LARE EXAM 1 Questions with Complete Verified Solutions BEST STUDY GUIDE 2024/2025, Exams of Business Administration

Download LARE EXAM 1 Questions with Complete Verified Solutions BEST STUDY GUIDE 2024/2025 and more Exams Business Administration in PDF only on Docsity! LARE EXAM 1 Questions with Complete Verified Solutions BEST STUDY GUIDE 2024/2025 Outline the business relationships between the three principal parties that are involved in a landscape construction project (Their obligations) 1. Owner/ client - initiate the project ; signs separate contracts for completion, & responsible for funding design & construction 2. Contractor - hired by owner to combine necessary ingredients of materials , labor, equipment, and management to accomplish job 3. Landscape architect - deals w/ both. only contractual relationship is w/ owner - finical feasibility, preliminary designs, preparation of documents, onsite observation What is professionalism? What Relationship does it have with ethics? Professionalism is someone who is ethical, has advance training, a high level of competence, mental services rather than manual labor, qualifications & licensure, & same quality of service to all regardless of fees. Professional ethics - defined rules that govern business conduct and values used to achieve goals Describe the difference between direct cost and overhead cost in a contractor's cost accounting system Direct cost - materials, labour, equipment Overhead coast - expenses not directly charged to field operations Name 4 sources for appropriation of funds to finance public works projects. 1. annual tax receipts - Tax revenues received by government from all sources 2. General Obligation bonds - is a type of municipal bond that is backed entirely by the issuers creditworthiness and ability to levy taxes on its residents 3.Revenue Bonds - municipal bond supported by the revenue from a specific project, such as a toll bridge, highway or local stadium. 4. Special Appropriation Tax - place on the public for a limited time and a specific project (i.e. 1% sales tax increase for 2 yrs. to build zoo ) 5.User Fees - money collected from users of a particular facility. 6. Grants, matching funds, gifts or a bestowal List the 4 sources of law in the US and Outline how each functions 1. Federal & State Constitutions - establishes fundamental rights, sets up a legislator for making laws 2. Court Decisions - interpret constitution, legislative law, and the principles of common law 3.Federal, State, & local statues- 4. Executive Order - issued by president Addendum A written document issuing changes to the plans and/or specifications after they are put out for bid but before the contract is signed. Addendum acknowledgment must be indicated on the bid form Administrative Agency A regulatory agency established by statute. A department of government formed to administer a particular area. An example of a federal administrative agency would be the environmental protection agency who endeavors to control pollution by research, monitoring, standard setting and enforcement activities. Similar agencies also exist at the stat level Agent of the owner A person authorized by the owner to act as the owner's representative to bring about performance of contractual obligations. Arbitration A procedure whereby contracting parties may submit a dispute to an impartial board for a decision. An alternative to a suit in a court of law. this method makes it possible to avoid many of the legal formalities, delays, and expenses which result from litigation Article major subject with a part of a specification section consisting of one or more related paragraphs and subparagraphs. Bid Affirmative Defenses An affirmative defense will bar an otherwise valid claim. It is called "affirmative" because the party claiming the defense has the responsibility to bring it to the court's attention Age of majority upon attainment of this age, as specified by stat statuete, a person is no longer a "minor" or an "infant" in the eyes of the law Agency Relationship A contractual relationship between a person and an owner which authorizes that person to act as the owner's representative to bring about performance of contractual obligations Aggregate Limit A yearly limit, rather than a "per occurrence" limit, representing the most the insurer will pay during one policy year Alternatives (Bid) Where the possibility exists of a need to change the bid price, the design professional may identity an alternative to a specified material or construction method. The bidders will figure their bid including the specified material or construction method and then indicate an amount to deduct from or an amount to add to the bid price if the alternative is used. Americans with Disabilities Act (ADA) Federal legislator which regulates for the accommodation of people with disabilities such as various forms of mobility problems, sight and hearing impaired. the act which resulted in volumes of design rules which are periodically amended have a profound effect on the codes regulating building and site design. The most recognized results of ADA are handicapped parking, ramps, grab bars, restroom and hallway dimensions, water fountains, traffic crossing sound signals, pavement patterns and braille Anti-Assignment These provisions are commonly included in contracts and are also known as "anti-alienation" provisions. They commonly provide that a party to the contract may not transfer their interest in the contract to a third party without consent of the