Contract

Kuangji Zhao

Exam 1

Part 1

1. Which of the “dirty zone” does this paragraph involve?

Site condition, design liability.

1. As the contractor, describe the risk/problem with the paragraph above.

• “Based upon the foregoing inspections, understandings, agreements and acknowledgements”. In this sentence, the word “understandings” is vague language.
• “Errors or omissions” this is not contractors’ responsibility, this should be architects’ duty to design everything correctly and practically.
• “subsurface condition”. Owner has to be responsible for the land status, it’s not contractor’s responsibility to figure out the condition. Also, the contractor should clarify how deep the subsurface is after the owner provides the site condition test result.
• “Without limitation” contractor should not take all risks and responsibility without limitation
• “all structural” this is structure engineers’ responsibility, not contractors’
• “any conflicts” ambiguous word, it should be clarified which conflict is
• “Contract Time is adequate for the performance of the work” the scope of work should be listed here
• “unforeseen risks, hazard” the cost of unforeseen risks should be not included in the GMP unless the risks are caused by contractors.

Part 2.

1. Which of the “dirty zone” does this paragraph involve?

Contract documents, damage delay and design liability.

1. As the contractor, describe the risk/problem with the paragraph above?

• “All laws, statutes, ordinances, building codes, rules and regulations.” None all of these should go to contractors, these should be architects’ and engineers’ responsibility.
• “In no event shall the contractor…for such variance.” Contractor should have an approximate estimate for the time and cost needed to cover the change due to owner’s requirement before and after the requirements are made.

Part 3

1. Which of the “dirty zone” does the paragraph involve?

Contract documents, changes.

1. As the contractor, what is the risk/problem with the paragraph above?

• “schedule of prices” In a lump sum contract, the contractor does need to provide a detailed cost list, instead, a lump sum number should be provided.
• “shall not be considered as indicating additional work.” Additional work should be considered as change order in contract.
• “Architect may, during construction, furnish to contractor…deem necessary“. In a lump sum contract, architects and contractors sign the contract with owners separately. Thus, architect should not contact contractor directly, instead, architect should go through the owner first. In no conditions, architects should be presented in a lump sum contract.