DBIA EXAM 3-with 100% verified solutions 2024-2025, Exams of Business Fundamentals

Download DBIA EXAM 3-with 100% verified solutions 2024-2025 and more Exams Business Fundamentals in PDF only on Docsity! DBIA EXAM 3-with 100% verified solutions 2024-2025 What 3 categories are the Best Practices organized into? 1. Procurement 2. Contracting 3. Execution If these Best Practices are NOT implemented, there is an increased _____ that the project's performance will be _____ and that some or all of the stakeholders will be _____. - probability - compromised - disappointed. _____ and _____ contracts are fundamental to any delivery process. - Fair - Clear Contracting principles apply to contracts of those working within the _____ _____ DB Team This chapter has ___ Best Practices and ___ Implementing Techniques. - 3 - 18 Contracts used on DB projects should be _____, _____, and _____ and should promote the _____ aspects inherent in the DB process. - fair - balanced - clear - collaborative The contract between the _____ and the ______ _____ should address the _____ aspects of the DB process, including expected standards of care for design services. - Owner - Design-Builder - unique The contracts between the _____ _____ and _____ _____ should address the _____ aspects of the DB process. - Design-Builder - Team Members - unique Design-Build Done Right is the _____ of every DBIA certification course! core What are the 4 types of law? 1. Contract Law 2. Tort Law 3. Statutes and regulations 4. Common Law Statute of Frauds What is an example of a contract that the Statute of Frauds mandates to be written? contracts that are impossible to complete within one year "Where a contract does not fix a definite price, there must be a definite method for _____ it." ascertaining What case is this? - NAVFAC project. - Party's $5.2 million price used by other party in bid, but the project is awarded to other. - Statute of Frauds found applicable. Trident V. Austin (2003) Contracts created by conduct that is contrary to public sector are _____. enforceable or unenforceable? unenforceable What are 2 examples of an unenforceable contract that is contrary to public policy? - Duress - Misrepresentation and Fraud Which of the following terms may be found contrary to public policy? a.) Indemnity b.) Limitations of Liability c.) Advanced waivers of lien rights. d.) No damages for delay. e.) All of the above. e.) All of the above. _____ _____: Means of protecting a party who is reliant on someone's actions. Promissory Estoppel What are 2 common examples of Promissory Estoppel? 1. Subcontractor bids 2. Teaming relationships What case is this? - Party sues for lost profits ($3-4 million) - 5th Circuit found material facts in dispute that allowed party to maintain a promissory estoppel theory. Metroplexcore V. Parsons Transportation Group (2014) _____ Damages: Award what was reasonably expected from the contract. Expectation _____ _____: When expectation damages not available, award what party would have had if contract had not existed. Rescission Damages _____ ______ & _____ _____: If contract's subject is unique, a court may order that the breaching party perform its obligations under that contract (specific performance) or stop doing something (injunction). Specific Performance & Injunctive Relief _____ _____: Award of a reasonable sum of money (i.e., "what the claimant deserved") Quantum Meruit Damages cannot be speculative, and must be proven to a _____ degree of certainty. reasonable The contract may NOT impose limitations on what can be claimed. True or False? False Direct Damages or Consequential Damages? "Damages to customers." Consequential Damages Direct Damages or Consequential Damages? "Rental of temporary generator to provide power for the Owner to meet its customer's needs." Consequential Damages _____ Application: Owner needs to pay once for items negligently omitted. Practical Limitations of liability can impact recovery. True or False? True Even if professional negligence is proven, damages recoverable are impacted by the _____ _____. Betterment Theory Ordinary _____ _____ _____: Exercise of that skill and judgement which can reasonably be expected from similarly situated professionals. Standard of Care Expert testimony is needed to prove the Standard of Care "_____" baseline What are 2 examples of privity of contract needed to sue a party for economic losses? 1. delay damages 2. Cost to correct defects Application is determined on a state-by-state basis (not valid in all states) True or False? True The Economic Loss Doctrine is applicable to personal injury. True or False. False The _____ has a professional standard of care. Designer The _____ has the duty to build what is in the plans and specs. Builder The _____ assumes risk of non-negligent design defects when it has separate contracts with the builder and designer. Owner _____ _____: Provides the following implied warranties-- Plans and specs furnished are accurate and are suitable for intended purpose. Spearin Doctrine The Spearin Doctrine is judicially recognized at both state and federal level. True or False? True What case is this? - State argued that Spearin did not apply to CMAR Contract. - Appellate court found that Spearin did apply to CMAR. Coughlin Electrical Contractors V. Gilbane (2015) _____ _____ _____: what the parties do during the performance of this contract. a.) Course of Performance b.) Course of Conduct c.) Terms of Art a.) Course of Performance _____ _____ _____: what the parties do during the performance of other similar contracts. a.) Course of Performance b.) Course of Conduct c.) Terms of Art b.) Course of Conduct _____ _____ _____: the use of a word in a specific industry. a.) Course of Performance b.) Course of Conduct c.) Terms of Art c.) Terms of Art - Failing to manage multiple prime contractors. - Overzealous inspections. - Using undue leverage in a negotiation position. These are examples of breaches of _____ _____. Implied Duties _____ _____ risk is one of the major risks on projects. Site Condition Full knowledge of all site conditions is never known. True or False? True Owners generally bear this risk of unforeseen site conditions through a(n) _____ ______ _____ clause. Differing Site Conditions _____ _____ _____: Subsurface or physical conditions at the site that differ materially from those