other party to the contract Anticipatory Repudiation When the promised time of performance of a contract has not yet arrived, and the person who made that promise unequivocally announces their intent not to perform, they have anticipatory repudiated the contract. Generally, this discharges the duties of the other party and gives them the right to sue for breach immediately. Appellate Court Court whose only pwer is to review the decision of a lower court Appraisal The process of determining value for real estate. The most common value determining methods are the cost of replacing real estate, the recent sale of comparable real estate and the value of the real estate based on the income it produces. Apprenticeship The term or period of time during which a beginner or entry level practitioner serves under the discretion of a licensed professional ARCOM ARCOM is a Salt Lake City, Utah based firm that publishes the Master specification system and develops companion software systems for specification editing and production Articles of incorporation An application for incorporation of a business. The application usually contains the name, the corporations purpose, duration, capital structure, place of business, number and type of shares to be issued and proposed directors of the corporation being formed As Built Documents A project is often the result of what was originally designed as well as the planned and inadvertent but accepted changes made during construction. For the purposes of accurately recording the actual results of what was implemented, the project is measured and a final set of plans and drawings are made. Often these drawings showing the project as it exists are merely notations on the construction drawings. Accurate documents are often critical for maintenance purposes and later phase plans. Assult An intentional tort. A person threatens or creates in another a reasonable apprehension of immediate physical harm or offensive contact. Assessment District is an adopted and defined area within which monies (in excess of the amounts normally taxed) are collected for the purpose of underwriting additional services or building elective public improvements. A neighborhood electing to install and finance its own sidewalks or added foot patrol security in a downtown area are two examples. Assignee When a contractual duty has not yet been performed i.e., it is executory) , the person to whom that duty is owing (the obligee) often transfers their rights to receive performance to a third party. The person to whom the transfer is made is known as the assignee in this situation. Assignor When a contractual duty has not yet been performed (i.e., it is executory), the person to whom that duty is owing (the obligee) often transfers their rights to receive performance to a third party. The obligee is known as the assignor in this situation Association (or society) A formal organization created to transact or carry on some common interest or formed for the pursuit of business of mutual concern for group of professionals. Assumption of the Risk This is a complete bar to a negligence claim. If a plaintiff knew about a risk and voluntarily encountered it, the plaintiff assumed the risk. Baselines East-West Survey lines establised in much of the unsettled parts of the U.S. in the 1800's as regional North-South Reference or bases for an efficient system of property descriptions. Battery An intentional tort. a person makes harmful or offensive physical contact with another. Bid amount The total amount of a bid Bid Bonds Bonds required of a contractor and attached to the bid. The purpose of these bonds is to make sure that the contractor is making the bid in good faith and will sign a contract if his or her proposal is accepted. If a contractor refuses to sign a contract, bid bond is forfeited. Bond amount is usually five to ten percent of the bid amount. Bid rigging to manipulate a bidding process dishonestly for personal gain Bidder A contractor preparing or submitting a bid is usually referred as a bidder Bilateral contract at the moment a contract is made, one party often exchanges a promise to perform in the future (an executory promise) for a promise from another to perform in the future. in other words, each party is both an obligor and an obligee. This exchange of exectory promises is known as a bilateral contract. Board of Directors Control of a corporation is with the board of directors. they conduct the corporate business. Considered management. Stand in a fiduciary relationship to the Stockholders. Control of the corporate operation by the board of directors is comparable to an individual's control over their own proprietorship Breach of contract failure to observe the terms. when one party either fails or refuse to perform their obligations under the contract or when his/her acts makes performance impossible Breach of Duty One of the elements of a prima facie case of negligence is breach of duty. In a negligence case, the test is whether the defendant met the standard of care which a reasonable person in the community would have exercised in a the same situation. This is often a question of fact for the trier of face (the judge or jury) Policies written on this basis pay based on the year in which the claim for damages is made, and not based on when the event that resulted in the damages occurred. Classical Education A traditional education that included the ability to read and speak Latin, an understanding of greek, and an appreciation of the arts. Closed bid