Chapter One:
LICENSING
I.
INTRODUCTION
II.
OBTAINING A CONTRACTORS LICENSE
III.
EXEMPTIONS
IV.
PENALTIES FOR NONCOMPLIANCE
A. Failure to Obtain a Contractor's License
B. Failure to Provide Notice of Certificate
V.
RESIDENT CONTRACTOR PREFERENCE
VI. USE
OF RESIDENT LABOR ON PUBLIC WORKS
VII.
CONCLUSION
Chapter Two:
BIDDING
I.
INTRODUCTION
II.
COMPETITIVE BIDDING
A. Private Projects
B. Public Projects
1. Construction
a. Bid
Solicitation
b. Bid
Selection
c.
Unbalanced Bid
III. BID
ERRORS
A. Enforceability of Bids
1. Contractor's Bid
2. Subcontractor
Quotations
3. Supplier Quotations
B. Bid Mistakes
1. Mistake of Fact
2. Mistake of Judgment
3. Mistake of Law
C. Relief from Bid Mistakes
1. Bid Withdrawal
2. Bid Correction
D. Post-Award Relief
E. Federal Construction Contracts
1. Pre-Award Relief
a. Apparent
Clerical Errors
b.
Withdrawal
c.
Correction
2. Post-Award Relief
IV. BID
PROTESTS
A. Where to Protest
B. When to Protest
C. What to Protest
1. Certificate of
Responsibility Number
2. Late Bids
3. Bid Responsiveness
4. Faulty Solicitation
a.
Experience Requirements
b. Unduly
Restrictive of Competition
V.
CONTRACT AWARD
A. Public Projects
B. Private Projects
VI.
CONCLUSION
Chapter
Three:
THE
ARCHITECT/ENGINEER
I.
INTRODUCTION
II.
STATE LAWS GOVERNING THE PRACTICE OF ARCHITECTURE &
ENGINEERING
A. Statutory Regulation of Architects
B. Statutory Regulation of Engineers
C. Associations of Architects and / or Engineers
1. Architectural/
Engineering Firms
2. Architectural Firms
3. Engineering Firms
III.
OWNER-ARCHITECT/ENGINEER AGREEMENT
A. Types of Agreements
B. Limitation on Services
C. Additional Services
IV. ARCHITECT-CONSULTANT AGREEMENTS
V. THE ARCHITECT/ENGINEER'S RESPONSIBILITIES
A. Design
B. Bidding and Negotiation
C. Construction
1. Inspection
2. Review of
Applications for Payment
3. Review and Approval
of Contractor Submittals
4. Authority to Order
Changes
5. The Architect as
Judge
D. Post Construction
VI. THE
ARCHITECT/ENGINEER'S LIABILITY
A. Liability to the Owner
1. Exceeding Project
Cost Limitations or Estimates
2. Design Omissions
3. Inadequate Plans and
Specifications
4. Inadequate Inspection
of the Work
5. Erroneous
Certification of Payment
6. Erroneous Approval of
Contractor's Shop drawings and Submittals
B. Liability to the Contractor
1. Inadequate Plans and
Specifications
2. Negligent
Construction Administration
C. Liability to Subcontractors
D. Liability to Workers and Visitors
E. Liability to Users
F. Liability to the Surety
G. Liability to Adjacent Landowners
H. Liability for Willful Misconduct
VII.
PROFESSIONAL LIABILITY INSURANCE
VIII.
CONCLUSION
Chapter Four:
THE OWNER
I.
INTRODUCTION
II.
ADMINISTRATIVE RELIEF VS. BREACH OF CONTRACT
III.
WARRANTY OF PLANS AND SPECIFICATIONS
IV.
CONTRACT INTERPRETATION
V.
