CMGT 385 STUDY GUIDE
Negligence - Answers - The failure to meet or act in accordance with the minimum level
of care expected of a "competent" person in a given field.
Tort - Answers - An act (or neglectful act) that leads to a type of legal civil wrongdoing
Strict liability - Answers - An individual (or company) may be held liable for damages
regardless of negligence, intent, or fault.
Breach of contract - Answers - Failure to comply with a contractual obligation.
Contract - Answers - A legal enforceable set of obligations between parties
Offer - Answers - A promise to do or refrain from doing a specific action
Acceptance - Answers - Legal agreement to the terms of the offer
Consideration - Answers - Something of value one party pays to the other for
completion of the obligations set in the offer
Parol Evidence rule - Answers - A legal rule prohibiting evidence being submitted to
modify or alter a contract after it have been executed
Privity - Answers - a legal relationship between parties listed on the contract (ie; parties
in privity of a contract may enforce the contract to seek damages based on said
contract)
Spearin doctrine - Answers - rule that the owner has an obligation to provide the
contractor with accurate plans and specs.
GMP - Answers - A pricing method in which the owner will pay the contractor at cost
plus aa predetermined fee, up to the guaranteed maximum price. Any cost beyond the
GMP is the responsibility of the contractor
Design-Bid-Build - Answers - Most common project delivery system in which the owner
maintains separate contracts with the design team and the contractor. Once design is
complete, it is put out to bid, awarded then built
Integrated Project Delivery - Answers - A delivery system which includes all building
personnel from the early stages to optimize the project. Carries high risk
Unit price contract - Answers - A pricing method in which the owner and contractor
agree on a price per unit of certain elements of a construction project. High risk of
quantity estimating error. Common in heavy civil jobs.
, Mechanics' lien - Answers - A legal claim against property that a subcontractor has
performed worked on, but has not rightly been paid for, as the subcontractor has no
privity of contract with the owner
Promissory estoppel - Answers - Principle that a promise can be legally enforced, if said
promise was reasonably relied on. (eg: subcontractor held to submitted bid).
Bid protests - Answers - A right afforded to a bidder who was not awarded a project to
protest a winning bid. Must claim that the winning bid was unresponsive or that that
winning bidder was not responsible. Bid protest also maintains a strict time frame, and
in some cases may not be worth the cost of pursuing
Responsive bidder - Answers - is in strict compliance with the instructions to bidder
Responsible bidder - Answers - A responsible bidder is one who can be depended upon
to complete the project. May include factors such as financial stability, past
performance, or even contractor reputation.
Commercial General Liability - Answers - protects against bodily injury and property
damage
Workers Compensation - Answers - Covers injuries that employees obtain in their scope
work
Builders Risk - Answers - Covers damage to work finished prior to project completion.
Does not include design or workmanship
Vehicle - Answers - Legally required in every state. Policies vary greatly
Property - Answers - Protects property from theft/vandalism
Specialty Items - Answers - Protects a unique and integral piece of machinery
Indemnity - Answers - A contractual obligation that one party must compensate the loss
incurred by another party due to the original party's actions or negligence
Change orders - Answers - An agreed upon formal change in the scope of work, due to
design error, owner changes or a number of other issues
Construction change directives - Answers - When a change in the work cannot be
agreed upon by all parties, owner and architect can issue a CCD, in which the
contractor must perform the work, and the compensation is resolved at a later time.
Negligence - Answers - The failure to meet or act in accordance with the minimum level
of care expected of a "competent" person in a given field.
Tort - Answers - An act (or neglectful act) that leads to a type of legal civil wrongdoing
Strict liability - Answers - An individual (or company) may be held liable for damages
regardless of negligence, intent, or fault.
Breach of contract - Answers - Failure to comply with a contractual obligation.
Contract - Answers - A legal enforceable set of obligations between parties
Offer - Answers - A promise to do or refrain from doing a specific action
Acceptance - Answers - Legal agreement to the terms of the offer
Consideration - Answers - Something of value one party pays to the other for
completion of the obligations set in the offer
Parol Evidence rule - Answers - A legal rule prohibiting evidence being submitted to
modify or alter a contract after it have been executed
Privity - Answers - a legal relationship between parties listed on the contract (ie; parties
in privity of a contract may enforce the contract to seek damages based on said
contract)
Spearin doctrine - Answers - rule that the owner has an obligation to provide the
contractor with accurate plans and specs.
GMP - Answers - A pricing method in which the owner will pay the contractor at cost
plus aa predetermined fee, up to the guaranteed maximum price. Any cost beyond the
GMP is the responsibility of the contractor
Design-Bid-Build - Answers - Most common project delivery system in which the owner
maintains separate contracts with the design team and the contractor. Once design is
complete, it is put out to bid, awarded then built
Integrated Project Delivery - Answers - A delivery system which includes all building
personnel from the early stages to optimize the project. Carries high risk
Unit price contract - Answers - A pricing method in which the owner and contractor
agree on a price per unit of certain elements of a construction project. High risk of
quantity estimating error. Common in heavy civil jobs.
, Mechanics' lien - Answers - A legal claim against property that a subcontractor has
performed worked on, but has not rightly been paid for, as the subcontractor has no
privity of contract with the owner
Promissory estoppel - Answers - Principle that a promise can be legally enforced, if said
promise was reasonably relied on. (eg: subcontractor held to submitted bid).
Bid protests - Answers - A right afforded to a bidder who was not awarded a project to
protest a winning bid. Must claim that the winning bid was unresponsive or that that
winning bidder was not responsible. Bid protest also maintains a strict time frame, and
in some cases may not be worth the cost of pursuing
Responsive bidder - Answers - is in strict compliance with the instructions to bidder
Responsible bidder - Answers - A responsible bidder is one who can be depended upon
to complete the project. May include factors such as financial stability, past
performance, or even contractor reputation.
Commercial General Liability - Answers - protects against bodily injury and property
damage
Workers Compensation - Answers - Covers injuries that employees obtain in their scope
work
Builders Risk - Answers - Covers damage to work finished prior to project completion.
Does not include design or workmanship
Vehicle - Answers - Legally required in every state. Policies vary greatly
Property - Answers - Protects property from theft/vandalism
Specialty Items - Answers - Protects a unique and integral piece of machinery
Indemnity - Answers - A contractual obligation that one party must compensate the loss
incurred by another party due to the original party's actions or negligence
Change orders - Answers - An agreed upon formal change in the scope of work, due to
design error, owner changes or a number of other issues
Construction change directives - Answers - When a change in the work cannot be
agreed upon by all parties, owner and architect can issue a CCD, in which the
contractor must perform the work, and the compensation is resolved at a later time.