opening a bid opening that is not open to the public and the successful bidder is notified by phone or mail. Closed Proprietary specification A specification that names a brand name product and does not allow a substitution of that product Collateral It is common for a debtor to agree too provide the creditor with security for a loan. In other words, the debtor agrees that the creditor may take certain property of the debtor upon default. That property is called collateral Collateral Agreement (To Pay the debt of another) One type of agreement that is commonly covered by the statue of frauds is a "collateral agreement to pay the debt of another" It is common for one person (often called a guarantor) to promise a creditor that they will pay a debt if the pricipal debtor defaults. That guarantee is a c" collateral agreement to pay the debt of another" when the main purpose of the promise is to benefit the debtor, not the guarantor. Such an agreement must be evidenced by a writing to be enforceable. Collusion A secret agreement between two or more persons or parties for fraudulent purposes. Commercial General Liability (CGL) A business liability policy designed for a wide variety of business uses, covering premises operations, product liability, completed operations, and operations of independent contractors. Commercial Impracticability A promise is viewed as "impossible" under the common law of contracts when it is objectively impossible to perform ( as opposed to the merely difficult to perform). The common law generally required impossibility to excuse failure to perform a contract. When a contract is covered by Article 2 of the uniform commercial code, failure to perform may be excused by "commercial impracticability" This exists when the duty , although not objectively impossible to carry out is extremely difficult and performance would be unreasonable due to circumstances which the parties did not bargain about at the time of making the contract Commercial Paper An item such as a check or promissory note or certifcates of deposit is "commercial paper" (also commonly referred to as a "negotiable instrument") if that item meets the standards described in Article 3 of the uniform commercial code. IF an item meets those standards, it may be transferred to a person known as a "holder in due course" and the new holder (if they meet the requirements of Article 3) takes the item free of any personal defenses available to the original obligor. Common law system IN some countries, such as the USA law is found in both codified rules e.g., constitutions, statutes and administrative rules, and in prior appellate court decisions. since such prior court decisions create binding precedent, this is called a common-law system Comparative Negligence in negligence case, the defendant often asserts that the plaintiff's own failure to behave in a reasonable manner contributed to the plaintiff's harm. In a state which has a comparative negligence rule, this failure by the plaintiff (if proven) reduces the damages the plaintiff may collect from the defendant. Compensatory damages These are damages designed to compensate the plaintiff for the losses resulting from the defendant's act. in a tort case, compensatory losses commonly included losses such as lost income and pain and suffering. Competitive nature The business arena of this country where two or more business openly compete for the same customer or contract Competitive state funds state operated workers' compensation insurers that function as an alternative to private insurers in those states where they exist. Complete integration Signing of a written contracts is frequently preceded by a period of negotiation. If a contract is a complete integration, this means that the parties intended the contract to supersede all matter discussed previously. In other words, the completely integrated contract is one which the parties intend as a complete and exclusive statement of the agreement. If that is what the parties intended the written contract may later not be varied by any prior oral discussions. It is common to include a " complete integration" clause in a contract to make this intent absolutely clear. Comprehensive applies to all automile physical damage losses except collison and others that are specifically excluded. Condemnation in the context of real estate ownership refers to a basic power of government to take property for a public purpose and a to provide the owner with an appropriate and fair amount of money or tother valuable consideration for the land and its improvements (just compensation) Conservation Easement A development restriction or prohibition pruchased from or granted by a property owner to accommoate the preservation of a natural resource or as site not suitable for development. The owner retains a land title and may not develop the property in exchange for payment and/ or valuable consideration such as tax savings Consideration (real) something of value, i.e., a sum of money or a specific thing, that makes an informal promise legally binding. That to which one is already entitled is considered unreal consideration Contingency allowance allowances made by the contractor and added into the construction cost for unforeseen events Contingent Business Income Coverage Coverage for losses that result form losses to a supplier or customer upon whose continued operation the firm depends. Contract An agreement between two or more persons or parties to do or not to do a particular thing. A written contract contains