Dis Res 1
T H
2. Discuss the importance of clearly stating “time of completion” in the contract agreement provisions.
One of the key reasons for having a contract for construction projects is to ensure that there is a mutual understanding of all aspects of the project, including scope of work, cost, and time. Clearly stating the “time of completion” in the contract identifies to all project stakeholders the time frame in which the project will be completed. Time of completion can be specified in different ways, to include “days to complete,” or “date of completion.” Time of completion is important to both the owner and general contractor. The owner is paying for a specific scope of work to be completed in a specified time frame. Contracts often contain penalties against the general contractor for not meeting contractual deadlines, and sometimes even provide additional incentives for completing the project ahead of schedule.
Respond
3. Discuss the difference between insurance and a surety bond.
Insurance is one of the means that a contractor uses to manage risks. There are many type of insurance, including general liability, builders risk, workers compensation, automobile, etc. Each of these is intended to pay if an unforeseen injury, illness, or loss in encountered as part of the project. A surety bond, on the other hand, provides a “guarantee” to the obligee that certain obligations will be met. There are many types of surety bonds, but two of the most common are Performance Bonds and Payment Bonds. A Performance Bond ensures that contractor will “perform” all of the work and scope indicated in the construction documents. A Payment Bond ensures that the contractor will pay all of his obligations to his subcontractors and material suppliers.
Respond
BH
2. Discuss the importance of clearly stating “time of completion” in the contract agreement provisions.
This is important because it clearly defines the start date and completion date. Either written in calendar days (not working days) or gives a specific date. Also, any liquidated damages, penalty or bonus clauses are defined here as well.
Respond
3. Discuss the difference between insurance and a surety bond.
Ch. 2 Pg. 18 Sec. 2-6 clearly defines this as insurance companies shoulder the specified loss(es) while a the loss(es) are shouldered by the bonding agent which in turn looks at the contractor to pay them for the money extended on the behalf of the contractor. Insurance= no money out of the contractors pocket except monthly, quarterly, semi-annually, or annually premiums whereas bonds= full funds out of contractors pocket to bonding agent.
Respond
S J
2. What are the most important clauses in a construction contract for a contractor? Discuss the risks mitigated by these clause.
One of the most important clauses in a contract is the payment clause. It overall sets the standard for payment for the entirety of the project and sets out rules and regulations that must be followed in order to ensure payment is received by the contractor and subs alike. Risks in this area include loss payment, for instance, the clause can demand that all work be completed and billed correctly with proof such as pictures of materials before payment can be processed. If payment is held due to lack of quality work, it would be spelled out in this section.
Another important clause is the liquidated damages portion of a contract. In the event a contractor is not living up to original potential, such as guaranteed finish dates, this clause protects the owner and ensures they will be compensated for their loss in time. This clause helps reduce the amount of risk in the project by putting a dollar damage amount to contractors in order to incentivize meeting the agreed completion date on time so that the contractor does not lose money.
T H
2. Discuss the importance of clearly s
tating “time of completion” in the contract agreement
provisions.
One of the key reasons for having a contract for construction projects is to ensure that there is a mutual
understanding of all aspects of the project, including scope of work, cost, and tim
e. Clearly stating the
“time of completion” in the contract identifies to all project stakeholders the time frame in which the
project will be completed. Time of completion can be specified in different ways, to include “days to
complete,” or “date of comp
letion.” Time of completion is important to both the owner and general
contractor. The owner is paying for a specific scope of work to be completed in a specified time frame.
Contracts often contain penalties against the general contractor for not meeting
contractual deadlines,
and sometimes even provide additional incentives for completing the project ahead of schedule.
Re
spon
d
3. Discuss the difference between insurance and a surety bond.
Insurance is one of the means that a contractor uses to manage risks. Ther
e are many type of insurance,
including general liability, builders risk, workers compensation, automobile, etc. Each of these is
intended to pay if an unforeseen injury, illness, or loss in encountered as part of the project. A surety
bond, on the other h
and, provides a “guarantee” to the obligee that certain obligations will be met.
There are many types of surety bonds, but two of the most common are Performance Bonds and
Payment Bonds. A Performance Bond ensures that contractor will “perform” all of the
work and scope
indicated in the construction documents. A Payment Bond ensures that the contractor will pay all of his
obligations to his subcontractors and material suppliers.
Re
spon
d
BH
2. Discuss the importance of clearly stating “time of completion” in the contract agreement
provisions.
This is important because it clearly defines the start date and completion date. Either written in calendar
days (not working days) or gives
a specific date. Also, any liquidated damages, penalty or bonus clauses
are defined here as well.
Re
spon
d
T H
2. Discuss the importance of clearly stating “time of completion” in the contract agreement
provisions.
One of the key reasons for having a contract for construction projects is to ensure that there is a mutual
understanding of all aspects of the project, including scope of work, cost, and time. Clearly stating the
“time of completion” in the contract identifies to all project stakeholders the time frame in which the
project will be completed. Time of completion can be specified in different ways, to include “days to
complete,” or “date of completion.” Time of completion is important to both the owner and general
contractor. The owner is paying for a specific scope of work to be completed in a specified time frame.
Contracts often contain penalties against the general contractor for not meeting contractual deadlines,
and sometimes even provide additional incentives for completing the project ahead of schedule.
Respond
3. Discuss the difference between insurance and a surety bond.
Insurance is one of the means that a contractor uses to manage risks. There are many type of insurance,
including general liability, builders risk, workers compensation, automobile, etc. Each of these is
intended to pay if an unforeseen injury, illness, or loss in encountered as part of the project. A surety
bond, on the other hand, provides a “guarantee” to the obligee that certain obligations will be met.
There are many types of surety bonds, but two of the most common are Performance Bonds and
Payment Bonds. A Performance Bond ensures that contractor will “perform” all of the work and scope
indicated in the construction documents. A Payment Bond ensures that the contractor will pay all of his
obligations to his subcontractors and material suppliers.
Respond
BH
2. Discuss the importance of clearly stating “time of completion” in the contract agreement
provisions.
This is important because it clearly defines the start date and completion date. Either written in calendar
days (not working days) or gives a specific date. Also, any liquidated damages, penalty or bonus clauses
are defined here as well.
Respond