CODES 3 EXAM 2

A201 Concepts - Contract Sum & Contract Time

Contract Sum • All authorized compensation to the Contractor • Don't confuse Contact Sum with architectural fees, land acquisition costs and other obvious costs to the Owner - Contract Sum is all compensation to the Contractor (this would include all payments Certified by the Architect) Contract Time • All authorized time allotted in the Contract Documents to reach Substantial Completion • Remember, Substantial Completion is that point in the Project that the Project can be occupied for the purpose it was intended • Don't confuse Substantial Completion with any "Occupancy Permit" or other instrument - the Architect (not the government) determines Substantial Completion • In fact, the Architect actually "inspects" to determine this date

design-bid-build - variations

"negotiated select team" approach • the contractor and sometimes selected subcontractors are selected early in the design process • certain contract terms such as overhead and profit multipliers for the contractor are determined prior to completion of the construction documents "cost plus fixed fee " approach • often used for unpredictable scope projects • the contractor selected at the completion of construction documents • the contractor is paid actual labor and materials plus a fee

Specified in A701, a Bid Security of 10% of the Base Bid is required from all bidders. On a project open to public bid, Bidder #1 is the lowest Bidder with a submitted bid of $2,000,000. Bidder #2 is the next lowest Bidder with $2,100,000. If Bidder #1 fails to enter into a contract with the Owner, what is the total amount of Bid Security forfeited by Bidder #1 and to whom?

$100,000 to the Owner

A201 Concepts - Royalties, Patents, & Special Indemnifications Royalties (license fees) and Patents - The Indemnification Here Differs • A Royalty is a procedure that

A Royalty is a procedure that the "inventor" (or holder of) the Royalty wants the construction forces to use, but also rightfully demands compensation for its use (compensation is Royalty or License Fee • Indemnification isn't an issue here, since the Contractor must simply include, in the Contract Sum, the cost of Licensing • The Contractor must "furnish" any Royalty or Licensing Fee items - even if these fees are not discovered until later • A Patent may be a "thing" or a method, and only the "inventor" (or holder of) the Patent has the legal right to use (so take care with proprietary items and methods) • Indemnification is an issue here, since the Contractor must indemnify the Owner and Architect in cases of patent infringement if the Contractor has beforehand knowledge • The Contractor must indemnify here not only the Architect, but also the Architect's Consultants, agents, and employees

A701 Concepts - Surety Bonds Summary The AIA Issues a Warning Against a "One- Bond" System

A one-bond system (sometimes referred to as a "Combination Performance and Payment Bond") does not carry AIA approval

Concerning A701 and the separation of Bidding Requirements and Contract Documents, which of the following statements is true?

A) The form of Agreement between the Owner and Contractor is classified as a part of the Contract Document. B) The Conditions of the Contract are classified as a part of the Contract Document. Both are correct

A701 Concepts - Surety Bonds Surety Bonds are Essentially Warranties or Guarantees that are Purchasable

A701 usually requires (there are a few exceptions) that a Bid Security be furnished in the form of the Bid Bond A310 - Bid Bonds are purchased by the Bidders and are not a part of the Contract Sum • The Bid Bond insures the Bidder will enter into the Contract (i.e. Construction Contract) with the Owner on the terms stated in the Bid and furnish two other Bonds, the Performance Bond A312 and Payment Bond A312 (see handout) • A201 states that the Owner has the right to require that the Contractor furnish (purchase) certain Bonds - namely the Performance Bond A312 and the Payment Bond A312 (see handout) • Performance Bond A312: Essentially insures that the Surety will finish the Project should the Contractor default • Payment Bond A312: Essentially insures that the Surety will pay the Contractor's debt for labor and materials should the Contractor default

In accordance with A201 and Allowances, which of the following statements is true?

Allowances may be one of the more misunderstood concepts of A201. The premise of using an Allowance is allow the Bidder to place a monetary amount into the Bid for material that is not specifically called for on the Drawings or Specifications. All Bidders simply include the dollar amount set forth by the Architect for the Allowance. For example, the specifications for landscaping or door hardware might include an Allowance for the purchase of materials without specifically naming any materials. The confusing aspect of Allowances is often this: an Allowance includes only the cost of materials. The labor aspect is to be estimated by the Bidder and submitted with the Bid. Only the material itself is to be the Allowance. Bidders are expected to be able to reasonable estimate the cost of labor and include it in the bid. If the cost of material, when the material is actually chosen by the Architect, exceeds the Allowance, then the Contractor is issued a Change Order to cover the additional cost. The Contractor does not have to bear the financial burden of making up the cost difference between the Allowance set forth in the Specifications and the actual cost. Essentially, the Owner simply compensates the Contractor for the difference via a Change Order to the Contract Sum.

In accordance with C141 and Termination of the Consultant and Arbitration, which of the following statements is true?

Although somewhat distantly related to Termination (more as a potential cause of Termination) this question repeats the position taken by C141 stating again that the Architect and Consultant may indeed make changes in each otherʼs Drawings and Specifications, but only under this condition - there must be written permission of the other party before doing so. This question also examines Claims and/or disputes arising from C141. The point here to remember is that these Claims and/or disputes are subject to the proceeding of Arbitration. Litigation may follow, but Arbitration must be first and any proceedings (results, judgments) of the Arbitration will be entered as evidence in a legal proceeding. Lastly, this question examines the amount of Termination Expenses to be paid to the Consultant. Even though the Consultant may have expended considerable effort and expense towards the Project, the legitimate Termination Expenses due to the Consultant are limited to a proportional share of payment received by the Architect from the Owner. C141 takes this position in order to give at least some limited financial protection to the Architect. This is fair, considering the Architect took the most risk.

A701 Concepts - Alternates & Separate Bids Alternates and Separate Bids Differ Substantively0

Bid Forms may be structured with Alternates (Additive or Deductive) or Separate Bids, or in some situations, both • An Alternate is simply an addition or deduction of Work to or from a Base Bid, whereas Separate Bid is a portion of the overall Project to be executed (i.e. specific Work) • Considering Alternates (Additive or Deductive): all Alternates must be bid (there is no choice here and Bidders have no rights to prioritize the Alternates in any way - they must simply follow the bid form) • Considering Separate Bids: when two or more Separate Bids are required (it takes at least two, or else there would not be "separate" bids), Bidders have a protection from being "forced" to accept an unprofitable Award offer • Bidders may refuse the Award if the Award is less than the combination of bids submitted

A701 Concepts - Required Submittals by Bidders

Bidder Shall Submit, After Notice of Selection for the Award, the following: • The Work to be performed with the Bidder's own forces, names of manufacturers, products, suppliers, etc., and the names of persons or entities proposed for principal portions of the Work • Persons proposed by the Bidder may not be changed by sole discretion of the Bidder • Prior to the Construction Contract Award, the Bidder may withdraw the Bid if the Architect objects to the Bidder's forces (Architect or Owner may object, but Architect makes the notification) • Owner may accept an adjusted Bid price from a Bidder who has substituted new Sub-Bidders due to the Owner's (or Architect's) objections to the original Sub- Bidders, or the Owner may disqualify the Bidder (Bidder would not risk the Bid Security in this situation) Remember - Bidding is Based on Trust and Ethics as Well as A701 - even Though the Owner May Accept Any Bid and Waive Irregularities

Purpose: A701 Sets Forth the Legal Procedures for Bidding Organization: A701 Clearly Differentiates Between Two Types of Instruction:

Bidding Requirements and Contract Documents - they are not the same

In accordance with C141 and concerning ownership, changes, and calculations pertaining to the Consultant's Drawings and Specifications, which of the following statements is true?

Changes by one party to the documents of another party of the C141 agreement are potentially a problem. C141 addresses this by stating that the Consultant may make changes in the Architect's Drawings and Specifications only with the written permission of the Architect. Similarly, the Architect must have written permission from the Consultant before making changes to the Consultantʼs Drawings and Specifications. Also in this question is the examination of the Consultantʼs responsibility with regard to furnishing calculations used in determining the design of the Consultantʼs Work. C141 gives some degree of protection here to the Architect by stating that the Consultant must furnish the calculations to the Architect.

In accordance with the General Conditions A201 and Changes in the Work, which of the following statements is true?

Changes in the Work are inevitable, and A201 sets certain conditions on those changes while keeping the original Contract valid. For example, Changes in the Work DO NOT invalidate the original Contract, so there is no need for updated General Conditions just because a Change is proposed or enacted. This question also deals with the definition of a Minor Change in the Work. Contractually, a "Minor" Change in the Work is a Change that does NOT affect Contract Time and does NOT affect Contract Sum. So, if you're not talking time or money, it's minor. This question also has a small bit of review as to the difference in a Change Order (three signatures - know them) and a Construction Change Directive (two signatures - know them).

