1. Conditions of the Contract ACT 380 1

2. Objective To provide an overview of the Conditions of the Contract, their purpose, content, and relationship to other parts of the Project Manual 2

3. What is their purpose? O Define the basic rights, responsibilities, and relationships of the entities involved in the performance of the contract O The conditions are a part of the owner- contractor agreement and are “general clauses” of the agreement 3

4. 2 Major Conditions of the Contract: O General Conditions – usually published standard documents that include principles common to most construction contracts O Supplementary Conditions – specially prepared to modify and expand the general conditions as needed to fit the unique requirements of a specific project 4

5. A/E’s Interest in Conditions of the Contract: Although the A/E doesn’t sign the owner- contractor agreement, their common duties/responsibilities may be described there 5

6. A/E’s Duties/Responsibilities: O Act as the Owner’s representative by routinely visiting the site to observe & evaluate progress O Validate the progress of the work in order to authorize payments at various stages O Prepare Change Orders O Clarify & Interpret the construction documents O Approve/Disapprove authority on submittals O Review shop drawings O Reject defective work O Determine dates of substantial & final completion 6

7. General Conditions (GC) O It is typical to use a standard document published by AIA or EJCDC O AIA A201; A201/CMa (construction manager); A201/SC (supplementary conditions) O There are also abbreviated owner-contractor agreements which contain shortform general conditions (used for less complex projects) 7

8. GC O Federal, state & local government agencies usually produce standard general conditions documents that they require be used on projects O Sometimes large A/E firms develop their own documents 8

9. GC Related to Type of Contract O Standard general conditions are based on the concept of a Single Prime Contract O If a Multiple Prime Contract is used, the general conditions document should be designed for this (e.g., AIA Document A201/CMa) 9

10. GC O Should always be bound (or may be incorporated by reference) into the Project Manual O See pages 5.24 & 5.25 (AIA format -- Section 5.4.1.1) O See page 5.25 (EJCDC format – Section 5.4.1.2) 10

11. Supplementary Conditions (SC) O Modify and expand the general conditions O May accommodate such items as: O Specific project conditions O Owner’s varying requirements O Office procedures O Unusual aspects of the project 11

12. SC Subjects Which Require Provisions O Insurance requirements O Progress payments O Wage rate requirements O Equal employment opportunity requirements O Liquidated damages O Retainages O Tax exempt status of the owner 12

13. SC Considerations O Should be based on the unique requirements of each specific project O Although there are published guidelines for preparing SC – examples of wording of modifications – they may not meet the unique requirements of every project O Should be prepared in conjunction with the project bid form & instructions to bidders because of their interrelationship 13

14. Coordination w/Division 1— General Requirements O Several articles found in the general conditions are usually expanded in Division 1 – General Requirements (e.g., allowances, shop drawings, product data, closeout procedures) O General & supplementary conditions are written in paragraph style while Division 1 – General Requirements as a part of the specifications, are written in the 3-Part format 14

15. Caution !! O General & supplementary conditions are conditions of the contract and are NOT specifications O The general & supplementary conditions have LEGAL consequences that are the owner’s responsibility O An A/E should not initiate conditions without approval & guidance from the owner & the owner’s legal counsel 15