This topic contains a solution. Click here to go to the answer

Author Question: What kinds of controls have owners included in their construction contracts to ensure the receipt of ... (Read 94 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
What kinds of controls have owners included in their construction contracts to ensure the receipt of realistic schedules of values or schedules of payments from their contractors?
 
  What will be an ideal response?

Question 2

In terms of counting days, which type of measure presents the greatest potential for conflict, working days or calendar days?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ergserg

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

Owners have come to realize the value of linking the receipt of realistic
schedules of values or schedules of payments with the release of any periodic payments.
Provisions such as, no progress payments will be made for any work until a satisfactory
schedule of values has been submitted to the Owner's Representative, place considerable
pressure on the contractor to be diligent in preparing a realistic schedule of values. Note
that the submittal of a schedule of values with severe front-end loading on billings could
result in its rejection and a considerable delay in the receipt of the first periodic payment
and possibly subsequent periodic payments. With payments being impacted, the owners
have reasonably good control on the quality of the schedules of values they receive.

Answer to Question 2

The greatest potential for conflict exists with the counting of working days. In
terms of simply counting, there is little difficulty in achieving an almost universal
understanding of calendar days. Working days can have many meanings and they are not
universally employed. Working days may be regarded as all days excluding weekends
and holidays. Even here is a source of disagreement. For example, different holidays may
be recognized. While it is clear that Saturdays and Sundays constitute the weekend, some
owners have the practice of counting these days as working days if construction work is
performed on those days.

The weekdays not involving holidays are generally counted as working days if work is
performed on them. But what constitutes work? The definitions are quite varied. For
example, a day might be considered a working day if a stipulated percent of the
workforce can be put to work. Another might count it as a working day if a stipulated
percent of the work day can be worked. Still another might count it as a working day if
work can be performed on a critical activity. Other variations exist. Even when similar
definitions are used between owners, the specific criteria (the stated percentage of the
workforce or the percentage of the workday) can vary to a great extent.




asan beg

  • Member
  • Posts: 570
Reply 2 on: Jul 26, 2018
Excellent


bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

For a complete list of videos, visit our video library