Construction & Evaluation

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Payment bond vs bid bond vs performance bond

Each of these bonds is like a little insurance policy, purchased by the contractor, and payable by the "insurance company" third-party if the contractor defaults on her commitments Payment bond: pays out subcontractors and suppliers if the contractor flees or goes broke Bid bond: pays out the owner if the contractor accepts the bid, but doesn't sign the contract to build the project Performance bond: pays out owner to finish the project if the contractor flees or goes broke partway through construction

AIA Document C195 AIA Document C196 AIA Document C197 AIA Document C191 AIA Document A195 AIA Document B195

Each of these is a contract used for Integrated Project Delivery (IPD) In IPD, the architect, contractor, and owner (and perhaps other players) attempt to truly collaborate—and unyoke themselves from a long tradition of adversarial relationships underpinned by legal claims, silo-ism, and general disdain for one another. The AIA contracts associated with this flavor of project delivery offer extreme flexibility in compensation and incentive structures, but are organized in three IPD subgroups. Single-purpose entity IPD: The most hardcore IPD option. You, the architect, create a temporary legal agreement to create new LLP company with a developer and contractor to design and build cruise ship repair facility. The new company paid your design costs plus a very small fee. Upon completion, the new company sells the cruise ship repair facility to Carnival Cruise Lines and you earn some of the profits (or take some of the losses) associated with the sale because you have partial ownership of the company that built the project. This is a high-risk model with a big potential up-side, however it confuses your tax accountant, confuses your insurance agent, and muddles the management roles in the new company. AIA Document C195-establishes the new company. Click here for an example if you are curious to see more. AIA Document C196-between the new company and owner. Here. AIA Document C197- between the new company and the architect or contractor, or other firm that the new company hires. Here. Multi-party IPD: Easier and quicker to structure than a single-purpose entity IPD because you don't jointly birth a new company. Maybe the developer pays your team for its time (direct costs), but not for overhead or profit. The developer, contractor, and you team up and agree to work with one another as true partners, but stop short of taking joint ownership of a new development company . . . importantly, you still each agree not to sue one another. You, the architect, are hired by a developer to design a cruise ship repair facility. If the cruise ship repair facility is energy-efficient and has an energy use intensity (EUI) less than 500 kBTU/sf, the owner pays you a $100,000 bonus and another bonus goes to the contractor. If the project is awarded a certificate of occupancy before June of next year, you earn another $150,000 bonus and the contractor earns her bonus. If the project comes in under-budget, you are entitled to 20% of the savings and the contractor is also given a cut of the savings. While the developer incentivizes you based on the project's success, you don't have ownership in the project, so your up-side opportunities aren't as lucrative. But if the news extensively covers a high-profile cruise ship sinking and Carnival Cruise Line files for bankruptcy before it was slated to purchase the project from the developer, neither you nor the contractor are on the hook for the loss. This flavor is the most common IPD contractional relationship. AIA Document C191-Standard Form Multi-Party Agreement for Integrated Project Delivery sets up the team, defines the compensation, and waives the right to file claims against one another. Here. Transitional IPD: IPD-lite for those who are IPD-curious but not prepared to fully-deviate from the familiarity of the old, adversarial relationships. Transitional IPD presents as similar to the multi-party option above, in that we didn't birth a new company. But now, with transitional IPD, the three parties-owner, contractor, and architect- are less of a team: everyone can sue one another, just like in legacy project delivery options. And also, as in the older project delivery contracts, the owner retains the authority to make the call on issues that arise, overriding the contractor and you, because are not really partners. The owner even holds the contractor to a guaranteed maximum price. So how is a Transitional IPD an IPD at all? Answer: it's barely IPD. The contracts describe the phases in IPD language ("Criteria design phase," instead of, "Schematic design phase," etc.) and they stipulate some collaborative processes and open information sharing that goes beyond older contract types. AIA Document A195-between the owner and contractor in transitional IPD. Here. AIA Document B195- between the owner and architect in transitional IPD. Here.

Advantages & Disadvantages of Multi-party IPD

Easier and quicker to structure than a single-purpose entity IPD because you don't jointly birth a new company. . . . importantly, you still each agree not to sue one another. While the developer incentivizes you based on the project's success, you don't have ownership in the project, so your up-side opportunities aren't as lucrative. This flavor is the most common IPD contractional relationship.

Rectified Photography

Façade/flat face photos for high detail records. See here.

Phases of IPD

For IPD, the contracts have new phase terminology for old concepts 1. Conceptualization (kind of like programming) 2. Criteria Design (schematic design) 3. Detailed Design (design development) 4. Implementation Documents (construction documents) 5. Agency Coordination/Final Buyout (permits and approvals secured; all subcontractors committed) 6. Construction 7. Closeout (as-built drawings)

Commissioning Agent

Holds a quality management role, typically focused on building systems and looking to ensure that the building met its design intent in sustainability, plumbing, thermal comfort, energy use, air quality, acoustics, etc.. They may test the water temperature to make sure it is hot enough to kill germs but not too hot to scald a baby and waste energy. They may measure the humidity in the rooms, double-check the energy model, or survey occupants about HVAC noise.

What are the phases and parts of a commissioning agent's responsibilities on a project?

Holds a quality management role, typically focused on building systems and looking to ensure that the building met its design intent in sustainability, plumbing, thermal comfort, energy use, air quality, acoustics, etc.. They may test the water temperature to make sure it is hot enough to kill germs but not too hot to scald a baby and waste energy. They may measure the humidity in the rooms, double-check the energy model, or survey occupants about HVAC noise. 1. Design: project requirements and specifications, sustainable options 2. Construction: administration of procurement, installation, and review 4. Acceptance: testing and manuals 5. Post-Acceptance: prepare the owner for taking over

Perforated Pipe

Holes turned to the side

Hydrostatic pressure

Hydrostatic pressure:A force that causes water to come up through cracks in foundations, causing mildew, mold, foundation damage, decay and other water-related issues. In buildings, hydrostatic pressure is most associated with foundations, basements, retaining walls, and any water-resistant surface that sits against wet earth. See a diagram here or a short video here. To address hydrostatic pressure at foundation walls: slope the soil away from the building; create a capillary break with gravel backfill (old way) or dimple core drainage composites, which look like this and attach to a wall in the field like this. And bury a perforated pipe, holes turned to the side, so that as water drops down the capillary break, it fills up the pipe and is carried downhill to daylight.