the agreement of parties with the terms and conditions, and which serves as a proof of obligation Contract Bond A surety bond guaranteeing that the principals will complete their work in accordance with the terms of the construction contracts Contract documents contract, plans, specifications Contract Law This is the body of law determining which promises will be enforced by courts in civil cases. It is common for a single act by a defendant to both breach a contract with another party and to constitute a tort Contract Surety surety bonds Contractor Hired by the owner to combine the necessary ingredients of materials, labor, equipment, and management skills to physically accomplish the work according to the contract documents Contractual liability insurance coverage for liability arising from contractual agreements in which the financial responsibility for some losses is specifically allocated to one of the contracting parties Contribution In many cases the behavior of more than one person will be tortious and will cause harm to a plaintiff. In those cases, the defendants are often jointly and serverally liable to the plaintiff. As among those defendants one defendant may have paid more than his pro rata share of the loss e.g., one may have been more culpable than another. In such a case, the less culpable defendant may have a right of contribution against the other. Contributory negligence If the immediate past owner can only guarantee that he or she has done nothing to lessen validity of the title that they held the deed A deed of trust executed as security to a lender and held by a third party. When the security is no longer required the lender executes a deed which returns title to the owner Administrator's deed A trustee or administrator appointed by a court in the case of a death without a will may convey property by issuing a deed as a representative of the court Executor's deed An executers of an estate may convey title. Sheriffs, guardians, referees in disputes, and legally appointed committees may also issue deeds unde certain circumstance. Defamation Holding up of a person to ridicule which tends to injure reputation; may be criminal as well as civil. Includes both libel and slander. Defualted contract The failure to fulfill the requirements of the contract Defendant The person defending or denying; party against whom relief or recovery is sought Defense of others A defense to an intentional tort claim, if proven. this is reasonable force used to protect someone else from immediate threat of unlawful physical harm. Defense of Property A defense to an intentional tort claim, if proven. Reasonable force necessary to prevent a tort against real or personal property qualifies for this defence. As a general rule, reasonable mistake will not excuse force used against an innocent person Deliverables A contract list the obligations that must be met by the provider of services. That list, whether it be a constructed facility, a purchased item or designs and plans to build a project, certain services or objects have to be given to the owner before payments are made. These are delivered or are the deliverables. deposited acceptance rule the contractual doctrine that a binding acceptance of an offer occurs when a mailed acceptance is irrevocably placed with the postal service Descriptive Specification Specifications that is a detailed written description of the required properties of a product or material, and the workmanship required for its proper installation Design Documents (DDs) The project plans are presented with such accuracy and detail that reliable quantities, dimension and placement are discernable for costing, permitting and bidding. It is the last stage of design which accommodates change before the much more detailed construction documents and specifications are drawn up Design-Build Firm Landscape architects who create and construct their own designs Difference in Conditions Insurance A property insurance policy that extents coverage from named perils to open perils basis. Often used to add coverage for the perils of flood and earthquake Direct Property Loss A loss that stems directly from an unbroken chain of events leading from and insured perils to the loss. Direct Response A system to distribute insureance to customers through direct mail, telephone, television, or other methods without the use of intermediaries Disaffirm A general rule, a contract made by a person without capacity is "voidable" when that person (or someone acting on their behalf, such as a conservator) elects not to be bound by that contract, they disaffirm the contract. Divisions The largest grouping of information in specifications, CSI format uses 48 divisions which are then in turn divided into sections: Division 00 - Procurement and Contracting Requirements Division 01 - General Requirements Division 02 - Existing Conditions Division 03 - Concrete Division 04 - Masonry Division 05 - Metals Division 06 - Wood, Plastics, Composites Division 07 - Thermal and Moisture Protection Division 08 - Openings Division 09 - Finishes Division 10 - Specialties Division 11 - Equipment Division 12 - Furnishings Division 13 - Special Construction Division 14 - Conveying Equipment Division 21 - Fire Suppression Division 22 - Plumbing Division 23 - Heating, Ventilating, and Air Conditioning (HVAC) Division 25 - Integrated Automation Division 26 - Electrical Division 27 - Communications Division 28 - Electronic Safety and Security Division 31 - Earthwork Division 32 - Exterior Improvements