Construction Management- variations

Construction Manager (CM) detailed construction and technical advice, brought on early in the design process CM-advisor • acts as a constructability and cost management consultant during the design and construction process but does not construct the building CM-agent - authorized to enter into contracts on behalf of the owner • provides early consulting and may act on behalf of the owner in assembling and coordinating the construction trades prior to and during construction. • Typically fixed fee services and assume no risk for construction CM-constructor • technical and cost adviser during the project design phase transitions at a predetermined moment to the role of contractor for the project • often uses a guaranteed maximum price, or GMP • known as "CM-at-risk," since the CM entity takes responsibility for meeting a fixed cost of construction

Design-Build + Bridging

Design-Build: provides the owner with a single-point responsibility for both design and construction. • emerged from the growing dissatisfaction of clients with the inherent tensions and conflicts of delivery methods that place architects and contractors in adversarial roles • Typically includes a fixed price • Single contract between the owner and design-build entity for design and construction • This delivery method, however, minimizes the ability of the owner to participate in the design of the project. Variation: Bridging • design architect responsible for the design concept and performance specification and detailed criteria to which the ultimate design must conform. • production architect who is part of the design-build teams that offer both technical architecture and construction capabilities. • single entity providing consolidated design and construction services.

Concerning Surety Bonds, which of the following statements is true?

First, know the "players" in Surety Bond legal language. Who is the Surety? (the insurance company). Who is the Principal? (the Contractor). Who is the Obligee? (the Owner). So, under a Surety Bond Agreement, a Surety would answer to an Obligee for the default of a Principal. In other words, the insurance company will compensate the Owner if the Contractor defaults (fails to fulfill the Contract). Remember, also that any forfeited amounts (money that must be paid because of the default) is never to be constituted as a penalty. The reasoning here is that courts have ruled that if there are "penalties" there should be "rewards." So, the AIA advises that it is best to just avoid the "P-word" altogether.

A201 Concepts - Responsibilities A Basic Doctrine of Fairness that is Inherent in A201

If you know something is wrong - "beforehand knowledge" - and you don't say anything about it - you will share in the cost of correcting it! • Even if the Contractor performs Work strictly in accordance with the Contract Documents, and the Contractor has beforehand knowledge of a document error, the Contractor bears liability • The Contractor bears responsibility not only for the acts/omissions of the Contractor, but also for the acts/omissions of Subcontractors • Even in cases of applicable Codes - if the Contractor performs Work knowingly in violation of Code, the Contractor assumes responsibility • However, the Contractor has no responsibility to verify the Contract Documents are in accordance with Codes (further, Code verification by the Contractor is never a prerequisite for building or compensation)

Project Timeline - Bidding & Negotiating BIDDING ASSUMPTIONS

In preparing bids, certain assumptions are made in the building industry: The Owner expects: - the architect has exercised reasonable diligence, skill, and judgment in preparing bid documents that will result in a project appropriate for its intended purpose. - the architect, acting in the best interest of the project, to assist in receiving bids and recommend a qualified bidder. The Contractor expects: - the owner is soliciting, receiving, and evaluating all bids in good faith. - the information in the bid documents is reliable and adequate to convey any known unusual existing conditions and is properly detailed and complies with all related codes. - to be able to rely on the architect's bid documents to arrive at a comprehensive and responsible bid. The Owner & Architect expect: - the contractor is qualified and experienced in constructing a project of this type and size.

Indemnification, in accordance with the A.I.A. published documents, has the following meaning(s)?

Indemnification is not a difficult concept, it just isnʼt used often in regular conversation. Its contractual meaning in accordance with the A.I.A. published documents is to "secure another party against financial loss or damage, or to make compensation for the incurred debt of another party, or just simply to hold another party harmless" (this is sometimes shortened to simply "hold harmless"). It would be difficult to persuade parties to enter contractual situations involving huge sums of money and considerable legal liability if indemnification clauses did not exist.

A201 Concepts - Inspection of the Work & Contractor Submittals Even Though the Architect has Somewhat Limited "Inspection" Responsibilities, the Contractor has Crucial Responsibilities Here

Inspection of the Work by the Contractor - the Contractor inspects the Work to determine if "portions" are ready for subsequent Work The Contractor's Responsibility and Architect's Liability Regarding Contractor Submittals (shop drawings, product data, samples, etc.) • The Architect has a responsibility to take action on Contractor Submittals (the point is that the Owner has no burden to "approve," take exception," etc. - in fact, the Owner has no authority here - there is no legitimate "Owner Approval" as such • Even after the Architect's "approval," Contractor Submittals never become part of the Contract Documents Contractor Submittals Can Be Burdensome to Manage • The Contractor takes full responsibility for maintaining at the site and for the Owner one record copy of Drawings, Specs, Addenda, Change Orders, and all modifications to the Contract (this can take an enormous amount of physical space on a large project)

In accordance with A201 and Insurance and Bonds, which of the following statements is true?

Insurance is the focus of this question. Many sorts of insurances are required during the Construction Phase, but Liability Insurance and Property Insurance are the two most common categories. First, with regard to Liability Insurance, the Contractor is required to purchase this type of insurance for protection (of the Contractor) from claims arising our of performance of the Contract. Property Insurance has an option with regard to its purchase that is not available with respect to Liability Insurance. Specifically, the Owner may purchase Property Insurance directly or the Owner may choose to require that the Contractor purchase Property Insurance - A201 allows the Owner to make this choice because often the Contractor can procure a better rate on the insurance purchase than can the Owner. In either case, the insurance protects the Owner, Subcontractors and Subsubcontractors. Should the Owner require the Contractor to purchase Property Insurance, the cost is subsequently charged to the Owner by appropriate Change Order. This is an easy, direct way of the Owner "paying back" the Contractor.

Once a general contractor is determined to be the low bidder on a project, he or she is required to submit a list of the subcontractors and major suppliers proposed for the project. Which of the following statements about that list is INCORRECT?

It is for the owner's and architect's information only.

Concerning A701, which of the following statements is true?

It is important to know that the Architect is the final authority on whether or not to accept a Substitution. In fact, a Substitution is not subject to arbitration. This question also focuses on your understanding of the exact definition of Addenda or Addendum with reference to the Construction Contract Award. For example, any interpretations, corrections, changes that are made prior to the Construction Contract Award are technically and legally termed Addendum or Addenda. After the Award, the proper instrument is either a Change Order or a Construction Change Directive. Don't confuse which instruments are applicable prior to or subsequent to the Award.

In accordance with the General Conditions A201, which of the following statements best defines Contract Time?

It is important to know the precise definition of Contract Time and Contract Sum. This question deals with Contract Time. Contract Time is that period of Time, including authorized adjustments, allotted in the Contract Document, for reaching Substantial Completion of the Work. Note that it is Substantial Completion, not Final Completion. It is a simple unencumbered definition. Don't confuse it with any 60 day period that was encountered in B141, since that definition defined the Architect's administration of Construction Contract - that is not the same as the A201 definition of Contract Time.

A201 Concepts - Claims: Surety Notification & Architect's Action Notification of Surety: The Architect has no obligation to the Surety for notification with regard to claims - even if the Contractor may be in danger of default

Notification of Surety: The Architect has no obligation to the Surety for notification with regard to claims - even if the Contractor may be in danger of default • This basically is a protection for the Architect to prevent the Contractor (or Owner) from taking the legal position that "if the Architect had notified the Surety, then the default might have been avoided) The Architect's Action on Claims is Critical and Time Sensitive - However, there are Several Choices of "Action" (5 to be exact) • The Architect's "action" on a Claim must be taken within 10 days of the receipt of the Claim, and can be one of the following: • Request more data • Submit a schedule as to action • Reject the Claim • Approve the Claim • Suggest a Compromise

Consider A701, a require Bid Security of 10% of the Base Bid, and the following situation: Bidder #1 is the lowest Bidder on a subject project at X dollars. Bidder #2 is the next lowest Bidder at $X dollars. Bidder #1 fails to enter into a contract with the Owner. What is the total amount of Bid Security forfeited by Bidder #1 and to whom?

On the actual exam question, I will give you figures where $X dollars are listed above. You certainly will not need a calculator, but you will need to execute the very simple math to determine the differential between the Bid of Bidder #1 and that of Bidder #2 and make a determination as to whether or not Bidder #1 forfeits any money, and if so, to whom? One thing to remember, is that a Bidder cannot forfeit more money than the Bid Security that the Bidder must put at risk. In fact, a Bidder who has a Bid Security at risk may lose less than what is at risk. Carefully review your class notes and lecture notes from the web or library to understand the rules here.

In accordance with the General Conditions A201, which of the following statements is true?