Initial Decision Maker

IDM

Agency Review

IPD Authority Having Jurisdiction (AHJ) review and asks questions on BIM model *This process is meant to catch issues as early as possible.

Buy-Out

IPD Vendors and contractors commit to work packages

Advantages & Disadvantages of Transitional IPD

IPD-lite for those who are IPD-curious but not prepared to fully-deviate from the familiarity of the old, adversarial relationships. Everyone can sue one another, just like in legacy project delivery options.h The owner retains the authority to make the call on issues that arise. it's barely IPD. The contracts describe the phases in IPD language ("Criteria design phase," instead of, "Schematic design phase," etc.) and they stipulate some collaborative processes and open information sharing that goes beyond older contract types.

When are allowances most often used?

In lump sum or guaranteed maximum price (GMP) construction projects. Why? Because we need a solid price at the start of the work to pay the contractor. Allowances give us wiggle room (but too many allowances on a single job may lead to disputes).

IDM

Initial Decision Maker

A701

Instructions to Bidders

In your own words, how does the AIA number its documents?

It may seem like we are looking at random numbers, but the AIA has a system for numbering its contracts and other documents. Let's look at the document introduced a couple of cards ago, AIA C195, which sets up the new company in the single-purpose entity IPD project. We'll start with the "C," which denotes "other agreements," and is reserved for contracts other than those between the owner and contractor ("A") or those between the owner and architect ("B"). For instance, AIA C401 contracts the consultant to the architect. D-Misc forms and documents E-Exhibits (sidecars to other documents) G-Forms for contract administration and project management (important to the CE test!) . . . Back to our example, the C195 for setting up the single purpose entity in IPD. The first digit, the "1" denotes a prime agreement (main contract with the owner). The prime agreement between owner and contractor is A101 (remember that "A" links owner and contractor); the prime agreement between owner and architect is B101 (remember that "B" links owner and architect). Below you'll find the meaning of the other first numbers in the three-number sequence: 2-conditions or scope of the agreements 3-bonds or qualifications 4-agreements between prime and sub-contractors or sub-consultants (remember our C401 agreement between architect and consultant?) 5-guides 7-bid documents and construction forms (important for the CE division) 8-forms or documents specific to the architect. . . . Back to our example, the C195 for setting up the single purpose entity in IPD. The second digit, the "9," denotes the project delivery method. All documents with "9" as the second number relate to IPD. Again, from a couple of cards ago, the AIA C191 establishes a multi-party type of IPD. The meaning of other digits in the second slot: 0- conventional delivery (AIA B101) 1- also conventional delivery 2- also conventional delivery 3- construction manager as adviser or as constructor 4-desisgn-build 5-interior only 6-international 7-program management The last number is random and just allows for 10 different documents to fall under the taxonomy established by the first three characters. . . Back to our example, the C195 for setting up the single purpose entity in IPD. The third digit, the "5," has no meaning other than to differentiate it from the C191, which you'll remember we use to set up the multi-party IPD.

AIA G707A

Manages retainage payout Retainage, you'll remember,holds back of some of the contractor's money until she completes the job. See a sample AIA G707A here.

Multi-party IPD

Multi-party IPD: Easier and quicker to structure than a single-purpose entity IPD because you don't jointly birth a new company. Maybe the developer pays your team for its time (direct costs), but not for overhead or profit. The developer, contractor, and you team up and agree to work with one another as true partners, but stop short of taking joint ownership of a new development company . . . importantly, you still each agree not to sue one another. You, the architect, are hired by a developer to design a cruise ship repair facility. If the cruise ship repair facility is energy-efficient and has an energy use intensity (EUI) less than 500 kBTU/sf, the owner pays you a $100,000 bonus and another bonus goes to the contractor. If the project is awarded a certificate of occupancy before June of next year, you earn another $150,000 bonus and the contractor earns her bonus. If the project comes in under-budget, you are entitled to 20% of the savings and the contractor is also given a cut of the savings. While the developer incentivizes you based on the project's success, you don't have ownership in the project, so your up-side opportunities aren't as lucrative. But if the news extensively covers a high-profile cruise ship sinking and Carnival Cruise Line files for bankruptcy before it was slated to purchase the project from the developer, neither you nor the contractor are on the hook for the loss. This flavor is the most common IPD contractional relationship.

Alternate

Multiple pricing options *Often uses "in addition to" or "in lieu of" Add alternates: "How much more would it cost if we included this shed I designed as part of this project?" Add alternates are for something in the project that the owner considers desirable but not critical. Deduct alternates: "How much would we save if we got rid of these external louvers I drew?" Deduct alternates allow a kind of coordinated cost-cutting baked into the bidding process. Let's say a state courthouse goes out to bid with add alternates that demand line-item (separate) pricing for extra security systems, extra outdoor lighting, marble (instead of wood) for the lobby floor, a geothermal system for heating and cooling, a low-energy reflective roof membrane, a public farmer's market structure for the front lawn, and acoustical testing during construction; and a deduct alternate for relocating the electrical transformer from inside (more expensive) to outside (less expensive but uglier). The owner can look over the bid packages and consider prices on any combination of alternates to make his decision. In public projects with rules that heavily favor the lowest bidder but don't specify which alternates must be considered when deciding whose price is lowest, contractors fear that the government will use this flexibility to pick the specific combination of alternates (and bidders' prices for that specific combination of alternates) to create the most attractive bid for the contractor they secretly wanted to work with anyway. The contractors may ask the state government to rank-order the alternates so the contractors can focus on providing the best price for those alternates that the owner favors. . . but there is no incentive to the owner to rank the alternates before accepting bids, so he often won't bother. Alternates, unit pricing, cost-plus-fixed-fee project delivery method, and allowances, offer architects and owners more flexibility to change course during construction without the contractor fleecing them with change orders. So much effort- in these exams and in practice- to protect the owner from change orders by compelling the contractor to set her price up front! If you are curious about alternates and want to read more, go here.

What are the project conditions necessary for Substantial Completion to be certified and the owner to occupy a project?

