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Flashcards in Contract Strategy and Building Contract Deck (57)
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1

means selecting organizational and contractual
policies required for the execution of a specific
project.

Contract Strategy

2

an agreement made between two or
more parties which is enforceable by law
to provide something in return for
something else from a second party"

Contract

3

Elements that must be present before an agreement becomes a contract

- Competent Parties:
• - Proper Subject Matter:
Consideration:
Agreement:
Proper Form:
- Consent of the Parties:

4

defines the extent or the area that the
contract covers.

Project Scope (performance):

5

Project Objectives (PRIMARY)

-Project Scope
-Time
-Price

6

translates what project
parties are involved in the project and how they
interact with each other

project delivery method

7

• is the most common approach in civil
engineering projects in which the design has to
be completed before construction can start.

Traditional Approach

8

owner organization performs both the design
and construction using its in-house labor force.

Direct Labor

9

a single organization is responsible for
performing both design and construction and,
in some cases, providing certain “know-how” for
the project

Design-build

10

• similar to the design-build approach but with the
organization being responsible for performing
both design, construction, know-how (if any), and
project financing.

Turnkey

11

• a business entity is responsible for performing
the design, construction, long-term financing, and
temporary operation of the project

Build-Operate Transfer (BOT)

12

can take various arrangements and the owner
needs to make a decision regarding the proper
arrangement that suits the project and the
parties involved.

Contractual Relationships

13

Contract where a single tendered price is given for the
completion of specified work to the satisfaction
of the client by a certain date.

Lump Sum Contract

14

Contact where the contractor specifies rates against each item including risk contingency.

Admeasurement Contract

15

Tenderers enter rates against each item of the
estimated quantities of work.

Bill of Quantities Contract:

16

separate rates to be quoted for labor, plant, and
materials
The contract price is derived by measuring the
man-hours, plant-hours and the quantities of
materials actually consumed

Schedule of Rates Contract

17

The contractor is reimbursed for actual cost plus
a special fee for head office overheads and
profit, no special payment for risk
• The contractor must make all his records and
accounts available for inspection by the client or
by some agreed third party.
• Payment may be made monthly in advance.

Cost-reimbursable Contract

18

• Cost targets may be introduced into cost-reimbursable
contracts.
• the contractor will be paid a share for any
saving between target and actual cost, while the
fee will be reduced if actual cost exceeds the
target.

Target Cost Contract

19

resemble cost-type arrangements
in that they are open ended, because the full
value of the arrangement is not defined at the
time of the award.

Time and Material Contracts

20

used in an emergency to begin work
immediately when a scope of work has not yet
been completed

Time and Material Contracts

21

The most important document from the legal
point of view

Agreement

22

They are terms expressing matters basic to the
contract.

Conditions

23

They are terms expressing matters basic to the
contract.

Institute of Civil Engineering (ICE) Conditions of
Contract:

24

These conditions are international versions of the
ICE conditions to which they are closely related

provides a standardized document which is wellknown,
internationally recognized and
accepted, an adequately reflects the interests
of the parties concerned

Federation Internationale Des Ingenieure-Conseils
(FIDIC):

25

request for payment or
time extension to which the contractor considers
him/herself entitled.

construction claim

26

- A written additional
information, provision, and
or other document issued by
the Owner prior to the
closing date for the receipt of
Bids

ADDENDUM

27

- The period of time allowed
the Contractor by the Owner
in addition to the
predetermined Contract
Time

ADDITIONAL
CONTRACT TIME

28

The increased or decreased
price of the predetermined
Original Contract Price

ADJUSTED ORIGINAL
CONTRACT PRICE

29

- Approved/ approval in
writing, including
subsequent written
confirmation of previous
verbal approval

APPROVED/APPROVAL

30

- Commissioned by the owner
to make the design and
prepare the Plans and
Specifications

ARCHITECT