Division 33 - Utilities Division 34 - Transportation Division 35 - Waterway and Marine Construction Division 40 - Process Integration Division 41 - Material Processing and Handling Equipment Division 42 - Process Heating, Cooling, and Drying Equipment Division 43 - Process Gas and Liquid Handling, Purification and Storage Equipment Division 44 - Pollution and Waste Control Equipment Division 45 - Industry-Specific Manufacturing Equipment Division 46 - Water and Wastewater Equipment Division 48 - Electrical Power Generation Doctrine of Part Performance If a contract is covered by the statue of frauds, that contract must generally be evidenced by a writing in order to be enforceable against "the party to be charge" However, if that party has already demonstrated that the contract exists ( even thought it is not written) by partially carrying out the terms of the contract, the contract is enforceable even though there is no written evidence. Doctrine of quantum meruit projects may be terminated will into the design phase with many documents and plans developed never to be implemented. The doctrine of quantum merit deals with an owner's obligation to pay for the value of services actually rendered up to the point of the project's termination even though to the owner in the ease of a project not built there is no value. Donee Beneficary A donee-beneficiary is one type of third party beneficiary A person is donee beneficiary of a contract made by someone else when the purpose of that contract was to make a gift to that donee. A donee- beneficiary may generally sue for breach of contract even though they are not a party to the contract. Draws A periodic payment made to the contractor for work completed or installed. Feudal Tenancy (Feudalism) Is a European political and economic system practiced from the 9th to 15th centuries where land was typically owned by royalty ( a lord) and the tenant (vassal) occupied and used it in exchange for homage and service. Fidelity Bond Covers emplyers for losses resulting from dishonest acts of employees. Fiduciary A person who by law or contract must exercise a standard of care in management activities ; e.g. estate executor. Fiduciary Relationship Occupying a position of trust and confidence to another. For example, in a partnership each partner has the power to enter into contracts in the name of the firm. Thus, making the other partners liable for the contract agreement. Firm Offer As a general rule, a mere promise to keep an offer open for a certain time is not enforceable under the common law (due to the absence of consideration). When an offer is within the scope of Article 2 of the uniform commercial code and the offeror promises to keep it open for a certain time, it is said to be a "firm offer". If the detailed requirements of the UCC are met, that offer is enforceable even though there is no consideration. Force Account The owner chooses to do the work with their own forces, providing all field supervision and management duties, payment of bills, purchasing of materials, and coordinating of construction equipment. Force majeur Literally Meaning superior force this term represents an unexpected or uncontrollable event which upsets the ability to complete a contracted obligation on time or at all . Such an event which includes acts of war and civil unrest or acts of God such as tornadoes, hurricanes, and earthquakes typically release or substantially alters contract obligation Formal documents an archaic ter for the documents which comprise the contract documents Form contract commonly used agreement documents such as leases, real estate purchase agreements and design services agreements which are preprinted or exist in software the variable which are peculiar to a particular agreement may be inserted into blank spaces in each document. The overall outline of the agreement which consistently assures that all necessary and normal matters are covered. Fraud False representation of a matter of fact Full service firm some (design) service providers are small or specialized in one aspect of project implementation such as landscape architecture. A project may require civil engineering, architecture, economic planning, marketing, structural engineering and many other services. some larger companies attempt to provide all of these services in one entity and therfore cover the complete or full range of necessary serices. in design, a full sevice fim typically provides landscape architecture, architecture, planning, engineering, and surveying services. Whether a company can call itself "full service" depends on the type of project and therfor the full range of services required Gap filling approach under the common law, an offer must be reasonable defintie in order for acceptance of that offer to create a contract. As a general rule, the offer must specify key factors such a price and quantity. In contrast, when an offer is within the scope of Article 2 of the uniform commercial code, the law allos more flexiability. When the parties intend to make a dealt, but have left out key terms (other than quantiesty,) the UCC will commonly fill in the gaps for the parties with a reasonable term (e.eg., a :reasonable price" becomes a term of the contract even thought the parties failed to set the price expressly) General Conditions of the Contract May also be referred to as articles precedent to the agreement. Typical information contained would be insurance requirements, bond requirements termination of the contract by either party, arbitration