DUTY NOT TO DELAY, HINDER OR INTERFERE WITH THE
CONTRACTOR'S PERFORMANCE
A. Owner's Expressed Duty Not To Delay
B. Owner's Implied Duty Not To Delay
C. Specific Types of Owner-Caused Delays
1. Untimely Issuance of
Notice to Proceed
2. Failure to Make the
Project Site Available
3. Owner's Interference
With Contractor's Work Sequence
4. Owner's Delay in
Acting on Shop Drawings and Submittals
5. Owner's Delay in
Design Review
6. Owner's Delay in
Supply or Removal of Materials
7. Owner's Issuance of
Unreasonable or Improper Stop Order
8. Owner's Excessive
Inspection and Unreasonable Performance Demands
9. Owner's Delay in
Issuing Change Orders
10. Owner's Failure to
Make Progress Payments
VI.
OWNER'S MATERIAL CHANGE IN THE CONTRACT
V.
CONCLUSION
Chapter Five:
THE
CONTRACTOR
I.
INTRODUCTION
II.
BIDDING
III.
THE CONSTRUCTION CONTRACT
A. Integration Clause
B. Site Visit
C. Order of Precedence Clause
D. Permits and Fees
E. Owner's Right to Carry Out the Work
F. Review of Contract Documents and Field
conditions by Contractor
G. Compliance with Codes and Ordinances
H. Contractor's Construction Schedule
I. Shop Drawings, Product Data and Samples
J. Aesthetic Determination
K. Claims and Disputes
L. Differing Site Conditions
M. Changes in the Work
N. Time
O. Payments
1. Schedule of Values
2. Progress Payments
3. Punchlist
4. Retainage
a. Length Of
Retainage
b. Interest
On Retainage
5. Final Payment
P. Insurance
1. Property Insurance
2. Loss of Use Insurance
3. Comprehensive General
Liability Coverage
Q. Statute of Limitations
R. Termination
1. Termination by
Contractor
2. Termination by Owner
S. Attorneys Fees and Interest
IV.
WALK AWAY CLAUSES
V.
CONCLUSION
Chapter Six:
THE
SUBCONTRACTOR
I.
INTRODUCTION
II.
BIDDING
III.
SUBCONTRACTING
A. Scope of Work
B. Time
C. Payment
1. "Pay When Paid"
Clauses
2. Prompt Payment
Requirements
a. Time For
Payment
b. Interest
On Late Payment
c. Waiver Of
Prompt Payment
D. Contractor's Warranty of Plans and
Specifications
E. Contractor's Duty not to Hinder, Delay or
Interfere
F. Assignment of Subcontract
G. Arbitration
H. Subcontractor Claims and Disputes
I. Subcontract Changes
J. Hold Harmless and Indemnity Clauses
1. Indemnification of
parties to the Contract
2.
Indemnification of non-parties
3. Hold Harmless Clauses
K. Insurance
L. Subcontractor's Liability to Contractor
M. Termination
N. Waiver of Consequential Damages
O. Attorney's Fees and Interest
IV.
CONCLUSION
Chapter
Seven:
CHANGES IN
THE WORK
I.
INTRODUCTION
II.
CHANGES--WRITTEN VS. ORAL
A. Public Construction Projects
1. Written Change
Directive
2. Oral Change Directive
a.
Subsequent Writing
b. Bad Faith
B. Private Construction Projects
1. Subsequent Conduct
2. Breach of Contract
III.
CHANGES CLAUSE - HOW DO THEY WORK?
A. Agreed Changes
B. Construction Change Directive
C. Minor Changes
IV. WHO
HAS AUTHORITY TO ORDER A CHANGE?
V.
CONSTRUCTIVE CHANGE
VI.
CARDINAL CHANGES
VII.
DEDUCTIVE CHANGES
VIII.
NOTICE
IX.
CONCLUSION
Chapter
Eight:
DIFFERING
SITE CONDITIONS
I.
INTRODUCTION
II.
CONTRACTOR'S RIGHT TO RELY ON OWNER'S REPRESENTATION OF
CONDITIONS
A. Duty to Investigate Site
B. Duty to Disclose
C. Disclaimers
III.
NOTICE
IV.
