
purpose (PDPG 11.3.18.4)
Term
Define: Insurance
Definition
A contractual relationship that exists when one party (the insurer), for a consideration (the premium), agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils). (PDPG 11.3.20.1)
Term
All Risk Insurance
Definition
rotection from loss arising out of any fortuitous causes other than those perils or causes specifically excluded by name. This in contrast to other policies that name the peril or perils insured against. (PDPG 11.3.20.1)
Term
Builder's Risk Insurance
Definition
Covers losses during the construction phase arising from the insured risks of fire, windstorm, collapse, and theft. The policy is designed to cover all property that has been or will be incorporated into the project. Builder’s risk insurance is available in a named peril or an all-risk policy. (PDPG 11.3.20.3)
Term
What is the difference between a CLAIMS-MADE POLICY and an OCCURRENCE insurance policy?
Definition
Policies written under a claims-made basis will cover claims made (reported or filed) during the year the policy is in force for any incidents that may occur that year or during any previous period the policyholder was insured under the claims-made contract. This form of coverage is in contrast to the occurrence policy that covers today’s incident regardless of when a claim is filed, even one or more years later. (PDPG 11.3.20.2)
Term
What is Completed Operations Insurance?
Definition
A form of liability insurance that provides coverage for bodily injury and property damage arising out of the operations that have been completed or abandoned provided the accident occurs away from the premises owned or rented by the insured. (PDPG 11.3.20.1)
Term
Define: Comprehensive General Liability (CGL).
Definition
A broad form of liability insurance usually covering business organizations to protect them against liability claims for bodily injury and property damage arising from operations, products and completed operations, and independent contractor, but excluding coverage for liability arising from the use of automobiles. (PDPG 11.3.20.1)
Term
What is a Hold-Harmless Agreement?
Definition
A contract under which legal liability of one party for damages is assumed by the other party. (PDPG 11.3.20.1)
Term
Define: Indemnify
Definition
To restore in whole or part the victim of a loss by payment, repair, or replacement. (PDPG 11.3.20.1)
Term
What is subrogation?
Definition
The assignment to an insurer by terms of the policy or by law, after payment of loss, of the rights of the insured to recover the amount of the loss from one legally liable for it. (PDPG 11.3.20.1)
Term
Define: Liability Insurance
Definition
Liability policies protect the named insured from losses arising out of legal liability to others caused by the insured activities. (PDPG 11.3.20.2)
Term
Why is Owner's Protective Liability Insurance important?
Definition
Additional coverage may be appropriate to cover the same hazards as those covered by the contractor’s general liability insurance. (PDPG 11.3.20.2)
Term
Define: Contractor’s General Property and Equipment Insurance.
Definition
Covers the cost of loss of tools and equipment to build the project. (PDPG 11.3.20.3)
Term
Define: Umbrella Excess Liability
Definition
Provides a layer of insurance above the limits carried in the contractor’s other liability policy. (PDPG 11.3.20.3)
Term
What are the three types of construction bonds?
Definition
 Bid bonds
 Performance bonds
 Payment bonds (PDPG 11.3.19)
Term
What is a bid bond?
Definition
A bond protecting the owner from losing the benefit of an accepted bid.
Term
What is a Performance bond?
Definition
A bond guaranteeing that if the contractor defaults, the surety will either complete the contract in accordance with its terms or provide sufficient funds, up to the penal amount of the bond, to fund the completion. (PDPG 11.3.19.5)
Term
What is a payment bond?
Definition
The payment bond, sometimes referred to as the labor and materials payment bond, guarantees the subcontractors, material suppliers, and others providing labor, material, and equipment to the project will be paid. (PDPG 11.3.19.6)
Term
Who is the Obligee?
Definition
The obligee is the person for whose benefit the bond is written. (PDPG 11.3.19.1)
Term
What is an Indemnity Agreement?
Definition
An agreement between the principal and the surety whereby the principal guarantees the surety that the surety will incur no loss by reason of its providing the bond. (PDPG 11.3.19.1)
Term
What is a Lien?
Definition
The legal right of a party, such as a subcontractor, to claim a security interest in the project or have it sold for payment of a claim. (PDPG 11.3.19.1)
Term
What part of the contract documents contains "Available Information"?
Definition
Procurement Requirements
Term
An affirmation of fact or promise made by the seller to the buyer that relates to the goods and becomes a part of the basis of a bargain creates _________.
Definition
An express warranty.
Term
As a result of the widely held misconception that a contractor's responsibility for defective work lasts only for the one year guaranty period, what term do the AIA use instead of guaranty in their contract documents?
Definition
Correction period.
Term
Under the AIA 201, who provides property insurance covering the work?
Definition
the Owner.
Term
A variety of policies providing broad protection is...
Definition
Comprehensive Policy
Term
Coverage for both bodily injury or property damage is....
Definition
Owners and Contractors Protective Liability (OCP)
Term
The maximum limit of liability payable is...
Definition
General Aggregate Limit
Term
A contractual relationship synonymous with assurance is...
Definition
Insurance.
Term
Broad form of business insurance excluding automobiles...
Definition
Comprehensive General Liability
Term
Right to recover from one legally liable is...
Definition
Subrogation
Term
Part 2 of a basic worker's compensation policy is...
Definition
Employer's Liability Insurance
Term
Cover's loss or damage to a building under construction...
Definition
Builder's Risk Policy
Term
Indemnifies person with interest in physical property...
Definition
Property Insurance
Term
To restore in whole or in part the victim of a loss by payment, repair or replacement is...
Definition
to Indemnify (verb)
Term
A contract under which legal liability of one party for damages is assumed by the other party to the contract is...
Definition
Hold Harmless Agreement
Term
What are the three types of hold harmless agreements?
Definition
Limited form, intermediate form and Broad form.
Term
Restoration to the victim of a loss up to the amount of the loss is...
Definition
Indemnity (noun)
Term
List the three procurement activities:
Definition
Bidding, Negotiating, Purchasing
Term
What 6 items are included in procurement documents?
Definition
1.Drawings
2. specification
3. procurement requirements
4. contracting requirements
5. resource drawings
6. pre-contract revisions (addenda)
Term
contract documents include what 3 things?
Definition
Contracting requirements, drawings and specifications
Term
List 10 types of documents that could be Available Information.
Definition
Preliminary schedules
budget information
existing condition information
survey information
environmental assessment
existing material information
existing haz material info
geophysical data
geotechnical data
permit applications
Term
A separate contract by third party (analogous to a surety bond) who assumes responsibility in case the principal fails to perform is...
Definition
a guaranty
Term
An assurance by the principal that it will assume stipulated responsibilities for completed portions of a project.
Definition
A warranty.
Term
A manufacturer _________ its material, whereas the construction contractor provides a third-party ___________ for those same materials and a ______________ for the construction contractor's own workmanship installing them.
Definition
warrants, guaranty, warranty
Term
List several reasons construction warranties are usually required.
Definition
1. to protect against faults, defects or failures
2. to provide a remedy for non-conformance after completion and acceptance
3. to give recourse against additional parties
4.to extend the manufacturer's responsibility beyond the end of the correction period
5. To allow a remedy beyond the normal statute of limitations
Term
What six separate limits of liability are covered in general liability policies?
Definition
General aggregate limit
products/completed operations aggregate
personal and advertising injury limit
each occurrence limit
fire damage limit
medical expense limit
Term
What are the two types of Builder's risk insurance?
Definition
Named peril and all-risk.
Term
What party often obtains builder's risk insurance?
Definition
The owner.
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