and an article making the plans and specifications part of the contract. The agreement and general conditions of the contract combine to form the contract General Contractor Also referred to as the prime contractor. The general contractor is under contract with the owner for completion of the work in accordance with the plans and specifications General Provisions First of the two divisions of specifications in a format previous to the construction specifications institute format. Contained the administrative information about the construction job. the separation between general conditions of the contract and the general provisions were never clearly defined. General Requirements Title for the first divisionsin the CSI format of specifcations, contains information of the administrative requirements, proccedural requirements, and temporaty facilites and controls, pertaining only to the needs of construction, governs the specifications Goods Article 2 of the Unifrom Commercial Code only applies to sales of "goods" Goods are tangible personal property, other than money Goodwill In many cases, the value of a business is greater than the value of its tangible personal and real property. That additional value may be based factors such as the good reputation of the business. This intangible additional value is known as "goodwill" Grantee One who purchases or recieves a title or right Grantor One who sells or gives a title or right. Guild Medieval unions of men in the same trade, profession or craft that banded together to uphold standards of practice and to protect the members from competitors that provided shoddy work or inferior goods Hard cost Project expense which include such actual development requirements such as construction, materials, and land acquisition are considered basic or "hard costs". Health care expense insurance Coverage that provides payment of expenses resulting from covered sickness or injury. Hold-Harmless Clause A provisions in a contract by which one party agrees to release another party from its responsibility for some types of losses Horizontal Aspect of Strict Product Liability This answers the question: " who may sue based on strict product liability?" The laws of the state vary on this question. For example some states allow any person who is a reasonably foreseeable user of a consumer product or bystander to sue. Other states limit the group of potential plaintiffs more narrowly Illusory Promise As a general rule, an illusory promise is not enforceable. This is a promise which does not impose a meaning ful burden on the bligor because the duty to carry it out is wholly within the obligor's control. (e.g., " I promise to sell you as much of that product as I think is best") Implied Consent Consent manifested by behavior, not wirtten or spoken words Implied ratification there are many situations in which is contract is voidable by a person due to their lack of capacity . If that person later attains capacity, they often choose to be bound by the contract. If this choice is evident from their behavior (not by written or spoken words) it is called "implied ratification" Implied-In-Fact Contract The existence of a contract, as well as the terms of a contract, is often implied by the behavior of the parties, not by written or spoken words. Such a contract is called "implied - in-fact." Implied-in-law contract In unusa situations in which a contract has not been formed (i.e. there is no express contract and no implied in fact contract), the law will require a person who has recieved an unjust enrichment to pay the fair value of that enrichment to the party who enriched them. This is called a "quasi-contract" or and "implied-in-law" contract obligation torfeasors. This does not allow the plaintiff to collect more than the total amount due, but does mean that each joint tortfeasor is responsible to the plaintiff of rhthe shares of the other joint tortfeasors Judgement Proof This term is often used to describe a person who does not have sufficent assets to pay a judgement. For example, a plaintiff may be in a position to obtain a judgment for malpractice against a professional advisor. If the defendant would likely assets to allow the bankruptcy estate to pay the judgement, this defendant could be described as "judgment proof" Key person Insurance Insurance that covers losses to the business if an employee whose services would be difficult to replace dies or becomes disabled. KSA'S ( Knowledge, Skills, and Abilities) The knowledge, skills, and abilities which the landscape Architect Registration Examination (L.A.R.E) is designed to test, those required for an applicant to recieve licensure as a landscape architect. Laissez-Faire A governmental attitude of noninterference which permitted the owners of business and industry to set the rules regarding commercial competition. Landscape Architect Deals with the owner and contractor during construction operations but only has a contractual relationship with the owner. Typical professional landscape services that may be contracted for would include developing financial feasibility observation during the construction operation to ensure the owner that the contractor is complying with the construction documents. Landscape Architecture Accreditation Board (LAAB) The board that oversees the accreditation of all landscape architecture programs in this country. The LAAB is a special ommittee within ASLA that reports only to the ASLA council fo Education, not through one of the various vice presidents