Contract Documentation & Legal Considerations Flashcards
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Read the first 7 Contract Documentation & Legal Considerations flashcards as text
Which contract clause establishes the priority order when conflicts exist between different contract documents?
Answer: Order of precedence clause
An order of precedence clause specifies which contract document governs when contradictions exist between drawings, specifications, and other documents.
A 'no damages for delay' clause in a construction contract typically means the contractor:
Answer: Can only recover time, not additional money, for owner-caused delays
A no-damages-for-delay clause limits the contractor's remedy for owner-caused delays to a time extension only, not additional compensation.
What is the primary purpose of a 'liquidated damages' provision in a contract?
Answer: To provide a predetermined compensation amount for specific breaches such as schedule delays
Liquidated damages clauses establish a pre-agreed daily or weekly amount the contractor owes the owner for failure to complete by the contract completion date.
Under the Miller Act, payment bonds on federal construction projects are required when the contract value exceeds:
Answer: $150,000
The Miller Act requires performance and payment bonds on federal construction contracts exceeding $150,000.
A 'cardinal change' to a construction contract is best described as:
Answer: A modification so substantial it fundamentally alters the scope of the original contract
A cardinal change is one so drastic that it cannot be considered part of the original contract, potentially allowing the contractor to treat it as a breach.
Which document typically defines the procedures for submitting and resolving contractor claims for additional compensation?
Answer: General Conditions of the contract
General Conditions (e.g., AIA A201 or FAR clauses) establish the formal procedures, notice requirements, and time limits for submitting claims.
When an estimator reviews a 'mutual waiver of consequential damages' clause, what risk is being addressed?
Answer: Limiting recovery for lost profits, loss of use, or business interruption damages by both parties
A mutual waiver of consequential damages protects both owner and contractor from claims for indirect losses like lost profits or business interruption beyond direct project costs.