One of the more contractually dangerous actions an Architect may take is withholding a Certificate for Payment to the Contractor. Obviously, when someone's money is withheld, they become very, very anxious. So, A201 approaches this enforcement power this way: The Architect may withhold a Certificate for Payment if there is a failure of the Contractor to make payments properly to Subcontractors. Pretty powerful, and fully in compliance with A201. The Architect is under no obligation to even issue a portion (any Certificate for Payment at all) for Work that is not in accordance with the Contract Documents. Finally, (and this one may sound disturbing) the Architect may withhold a Certificate for Payment if there is reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum. Obviously, this enforcement power if enacted will cause great agitation with the Contractor.

A701 Concepts - Alternates vs. Separate Bids Illustration Alternates

Owner May Select Alternates in any Order and Bidders Must Bid all Alternates and Cannot Prioritize the Alternates

If a bid security is required as part of a contractor's proposal, which of the following is the most appropriate form?

Performance bond

A201 Concepts - Compensating the Contractor Three Instruments Involved in the Contractor's Compensation

Schedule of Values - Contractor Compensation is Based Upon a "Schedule of Values" Prepared by the Contractor • The Schedule of Values is generally based upon the Divisions of Work show in the Specifications and any subdivisions of the Work • The Schedule of Values must be presented by the Contractor to the Architect before the first Application for Payment • Application for Payment - The Contractor submits to the Architect the Application for Payment (the Architect never recommends any "recommendation" of a payment application) • The Contractor Warrants upon submittal of an Application for Payment that all Work for which the Contractor has previously received payment is free of liens, at least to the Contractor's knowledge • Certificate for Payment - Upon Architect's receipt of the Application for Payment, the Architect issues the Certificate for Payment to the Owner

A201 Concepts - Types of Claims & Rules for Each Basically Two Kinds of Claims with Two Differing Sets of Rules - Subsurface Claims (or Concealed Conditions) and Others - (a Claim is an assertion by one party that damage has been done by the other party)

Subsurface (or Concealed Conditions): when a condition is observed which has the potential to lead to a Claim, the "observing party" must give notice promptly before disturbing the condition - or in no case later than 21 days after the observance • The observing party has no obligation to first notify the Architect in this type of Claim - somewhat limiting the Architect's "exposure" • But even in these Claims, the Architect has the right to make a determination as to the validity of the notice of unusual subsurface investigation - and the Owner has no right to validate (or invalidate) the notice with another party • Other Claims: Architect must be notified first by the party intending to pursue a Claim - in fact, the notification is a prerequisite to further action - this provides some degree of protection for the Architect

In accordance with A201 and Termination by the Owner for Cause, which of the following statements is true?

Termination by the Owner for Cause is the focus here. The Owner has rather broad powers with regard to Termination of the Contractor, but there does have to be sufficient reason to do so. Generally, the various reasons are collected, by A201, into a powerful concept: The Owner may legally terminate the Contract if the Contractor persistently fails to supply adequate, properly skilled workers to the Work. The Architect also has responsibilities with regard to the Ownerʼs broad powers here in Termination. Specifically, the Architect is responsible for certifying whether or not the Contractor has performed with sufficient deficit to cause termination by the Owner. Finally, if the Owner exercises the right to Terminate the Contractor in accordance with A201, the Owner may choose to complete the Work with the Ownerʼs Own Forces (i.e. Separate Contractors). In this situation the understanding what becomes of the outstanding balance of the Contract Sum is crucial. Even though the following may take a second or third reading to appreciate its cleverness, the following is true; if the outstanding Contract Sum exceeds the cost to the Owner of completing Work, the differential is paid by the Owner to the Contractor.

In accordance with A201 and Contractor Submittals, which of the following statements is true?

The Architect has the contractual right to request (through the Specifications) any certifications that may be necessary to help determine the quality of the Work (a certification from a manufacturer, for example, stating that a particular material the Contractor is furnishing meets a certain quality standard). Even though the Architect has the right to call for certifications, there is no implied responsibility for the Architect to determine the accuracy and completeness of a certification. Remember, the Architect is not a private detective or police officer. The Architect is entitled to rely on the certification to be complete and accurate. This question also examines, once again, the Architectʼs responsibilities with regard to Contractor Submittals and specifically with regard to Contractor Submittals for "informational purposes only." The Architect may call for these "informational" submittals as a contractual right, however, there is no obligation upon the Architect to take any action on these types of submittals (that is the very thing that sets these submittals apart from ordinary Contractor Submittals). They are simply for informational purposes only. Finally, this question examines the Contractorʼs responsibilities with regard to Contractor Submittals in the area of coordination. Specifically, it is the Contractorʼs responsibility to check and coordinate the Submittals of the Subcontractors before issuing a corresponding Contractor Submittal to the Architect.

In accordance with B141 and concerning the use of the Architect's Drawings and Specifications, which of the following statements is true?

The Architectʼs Drawings and Specifications are "instruments of service" and the Owner does not obtain any copyright to those "instruments" even after compensating the Architect. There is, however a legal precedent for these instruments becoming the property of the Owner. That precedent is when the Architect is adjudged to be in default of B141. In fact, the Architect may make multiple copies of these instruments, give them out in mass quantities (say for promotion) and still does not surrender a copyright.

A701 Concepts - Bidder Representations & Issuance of Documents The Bidder (Bidder, not Contractor) Makes Certain Representations Upon Submitting a Bid

The Bidder has visited the site and the Work bid is based upon the Contract Documents with NO exceptions • The Bidder even takes responsibility for an incomplete Bidding Documents Bidders "Bid" What They "See" but May Request Clarification • Often (very often) there may be ambiguity in the documents and in areas where there is clarity, the Bidder may still know a better way to execute the Work than what is clearly shown - thus the concept of the Substitution (literally "substituting" Work for Work) • An important point here is that the Bidder cannot Bid an assumed Substitution, even in areas where there may be obvious ambiguity in the documents • For any proposed Substitutions, the Architect's decision on the proposed substitution is final (no Arbitration in A701)

The Payment Bond A312 and the Performance Bond A312 are Functionally and Legally two Bonds (two separate and distinct bonds insuring different risks)

The Bonds are issued together and there is no reduction in price for purchasing only one • Both the Payment Bond and the Performance Bond are to be written for the full amount of the Contract Sum • Summary: The Payment Bond A312 assures the Owner that the Contractor's previous debts (up to the time of default) for labor and materials will be paid up to the amount of the bond "penalty" (i.e. the face-value or purchase-sum of the Bond) • Summary: The Performance Bond A32 assures the Owner that the project will be finished up to the amount of the bond "penalty" (i.e. the face-value or purchasesum of the Bond)

In accordance with A201 and the Owner's Right to Perform Construction and to Award Separate Contract, which of the following statements is true?

The Owner has the contractual right to perform construction (Work) and to award Separate Contracts (remember the lectures on the Ownerʼs Own Forces and Separate Contractors? - really are the same thing). Here are some particulars of the right; The Contractor (the regular, "prime" Contractor) must participate with Separate Contractors (those contracted by the Owner) and the Owner in reviewing the construction schedule of the Separate Contractors when directed to do so. Also, the coordination of the Ownerʼs Own Forces is to be provided by the Owner. This makes sense because the Owner employs them. In reality, many Owners do this coordination poorly. A convenient, summary way of remembering the rights of the Owner with regard to the Ownerʼs Own Forces is to understand that the Owner has the same obligations and rights as the Contractor under the General Conditions when the Owner chooses to contract any Separate Contractors (i.e. Ownerʼs Own Forces).

Concerning Surety Bonds, which of the following statements is true?

The Performance Bond A312 and the Payment Bond A312 are the focus here. First, realize that these bonds are functionally and legally two separate Bonds. They have the same numerical designation because they are packaged together, but they are NOT one bond. The Performance Bond assures the Owner that the project will be finished and the Payment Bond assures the Owner that previous debts (labor and material) of the Contractor up to the point of the Contractor's default will be paid - at least they will be paid up to the amount of the bond penalty (i.e. the face-value or purchase-sum of the Bond). Unfortunately, Bond companies still often use the term "penalty or penal sum" even though the AIA recommends against the use of this term or phrase. With regard to both the Performance Bond AND Payment Bond, each are written for the FULL amount of the Contract Sum. The reasoning here is that something could go very wrong with the Contract at the very outset. Not likely, but possible. A full amount gives far more protection to the Owner.

In accordance with the General Conditions A201 and the concept of Mutual Responsibility, which of the following statements is true?

The concept of "Mutual Responsibility" is the subject of this question and particularly as it relates to the Owner's Own Forces (which is the same thing as Separate Contractors as far as A201 is concerned). In this concept and A201 directive, the Contractor must allow the Owner's Own Forces reasonable opportunity for the introduction of their equipment AND the Contractor has the responsibility to connect the Contractor's Work to that of the Owner's Own Forces. This can be a terrific coordination problem, but connecting to the Work of the Owner's Own Forces is an important responsibility of the Contractor. Further, the Contractor is responsible for reporting to the Architect (NOT the Owner) any apparent defects in the Work of the Owner's Own Forces which would render it unsuitable for the Contractor's proper execution of the Contractor's Work. If it is apparent, the the Contractor must report it. Lastly, related to the concept of "mutual responsibility" is that of "reasonably discoverable." Reasonably discoverable relates to the Contractor's (not the Architect's) responsibility to discover defects that are actually "reasonably discoverable" in the Work of the Owner's Own Forces.