as overseer, providing the LAAB with a certain amount of Autonomy Landscape Architecture Registration Exam (LARE) The examination developed by the Council of landscape architecture registration boards (CLARB) utilized by state licensure boards to determine those individuals who have learned enough of the required knowledge, skills and abilities of the profession to practice as landscape architects. Layers of Real Estate is a concept that reconginzies that land and associate natural resources and improvements can be separated in terms of ownership. To date the seperation have occurred in horizontal areas or layers. Subsurface or mineral rights may be owned speartly from surface rights. Rights above the surface known as air rights for a reasonable distance may be owned by others Legal Entity A single unit with the capacity of possessing legal rights and being subject to legal duties. A business viewed in the eyes of the law as a legal person. It exists independently from its owners. Legal object and purpose If performance of a contract would violate the law , it is described and not having a legal onject and purpose. As such, the contract is void. Letter of Intent A preliminary understanding of parties who intend to enter into contract. If a long period of time is going to elapse after bid opening and before contract signing, a letter of intent may be used to obligate both parties to enter into contract. This document may be combined with "noticed to proceed" Liability Exposure Legal responsibility resulting from an obligation to another person or busness. Liable legally obligated libel defamation by written or printed words, pictures, or in any form other than by spoken words or gestures. license a formal, legal permission to practice a profession such as landscape arcitecture. This authorization is granted by a governmental entity, usually the state, based on the professional meeting certain standard requirements set by that state License bond a bond guaranteeing that the person to whom a license is issued will comply with the laws and regulations associated with the licensed activity licenses similar to easements in real estate, licenses are purchased or granted rights, documented which allows encroachment over, under or on adjacent property. Private walkways over public streets or tunnels under them are common occurrences covered by a license granted by the public to a private development usually requiring certain standards and maintenance agreements. licensure the acto of licesning an individual to practice a profession such as landscape architecture. To obtain a licesnse an indicidual must meet the state requirements regarding education, experience, and examination. Lien An encumbrance upon property to secure payment of some debt, obligation or duty. Security for debt. The right to take , hold, or sell the property of a debtor as security or payment of a debt Life safety codes are design and construction related regulations impacting emerggency accommodations in buildings an on sites. Codes include mechanical designs preempting elevators during fires, voice and sound emergency systems, fire stairs, dead end hallways requirements, fire supprression systems, smoke and toxic fume evacuation systems, other laarm and security systems, building evacuations assets such as tempered window systems an other emerging requirements to handle medical emergencies. Loss Frequency the number of times or the likelihood of loss occurrence loss severity the magnitude or extent of a loss Lots and blocks parcels of land described within a plat are assigned a lot designation: gropus of lots (parcels) often surrounded by a described public right of way are designate as blocks Lump-sum contract One of two types of competitives bid contracts which provides a set sum fro compensation to the contractor or for all work and services required by the plans and specifications Main purpose doctrine if the main purpose of a promise to pay another's debt is to benefit the guarantor, then the guarantee is not covered by the statue of frauds Maintenance Bond A bond that guarantees that completed work will be free of defects for a stated period. Malpractice Improper practice or misconduct by a professional, an official of an organization or business or a governmental official, punishable by civil action. Master Documents Commercial or in-house documents of source text which are edited for preparation of written construction documents for a project Masterformat Title of CSI's publication of its standard format for writing specifications Masterspec library is a computerized master specification system produced by ARCOM for the American Institute of Architects (A.I.A.) Masterspec is a database of files for use with word processing software package Mechanics lien designed to protect suppliers, workmen, and occasionally contractors, architects, and other professionals in the contruction industry. It holds that anyone who contributes to or increases the value of real estate through personal services or materials has a claim against the property for payment. They are statue laws and therefore vary from state to state. Merchant when a contract is within the scope of Article 2 of the Unifrom Commercial Code, The UCC often applies special rules when one or bothe of the parties are "merchants" A merchant is a person who regularly deals in the kind of goods which are covered by the contract. called a novation. In contrast, an assignment by one of the original parties without the consent of the other does