TEC 226 ACCURATE STUDY GUIDE
Public Works Project - Answers - Each party is clearly defined. Rigid or formal.
Private Sector - Answers - Close, lowest bidder or negotiate a price lower
Design Bid Build - Answers - General contract approach
Separate Contracts Method - Answers - Multiple prime contracts method, owner lets
contracts directly to contractors for portions of work, also if the owner has necessary in-
house capabilities to manage a construction project, assume greater risk than is
assumed with general contracts method
Self-performance Method - Answers - Project is small in scope, similar in character, and
ongoing in nature
Design-build Method - Answers - Owner lets a single contract for both the design and
construction of a project
Design-build reason - Answers - Fewer changes will arise during construction due to
designer error, construction can start before completion of the design for the project
CM at Risk - Answers - CM gives all their savings to the owner to ensure that the
interest of the owner are kept in focus
Bilateral Contract - Answers - Consists of an agreement created by mutual promises
made by the contracting parties.
5 Elements of a Contract - Answers - Offer and acceptance, meeting of the minds,
consideration, lawful subject matter, competent parties
Unreality of Consent - Answers - No meeting of the minds
Meeting of the Minds - Answers - Contracting parties agree on the basic meaning and
legal implications of the contract
Consideration - Answers - Something of value
Estoppel - Answers - Principle by which a contract becomes binding in spite of the fact
that no formal agreement was made between the parties concerned
Lien - Answers - Legal claim placed on a property, right to retain possession of the
property until a debt is satisfied
Public Works Project - Answers - Each party is clearly defined. Rigid or formal.
Private Sector - Answers - Close, lowest bidder or negotiate a price lower
Design Bid Build - Answers - General contract approach
Separate Contracts Method - Answers - Multiple prime contracts method, owner lets
contracts directly to contractors for portions of work, also if the owner has necessary in-
house capabilities to manage a construction project, assume greater risk than is
assumed with general contracts method
Self-performance Method - Answers - Project is small in scope, similar in character, and
ongoing in nature
Design-build Method - Answers - Owner lets a single contract for both the design and
construction of a project
Design-build reason - Answers - Fewer changes will arise during construction due to
designer error, construction can start before completion of the design for the project
CM at Risk - Answers - CM gives all their savings to the owner to ensure that the
interest of the owner are kept in focus
Bilateral Contract - Answers - Consists of an agreement created by mutual promises
made by the contracting parties.
5 Elements of a Contract - Answers - Offer and acceptance, meeting of the minds,
consideration, lawful subject matter, competent parties
Unreality of Consent - Answers - No meeting of the minds
Meeting of the Minds - Answers - Contracting parties agree on the basic meaning and
legal implications of the contract
Consideration - Answers - Something of value
Estoppel - Answers - Principle by which a contract becomes binding in spite of the fact
that no formal agreement was made between the parties concerned
Lien - Answers - Legal claim placed on a property, right to retain possession of the
property until a debt is satisfied
