Contract Interpretation/Risk Allocation Clauses in Contracts Instructions: Below
ID: 464555 • Letter: C
Question
Contract Interpretation/Risk Allocation Clauses in Contracts
Instructions:
Below is a “subset” of some of the key risk allocation provisions that are typically included in a contract between an owner and general contractor for a standard design-bid-build project.
For this exercise, review the AIA A201 (2007) version of the Owner/General Contractor General Conditions of the Contract for Construction (as posted on Blackboard) to determine if the risk allocation clauses indicated below are included. If so, then identify the section where such provision is located.
Yes/No
Risk Allocation Clause
Contract ¶
No-Damages-for Delay Clause
Design and Drawing Review Clause
Overhead/profit limitation
Dispute resolution procedure
Site investigation obligations
Differing site conditions
Suspension of work
Termination for convenience
Testing/inspection requirements
Insurance requirements
Liquidated damages
Change Order provisions
Final acceptance
Warranty requirements
Termination Provisions
Yes/No
Risk Allocation Clause
Contract ¶
No-Damages-for Delay Clause
Design and Drawing Review Clause
Overhead/profit limitation
Dispute resolution procedure
Site investigation obligations
Differing site conditions
Suspension of work
Termination for convenience
Testing/inspection requirements
Insurance requirements
Liquidated damages
Change Order provisions
Final acceptance
Warranty requirements
Termination Provisions
Explanation / Answer
Yes/No Risk Allocation Clause Contract Yes No-Damages-for Delay Clause Section 3.7 Yes Design and Drawing Review Clause Section 1.1 Yes Overhead/profit limitation Section 3.7 Yes Dispute resolution procedure Section 15.4 Yes Site investigation obligations Section 3.2 Yes Differing site conditions Section 3.2 Yes Suspension of work Section 2.3 Yes Termination for convenience Section 14.4 Yes Testing/inspection requirements Section 3.2 Yes Insurance requirements Section 11.1 No Liquidated damages NA No Change Order provisions NA No Final acceptance NA No Warranty requirements NA Yes Termination Provisions 14.4
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