Nothing can be outstanding that prevents the owner's full use of the building. *Does not include touch-ups, small repairs, or omissions

Surety bonds

Once the bid is submitted, the bidder is obligated to follow through with the contract to build the project, as set forth in the bidding documents, at the offered bid price. They must also furnish any required surety bonds. Bid bonds and performance bonds are types of surety bonds that work like insurance protecting the owner if the contractor does not follow through with a project. These obligate a third-party insurer to pay the owner to finish the project if the contractor walks. Bid bonds will pay the difference between the accepted bid and the next lowest bid if the lowest bidder cannot follow through with the work. Performance bonds will pay for the project to be completed if the contractor defaults midway through. The cost of the bonds should be included in the bid price. As you would imagine, there's an AIA document to identify and organize the bonds (A312).

AIA Document A305

Once the contract award is under consideration, the selected bidder may be required to submit to the architect a Contractor Qualification Statement (AIA Document A305).

Contractor Qualification Statement

Once the contract award is under consideration, the selected bidder may be required to submit to the architect a Contractor Qualification Statement (AIA Document A305).

Non-conforming work protocols

Only the Owner can accept non-conforming work The Architect should keep careful records of any non-conforming work The Architect must insist on conformance in matters of code, health, safety, and wellness

Who must sign the Certificate of Substantial Completion?

Owner Architect Contractor *All three must also sign Pay Applications

AIA G612

Owner's Instructions to the Architect Regarding the Construction ContractOwner and architect fill out a form that lists a bunch of their insurance policy details (workers' comp, commercial general liability, auto, etc.) See a sample form here.

AIA Contracts

Owner-Architect Agreement B101 is here (most important one to know) Owner-Contractor Agreement A101 is here General Conditions of the Contract for Construction A201 is here Architect-Consultant Agreement C401 is here *As with so much of the other content in this division, these are also important for PjM, and PcM exam divisions, and to a lesser extent, PA, PPD, and PDD. That is why you'll save yourself time-both in total hours of studying and in total time until licensure-if you treat all six divisions as one long six-part exam to be taken in one or two weeks. I know you are scared of this idea, but I'm certain I'm right about this.

Types of contractor submissions and their protocols

Pay App (G702) see example here Changes Order (G701) see example here *These forms must come to the Architect first, who then checks them for adherence to contract standards, then sends them to the Owner for payment

Sample

Physical examples of goods and materials; a type of submittal.

Post-construction evaluation Protocol for outstanding issues

Post-construction evaluation: The owner has the right to meetings regarding the facility operations and building performance up to one year after substantial completion. Protocol for outstanding issues: The contractor has the right to be given notice and a chance to fix issues (or the owner's right to damages is waived).

POE

Post-occupancy evaluation is typically a more elaborate and rigorous evaluation than a simple meeting and is listed in the contract as a supplemental service that merits additional compensation for the architect. POE determines if the building performs as intended In POE, six months or a year after occupancy, the architect will go in and test the space for functionality and comfort: energy use, water use, thermal comfort, acoustics, lighting, wayfinding, workflows, user satisfaction surveys, and overall design.

What typical responsibility of the architect does the construction manager take for a CM as Advisor project?

Preparation and management of change orders.

What are the architect's responsibilities in pre-construction?

Prepare final contract documents Administrate the bid and selection process (to see the AIA document for bidding, go here) - A701 - Instructions to Bidders

AIA D200

Project Checklist 1. Bidding and Negotation (Pre-Construction) 2. Construction Contract Administration 3. Post-Construction Take a look at it here (seriously, take a look. . . it's comprehensive and useful)

What are the architect's pre-construction activities?

Providing assistance with the bid process

AIA G712

Shop drawings and sample record. See an example here. It's a log of fabrication drawings and samples submitted by the contractor with the date submitted, the subcontractor trade, and whether or not the sample or drawing was approved by the architect.

Flavours of IPD

Single-purpose entity IPD Multi-party IPD Transitional IPD

Statute of Repose vs Statute of Limitations

Statute of Repose: a hard deadline on the time window, in which an owner can sue the architect. Imagine a statute of repose of 10 years from substantial completion. If a leaky roof slowly rots the rafters, and the leak started before the 10-year mark, but the discovery of the rotten rafters occurred after the 10-year window, the owner waives the right to take the architect to court or arbitration. Statute of Limitations: a more flexible deadline. Imagine instead there is a 10-year statute of limitations from substantial completion. Now the judge or arbitrator has the flexibility to rule that because the leak started before the time limit, the suit can proceed even though the discovery of the rotten wood occurred after the 10 year time limit. Most states have both statutes of limitations and statutes of repose automatically written into law. So there may be a six year statute of limitations (leak arrived within six years but rotten wood not discovered until seven years: okay to sue) with an nine-year statute of repose (hard deadline after 9 years: even if the leak occurred within six years, no liability after nine if the rotten wood was discovered 11 years after substantial completion). Some states-I'm talking to you New York and Vermont- have no absolute limit on the length of time that the architect is exposed to a lawsuit; they have no statute of repose. Most states respect the "private law" of the contract. In other words, if, in advance, an architect and owner agree on a timeline differing from the state's default timelines, the contract's timeline will supersede the state's default timeline. The AIA agreement spells out that the statute of repose stop-watch for litigation begins at substantial completion and extends to either The state's default statute of repose or Ten years Whichever is shorter. The "private law" established by contract between the architect and owner may amend the rules for the owner suing the architect, but it obviously does not affect a third party. So the right of a visitor to the building to sue the architect after a slip-and-fall extends to the limits established by each state-and rules vary wildly from one state to another. As you may imagine, the architecture and construction professions generally advocate for the certainty associated with statutes of repose that begin upon substantial completion, while the owners often advocate for the flexibility of statutes of limitations or write their own contracts where the clock begins ticking upon the discovery of the defect, rather than at substantial completion. If the owner or other third party can theoretically sue forever, when can the architect cease carrying liability insurance after retirement? How can a firm that purchases another firm assess the risk that some long-ago error, perpetuated by the purchased firm, might resurface? In both types of statutes, the clock can begin ticking either when an event occurs (i.e. substantial completion) or when the harm is discovered (i.e. rotten wood discovered). In the AIA contracts, and therefore in the ARE, we focus on the statutes of repose where the clock starts at substantial completion

Submittal Definition, Protocol, and Examples

Submittals are product information submitted to show adherence to contract documents. The Contractor submits them to the architect for review and dissemination to architect's consultants, then approvals move back through the architect to the contractor. Examples: Product choices, cut sheets, color and material offerings, shop drawings, samples, etc.

Submittals are material & product samples, product performance data, shop drawings and mockups. When a electrical subcontractor has submittttal that needs approval, what is its path?

