CMGT 3500 Test 3 Exam Questions And Answers Graded A+!!!

Change - ANS Also referred to as extras. When owner makes them they become modification of contract. If this impacts project cost/duration a change order is required Change Order - ANS Changes issued by the owner that requires a change to the original contract. When GC receives modification proposal- must evaluate the potential impact the changes will have on the cost/duration, subcontractors involved in change must also submit quotations. If quotation is acceptable, GC will submit a change order. Owner evaluates prices proposed by GC, then issues a formal change order to GC at agreed price, or on a cost-plus basis, or decides not to issue a change order. Field Change - ANS Type of change that has no impact on the contract's duration or amount. Authorized by personnel in the field without owner approval. Typically, minor, but are required to facilitate the construction effort. Cardinal Change - ANS a change order that is of such magnitude that the original scope of the project is altered to an extent that constitutes a new contract the owner, and the architect/engineer if the owner has transferred to them the ability to take on that responsibility - ANS Who has the authority to make a change order? Pre-bid site investigation - ANS Generally, includes information in the form of boring logs and results of tests on the indigenous soils, although may be an accurate representation of the site, it is common practice to stipulate that the contractor make an independent site visit and investigation. Differing Site Conditions - ANS 2 broad categories- the actual conditions differ materially or at variance with the conditions indicated in the contract documents. And the actual conditions are of an unusual nature and differ materially or are at variance with what the contractor should have reasonably anticipated- not foreseeable. Documentation - ANS When dealing with changed conditions always use__________. Including photos, labor costs, equipment costs, etc. Whatever the contract states. Traditionally, contractor owns the float but the contract will state exactly. - ANS Who owns float? Construction Schedules - ANS Show the proposed sequence of work within the number of working days set up in the contract. Often the owner may require that this schedule be submitted before the pre-construction conference. The specific treatment of the schedule in the contract must be carefully examined to determine the impact of changes and delays. Different contractual methods to determine the duration of the project - ANS Working day, fixed completion date, calendar days, and completion date Working day contractual method - ANS any day except sat, sun, and holidays in which the contractor performs work or could have performed work. most appropriate when the site conditions are subject to delays caused by weather, differing site conditions. Typically extended construction durations for severe weather delays Fixed completion date contractual method - ANS Specified completion date when the owner needs the project completed by Calendar days contractual method - ANS represents every day that takes place, including weekends and holidays. Preferred when time extensions (from adverse weather) are not generally anticipated Completion date contractual method - ANS owner would like to occupy and utilize completed facility by a certain point in time, does not establish a clear value of the project duration. Sets the completion date for the project, but not the starting date. Liquidated damages - ANS The cost to the contractor for each day that the project extends beyond the contract time. If the project is stated at being 180 days, the contract may state the contractor must pay $1000 for each day beyond the 180. These damages provide compensation to the owner for financial and other losses resulting from delayed completion 3 types of delays - ANS caused by the contractor or the contractors agents, caused by the owner or the owners agents, caused by acts of god. Excusable delays (8) - ANS (1) acts of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5) epidemics, (7) strikes, (8) freight embargoes, and (9) unusually severe weather. Impacts of delays - ANS adversely affect the construction progress, at least partially at fault of the owner=disputes. Amount of monetary compensation that is justified for an owner-caused delay is difficult to asses Time extensions - ANS Must be in writing, and must be submitted within a given time after the delay has occurred. May save a contractor money by avoiding the costly need to accelerate work Types of acceleration - ANS Actual acceleration and constructive acceleration Actual acceleration - ANS Type of acceleration that consists of a direct order by the owner to hire additional workers, work overtime, or work extra shifts on the project Constructive acceleration - ANS Type of acceleration that does not result from a direct order but is construed as acceleration because of the owner's refusal to permit or grant time extensions for an excusable delay. Suspension of work - ANS the contractual equivalent of a breach of contract action for delays. May result from an action of the contractor or the owner. Term for convenience, or contractor default - ANS Two types of termination Term for convenience - ANS owner may reserve the right to terminate the contract at any time, regardless of the percentage of completion if in the best interest of the owner Contractor default - ANS the owner lists the conditions under which the owner will terminate the contract and make a claim against the contractor for damages. Can provide serious consequences for the contractor- construction effort can be stopped and payments may be suspended Unit Price Contract - ANS Type of contract that is based on unit priced originally bid, actual quantities measured. After the architect/engineer reviews the application and verifies the measurement of the quantities, a certificate of payment is issued to the owner. The owner is then expected to pay for those in-place items by the stipulated date.