CAI-NJ June 2022 Community Trends

ASK AN ENGINEER — Their Top 5 FAQs By Robert N. Roop, P.E., Lockatong Engineering, Inc.

Q: “Why not just accept a contractor’s proposal, the price is fair and he has worked for us before?”

Q: The follow-up question naturally is, “If we should not use the contractor’s proposal, what should I use?” A: There are several good standard construction contract templates that can be customized for small and medium projects. The American Institute of Architects, form AIA A-101 2017 or the Engineers Joint Control Documents Committee, form C-520 are two examples of contracts between owner and contractor. They define the scope of the project, reference plans and specifications, insurance, use of premises, sched ule, liability, conflict resolution, payment schedule, and many more important construction contract issues. Some associations employ legal counsel to draft construction contracts. If the association uses one of the templates identified above, legal CONT I NU E S ON PAGE 26

A: A contractor proposal may well provide the work the association needs. Any attached terms in the con tractor’s proposal will be favorable to the contractor. Usually, there will be little to address the concerns of the association: Starting work date, when the job should be completed, restrictions or use of the property and insur ance are all conditions that should be considered and favorable to the association. Contractor payment terms may also be weighed towards early payment and prog ress payments scheduled with no relation to the actual progress on the job.

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