Submittals are the things that the contractor offers to the architect to confirm that what is being built matches the design intent. The architect must them approve the submittal.

Informational submittals

Submittals not requiring approval by the architect sent by the contractor to verify conformance to the contract. *e.g. Coordination drawings, performance calculations

CSI 13.1A

Substitution request To see an example, go here.

Base bid

Sum stated in the bid from interested contractors. Does not include alternates.

What are the architect's responsibilities in a Construction Manager as Advisor project?

The Architect remains the Initial Decision Maker. The CM becomes the point of contact for RFIs, coordination between Contractor and Owner, and administers Construction Change Directives

If you are not seeking licensure in California, skip this flash card.

The California Supplemental Exam: How to study for it? Amber Book doesn't offer a prep course for the CSE, but below is what I'm told. . . I pass it onto you not having studied or taken this exam myself. David Doucette with the whole enchilada is your first resource. He has PDF's, audio book, & mock exams. The links inside the whole enchilada are very useful. https://californiasupplementalexam.com/whole-enchilada/ Archi Woo with CSE Education is your second resource. He covers many things that David doesn't cover, and his mock exams are very close to the real exam (David's mock exam is very easy, the actual exam has very tricky questions). Here is a link https://www.cseeducational.com/studymaterials Ventura County Wetland Project Permitting Guide - This 62 page guide has case studies and examples that are close to the real exam questions. And so many good definitions. Don't skip a page. http://pwaportal.ventura.org/ONESTOP/ESD/Wetland_Project_Permitting_Guide_in_Ventura_County.pdf You'll get some questions that you already covered in the ARE's like project delivery and the AIA contracts, primarily from B101 & A201. The challenge of the CSE is to know which agency (federal, state, local) has jurisdiction over your project. And there is a lot of overlap. Going to the agency's website and getting familiar with their programs is a key to master the exam. Here is an example of an agency website https://www.waterboards.ca.gov/water_issues/programs/ Looking at the logos and reading their programs will help you remember them better in the exam. The exam may appear a bit overwhelming when you first start but it's not that difficult. You got this!

An architect is designing a hotel that will be paid for with a loan. If the owner-architect contract stipulates that the architect's fee will be 7% of construction costs, will the architect's fee include 7% of the cost of financing?

The Owner's budget for the Cost of the Work- which is what that 7% fee is based on- does not include the cost of financing. It also does not include the costs of the land, or the compensation of the architect.

Who confirms that the contractor has done the work he promised?

The architect signs off on AIA Document G702, Application and Certificate for Payment. As building professionals who represent the owner, the architect holds the contractor accountable and has the final say as to whether the contractor gets paid for this month's work. See a sample of the AIA Document here (worth reading before the CE exam)

A bidder wants to better understand the type of soil on the site. Why can't a bidder call the architect to get a clarification?

The bidder has questions, seeks clarification, or seeks interpretations of the bidding documents? (They often do.) Give those questions to the architects in writing at least one week before the bids are due. The architect will offer written addenda as explanations to all the bidders, based on all the questions received from all the bidders, that way everyone is bidding from a level playing field, armed with the same information. No private phone calls with clarifications for one bidder! If the bidder submits late, they might have an advantage because the other bids have been revealed, so late bids are not accepted. The bidders must all adhere to the same rules. Often the bids are opened publicly and read aloud. Sometimes a summary of the bids is made available to the other bidders so they can see how, and by whom, they were underbid. For a more complete review of bidding, watch this Amber Book : 40 Minutes of Competence video.

Commissioning agent

The commissioning team includes the architect, owner, contractor, and/or a dedicated professional commissioning agent Commissioning: The process of testing, documenting, and approving building equipment

Protocol for outstanding issues

The contractor has the right to be given notice and a chance to fix issues (or the owner's right to damages is waived).

A facility performance evaluation vs post-occupancy evaluation

The facility performance evaluation is a requested meeting with the owner, at no additional compensation to Architect. The Architect must hold the meeting towards the end of the first year after Substantial Completion. Post-occupancy evaluation (POE) is typically a more elaborate and rigorous evaluation than a simple meeting and is listed in the contract as a supplemental service that merits additional compensation for the architect. POE determines if the building performs as intended In POE, six months or a year after occupancy, the architect will go in and test the space for functionality and comfort: energy use, water use, thermal comfort, acoustics, lighting, wayfinding, workflows, user satisfaction surveys, and overall design. It has the side benefit of strengthening the client-architect relationship and can serve as a powerful learning tool for the architect to see what went right-and what needs improvement next time.

Who pays for permitting fees?

The general contractor pays for building permits The owner pays for permitting fees associated with the municipality's design review: zoning review fees, permit review fees, planning commission fees, etc. The owner pays for permitting fees associated with the municipality's design review: zoning review fees, permit review fees, planning commission fees, etc.

Single-purpose entity IPD

The most hardcore IPD option. You, the architect, create a temporary legal agreement to create new LLP company with a developer and contractor to design and build cruise ship repair facility. The new company paid your design costs plus a very small fee. Upon completion, the new company sells the cruise ship repair facility to Carnival Cruise Lines and you earn some of the profits (or take some of the losses) associated with the sale because you have partial ownership of the company that built the project. This is a high-risk model with a big potential up-side, however it confuses your tax accountant, confuses your insurance agent, and muddles the management roles in the new company.

Post-construction evaluation

The owner has the right to meetings regarding the facility operations and building performance up to one year after substantial completion.

permitting fees associated with the municipality's design review

The owner pays for zoning review fees, permit review fees, planning commission fees, etc. Sometimes the architect lays out the cash for the design review fees and then passes those charges onto the owner as a reimbursable. The general contractor pays for building permits

When is retainage paid, at Substantial Completion or at Final Completion?

The owner pays retainage at Substantial Completion. In the exam, when given a choice between Substantial Completion and Final Completion, if you're not sure, choose Substantial Completion. . . almost everything end-of-construction-related happens at that milestone.

Commissioning

The process of testing, documenting, and approving building equipment The commissioning team includes the architect, owner, contractor, and/or a dedicated professional commissioning agent

Advantages & Disadvantages of Single-purpose entity IPD

This is a high-risk model with a big potential up-side, however it confuses your tax accountant, confuses your insurance agent, and muddles the management roles in the new company.

