The independent contractor was responsible for correcting any safety issues. A bilateral modification is used to_____________. (CCH) 30346 (citing Shirley Contracting Corporation, ASBCA No. Inc., VABCA No. View full document 5) The inspection clause for ____________contracts allows for the contracting officer to charge not only the cost of rework to the contractor but also any additional costs associated with re-inspection. Cost reimbursement contracts are used when there is uncertainty in the outcome of the effort; the greatest risk is placed on the Government. Which of the following is NOT a common problem found during invoice review? Paragraph 14.04 of EJCDC C-700 allows the owner to accept defective work, but if the owner so chooses, the contractor is still responsible for: all claims, costs, losses, and damages attributable to Owners evaluation of and determination to accept such defective Workand for the diminished value of the Work to the extent not otherwise paid by Contractor pursuant to this sentence. This duty extends to the owners exercise of its inspection rights. 52.246-9 Inspection of Research and Development (Short Form). Payment to the contractor for the supplies and services delivered. In Re Ellis-Don Const., Inc., ASBCA No. endstream endobj 64 0 obj <> endobj 65 0 obj <>/ProcSet 79 0 R>>/Rotate 0/Type/Page>> endobj 66 0 obj <>stream 2022 American Bar Association, all rights reserved. A construction contract typically provides that the contractor warrants its work for a period of one year (or some other defined time period) after substantial completion. In your position as a COR, Conflict of Interest rules and regulations prohibit you from: Working on a government matter that has an effect on your personal financial interests. Basic (Apr 1984) (Current) As prescribed in 46.301, the contracting officer shall insert the clause at 52.246-1, Contractor Inspection Requirements, in solicitations and contracts for supplies or services when the contract amount is expected to be at or below the simplified acquisition threshold . Most contracts also allow the owner to unilaterally change the work without agreement from the contractor through a "construction change directive" or "CCD." The contracting officer shall insert the clause at 852.236-71, Specifications and Drawings for Construction, in solicitations and contracts for construction that include the FAR clause at 52.236-21, Specifications and Drawings for Construction. Once the owner and contractor have agreed on scope, price, and schedule, a formal, written change order is prepared and signed by all parties. Some, but not all, of these promises relate to quality issues. (d) The presence or absence of a Government inspector does not relieve the Contractor from any contract requirement, nor is the inspector authorized to change any term or condition of the specification without the Contracting Officer's written authorization. Sometimes such tests are prescribed by the specifications, and in other cases they are imposed by industry standards incorporated in the contract documents. You can help prevent misunderstandings by letting buyers know about the difference between timber pest and termite inspections, before the contract is . The only exceptions to final acceptance are (Select all that apply), Fraud Inspection During Construction. Work includes, but is not limited to, materials, workmanship, and manufacture and fabrication of components. Generally, the government may conduct reasonable, continuing inspections at any time before acceptance.35 There are exceptions regarding the governments right to reinspect. Where one contract provision called for inspections to be performed by sampling supplies by lot while another provision called for all supplies to meet specific standards, the court reconciled the alleged differences in the inspection standards, finding that the inspections of the lots did not override the rights of the owner and contractor to reject individual materials that did not meet the specific standards. Therefore, the government was liable for the constructive change that caused the placement and removal of the defective brick.44, The owner may perform any reasonable inspection. The Contractor shall maintain complete inspection records and make them available to the Government. Construction contract clauses serve many purposes in the construction industry. If work that should have been accepted is corrected to a higher standard of quality and additional costs are incurred in the process, a compensable change has occurred.48, Where specifications are ambiguous, an inspectors silent acquiescence while the contractor performs in accordance with its own reasonable interpretation of the performance standards may establish that the contractors approach was reasonable and the work acceptable.49 Also, if the owner submits to the contractor what purports to be a complete list of defects in the work, the owner may later be prevented from rejecting work that had been corrected pursuant to such list on the grounds that its list amounted to a binding interpretation of ambiguous specifications.50. The COR should only use formal communication when working with a contractor. 3052.217-92 Inspection and manner of doing work (USCG). The association's pre-inspection notice must: (1) identify the engineer; (2) identify the specific units or common elements to be inspected; and (3) state the date and time of the inspection. Construction contract sections to review for accuracy. In federal government construction, the standard federal inspection clause places primary responsibility for contract compliance on the contractor. The Contracting Officer's Representative's role in inspection is to determine whether the completed supplies and services conform to what the government ordered and can be accepted. All others, with the exception of a time-and-materials contract which is a hybrid of the two, are subsets of cost reimbursement or fixed-price contracts. Change orders are not the only way for the owner to change the work. 6218, 97-2 B.C.A. FAR Clause 52.246-12 Inspection of Construction is the foundation and basis for all contract requirements dealing with quality control and quality assurance. Copyright 2013. Failure to inspect effectively, however, may affect the owners rights under applicable warranties once the project is accepted. Under the AIA form contracts, the additional compensation or completion time due for the CCD will be determined by the architect instead of by agreement of the parties;if the contractor disagrees it can make a claim against the owner