In accordance with A701 definitions, which of the following statements is true?

The first part of this question examines once again which documents are Contract Documents and which documents are Bidding Requirements (review from the Lecture Notes again which classification the various documents fall into - including Addenda and Change Orders). It also examines the understanding that both Contract Documents and Bidding Requirements fall under the general heading of Bidding Documents. In other words, both Bidding Requirements and Contract Documents are Bidding Documents. This question also reviews information relative to Unit Prices. Unit Prices simply define a cost for portions of the Work that can be identified as so related as to constitute a "Unit." Unit Prices have nothing to do with Alternates (either in an "additive" or "deductive" form, nor do they define any sort of preset "values" that cannot be exceeded. They are, at best, simply an aid to understanding the Contract Sum in a more comprehensible way. Of course, if all parties agree they may become a basis to begin negotiations for costs related to changes in the Work, but even here that is not a requirement or burden of Unit Prices.

Concerning A701, which of the following statements is true?

The focus of this question is on exactly what is represented by a Bidder upon submitting a Bid. For example, what does A701 say about the Bidder's representation concerning site visitation, what is the Bid actually based on (Work required by the Con Docs - no exception here), and who takes responsible for Bids based on an incomplete set of Bidding Documents, or even and incomplete set of Bidding Documents?

Which of the following is NOT an advantage of the typical design/build delivery method?

The owner participates fully in the design process

Concerning A701 and Bid Modification, which of the following statements is true?

The point of this question is to determine what you know about some important "mechanics" of bidding - especially with regard to withdrawing, resubmitting, and modifying bids. For example, be very familiar with the time frame restraints with regard to withdrawing Bids and resubmitting Bids. Bids can be withdrawn and resubmitted, but the timing has certain rules. Also, Bids can be modified, or even withdrawn by proper notice prior to the time and date designated for the receipt of Bids. In fact, Bids withdrawn after the time and date for the receipt of Bids risk the Bid Security. Just as a side note, the receipt of Bids is not the same as the opening of Bids and A701 actually addresses the receipt of Bids far more than the opening of Bids.

In accordance with A201 and payment to the Contractor, which of the following statements is true?

The sequences of events that lead to the Contractorʼs compensation are examined here. First, the Contractor submits to the Architect an "Application for Payment." The Architect reviews the request, and makes a determination on the validity of the amount requested. The Architect, after examining the Contractorʼs request, issues a "Certificate for Payment" to the Owner. The Owner then directly compensates the Contractor. Of course there are conditions to the process. For example, the Architect has no burden to certify any amounts requested by the Contractor if those amounts are not valid. However, this is the general process. Remember that the Owner issues payment directly to the Contractor, not through the Architect and that upon receipt of payment, the Contractor must promptly pay each Subcontractor for the portion of Work the Subcontractor executed that was certified by the Architect to the Owner.

In accordance with A201 and Basic Definitions, which of the following statements is true?

This is a general question and examines the hierarchy of the Contract for Construction, the classification of the General Conditions with regard to Bidding Requirements or Contract Documents (youʼre on your own here, so study the classifications again), and lastly, the Architectʼs performance and enforcement powers. The Contract for Construction is powerful in hierarchy of documents and, in fact, supersedes all prior negotiations between the parties - both oral and written. Remember, the Architect is entitled to both "performance" (for example, acting on Claims) and "enforcement" (for example, refusing to certify the full amount requested by the Contractor for compensation) powers under the General Conditions.

In accordance with A201, which of the following statements is true concerning the following situation: A dispute arises among the Contractor, Separate Contractors and the Owner as to the responsibility, under their respective contracts, for cleaning up. The General Conditions A201 state:

This is a scenario question that examines the A201 position with regard to cleaning up the Work. Maintaining the Contractorʼs enthusiasm and sense of urgency for cleaning up the Work sometimes is challenging due to the actions (in inactions) of Separate Contractors. It is often difficult to ascertain exactly which entities perfoming Work on the Project are responsible for the debris and general mess at the job site. A201 gives the Owner a powerful position here. It says that the Owner may clean up and allocate the cost among those responsible as the Architect determines to be just. This is often difficult for the Architect, because A201 states that the Architect has a definite responsibility here in deciding which costs are applicable to which parties concerning cleanup. Remember, Contract Sum does not include the cost of cleanup with regard to Separate Contractors. That is why the Contractor is so reluctant to perform any cleanup associated with Separate Contractors. On a personal note, I have suggested that a Bond or Certified Check be submitted by the Contractor and any Separate Contractors to the Owner to cover the cleanup costs. However, this is not a position of A201 (but, I still believe it to be a stellar idea).

Concerning the General Conditions A201 and Supplementary Conditions, which of the following statements is true?

This is in-part another historical examination. Know when the Second Edition of the Standard Document was published it what was it main contribution. It is a relatively old document - 1915 and its importance is that it recognized the need for Supplementary Conditions. The Standard Document eventually evolved to the General Conditions. This question also examines the legal position of the Architect with regard to the General Conditions. Interestingly, the Architect is NOT a "party" to the General Conditions, nor is the Architect a "party" to the Supplementary Conditions, but is a Participant with both responsibility and enforcement powers.

In accordance with the General Conditions A201, which of the following statements is true?

This item examines the Contractor's contractual responsibilities with regard to Codes. It is often difficult to determine the applicability of certain Codes on large, complex projects. Therefore, A201 takes this position; if the Contractor performs Work knowingly in violation of an applicable Code, then the Contractor assumes responsibility for this Work. Remember, the Contractor must be knowledgeable of the violation in order to be held responsible here. However, this concept extends even to cover Work that may be shown on the Contract Documents in violation of a Code. In other words, EVEN if the Work is drawn or specified in violation of Code by the Architect, if the Contractor knows it is wrong and installs or constructs the Work EXACTLY like the Architect shows, then STILL the Contractor is responsible. It may sound unfair, but just remember, "if you know something is wrong, and you don't say something about it, you are going to share in the cost of correcting it." One last thing to remember here, however, to help keep things in perspective. It is NOT the Contractor's responsibility to verify that the Contract Documents are in compliance with Codes. It is simply the idea that IF the Contractor knows there is a violation, there is responsibility to make it known. Contractor's are often VERY knowledgeable of Codes due to their experience.

In accordance with the General Conditions A201 and Substantial Completion, which of the following statements is true?

This last question deals with the importance of Substantial Completion, especially with regard to items requiring correction or completion and warranties. Remember, when the Contractor believes the Work is Substantially Complete, it is the Contractor's responsibility to prepare a list of items requiring correction or completion and it is the Contractor's responsibility to request an inspection for Substantial Completion. If the Architect (after inspecting the Work) agrees that the Work is Substantially Complete, then the Architect issues a Certificate of Substantial Completion. The list of items to be corrected or completed accompanies this Certificate ALONG WITH a fixed time for their correction or completion. Even items which do not appear on the list because of oversight are STILL the responsibility of the Contractor to complete or correct. Finally, Substantial Completion is also extremely important since warranties required by the Contract Documents commence on the date of Substantial Completion of the Work.

In accordance with the General Conditions A201 and the following situation, which of the listed statements is true? "Subsurface conditions are encountered which differ materially from those indicated in the Contract Documents."

This question asks you to first consider this situation: "subsurface conditions are encountered which differ materially from those indicated in the Contract Document" and then, what does A201 say about this situation. Here is what A201 says: "Notice must be given by the "observing party" (just the party that discovered the condition) to the "other party" (almost always the Owner) promptly before the condition is disturbed, and in no case later than 21 days after the first observance of the condition." Actually, the above is a very wordy way of saying that when the Contractor discovers an underground condition that doesn't match the drawings, the Contractor has to notify the Owner no later than 21 days after first discovering the condition. Basically, this gives the Contractor 3 weeks to decide if this is major enough to seek more money, or if would be best to simply deal with situation without arguing the costs. But, in either case, the Contractor has to notify the Owner before disturbing the condition. It is important to note that the notice by the "observing party" concerning the discovery of the condition, must be initially given to the Owner, NOT the Architect. A201 has effectively removed the Architect here from the first point of communication. This is in an effort to protect the Architect in the instance the Architect can't be found (more of an emergency situation).

Concerning Surety Bonds, which of the following statements is true?