If the architect's fee is based on a percentage of construction cost, does that fee include contingency built into the budget for cost overruns? In other words, if the architect's fee is 7% of a building's cost, and the building is projected to cost $100,000 with a 5% ($5,000) contingency allowance, is the architect entitled to 7% of $100,000 or 7% of $105,000.

This issue was long a point of confusion, until the 2017 version of the contracts cleared this up by changing the language of the AIA Documents from "Cost of the Work" to "Owner's budget for the Cost of the Work." So, as design progresses, the architect's fees, if billed as a percentage of cost, reflect the fluid nature of construction costs by basing fees on the current owner's budget. Though the evolving Owner's budget for the Cost of the Work does not include contingency, at the end of the process, if the project is subject to change-orders and goes over-budget, and the architect's fee is 7% of the "Owner's budget for the Cost the Work," then the architect is owed 7% of that overage when they settle up.

Transitional IPD

Transitional IPD: IPD-lite for those who are IPD-curious but not prepared to fully-deviate from the familiarity of the old, adversarial relationships. Transitional IPD presents as similar to the multi-party option above, in that we didn't birth a new company. But now, with transitional IPD, the three parties-owner, contractor, and architect- are less of a team: everyone can sue one another, just like in legacy project delivery options. And also, as in the older project delivery contracts, the owner retains the authority to make the call on issues that arise, overriding the contractor and you, because are not really partners. The owner even holds the contractor to a guaranteed maximum price. So how is a Transitional IPD an IPD at all? Answer: it's barely IPD. The contracts describe the phases in IPD language ("Criteria design phase," instead of, "Schematic design phase," etc.) and they stipulate some collaborative processes and open information sharing that goes beyond older contract types. AIA Document A195-between the owner and contractor in transitional IPD. Here. AIA Document B195- between the owner and architect in transitional IPD. Here.

When bolting steel members, how do we know that the nuts are tight enough to meet structural requirements?

Turn-of-Nut Bolting Method: a preset goal is established for how far the nut needs to be tightened. For instance, steel workers tighten 1/3 of a turn (120 degrees) after the nut makes contact with the steel. The nut is snug-tightened, then marked so that we can later see that it has been tightened the required extra turn. To see an example, go here. Calibrated Wrench Method: an electric wrench is calibrated to stop at a predetermined amount of torque, and each nut is tightened until the wrench's torque guage tells it to stop. The wrench must be recalibrated each day, so this method works best with small jobs where all the bolts can be tightened in one shift. To see how the wrench is calibrated prior to the iron worker's shift, see here. Direct Tension Indicators: metal wrings that look like washers are slid on the bolt-nut assembly before tightening. We know the bolt is tightened enough when bumps on the direct tension indicators (washers) have been sufficiently crushed. This can be seen by the eye, but should be measured with a "feeler guage." Direct tension indicators are the simplest method of ensuring proper bolting because the operator can easily see if a bolt is not sufficiently tightened. For this reason, it is also the technique least likely to result in insufficiently tightened bolts and it is often the least expensive option. To see this in action, go here. Squirter Direct Tension Indicators: same as regular direct tension indicators, only instead of crushing bumps on the "washer" to ensure it is tight enough, the bolts are tightened until silicone embedded in the direct tension indicator "washer" squirts out. To see direct tension indicators and squirter direct tension indicators, go here. Twist-Off Bolts: Part of a special proprietary bolt breaks off automatically when it is sufficiently tightened. This requires a particular type of wrench. To see what this looks like, go here. In critical situations, three samples of an entire bolt assembly may need to be tested prior to shipping the lot of bolts, nuts, and washers to the jobsite. An example of that testing can be seen here.

What AIA forms help with CE?

You'll for sure want to watch this Amber Book : 40 Minutes of Competence video on the topic of these glorified receipts. Understanding the concepts behind these documents will help you a great deal on this exam division. The AIA created a bevy of short, useful forms to wrap things up for the architect. Here is a review G707A-manages retainage payout to the contractor. G712-log of shop drawings and samples G701-change order G702-contractor's application for payment G703-sidecar to G702: breakout table describing what the contractor did this month to earn the payment D200-project checklist (check it out. . . very helpful for your current project)

Statute of Repose

a hard deadline on the time window, in which an owner can sue the architect. Imagine a statute of repose of 10 years from substantial completion. If a leaky roof slowly rots the rafters, and the leak started before the 10-year mark, but the discovery of the rotten rafters occurred after the 10-year window, the owner waives the right to take the architect to court or arbitration.

Statute of Limitations

a more flexible deadline. Imagine instead there is a 10-year statute of limitations from substantial completion. Now the judge or arbitrator has the flexibility to rule that because the leak started before the time limit, the suit can proceed even though the discovery of the rotten wood occurred after the 10 year time limit.

Turn-of-Nut Bolting Method

a preset goal is established for how far the nut needs to be tightened. For instance, steel workers tighten 1/3 of a turn (120 degrees) after the nut makes contact with the steel. The nut is snug-tightened, then marked so that we can later see that it has been tightened the required extra turn. To see an example, go here.

Change Order

all three parties (architect, owner, and contractor) agree to the change and to the associated cost or delay

Submittals

are material & product samples, product performance data, shop drawings and mockups

Bid bonds and performance bonds

are types of surety bonds that work like insurance protecting the owner if the contractor does not follow through with a project. These obligate a third-party insurer to pay the owner to finish the project if the contractor walks.

facility performance evaluation

is a requested meeting with the owner, at no additional compensation to Architect. The Architect must hold the meeting towards the end of the first year after Substantial Completion.

Responsive

meaning that the bidder met the bid requirements

Responsible

meaning that the bidder's reputation, past work, and financial capability are acceptable to the owner

The contractor must transfer all property titles to owner...

no later than the time of final payment.

Payment bond

pays out subcontractors and suppliers if the contractor flees or goes broke

Construction Change Directive

the architect thinks the change is warranted, but the owner and the contractor disagree as to the cost of the change. The architect orders the change and the owner and contractor agree to deal with the money dispute later so as not to stall the progress of construction. This is rarely invoked in practice, but a startlingly common topic on the exam.

Performance bonds

will pay for the project to be completed if the contractor defaults midway through. The cost of the bonds should be included in the bid price.

Bid bonds

will pay the difference between the accepted bid and the next lowest bid if the lowest bidder cannot follow through with the work.

How long should architects keep project files?