under the contract or sue. Other chapters of this book focus on what happens when construction costs escalate or schedule delays occur. If inspection reveals the work is satisfactory, the contractor is entitled to a price adjustment for the additional costs and a time extension if completion is delayed.24. (b) The Contractor shall maintain an adequate inspection system and perform such inspections as will ensure that the work performed under the contract conforms to contract requirements. The Government may charge to the Contractor any additional cost of inspection or test when work is not ready at the time specified by the Contractor for inspection or test, or when prior rejection makes reinspection or retest necessary. The requirements document should use market research and promote full An Accounting Classification Requirements Number (ACRN) is: The main purpose for the COR to understand the contract and how it is organized is to be aware of all contractual requirements and deliverables. This is the fifth and final article in a series of articles providing a brief overlook of managing a construction contract. Should I Acclimate Hardwood Flooring & Leave Expansion Gap? This clause places the obligation to inspect the work on the contractor to ensure that it conforms to the contract requirements. Choose the true statement from the following: A contracting officer may ratify an unauthorized commitment if the government received a benefit An option is the unilateral right of the government to extend or buy more than the amounts bought at the time of award. The standard form agreements all assume change orders will be written documents. You did a complete visual inspection and tested the unit. (b) The Contractor shall maintain an adequate inspection system and perform such inspections as will ensure that the work performed under the contract conforms to contract requirements. On this project at 381 Brea Canyon Rd, Walnut, CA 91789 there have been 0 permits filed, 4 preliminary notices exchanged, 0 lien waivers exchanged between companies, 0 liens filed with 0 liens still active. The Government Property policy at FAR 45.102 attempts to reduce the Government's risk when providing property to the contractor. For example, Article 10 of AIA A201 also makes the contractor responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with contract performance, and requires the contractor to take reasonable precautions for the safety and protection of employees and other persons, the work itself (and materials and equipment incorporated or to be incorporated therein), and other property at or adjacent to the site.18 ConsensusDocs 200 also provides that the contractor is responsible for safety precautions and programs and that the contractor must provide the owner with notices required for safety purposes.19 EJCDC C-700 broadly states that the contractor shall be solely responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work.20, The contractor is not, however, an insurer and therefore is not responsible for all jobsite injuries. 179 The clauses are, however, a part of the construction contracts even if the contractor does not physically incorporate them into the contract document. As prescribed in 46.312, insert the following clause: (a) Definition. An example of a government obligation in the performance of the contract is _______. For two singular antecedent s joined by or or nor, the pronoun is singular. But the flexibility comes at a cost--often in the form of attorneys' fees. (f) The Contractor shall, without charge, replace or correct work found by the Government not to conform to contract requirements, unless in the public interest the Government consents to accept the work with an appropriate adjustment in contract price. The customer likes the work of the incumbent contractor and has expressed a desire to have the new contract be awarded to that incumbent contractor. Getting to Know the Forum: Fall Meeting Recap through the Eyes of Young Lawyers, American Bar Association The owners right to inspect and accept the contractors work before payment can be a valuable tool if used properly. The owner naturally desires high-quality construction, on schedule, and at a low cost. However, on a base or installation or in a contingency contracting environment, equipment may be accountable under the contract as Government Property. The purpose of evaluation factors is to represent the key areas of importance and emphasis to be considered in the source selection decision. The Contractor shall maintain complete inspection records and make them available to the Government.63 Similarly, the contract and applicable regulations also may include various contractor record-keeping and certification requirements. (h) If, before acceptance of the entire work, the Government decides to examine already completed work by removing it or tearing it out, the Contractor, on request, shall promptly furnish all necessary facilities, labor, and material. This is known as the quality control system. Timely and appropriate inspections afford an informed owner and contractor an opportunity to address quality problems before the work is complete and allow any necessary corrective work to be implemented when it is less costly. 52.204-26 Covered Telecommunications Equipment or Services-Representation. The surrounding facts and circumstances will determine whether a particular delay was unreasonable. The basic test is whether the inspectors actions were reasonably necessary to protect the owners interests or whether the owners legitimate objectives could have been accomplished by some other, less disruptive, means.53. Inspection protects the owner, not the contractor. In Continental Insurance Co. v. City of Virginia Beach,2 when the contractor filed bankruptcy during construction, the public owner called on the contractors surety to complete the project. The contracts inspection standards should be construed so as to reconcile inconsistencies. Organizing. The Contractor shall promptly segregate and remove rejected material from the premises. For example, in one case, a government inspection three days after the contractors request was held to be an unreasonable delay, but in another case a 10-day delay was not sufficient to make the inspection untimely.56 In both cases, the determination of reasonableness of the delay considered the state of the work and the nature of the work being inspected. 3 But are judicial decisions within the clause? The Inspector will maintain a daily record of construction progress, field decisions, weather days and change orders.