This question continues the focus on the Performance Bond and Payment Bond. It asks first whether or not the instrument "Combination Performance and Payment Bond" carries and AIA approval (of course it does NOT). The combination instrument is referred to as a "one-bond" system and it is NOT preferable to a two-bond system. The two bond system is recommended by the AIA and is much more fair. This question also examines where the Contractual authority actually lies to require Bonds in the first place - it is the General Conditions A201 that state that the Owner has the right to require that the Contractor furnish (pay for) certain Bonds.

In accordance with the General Conditions A201, Royalties, Patents, and Indemnification, which of the following statements is true?

This question covers three ideas: 1) royalties and license fees, 2) patents, and 3) negligent acts of the Contractors First, the potentially libelous situation of royalties and license fees (a royalty essentially results in a license fee). The General Conditions state that the Contractor is the party responsible for paying all royalties and license fees. The challenge here is to identify all the Work that may indeed be associated with a royalty or license fee. It's not easy on a complex job to make sure all Work is royalty-free. Sometimes there are mistakes, and the Contractor may perform Work without realizing the Work involved some process protected by a royalty. EVEN in these situations, the Contractor is responsible for the fee and any costs that may be involved for violating a royalty. This is different than the situation of a Contractor performing Work knowingly in violation of a Code, wherein the Contractor is only responsible IF the Contractor knew there was a violation. A royalty or license fee does not involve health or safety issues (the concern of Codes) and is unlike a patent (read the next paragraph). Royalties and license fees protect "intellectual property" and the "inventors" simply want to be paid for the process they have "invented." Therefore, if there is a royalty involved in accomplishing the Work shown on the Contract Documents, the Contractor simply must furnish that Work - royalty included. Just think of it as scaffolding, or temporary power, or any other ancillary item it may take to accomplish the intended design shown on the Contract Documents. Patents are inherently more dangerous with regard to liability. A patent is a protected idea that simply may NOT be for sale or lease. They usually are not. So, ironically, a truly innovative Architect may actually tread upon someone's patent unknowingly. And even an inventive Contractor could furnish Work that might be determined by a judge to be a violation of a patent. Sometimes, it seems you just can't win. Now, since it is difficulty to make sure all Work has been performed with no violation of patents, the General Conditions state that "the Contractor shall indemnify the Owner and Architect against loss for any patent infringement if the Contractor has beforehand knowledge of such an infringement before proceeding with the Work." See the subtle difference here with royalties and license fees." A patent infringement is serious enough business that the General Conditions treats them with the "beforehand knowledge" rule - if a Contractor knows there is a patent infringement and proceeds with the Work anyway - then the Contractor has to indemnify the Architect and Owner of any repercussions. Finally, this question deals with negligent acts of the Contractor. If the Contractor performs negligently (and you can bet there will be litigation) the Contractor agrees to indemnify (hold harmless, cover any losses, etc.) the Owner, the Architect, the Architect's Consultants, and their agents and employees. Basically everybody.

In accordance with the General Conditions A201 and the Resolution of Claims and Disputes, which of the following statements is true?

This question deals with Claims and specifically checks your knowledge of the Architect's role in Claims. A Claim is simply an assertion by one party that they have been damaged by the action or inaction of another party. The Architect as an important role here, yet A201 gives the Architect some protection from the inevitable "fallout" of Claim allegations. For example, the Architect has the right to notify the Contractor's Surety when a Claim is received from the Owner against the Contractor. However, (and this is very important) the Architect has no duty to notify the Surety. If the Architect had this burden, you can imagine the leverage the Contractor might use against the Architect. There could be assertions by the Contractor such as, "if only the Architect had notified my Surety, I would not be in this position." So, A201 takes the position that the Architect may notify the Surety, but is under no contractual obligation to do so. This extends to the situation wherein a Claim may actually cause the Contractor to default. Still, the Architect has no legal obligation to notify the Contractor's Surety. The Architect does not have an infinite amount of time to take action on a Claim. In fact, the Architect's action on a Claim must occur within ten days of the receipt of the Claim. The actions the Architect may take to satisfy this time limit are numerous, but action must be taken within ten days.

Concerning the General Conditions A201 and the Contractor's responsibilities, which of the following statements is true?

This question deals with another important concept expressed in the General Conditions. Specifically, if the Contractor performs Work with beforehand knowledge of an error in the Contract Documents for that Work, the Contractor has liability. In fact, the Contractor has liability in this situation EVEN IF the Work is constructed strictly in accordance with the Contract Documents. This concept extends also to the Contractor's responsibility to inspect portions of the Work to determine if these portions are ready to receive subsequent Work. This specific inspection is a very important responsibility of the Contractor's. The Contractor cannot simply claim that the Work that is exposed to view at any given time is properly installed - the Work that is "covered" by subsequent Work is also the Contractor's responsibility to inspect. Finally, this concept extends to the Contractor's responsibility for the Work of Subcontractors AND employees. The Contractor is responsible for their Work - all their acts and omissions.

In accordance with the General Conditions A201, which of the following statements is true?

This question deals with one of the most important concepts of the General Conditions - the concept of "reasonably inferable." This means that Work which is not shown in the Contract Documents, yet "reasonably inferable" from the Contract Documents as being necessary to produce the intended results must be furnished by the Contractor at no change in the Contract Sum or the Contract Time. It may sound trivial, but this is a crucial concept (upheld by courts) that relieve the Architect from drawing and specifying absolutely each and every item and detail to be constructed. Suppose the Architect had to size and draw and specify each and every fastener in the building, or show every weld, or show each blade of grass in the landscaping plan? Related to this question is the A201 dictate that the way in which the Architect chooses to organize the Specifications does NOT control the Contractor in the division of the Work among Subcontractors - that is the responsibility, right (and burden) of the Contractor alone.

Concerning A701 and a Bid Security, which of the following statements is true?

This question deals with three items: 1) What the "winning" Bidder must furnish and the what will be forfeited if the "winning" Bidder doesn't comply. 2) The Owner's right to retain the Bid Securities, and 3) the Owner's obligation to furnish evidence to the Bidders under consideration that the Owner can fulfill the necessary financial obligations to the Project. Further, if the Owner fails to furnish the evidence, what happens to the Bidders with regard to their obligation to enter into the Construction Contract and what happens to the Bidders with regard to the Bid Security - will it be at risk?

In accordance with A201 and the Contractor's responsibilities, which of the following statements is true?

This question examines some details of the General Conditions. First, A201 sets forth that the Contractor must take field measurements and compare these with the Contract Documents before commencing activities (commencing activities is an A201 phrase meaning pursuing the Work). There are usually considerable expenses related to temporary facilities and services necessary for the completion of the Work, such as temporary electrical power, water, scaffolding, security personnel, etc. A201 makes it clear that the contractor must provide and pay for all facilities and services necessary for the completion of the Work. This is true whether the facilities are permanently incorporated in the Work or just temporary in order to complete the Work. Finally, there are numerous taxes involved in the execution of the Project. The most contentious of these often is sales tax. It is the Contractorʼs responsibility for payment of sales taxes in conjunction with materials used in the Work.

In accordance with C141, which of the following statements is true?

This question examines some terminology with respect to the language of C141 as well as two important aspects of the Consultantʼs services under C141. First, the very C141 document and all of the associated responsibilities of the Consultant are contractually referred to as "This Part of the Project." Seemingly a small point, but this can be critical when examining the scope of Work for the Consultant. The Consultant must perform a number of tasks in accordance with C141. Two of the most important are: 1) the preparation of Construction Costs for the Work designed by the Consultant (this is an integral part of the Consultantʼs Basic Services), and 2) consulting with public agencies. The Consultant must consult with public agencies, as necessary, concerning services or requirements necessary to prepare the Consultantʼs portion of the Work.

In accordance with C141 and the Administration of the Construction Contract, which of the following statements is true?

This question examines the time at which the Consultant may contractually proceed to the next phase of service under the C141 Agreement. The background here is that often the Consultant feels considerable financial pressure to proceed with the next phase of service immediately following the just completed phase of service. C141 prohibits this and, in fact, says that the there is no "automatic" situation that allows the Consultant to proceed to the next phase. The Consultant must have the Architectʼs authorization before proceeding to the next phase of service. This question also repeats the concept we have discussed earlier in the semester with regard to the Consultant having access to the Work. Indeed, C141 grants access to the Work designed by the Consultant whenever the Work is in preparation or progress. Also, this question deals with the Consultantʼs responsibilities with regard to certifying requests for payments submitted by the Contractor. The Consultant has a responsibility to evaluate payment requests by the Contractor and then makes any resultant certification to the Architect (never to the Owner or Contractor). But also, importantly, the Consultant never issues any sort of recommendation to the Contractor regarding an application for payment from the Contractor. Finally, this question examines once again the Consultantʼs rights with regard to rejecting Work designed by the Consultant. Even though it may seem a severe position, C141 states that the Consultant has no right to reject Work - even if the Work is designed by the Consultant and is not in conformance with the Contract Documents. Rejecting Work is the prerogative of the Architect. It makes more sense if you consider the ultimate responsibility for the Work that the Architect bears.