~ 15 years *or past the statute of limitations

Post-occupancy evaluation

(POE) is typically a more elaborate and rigorous evaluation than a simple meeting and is listed in the contract as a supplemental service that merits additional compensation for the architect. POE determines if the building performs as intended In POE, six months or a year after occupancy, the architect will go in and test the space for functionality and comfort: energy use, water use, thermal comfort, acoustics, lighting, wayfinding, workflows, user satisfaction surveys, and overall design.

C1-9-5

0: Conventional Delivery 1: -II- 2: -II- 3: CMa & CMc 4: Design-Build 5: Interior 6: International 7: Program Management 9: IPD

What are the three stages of commissioning?

1. Ascertain requirements for performance 2. Plan commissioning process 3. Function and performance testing

Why is it important for architects to be involved in the construction phase?

1. Most claims against the architect occur in the construction phase. 2. The design intent is more likely to be met if the architect engages with the construction phase 3. Some states even require the architect to be involved if they have stamped the construction drawings.

1. Orthophotography 2. Rectified Photography 3. Convergent Photography

1. Orthophotography: Aerial photos corrected to provide measurable images. See here. 2. Rectified Photography: Façade/flat face photos for high detail records. See here. 3. Convergent Photography: Aerial photos with corrected one-point perspective view. See here.

Typical retainage amounts are...

10% *5% for materials in storage

How long does the contractor have to notify the owner and architect of unexpected existing conditions?

14 days is the deadline for notification of unexpected existing conditions 21 days is the deadline for filing claims if unexpected conditions arise The winning bidder proposed a price for the apartment renovation, but just discovered that the existing roof structure has rot. He must let the owner know now so that if the price must be adjusted, it can be adjusted at the beginning. . . he cannot suspiciously claim he needs more money at the end by reporting he found the undocumented rot 14 months ago.

C-1-95

1: Prime Agreement (Main Contract w/ Owner) 2: Conditions / Scope of the Agreements 3: Bonds / Qualifications 4: Sub-Agreements 5: Guides 7: Bid Documents & Construction Forms (Important for CE) 8: Forms / Documents Specific to the Architect

When is the latest a contractor can ask a question during bidding?

7 days prior to bid due date

Construction change directive

A change directed by the architect when a Change Order is not agreed upon, that must happen to keep a project on schedule. The architect must document the cost and schedule changes.

Change order

A claim from the contractor for work which is outside of the contract documents. The contractor documents the cost and schedule changes, then asks the architect to prepare a change order that is signed by the owner, architect, and contractor. AIA document G701. See here for a sample.

Joint check

A payment option for the owner to pay subcontractors when the general contractor is not on top of payments. If the contractor fails to pay her subs, those subs could put a lien on the property, meaning the owner is on the hook for paying those subs. The owner, then, has a financial stake in ensuring proper compensation for everyone who works on the project. If the owner pays with a joint check the owner puts both the contractor's and subcontractor's names on the check. Both the contractor and subcontractor must then endorse the joint check so that it can be cashed, and if the subcontractor signs the joint check, he confirms that he has just been paid his share. Similarly, down the chain, if a contractor fears that a subcontractor won't pay his concrete suppliers, she might pay her subcontractors with a joint check made out to both the foundation subcontractor and the concrete supplier. Both would need to sign it to cash it.

Unit price

A price given when the basic scope is clear, but the extent is unknown. (e.g. excavation price per cubic yard of soil moved)

Substitutions are allowed when...

A product is no longer available There are regulatory changes There are prohibitive warranty conditions The specs permit them

Action submittal

A submittal that requires the architect's review and approval, like shop drawings for a railing, or a cabinet hardware sample that deviates from the one in the specs because the one in the specs is no longer manufactured.

Slump test

A test that checks the consistency of bonding construction materials: concrete - low slump; mortar - medium slump; grout - high slump. See this video.

Proctor test

A test that determines optimal moisture content to determine maximum compacted density of soil.

Instruction to Bidders

A701

C-195

A: Owner-Contractor B: Owner-Architect C: Other Agreements D: Misc Forms & Documents E: Exhibits (Sidecars to other Docs) G: Forms for Contract Administration & Project Management (Important for CE)

Authority Having Jurisdiction

AHJ is often the life safety code inspector, but can also be the elevator inspector, or electrical inspector . . . even the insurance company rep demanding a non-slip floor surface or the labor board rep demanding ergonomic nursing work stations are AHJs. When their requirements conflict, you, the architect, need to meet the most stringent requirement.

AHJ

AHJ (authority having jurisdiction) is often the life safety code inspector, but can also be the elevator inspector, or electrical inspector . . . even the insurance company rep demanding a non-slip floor surface or the labor board rep demanding ergonomic nursing work stations are AHJs. When their requirements conflict, you, the architect, need to meet the most stringent requirement.

What is the purpose of AIA Document G703 "continuation sheet"?

AIA Document G703 "continuation sheet" is a sidecar to the contractor's monthly application for payment. See an example here. For the contractor to be paid this month, she must show you that she's done the work she's invoicing for, and you, the architect must approve her application for payment (AIA Document G702). This G703 sidecar document is a list of the work (e.g. HVAC system installation), the scheduled value of the work ($100,000), the cost of the work completed before this month ($20,000), what was completed this month ($10,000), materials already purchased and presently stored ($7,000 for an air handler, purchased, but not yet installed), the percentage complete (37,%), the balance to finish ($63,000), and retainage ($1,350). Retainage is some agreed-upon percentage of the payment owed to the contractor that we are holding back to ensure she doesn't walk off the job and leave us with a half-finished building. Upon substantial completion, she'll be paid her total retainage-the cumulative portions we kept from her each month- minus double the cost of the punch-list items that must be addressed before final completion is awarded. The actual amount of retainage varies with the specific job and contract, and generally ranges between 5% and 10% (let's say 10% for this example). Annoyingly, we may hold a different percentage back for materials purchased, stored, and not yet installed (the air handler). . . .in our example we'll also hold back 5% of the cost of stored materials. So we're holding back 10% of the $10,000 invoiced this month for work completed, plus 5% of the $7,000 for materials stored. Contractors, and subcontractors hate retainage because cash flow problems throttle growth in the construction industry. Even a profitable, well-managed excavation company may have trouble keeping enough cash on-hand to meet payroll because they do a bunch of expensive work, then wait a long time for the contractor to submit the application for payment, wait for the architect to approve it, wait for the owner to pay the contractor, then wait for the contractor to pay her subs. I suspect that if a sub knew he was going to be paid much more quickly, he might be willing to reduce his bid meaningfully. If you have stories to back that up or refute that claim, email me at [email protected].