not generally release the assignor Null and Void Adjectives which mean that there is no legal force or validity. Oasdi program social security Objective impossibility rule When an executory duty is objectively impossible the law generally excuses the duty to perfomr Obligee There person to whom performance is owing is the obligee Obligor The person owing performance is the obligor Occurrence Basis Policies written on this basis pay based on the year in which the incident happened that resulted in bodily injury in property damage, regardless of when the claim is actually filed Offer A proposal for a contract. As a general rule, it must be reasonably definite. Compare with invitation for an offer Offeree The person to whome an offer is made. Offeror The person making the offer Omission When a necessary piece of information is not included in the specifications. Ownership the legal right to possession of a property held by a group of individuals such as a tribe or a homeowners association Public Ownership Government representingeverone Individual Ownership A single person having title to real estate ` Joint ownership with a spouse or partner Partnership or corporate ownership If a business entity is legally described as a partnership or a corporation then real estate owned by such Associations Groups of people such as neighborhood Membership Property or those joing clubs own property jointly Time Share is a property with a divided form of ownership or use rights. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each owner of the same accommodation is allotted their period of time. Rent of land real estate can be leased for an extened period of time where it becomes practical to take up a permanent type of residency and make permanent improvements Life Estate Real estate can be sold with the seller keeping the right to remain on the property until death Condominum An owner can hold title to specific real estate which is only a part of a larger complex such as a dwelling unit in a residential cluster or a single hour in an office tower Cooperative Ownership If the same owner held a 10% share of a 10 unit residential complex and not necessarily the title to the specific unit he or she used ` Parol Evidence Rule When a written contract is a complete integration, it terms may not be varied (although they may be explained) by oral evidence preceding the date of the contract Partnership A legal relationship existing between two or more persons contractually associated as principals in a business formed by agreement, which should be in wrting setting forth all conditions. Partners share in profits and losses. Personal liability unlimited Parts One of the three groups of related information that form a specification section Payment Bonds Bond that guarantee that th contractor will pay all bills and obligations incurred under the contract, thus rendering the owner harmless from claims and liens which might be filed after the completion of the work and after all payments had been made to the contractor Per Occurrence Limit The maximum amount the insurer will pay for claims arising out of a particular incident, regardless of the number of indivual claimants Percentage fee Contracts can call for a design service provider to be paid on a basis of hourly rates by the various designers involved along with agreed upon reimburasble expense. The contract can simply pay the service provider based on an agreed upon sum that is tied to the actual cost of the project as bid or built. This is often a percentage of the hard costs of the project- a percentage fee Perfect Tender Rule When a contract is covered by Article 2 of the UCC the buyer is entitled to insit on having goods delivered which conform exactly to the terms of the contract Performance Bond The security furnished by the contractor as a guarantee that the contractor will execute the work in accordance with the terms of the contract Performance Specification Specification that describes the required results the criteria by which the performance will be judged and the method by which it can be verified Peril the cause of a loss Permit bond A bond guaranteeing that the person to whom a permit is issued will comply with the laws and regulatios associated with the permitted activity Personal property all property excpet land and those interest in land. Movable possessions and goods, i.e. jewlery, clothing, etc. Piercing the corporate veil In a closely held organization the courts will disregard the corporate entitiy to prevent individuals seeking to shield themselves from personal accountability. When it can be proven that the corporation was being abused for financial gain, then courts hold hat the coporate sield no longer protect the stock holder from unlimited liability for the firms debts. courts will pierce the corporate veil whenever necessary to remedy wrong doing Plat A plat is a surveyed piece of property which is subdivided into mapped and dimensioned panels and legally filed for record in a county property records office. Parcels within the plat may later be sold and legally described by the parcels designation and location within the plot and by the plat's title desgnation Project Manual Term introduced by the American Institue of Architects to describe a manual that houses all the written documents prepared for a construction contract, including bidding requirements, contract forms, conditions of the contract and specifications. The manual uses Masterformats divisions to organize information Promissory Estoppel