In accordance with A201, which of the following statements is true?

This question examines two important concepts of the Specifications. The first is that Specifications, which contain many written requirements for the Work, legitimately include "workmanship" required. If a certain quality of workmanship is required, the Architect should specify the desired quality. It is important to remember that the Contract Documents are "complimentary." That means that information shown on the Drawings, but not in the Specifications, is just as binding as if shown in both. In other words, Specifications do not take precedence over Drawings and Drawings do not take precedence over Specifications.

In accordance with A201 and time limitations of the Contract, which of the following statements is true? This question focus on

This question focus on the critical nature of time with reference to A201, and particularly the concept of time limits set forth in the Contract Documents as being the "essence of the Contract." The meaning here is that time limits set forth in the Contract Documents define the time in which the contract is legally effective. Another position, relative to time, taken by A201 is with regard to insurance. A201 states that the Contractor shall not commence Work before the effective date of required insurance coverage. As with time being the essence of the Contract, beginning Work before the date the insurance takes effect would violate the Contract.

In accordance with A201 and the General and Supplementary Conditions, which of the following statements is true?

This question focus on the differences between the Supplementary Conditions and the General Conditions. The General Conditions is a historic document first called the "Uniform Contract" and its inception is about 1915. The fact that it was first called the Uniform Contract is important because that is essentially what the General Conditions attempt to be - a uniform contract setting forth all requirements of the project which are not technical in nature (technical requirements related to the construction of the Project are best included in the regular technical Specifications). The Supplementary Conditions are not a standard A.I.A. document (not a published document that one can purchase). The Supplementary Conditions are written by the Architect and are focused on "supplementing" the General Conditions according to the locality of the Project.

Concerning A701 and a Bid Security, which of the following statements is true?

This question focuses on exactly what is pledged by a Bidder with regard to the Bid Security. Remember, the rules regarding the Bid Security are found in the Bid Bond and there are essentially two things that are pledged. One pledge is that the Bidder will enter into a Contract with the Owner on the terms stated in the Bid. Sounds simple, but it does have to be stated. The other thing that is pledges is this: the Bidder, if required by the Contract, will furnish two other specific Bonds. That's it - two simple items pledged with regard to the Bid Security. What is not pledged, implied, stated or in any way even inferred is that the Owner will get to construct (execute) the Project at the bid price of the lowest Bidder, even if that Bidder defaults. That simply is NOT any warranty offered in any way associated with the Bid Security. This is a very misunderstood point by some Owners.

In accordance with A201 and the Owner's responsibilities, which of the following statements is true?

This question focuses on stopping the Work and the Contractorʼs deficiencies. With regard to stopping the Work (an extremely critical procedure), only the Owner has the "right" to stop the Work, but that "right" does not give rise to any responsibility the Owner must bear for stopping the Work. Even in order for the Owner to exercise this right, there must be the situation of the Contractor persistently failing to carry out the Work properly (in accordance with the Contract Documents). The Architect may advise the Owner with regard to stopping the Work, but the Architect has no "right" to stop the Work even if the Contractor persistently fails to carry out the Work properly. The other portion of this question deals with the relationship of a Change Order to any Contractor deficiencies. Specifically, if a Change Order must be enacted to correct the Contractor's deficiencies, the Change Order includes the cost of compensation to the Architect for services required to correct the deficiencies. This is at least some protection to the Architect. Think of it this way, if the Architect has to actually expend time to help correct deficiencies that the Architect did not cause, the Architect deserves compensation. That compensation should come from the Contractor if the Contractor is at fault.

Concerning A701, which of the following statements is true?

This question focuses on the Bidder's responsibility to "bid" what they "see" in the Contract Documents. That does NOT mean that they cannot request a Substitution. In fact, they should if they feel it is appropriate. But, an important thing to remember here is that the Bidder cannot simply assume that just because there is some obvious ambiguity in the documents that they can bid a Substitution. Their duty, in areas of obvious inconsistency or ambiguity in the Bidding Documents, is simply to notify the Architect (never the Owner).

In accordance with A201, which of the following statements is true?

This question focuses on the alteration of the Work of a Separate Contractor, cleaning up of the work, and a review of access to the Work. First, with regard to cutting or altering the Work of a Separate Contractor, keep in mind that the Work of a Separate Contractor belongs either to the Separate Contractor or the Owner depending on the disposition of payment between those two entities - it does not belong to the Contractor. Therefore, the Contractor may cut or alter the Work of a Separate Contractor only with written permission of the Owner and Separate Contractor. Both permissions are required since A201 takes the position that the Contractor may not know who actually owns the Work. With regard to cleanup, remember that A201 includes the Contractor's clean up at the completion of the Work as part of the Contractor's responsibilities And finally, as a review, the Contractor shall provide the Owner and Architect access to the Work when in preparation or progress wherever located. This has been broadly interpreted recently to include even off-site locations. This is interesting when one considers how distant from the site some fabrications occur.

In accordance with A201 and the Administration of the Contract, which of the following statements is true?

This question focuses on the authority of the Architect with regard to the Contractor. Since the Contractor has a very serious interest in the authority of the Architect and that authority was well defined at the time the Contractor entered into the Construction Contract, it only makes sense in basic fairness (and A201 states this) that the authority of the Architect, as set forth in the Contract Documents, may be extended with the consent of the following three parties: Owner, Architect AND Contractor. Further, in the situation of termination of the Architect, the Owner shall appoint another Architect against whom the Contractor makes no reasonable objection. Consider this scenario; the Owner terminates the Architect and wishes to appoint another Architect with authority exceeding that of the terminated Architect. Even if the Owner feels this additional authority is in the best interest of the Project (and obviously the Owner), this additional authority still cannot be granted to the second Architect if the Contractor objects. Think of it this way; that additional authority is over and beyond what the Contractor agreed to at the time of the original agreement.

Concerning A701 and Bidding Procedures, which of the following statements is true?

This question focuses on the important distinctions between Alternates and Separate Bids. If a bid is structured with Alternates, know whether or not Bidders can prioritize which Alternates they bid. If the bid is structured in the form of Separate Bids, know the Bidders rights in refusing the award if the Owner offers less compensation than the combination of all Separate bids submitted.

In accordance with A201 and Final Completion and Final Payment, which of the following statements is true?

This question focuses on the important instrument, the Final Certificate for Payment. It is important to know that the Final Certificate for Payment shall be for the entire balance of the Contract Sum including all retainage. Neither the Architect nor the Owner has the right to withhold the retainage once the Final Certificate for Payment is issued. However, even after the Final Certificate is issued, the Contractor still must complete all obligations to the Work. In other words, the Final Certificate nor the Final Payment releases the Contractor from the obligation to correct or complete Work that is later found to be incomplete or not in accordance with the Contract Documents.

Concerning AIA revisions to the General Conditions A201, which of the following statements is true?

This question has no particular focus, but is a sort of catch-all to examine your knowledge in these basic areas: 1) Why are revisions made to the General Conditions (remember, revisions attempt to reduce ambiguity in the language of the document - generality is NOT desirable). In fact, revisions to the General Conditions are made with the objective of seeking a language subject to only one interpretation. 2) Where are "Historical Updates" to the General Conditions found. Unfortunately, they are not found in any of the documents themselves, and certainly not in the General, Supplementary, or even Special Conditions. The "wrapper" or "diaper" (as some Architects refer to it) sometimes contains this information - but the wrapper has no legal/contractual authority. Finally, this question will examine your understanding of the use of the General Conditions by practitioners with regard to using only selected portions of the General Conditions. Remember, the General Conditions A201 is a copyrighted document. Know the rule of this special copyright. Selective use of selected portions is certainly discouraged.

05. Concerning A701, which of the following statements is true?

This question includes examination on two issues. One, the Sub-Bidders rights with regard to Contract Documents issued directly to them by the Architect. First, the Architect does not issue Contract Documents directly to the Sub-Bidders (only to Bidders). And secondly, even if the Architect were to decide that it was in the Projectʼs best interest (or the Architect simply makes a mistake) to issue Contract Documents directly to the Sub-Bidders, that in no way grants any sort of license for the Sub-Bidders to use the Architectʼs Drawings (by "use", A701 means to use beyond the Project under consideration - in other words, the Sub-Bidder cannot use the information on the Drawings or Specifications for purposes on some other Project) This question also examines the commonly held contract protocol that "words" take precedence over "figures." That position is true in contract law in general, and is true with regard to A701.

In accordance with A201, which of the following statements is true?