Orthophotography

Aerial photos corrected to provide measurable images. See here.

Convergent Photography

Aerial photos with corrected one-point perspective view. See here.

The owner wants to hire the lowest bidder, but that bidder will be working with a façade installer known to be connected to the mafia. Now what?

After the bidder is selected, they provide to the owner, through the architect, a breakdown of who will be doing what to build the project: what the contractor will build with their own team, and which major manufacturers, and suppliers the contractor will be working with for which parts of the project. The contractor promises to use that same team (unless changes are approved by the owner). When the proposed team is submitted, the architect and owner have the authority to reject any of the proposed team (for legitimate reasons only), and if the builder's team member is rejected, the bidder can either withdraw the bid or submit an acceptable substitute team member (with any adjustment in the bid amount to reflect the new cost of the substitute). The owner, in turn, may accept the adjusted bid price with the new substitute or disqualify the bidder. Bidding is complicated! It's not required for your studying, but if you'd like, click here to read the Instructions to Bidders (A 701)

Parts of IPD Pre-Construction

Agency Review: Authority Having Jurisdiction (AHJ) review and asks questions on BIM model *This process is meant to catch issues as early as possible. Buy-Out: Vendors and contractors commit to work packages

Agency review

Agency review: The architect's building code check with the AHJ (authority having jurisdiction). The AHJ is often the life safety code inspector, but can also be the elevator inspector, or electrical inspector . . . even the insurance company rep demanding a non-slip floor surface or the labor board rep demanding ergonomic nursing work stations are AHJs. When their requirements conflict, you, the architect, need to meet the most stringent requirement.

Allowance

Allowance: A place-holder price when full cost is unknown, but the work is necessary. We may want to give individual apartment tenants the option to later select their own appliances. Yet we want to account for the cost of these appliances so we can accurately apply for a construction loan, pay the contractor, and keep to a budget. Part of your job is to carefully plan every aspect of the construction process, but sometimes a job starts with decisions left unmade, often for good reasons. Allowances give us flexibility as the construction unfolds, but because they include approximate costs of not-fully-baked intentions, they also keep everyone honest and expectations realistic. You want to get the bidders to account for allowances and alternatives in the bid documents, so the contractor can't fleece the owner later with change orders. When are allowances most often used? In lump sum or guaranteed maximum price (GMP) construction projects. Why? Because we need a solid price at the start of the work to pay the contractor. Allowances give us wiggle room (but too many allowances on a single job may lead to disputes).

The final change order resolves...

Allowances Unit Prices Contingencies Bonuses/Penalties Rebates/Credits Outstanding Additional Services

AIA G802

Amendment to the Professional Services Agreement You're designing a prison for a client and signed a contract to do so. The residents on the adjacent land don't want to live next to a prison, so they approach the prison builder and offer their land at a fantastic price. The prison then buys the adjacent land and would like you too redesign the long prison driveway to encroach on the newly available adjacent lot. You, the architect, should be paid more money for the new design since you already had completed another site plan for the smaller original site, and you need more time allotted than what is in the contract to do so. You should charge extra for your work outside thee original contract, and because you've changed the contract, you'll need to get that in writing. By now, these themes should be in the front of your mind if you've taken the rest of the Amber Book course. AIA G802 manages additional services, like the new site plan, not included in the prime contract. See here for an example. Remember the numbering system: G-forms for contract administration and project management 8 (as the first number)-documents specific to the architect 0 (as the second number)-conventional project delivery

The Initial Decision Maker has __ Days to initiate action on a claim.

Answer: 10 days The contract gives the Initial Decision Maker (IDM) role to the architect, by default, unless otherwise specified. It is up to the parties in the contract to change the IDM to someone else. The IDM can try to settle tough calls between the contractor (who may wish to use change orders to pad her profits) and the owner (who desperately doesn't want to pay more in change orders).

During bidding, who has the power: the owner or the contractor?

Answer: The owner has the power until the contract is signed. Once construction commences, the "bidder" becomes the "contractor" and the power often shifts to the contractor. Bidding is like a complex board game with high stakes and inflexible rules. That rigid format offers the owner the best assurance that the project will be built, as proposed, at an acceptable quality, for the least cost. The bidder visits the site, has read the drawings and specs, includes the cost of all the materials, equipment, and systems in their bid. If the bidder misses something in the drawings or specs when offering a price, it's 100% the bidder's responsibility to build it anyway. If a deposit is collected, the bidder returns the drawing sets and specs in good condition with a legitimate bid and then will be given their deposit back. The bidder does not have license to use the bid documents for anything other than bidding (they can't use it for marketing, or copy-paste a detail they like and offer it to another client). The bidder pays the cost of preparing the bid.

The architect's construction set was correct, but the fabricator's shop drawings for a steel stair were incorrect. The architect approved the shop drawings. Who bears responsibility?

