Exam 7: Killer Clauses

Generally not included in a Time and Material cost is

An exculpatory clause shifts responsibility for actions done or caused by one party to another party

When terminating for cause

The contract will usually clearly define what will be included in Time and Material costs

If there is a ""no damage for delay clause"" the Contract Administrator

Whether there is a ""notice clause"" or not in the contract, the Contract Administrator should notify the owner of any delays

Indemnity clauses

Exculpatory clauses

Contracts can contain indemnity clauses requiring another party to assume the costs for damages done by another party

An Owner cannot delay the whole or a portion of the work without compensating the Constructor

In the event of bankruptcy of a Supplier, materials stored at the Supplier's facility become the property of the Contractor

For progress billing, the Contract Administrator should coordinate with

A PRP does not have to be the party or entity that installed the hazardous material

When an Owner exercises a ""Termination for Convenience"" the Constructor is not entitled to any further compensation

Contractors should be alert to hazardous substances in buildings

If a hazardous substance is exposed

A Mechanics Lien is

An Acceleration clause is illegal

Acceleration clauses cannot require a Constructor to perform work in a manner that is more costly than originally planned

A Constructor cannot be held responsible for hidden conditions