This question is a review of the Architectʼs responsibilities with regard to Contractor Submittals and the role of the Architect with regard to inspections and Substantial and Final Completion. First, with regard to Contractor Submittals, surprisingly the Architect has a fairly limited responsibility here. The Architect's review of Contractor's Submittals is not performed with the purpose of determining the accuracy and completeness of the Submittal (the Architect reviews to determine of the Contractor Submittals demonstrates that the design intent will be fulfilled). An additional important item here to remember is that the Architect's approval of a specific item in an assembly does not indicate approval of the assembly of which the items is a component. Sometimes this can be a very real problem as assemblies grow more complex over time. Finally, the role of the Architect with regard to inspection has changed remarkable over the last two decades. The Architectʼs role (I think regrettably) has been reduced to conducting inspections to determine the date of Substantial Completion and the date of Final Completion. Sad.

In accordance with the General Conditions A201, which of the following statements is true?

This question is focused on the all to often situation wherein the Owner or Architect has a reasonable objection to the persons the Contractor proposes to execute the Work (remember, Work is a portion of the Project). If this situation arises, basic fairness says that the Contractor should be treated fairly (as to costs) with regard to having to use different persons than those originally intended to execute Work. That is exactly the position of A201. The General Conditions state that if the Architect or Owner desire the Contractor to use persons with whom they have no objections, then a Change Order may be issued to cover the difference in the Costs to the Contractor for this "replacement." Here is an important thing to remember, however. Just because the Contractor is directed to use different persons for the Work, that by no means there is an automatic increase or decrease in the Contract Sum or Contract Time. Nothing of the sort is predetermined. In fact, costs and/or time may go down instead of going up. The point here is that "replacement" of persons does NOT mean increases or decreases as a "must" situation. Everything is negotiable.

In accordance with the General Conditions A201, which of the following statements is true?

This question is focused on the very important relationship of Shop Drawing, Product Data, and Samples to the Contract Documents. First, these items NEVER become part of the Contract Documents under any circumstances. Even if they are "approved" by the Architect. The Owner has no opportunity to "approve" - so the Owner's desires here are somewhat irrelevant. Another item addressed by this question is the burdensome duty and responsibility of the Contractor to maintain at the site one record copy of the Drawings, Specifications, Addenda, Change Orders, and other modifications to the Contract. This is quite a management burden on a larger project. The General Conditions make it clear that the maintenance and storage of this information is for the OWNER, not the Architect.

In accordance with the General Conditions A201, which of the following statements is true?

This question is focused on your understanding of certain aspects of the method in which the Contractor is compensated. Know specifically the role of the Schedule of Values and when it must be submitted (it must be submitted BEFORE the first Application for Payment). This question also examines liens. Since liens are often difficult for even honest parties to know when they have been filed, A201 states that the Contractor warrants that upon submittal of an Application for Payment, all Work for which the Contractor has previously received payment is free of liens - at least to the best of the Contractor's knowledge. Finally, A201 is concerned with the timing in which Work that is covered by an Application for Payment passes to the Owner. In other words, when does the Owner actually "own" the Work. A201 states clearly that the title to the Work passes to the Owner AT THE TIME of payment to the Contractor - not later.

In accordance with the General Conditions A201, which of the following statements is true?

This question is one of those "catch-all" ones with no particular theme. It asks about Separate Contractors, whether or not the Architect should make any recommendation as to an amount the Contractor requests for payment, and, finally, what are the Architect's rights with regard to rejecting Work. First, I don't like Separate Contractors and this question deals with Separate Contractors. One of the most burdensome aspects of Separate Contractors lies with communications. The good news is that A201 places the burden of communications with the Separate Contractors on the Owner - unless stated otherwise, this communication shall be through the Owner. That's the good news. The bad news is that Owners generally have no idea what they are communicating, nor how to do it. The second part of the question deals with how the Contractor receives payment. The Architect does much observation and evaluation of the Contractor's Work and decides whether or not the amount of money requested on the Contractor's "Request for Payment" is valid. What the Architect DOES NOT do, however, is issue any sort of recommendation to the Contractor of how much payment should be requested - any recommendation here could be very dangerous for the Architect. Finally, this rambling question tests your knowledge of the Architect's authority to reject Work. Yes, the Architect certainly can reject Work which is not in conformance with the Contract Documents. In fact, this is one of the most important enforcement powers in A201 granted to the Architect.

In accordance with A201 and payment to the Contractor, which of the following statements is true?

This question once again examines the Architectʼs role in the compensation of the Contractor. There is a time "window" that the Architect must adhere to with regard to action on the Contractorʼs "Application for Payment" - specifically, within 7 days after the receipt of the Contractorʼs submittal of the instrument (Application for Payment), the Architect must take action. When the Architect issues a "Certificate for Payment" for the full amount (the full amount requested by the Contractor), this certification constitutes that the Work has progressed to the point indicated in the "Application for Payment." Further, a "Certificate for Payment" issued for a full amount constitutes that the quality of the Work is in accordance with the Contract Documents.

In accordance with A201, which of the following statements is true?

This question reviews the relationship of the Construction Change Directive to Contract Time and Contract Sum. A Construction Change Directive is used in the absence of total agreement on the terms of a Change to the Contract(if there was total agreement, a Change Order would be issued). This allows the Project to continue even though there is dispute as to the terms of a change. However, the Construction Change Directive must state the proposed basis for the adjustment to the Contract Time and/or Contract Sum. In other words, the Construction Change Directive does not have to state the actual adjustment - just the basis of the adjustment. An example would be a Construction Change Directive that states that the compensation will be based on the hours required to complete the change. The total dollar figure would not be given (that would be the actual adjustment), yet the basis of the adjustment (hourly) would be given.

In accordance with B141, which of the following statements is true of Construction Cost as related to the Architects compensation?

This question seeks to determine if you know the difference in Construction Cost via B141 and Contract Sum. Construction Cost does not include the Architectʼs compensation, but does include a reasonable allowance for the Contractorʼs overhead and profit and even for contingencies. Contract Sum includes the Contractorʼs overhead and profit, and includes contingencies (since Contract Sum is includes all amounts payable to the Contractor). However, the Architectʼs compensation would not be a part of Construction Cost in either B141 or A201.

In accordance with the General Conditions A201 and the Architect's administration of the Contract for Construction, which of the following statements is true?

This question tests your knowledge as to the period of time that the Architect provides administration of the Contract (the Construction Contract). Keep in mind here that the question is asked in the context of A201, not B141 as it was asked on the previous Exam. The point here is that the Architect is defined by certain rights, responsibilities, and powers from the perspective of the Contractor (think A201) which may differ from that of the Owner (think B141). Specifically, the Architect under A201 provides administration of the Contract during construction and to the date Final Payment is due. Also, the Architect also provides administration from time to time during the Correction Period (at the Owner's concurrence). Think back to B141 and you will remember that there is a 60 day clause relative to Substantial Completion - however, that is a B141 concept, and THIS question is asked with respect to A201 (read the question). There is no contradiction, it is simply a case of the relationship in A201 between the Architect and Contractor, whereas B141 focused on the relationship between the Architect and the Owner. Think of it this way, the Contractor could actually have an advantage over the Owner if the A201 document included language stating that certain aspects of the Architect's "powers" diminished 60 days after Substantial Completion. Under A201, the Contractor simply is not privy to the information and agreements under B141 - so from the A201 perspective (which is the Contractor's perspective) the Architect is an Architect with full powers UNTIL Final Payment is due. In fact, the Architect can, if the Owner requests, even provide administration from time to time during the Correction Period (aka Punch List).

Concerning A701 and the separation of Bidding Requirements and Contract Documents, which of the following statements is true?

This questions focuses directly on which documents (documents, agreements, or instruments) are considered Bidding Requirements and which are considered Contract Documents. The importance here is that certain documents are litigated under Contract Law - some aren't. Very important distinction.

A201 Concepts - Special Concerns of Substantial Completion

Three Important Items with Regard to Substantial Completion: 1) Warranties, 2) List of Items to be Completed or Corrected, and 3) Contractor's Request for an "Inspection" • Warranties required by the Contract Documents commence upon the date of Substantial Completion • List of Items to be Completed or Corrected (sometimes referred to as the "Punch List" • This list is Contractor prepared - can be added to by the Architect • Contractor's Request for Inspection at Substantial Completion: The Contractor requests an "inspection" at Substantial Completion and submits to the Architect a "List of Items to be Completed or Corrected" • This List of Items to be Completed or Corrected must be accompanied by a fixed time the Contractor proposes for their completion (each item) • Even items not appearing on the list because of oversight are still the responsibility of the Contractor to complete or correct More About the Bid Security • The Bid Security (Bond) pledges only two things as we have covered - it never pledges that the Owner will be able to execute the Project at the bid price of the lowest Bidder • The Owner has the right to retain all Bid Securities of Bidder that are being considered for the Award - of course there are conditions - time • If the Owner does not furnish evidence of financial security, when requested, the Bidders can withdraw their Bids and not risk the Bid Security

A701 Concepts - Surety Bond Language Although the Concept of a Surety Bond is Simple, the Language Isn't

Under a Surety Bond, the Surety agrees to answer to the Obligee (usually the Owner) for the default of the Principal (usually the Contractor) • The AIA and even Surety Bond issuers now agree that the forfeited amounts in Bonding (Bid Security and others) is not to be construed as a penalty because of complications with reciprocal awards or bonuses

Separate Bids

When Two or More Separate Bids are Required, the Bidder may Choose to Refuse the Award if the Amount of the Award is Less than the Combination of all Bids Submitted

Fee Structures - GMP, Cost Plus & Fixed GMP (Guaranteed Maximum Price):

a sum established in an agreement between owner and contractor as the maximum compensation to be paid by the owner to the contractor for performing specified work on the basis of the cost of labor and materials plus overhead expenses and profit. Cost Plus Fee agreement: an agreement under which the contractor (in an agreement between owner and contractor) or the architect (in an agreement between owner and architect) is reimbursed for stipulated direct or indirect costs of performance of the agreement and, in addition is paid a fee for services. Stipulated Sum: contract in which a specific amount is set forth as the total payment for performance of the contract. Also called a lump sum agreement.

