CCS CCS Contract Administration & Legal Aspects 1 — Questions and Answers
Question 1: Under the AIA A201 General Conditions, who is responsible for the means and methods of construction?
- The Architect
- The Owner
- The Contractor (Correct answer)
- The Construction Manager
Correct answer: The Contractor
AIA A201 assigns the Contractor sole responsibility for construction means, methods, techniques, sequences, and procedures unless otherwise specified in the contract documents.
Question 2: What is the legal significance of the 'Doctrine of Implied Warranty' in a construction contract context?
- The contractor guarantees the design is buildable
- The owner implicitly warrants that the contract documents are accurate and adequate (Correct answer)
- The architect warrants that the contractor will finish on time
- The contractor warrants against all latent defects for ten years
Correct answer: The owner implicitly warrants that the contract documents are accurate and adequate
The Spearin Doctrine (Implied Warranty of Plans and Specifications) holds that when an owner provides construction documents, they implicitly warrant those documents are accurate and buildable.
Question 3: In a construction contract, what is a 'liquidated damages' clause?
- A clause requiring the contractor to pay for any liquids spilled on site
- A pre-agreed daily penalty amount the contractor pays for failing to achieve substantial completion on time (Correct answer)
- A clause describing how payment disputes are liquidated through arbitration
- A provision waiving all delay claims by both parties
Correct answer: A pre-agreed daily penalty amount the contractor pays for failing to achieve substantial completion on time
Liquidated damages are a pre-negotiated sum per day (or other period) that the contractor owes if the project is not substantially complete by the contract date, compensating the owner for anticipated delay damages.
Question 4: Which contract delivery method transfers the most design and construction risk to a single entity?
- Design-Bid-Build (DBB)
- Construction Management at Risk (CMAR)
- Design-Build (DB) (Correct answer)
- Multiple Prime Contracting
Correct answer: Design-Build (DB)
In Design-Build, a single entity is responsible for both design and construction, consolidating risk and accountability under one contract with the owner.
Question 5: What is the purpose of a 'Notice to Proceed' (NTP) in a construction contract?
- It formally authorizes the contractor to begin work and starts the contract time (Correct answer)
- It is the contractor's notice that they are ready to receive payment
- It notifies subcontractors that the general contractor has been selected
- It is the architect's notice that shop drawings have been approved
Correct answer: It formally authorizes the contractor to begin work and starts the contract time
A Notice to Proceed is an official written notice from the owner to the contractor authorizing the start of work and establishing the commencement date from which contract time is measured.
Question 6: In AIA contract documents, what is a 'Supplementary Condition' to the General Conditions?
- A separate contract for specialty subcontractors
- A document that modifies or adds to the standard General Conditions for a specific project (Correct answer)
- An addendum issued after the contract is signed
- A schedule attached to the specifications
Correct answer: A document that modifies or adds to the standard General Conditions for a specific project
Supplementary Conditions (Division 00) modify, delete, or add to the standard AIA General Conditions to address project-specific legal, insurance, or procedural requirements.
CCS CCS Contract Administration & Legal Aspects 1
Under the AIA A201 General Conditions, who is responsible for the means and methods of construction?