indicated in the CD Differing Site Conditions _____ _____ _____: Unknown physical conditions at the site, of an unusual nature that differ materially from those ordinarily encountered and generally recognized as inhering in the work of the character provided for in the contract. Differing Site Conditions _____ clauses frequently get in the way of efficient implementation of the DSC remedy. Exculpatory Element of Constructive Acceleration: Contractor is entitled to a(n) _____ delay. excusable Element of Constructive Acceleration: Contractor gives Owner _____ _____ of the delay and a proper request for a time extension. timely notice Element of Constructive Acceleration: Time extension _____ or _____. - postponed - refused Element of Constructive Acceleration: Performance If the design-builder is expected to meet performance guarantees, the contract should clearly identify _____, and the guarantees should be capable of being _____ and reasonably _____ by a design-builder performing its work in a commercially reasonable fashion. - guarantees - measured - achievable What are 3 remedies if the Design-Builder fails to meet performance requirements? 1. Actual Damages 2. Liquidated Damages 3. "Make good" Commercial impracticability is accepted by all courts as a defense. True or False? False "rejected by some courts" We have an expert-written solution to this problem! The contract should clearly define the role of the _____ _____ _____ and how it/they will communicate with the Owner. Designer(s)-of-Record The contract should ensure that there is a clear understanding as to how the _____ _____ will communicate with each other and the Owner, including meetings that each party is expected to attend. Team members _____ _____ are agreements that address business pursuits. Teaming Agreements Best practices mandate that teaming agreements must be used. True or False? True During the proposal phase, the design-builder should use written _____ _____ with each team member to develop and capture an understanding of their relationship and key commercial aspects of their relationship. teaming agreements The design-builder and its designer(s) should develop a(n) _____, at the outset of their relationship, of the key _____ aspects of their relationship. - understanding - commercial DBIA Document _____: Standard form of Teaming Agreement between Design-builder and Teaming Party. 580 _____-_____: Prime contracting party with Owner. Design-Builder _____ _____: Any party entering into a lower tier or subcontracting agreement with Design- Builder. Teaming Party _____ Agreement: The subcontractor that the parties will enter into if Design-Builder wins the procurement. Subsequent ______ for Teaming Agreement: every party must ensure that they have the requisite qualifications and personnel to perform the Work. Qualifications _____ for Teaming Agreement: parties must have the insurance required for the Subsequent Agreement in place. Insurance _____ _____ _____: defines who is responsible for what portion of the deliverables for the RFQ/RFP. Matrix of Responsibilities contractors want benefits of balanced contacts _____, but use of the "hammer" to shift substantial risk _____. - upstream - downstream Designers are by their nature _____ averse. risk Contracts should use language that is _____ to those personnel who are administering the project. understandable _____ _____ contracts satisfy many of the goals behind DB best practices. Standard Form What are the 4 current US Standard Form DB Contracts? 1. DBIA 2. Consensus Docs 3. AIA 4. EJCDC A contract's structure is based on how the contractor is _____. paid A contract's structure is based on how the _____ is paid. Contractor Lump Sum or Cost Plus/GMP? - single price regardless of actual cost Lump Sum Lump Sum or Cost Plus/GMP? - no meaningful opportunity for Owner to be involved in subcontractor procurement. Lump Sum Lump Sum or Cost Plus/GMP? - no transparency into price Lump Sum Lump Sum or Cost Plus/GMP? - limited audit rights and undisclosed contingencies. Lump Sum Lump Sum or Cost Plus/GMP? - Owner has broad audit rights Cost Plus/GMP Lump Sum or Cost Plus/GMP? - Owner has ability to be more involved in subcontractor procurement. Cost Plus/GMP Lump Sum or Cost Plus/GMP? - Most contingencies are transparent Cost Plus/GMP Lump Sum or Cost Plus/GMP? - Savings needs to be addressed. Cost Plus/GMP Lump Sum or Cost Plus/GMP? - Administratively more complex Cost Plus/GMP - Owner terminates Architect - New Architect uses original work product - Owner and follow-on architect liable for copyright infringement. Johnson V. Jones (1996) Work Product is property of the _____ _____. Design-Builder Contracts should contain a _____ process that facilitates and expedites the review and resolution of potential changes to the contract and adjustments in the contract price and time. fair DB process does not preclude changes True or False? True an Implementing technique for Execution recommends the Design-Builder and its team to establish and maintain a _____ system. trend Disincentives are enforceable only if they meet _____ damage prerequisites. Liquidated Legal sufficiency for Liquidated Damages: must be a reasonable measure of damages in light of circumstances after the time of the contracting True or False? False AT the time of the contracting ______: The act of accepting claims on behalf of another entity. Indemnification The contract should reflect that Designer-of-Record is regularly and actively involved throughout the project's _____. execution What are the 2 methods in which trade subcontractors be procured? 1. Best Value 2. Low Bid Who obtains professional liability insurance? A/E _____ Liability Insurance is also known as Errors and Omissions Insurance. Professional Builder's Risk Insurance can be obtained by which two parties? Owner or Design-Builder _____ _____ Insurance: First-party coverage against physical damage to project during construction. Builder's Risk _____ _____ Insurance: Risk of liability to Owner from employee injuries caused by occupational diseases. Employer's Liability _____ _____ Insurance: Risk of liability to third parties for BI/PD caused by vehicle accidents in connection with the project. Auto Liability _____ _____ Insurance: Risk of liability due to injuries to workers. Each state has different statutes. Worker's Compensation