The owners of a new office building have indicated they wish to have their building LEED certified. What effect might this decision have on the cost of design services?

c) Both the architect's and consultants' fees will increase.

Bidding Requirements

consist of: 1) Advertisement or Invitation, 2) Instructions to Bidders, 3) Supplementary Instructions, 4) Bid Form, 5) Sample Bidding and Sample Contract Documents (not the originals, but samples)

Contract Documents

consist of: 1) Agreement Between the Owner and Contractor, 2) Conditions of the Contract, 3) Drawings, 4) Specifications, 5) Addenda, 6) Modifications Executed After the Award • A701 Informs Bidders of Surety Bonds and Unit Prices • Surety Bond - A type of warranty (see handout) • Unit Price - simply a price for a "unit of work" that the Contractor proposes in the Contract Sum - has nothing to do with Alternates, either Additive or Deductive types

According to the AlA Form A701-1997 Instructions to Bidders, bidding documents are issued to:

general contractors only.

In accordance with B141 and Reimbursable Expenses, which of the following statements is true?

statements is true? Reimbursable Expenses are those expenses the Architect incurs beyond compensation for Basic Services and include even computer-aided design and drafting equipment time used in connection with the Project. Even renderings requested by the Owner are a reimbursable item. Often travel costs that are essential to completing the Project are the main Reimbursable Expenses B141 (and it is true they are often constitute the largest Reimbursable

A201 Concepts - Separate Contractors or Owner's Own Forces The Owner Has the Right to Contract with Separate Contractors (also correctly referred to as the "Owner's Own Forces)

to as the "Owner's Own Forces) • Communications with the Owner's Own Forces are to be through the Owner (unless the Contract is modified to state otherwise) • Important concept relative to Owner's Own Forces is that of "Reasonably Discoverable" • The Contractor ("Prime" Contractor) must report to the Architect any apparent defects in the Work of the Owner's Own Forces which would make that Work unsuitble for the Contractor to execute Work • The Contractor ("Prime" Contractor) must allow the Owner's Own Forces reasonable opportunity for the introduction of their equipment, but also must connect the Work to that of the Owner's Own Forces • That is, the Prime Contractor must make the connections to the Work of the Separate Contractors

A201 Concepts - Architect's Administration of the Construction Two "Views" of the Architect's Administration of the Construction Contract (Remember there are different parties to B141 vs. A201)

• B141 Owner-Architect Agreement - states the Architect is fully empowered to administer the Construction Phase for 60 days after Substantial Completion or until Final Payment is due (Remember this is the agreement between the Architect and Owner only, there are different interests between the Owner, Architect AND CONTRACTOR) • A201 General Conditions - states the Architect is fully empowered to administer the Construction Phase "during construction" and to the date Final Payment is due (also, if the Owner desires, from time to time during the Construction Period) • In A201, the Architect's powers are not limited to a period of 60 days after Substantial Completion - after all, the construction could be taking longer than anticipated and go well beyond the 60 day stipulation, and the Architect's powers could be needed even more • Only the Owner then (B141) can effect the Architect's powers relative to the Construction Phase, not the Contractor

A201 Concepts - Changes to the Contract - Proper Instruments Change Orders do not Invalidate the Original Contract, Therefore, no "New" General Conditions are Required

• In the case of reasonable objections to the persons proposed for Work: Owner or Architect may object and can issue a Change Order to cover the costs of "replacements" for which there are no objections • This "replacement" does not automatically result in an increase to the Contract Sum or Contract Time - in fact, it may result in a decrease to Contract Sum or Contract Time or both Change Order, Construction Change Directive, and Minor Change in the Work - Each Instrument Has Specific Powers and Signatures (Change Order and Construction Change Directive affect Contract Sum or Contract Time or Both) • Change Order: Signature of Owner, Architect, and Contractor • Construction Change Directive: Signature of Owner and Architect • Minor Change: The Architect can unilaterally direct if consistent with the intent and scope of the Contract Documents - but IS a Contract change

A701 Concepts - Bid Modifications and Qualifications Modifying a Bid is Possible, but there are Limitations

• Prior to the time and date set for the receipt of Bids - Bids may be modified or withdrawn by proper notice without risking the Bid Security • Alterations and erasures on the Bid Form are valid if initialed by the signer of the Bid • An Bid change made to a Bid must be worded so as to not reveal the total Bid sum (if only the Bid change is viewed) • After the time and date set for the receipt of Bids - Bids may not be withdrawn without risking the Bid Security Qualifications of the Contractor as Well as the Owner • AIA Document A305 Contractor's Qualification Statement may be required of Bidders to whom award of a contract is under consideration • The Owner must furnish reasonable evidence of financial capabilities, if requested by a Bidder to whom award of contract is under consideration (if Owner does not - Bidder may withdraw without risk)

A201 Concepts - Revisions, Copyrights, & Two Protective Concepts The General Conditions have Undergone Several Revisions

• Revisions are always made with the objective of seeking a language subject to only one interpretation The General Conditions do bear a copyright, in fact a very unique one: • There is no violation of copyright if the document is used in its entirety - whereas, use of selected portions violates copyright law The General Conditions Provide Two Critically Important Protective Concepts for the Architect and Owner • The Concept of "reasonably inferable" - Work not shown in the Contract Documents, yet is reasonably inferable from the Contract Documents as being necessary to produce the intended results must be furnished by the Contractor at no change in the Contract Sum or Contract Time • Concept of Specification Organization - Only the Contractor controls the division of Work among the Subcontractors - Work is not controlled by the way in which the Architect organizes the Specifications (or others)

A201 Concepts - The Certificate for Payment Withholding a Certificate for Payment or a Portion Thereof is an Empowerment of the Architect

• The Architect may withhold a Certificate for Payment for the entire amount requested in the Contractor's Application for Payment or may withhold a portion of the amount requested • The Architect does not have to issue a Certificate for Payment even for a portion of the Application for Payment IF the Contractor is not due the amount requested • The Architect may refuse to certify amount requested by the Contractor for: • Work not in accordance with the Contract Documents • Failure of the Contractor to make payments properly to Subs • Reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum • Be very careful with the third one - "reasonable evidence"

A201 Concepts - History & Structure The Second Edition of the General Conditions (referred to as the Standard Document) is a Turn-of-the-Century Event

• The General Conditions detail just that - those conditions to the Contract for Construction which are not shown on the Drawings or in the Specifications • Around 1900 to 1915, this Second Edition recognized the need for Supplementary Conditions (those Conditions which supplement or modify the General Conditions due to location) • There can also be Special Conditions which are conditions which are especially pertinent to portions of the Work • The General Conditions can be made a part of the Contract by inclusion in the Specifications or, better, "by reference" • The Architect has always been in a rather exalted position in the General Conditions • The Architect is not a "party" to the Conditions (General or Supplemental), but is a "participant" with both responsibilities and enforcement power

A701 Concepts - Discovery & Addenda & the Architect's Documents Bidder is Responsible for Reporting any Discovered Inconsistencies or Ambiguities in the Bidding Documents

• This information is reported by the Bidder to the Architect Often (but not always) reported inconsistencies or ambiguities necessitate interpretations, corrections and changes - the proper instrument to execute this change is an Addendum or Addenda • Addendum (singular) or Addenda (plural) are changes to the documents executed before (not subsequent to) the Award. Issuance of the Architect's documents • Because of possible copyright infringement, the Architect's documents, Sub-bidders are not issued documents directly from the Architect • Sub-bidders are not granted any form of license to the Architect's documents (this is an extra protection related to the point above)

Concerning A701 and the issuance of "Bidding Documents", which of the following items are classified as a part of the Contract Document? (check all that apply)

① The form of Agreement between the Owner and Contractor ② The Conditions of the Contract ④ Addenda ⑤ Drawings ⑥ Specifications