CONTRACTUAL REMEDIES
A. Type 1 Conditions
B. Type 2 Conditions
V.
CHANGED CONDITIONS NOT COVERED BY THE "CHANGED
CONDITIONS" CLAUSE
A. Acts of God
B. Acts of Sovereign
C. Conditions Subsequent to Contract
D. State Law
E. Compensation
VI.
CONCLUSION
Chapter Nine:
DAMAGES AND
DELAYS
I.
INTRODUCTION
II.
THE OWNER'S DAMAGES
A. Contractor's Defective or Incomplete
Performance
B. Contractor's Late Completion
1. Liquidated Damages
2. Actual Damages
III.
THE CONTRACTOR'S DAMAGES
A. Late Payment Damage
B. Termination Damages
C. Delay Damages
1. Owners-Caused/Compensable Delays
a. Direct Job Cost
b. Home Office Overhead
Costs
c. Inefficiency Costs
d. Lost Profits
e. Acceleration Costs
2. Excusable/Compensable Delays
3. Excusable/Non-Compensable Delays
4. Concurrent Delays
IV. "NO
DAMAGE FOR DELAY" CLAUSE
V.
PREJUDGMENT INTEREST
VI.
ATTORNEYS' FEES
B. Equity
VII.
MITIGATION OF DAMAGES
VIII.
PUNITIVE DAMAGES
IX.
CONCLUSION
Chapter Ten:
BONDS AND
LIENS
I.
INTRODUCTION
II.
BONDS
A. Federal Construction Bond
1. Notice Requirements
2. Labor or Material
Furnished in the Prosecution of the Work
a. Labor
b. Material
c. Furnished
in the Prosecution of the Work
3. Interest and
Attorneys' Fees
4. Delay Cost
5. Subcontractor vs.
Supplier
6. Date of last supply
of labor or material
B. State Public Works Construction Bond
1. Labor and Material
2. Delay Costs
3. Attorneys Fees
C. State Highway Construction Bond
1. Claimants Covered
2. Labor and Material
3. Notice
D. State Private Works Construction Bond
1. Labor and Material
2. Profit and Overhead
3. Attorneys' Fees and
Interest
III.
LIENS
A. Construction Liens
1. Entitlement to a
Construction Lien
a. Contract
With Owner as Agent
b. Contract
With Tenant or Guardian
2. Priority Between
Lender and Lien Claimant
B. Stop Notices
C. Lis Pendens Notice
D. Wrongful filing
IV.
CONCLUSION
Chapter
Eleven:
EFFECTIVE
COLLECTION TECHNIQUES
I.
INTRODUCTION
II.
COLLECTION STEPS
A. Carefully Select Your Customer
B. Obtain Project Documentation
C. Properly Prepare the Schedule of Values
D. Properly Apply for Payment
E. Demand Payment When Due
F. Repeatedly Demand Payment when Past Due
G. Stop Work
H. Demand Adequate Assurance
I. Contact an Attorney
J. File Suit
1. Federal Court
2. State Court
a. General
District Court
b. Circuit
Court
III.
OPEN ACCOUNT CLAIMS
IV. BAD
CHECK CLAIMS
V.
COLLECTION ASSISTANCE
VI.
BANKRUPTCY CLAIMS
A. Bonded Work
B. Projects Where Money is Held by the Owner at
the Time of Bankruptcy
C. Executory Contracts
D. Assistance of an Attorney
VII.
CONCLUSION
Chapter
Twelve:
ARBITRATION,
LITIGATION, OTHER FORMS OF ALTERNATIVE DISPUTES
RESOLUTION & SETTLEMENT
I.
INTRODUCTION
II.
ARBITRATION
III.
LITIGATION
A. Pleadings
B. Discovery
C. Trial
D. Appeals
IV.
OTHER ALTERNATIVE DISPUTES RESOLUTION METHODS
A. Mediation
B. Mini-Trials
C. Summary Jury Trials
V.
SETTLEMENT
VI.
CONCLUSION