Answer: The steel fabricator is at fault, from the contractor's point of view, and the contractor is at fault from the owner's point of view. The architect is not at fault from anyone's point of view, even though the architect approved the faulty shop drawings. There are a several important concepts that are covered in this question 1. The architect draws the intent of the design, but because the architect can't draw everything and something like the location of a hinge is most competently handled by an expert in door installation, almost everything is redrawn by those who build it! This process leaves the contractor's subs understandably frustrated with the architect. BIM-and the emerging primacy of digital drawings over paper drawings on some projects-is contributing to a rethinking of this drawing-twice redundancy. Increasingly, the fabricator will start with the digital drawings provided as part of the contract documents and edit those digital drawings as necessary, instead of starting from scratch with a new drawing. 2. The contractor approves the sub's steel fabrication shop drawings before it goes to the architect. The contractor is responsible for making sure the drawings are accurate. For instance, contractors should confirm that field measurements and materials provided by the subs meet the requirements of the construction site as-built, and that the shop drawings meet the intent as laid out in the contract documents (drawings and specifications from the architect). 3. There is a chain of command, whereby almost all content and communication moving from a sub to an architect or owner moves through the contractor first. [And almost everything that moves from a consultant (structural engineer, acoustical consultant, etc.) to a contractor or owner, first goes through the architect.] 4. The architect and owner gave the contract documents to the contractor months ago, but now the contractor submits shop drawings-detailed mechanical drawings depicting how parts of the building will be fabricated-back to the architect for approval. The sub then boils into a rage when the architect, who is busy with another project, takes too long to approve the shop drawings of the stairs. The fabricator must wait for the architect's approval before starting the construction, or take the responsibility of rebuilding the stairs if the architect nixes the shop drawings after fabrication has commenced. 5. The architect is not responsible for confirming field-measurements, hinge capacity, and other detailed content of the shop drawings and other submittals. Rather the architect's approval simply conveys the architect's broad sense that the shop drawings appear to meet the intent of the design. 6. If the architect approves shop drawings that have a buried change in the design, this does not indicate that the change was approved by the architect. Any change in the design would require a change order signed by the architect, contractor, and owner. So if the steel fabricator changed the number of treads in the stairs, and the architect approved the shop drawings without counting treads, that does not indicate an approval of a new stair configuration, and the responsibility for that mismatch still lies with the contractor and his sub, the fabricator. 7. Responsibility follows the chain of command, just as communication does. The owner has no contract with the steel fabricator, so the owner has no direct redress to the fabricator for the error. Rather the owner blames (and sues) the contractor and the contractor blames (and sues) the steel fabrication subcontractor. This is an important concept in these exams so read it again if it didn't sink in.

The design of a community sports complex goes out to bid with a tennis court as an "add alternate." Bidders submit a base bid for the complex and an alternate bid price that includes the tennis court. Bidder A: Base bid for rec center of $800,000; tennis court will be an extra $100,000 Total for both: $900,000 Bidder B: Base bid for rec center of $810,000; tennis court will be an extra $65,000 Total for both: $875,000 Who is awarded the contract, the bidder with the lower base bid or the bidder with the lower total bid?

Answer: it's up to the owner to decide which alternates, if any, will be considered after the bids come in. Then the owner determines the lowest responsive and responsible bidder based on the sum of the base bid and any alternates the owner chooses to consider.

Can the owner accept a bid that doesn't meet all the bidding requirements?

Answer: yes, the owner can accept anything she wants. Typically, the contract is awarded to the "lowest responsive and responsible" bidder. Responsive, meaning that the bidder met the bid requirements and, responsible, meaning that the bidder's reputation, past work, and financial capability are acceptable to the owner. Once the contract award is under consideration, the selected bidder may be required to submit to the architect a Contractor Qualification Statement (AIA Document A305). The owner has the right to accept a bid that has irregularities or doesn't quite meet the requirements of the bidding process if they feel it is in the owner's best interests, and the owner has the right to reject any or all bids!

Who prepares change orders?

Architects prepare change orders and construction change directives for the owner's approval. In theory, according to the contract, contractors submit a change order request to the architect, but the architect actually prepares the change order. I know that in practice, sometimes the contractor prepares the change order, but know that the agreements stipulate otherwise.

The bidder wants to substitute the specified faucets for others?

As is almost always the case with deviations from the contract, the bidder submits the proposed change in writing to the architect with enough time to get a response. The burden of proof that the substitution is a better option is on the bidder; the architect makes the final approval decision and accepts or rejects the substitution in an addendum provided to all the bidders. Substitutions submitted after the owner awards the contract are not considered (unless the contract stipulates they will be).

What are the architect's responsibilities during construction contract administration?

CA phase starts when the owner and contractor sign the contract and extends until the architect issues the final Certificate of Payment so the contractor can get paid her last invoice. In that time they'll be RFIs for questions that come up on the job site, submittal reviews (approvals for contractor-provided mock-ups, cut sheets, shop drawings, and product samples), approvals for the contractor's invoices (Certificates of Payment), and declaration of substantial/final completion.

What are the architect's responsibilities in post-construction?

Certificates and inspections Maintenance and operations Start-up (break-in period to run the AHUs, chillers, boilers, sinks, toilets, etc. and confirm everything works) Record drawings Warranty review Post-contract evaluation

Bidder's representation

Certifies Contractor understands bid documents and has visited site in preparation to bid

What are the architect's responsibilities for substantial completion?

Certifying the architect's and architect's consultants' scope of work *This specifically does not include the scope of work for the owner's consultants

G701

Change Order

Change orders include/exclude...

Change orders include: Costs of work associated with changes to schedule, budget, and scope: "Straight" hourly wages; heavy equipment rental; reasonable delivery charges; materials at contractor's cost Change orders exclude: Fringe benefits (owner pays for drywaller's hours, but not her insurance, payroll taxes, or retirement benefits); overtime (owner doesn't pay for overtime associated with change order work, unless agreed upon); everyday equipment rentals (no charges for hand tools, simple scaffolding); they can't charge for use of the contractor's pick-up truck (nice try); nor can they include contractor mark-ups for materials (owner reimburses what the contractor paid after rebates and discounts). *The system is set up to discourage contractors from submitting unrealistically low bids to win the job, then relying on opaque change orders to make up for the loss and earn a profit.

Addendum

Changes to program, scope, or budget after CDs but before bids are submitted. The Architect should charge for the additional work required if changes were instigated by the owner.

Direct Tension Indicator

DTI

DTI

Direct Tension Indicator

Shop drawings include...

Drawings Diagrams Schedules Any other information specifically prepared to illustrate some part of the work *That cantilevered overhang you drew at the entrance to the building was too light to require a structural engineer, but must be fabricated, so the shop will make its own drawings identifying what's welded, what's bolted, and what's glued. Those drawings will be passed from the fabrication shop to the general contractor to you for approval. You are not expected to re-measure the shop drawings to confirm that they match your original overhang length, nor will you need to confirm that the shop drawings describe structurally robust connections. You'll look them over (with a rapid turn-around. . . time is money) to confirm they align with your design intent. Maybe they look good and you approve them. . . or maybe you designed the overhang to be constructed from glue-lam beams-not steel!-and you reject them.

What is the difference between a Change Order and a Construction Change Directive

Each involves a change to the project relative to the original contract documents. Change Order: all three parties (architect, owner, and contractor) agree to the change and to the associated cost or delay Construction Change Directive: the architect thinks the change is warranted, but the owner and the contractor disagree as to the cost of the change. The architect orders the change and the owner and contractor agree to deal with the money dispute later so as not to stall the progress of construction. This is rarely invoked in practice, but a startlingly common topic on the exam.


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