Contract Administration & Procurement Flashcards
6 cards from real Construction Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contract Administration & Procurement flashcards as text
Which document sets the standard general terms and conditions that govern the relationship between contractor, owner, and architect on most US commercial projects?
Answer: AIA A201
AIA A201 General Conditions of the Contract for Construction is the most widely used standard document defining roles, rights, and responsibilities of the three primary parties.
In a construction dispute, what is the role of a Dispute Review Board (DRB)?
Answer: To hear disputes in real time and issue non-binding recommendations before litigation
A DRB is a standing panel of neutral experts who periodically visit the project and provide recommendations on disputes, helping parties avoid costly litigation.
What is the primary purpose of requiring contractors to submit a Schedule of Values?
Answer: To allocate the contract price across work items for progress payment applications
A Schedule of Values breaks the contract sum into line items so the owner and architect can verify the value of completed work when reviewing monthly pay applications.
Front-loading a Schedule of Values means the contractor:
Answer: Assigns higher values to early work items to improve early cash flow
Front-loading assigns disproportionately high values to early work items so the contractor receives more cash early, which owners and architects look for and question.
A liquidated damages clause in a construction contract specifies:
Answer: A predetermined dollar amount the contractor owes per day of delay beyond the completion date
Liquidated damages are a pre-agreed daily dollar amount compensating the owner for losses caused by contractor delay, which must represent a reasonable estimate of actual harm.
A 'no damages for delay' clause in a construction contract generally means:
Answer: The contractor can only seek a time extension, not additional money, for owner-caused delays
No-damages-for-delay clauses restrict the contractor's remedy for most owner-caused delays to a time extension only, though courts in many states limit their enforceability.