LARE Section 1 flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Critical path

The longest sequence of dependent activities through a project network; it determines the shortest possible project duration, and any delay to an activity on it delays the project finish.

Total float

The amount of time an activity can be delayed without delaying the project finish date; calculated as late start minus early start or late finish minus early finish.

Free float

The time an activity can be delayed without delaying the early start of any successor activity; equals the successor's early start minus the activity's early finish.

Cost variance

Earned value minus actual cost; a negative value means the project is over budget for work performed, while a positive value indicates under budget.

Schedule performance index

Earned value divided by planned value; a value below 1.0 means less work has been completed than planned at that point in the schedule.

Estimate at completion

The projected total cost of the project; when current cost efficiency continues, EAC equals budget at completion divided by the cost performance index.

Lump sum contract

A contract in which the contractor agrees to a fixed price for a defined scope; the contractor bears the risk of quantity errors and cost overruns unless changes are authorized.

Unit price contract

A contract that pays the contractor a fixed price per unit of measured work; the owner bears quantity risk because final cost depends on actual quantities installed.

Cost-plus contract

A contract that reimburses allowable costs plus a fee; the owner bears most cost risk, so audits and cost controls are typically required.

Retainage

A percentage of each payment withheld by the owner to protect against incomplete work or defects; released at substantial or final completion per contract terms.

Change order

A written modification signed by owner and contractor that adjusts contract price, time, or scope; it becomes part of the contract after execution.

Construction change directive

A written owner-architect directive ordering a change before price and time are agreed; the contractor proceeds, and the adjustment is later formalized in a change order.

AIA G702

The application and certificate for payment form used to summarize the contract sum, completed work, retainage, and amount due; the architect certifies the payment amount.

AIA G703

The continuation sheet that itemizes scheduled values and work completed by line item; it supports the G702 payment application and documents stored materials.

Conditional lien waiver

A waiver that becomes effective only when the stated payment is actually received; it protects the contractor or sub who has not yet been paid.

Unconditional lien waiver

A waiver that is effective upon signing regardless of whether payment is received; signing it before funds clear can extinguish lien rights.

Substantial completion

The stage when the work is sufficiently complete for its intended use; it typically starts warranties, allows owner occupancy, and triggers retainage release less punch-list holdback.

Punch list

A list of minor incomplete or defective items identified at substantial completion; correction is required before final completion and final payment.

A201 general conditions

The AIA document defining rights and responsibilities of owner, contractor, and architect; it covers submittals, changes, payments, and dispute resolution.

B101 owner-architect agreement

The AIA standard form of agreement between owner and architect; it defines basic services, compensation, and the architect's scope of responsibility.

A101 owner-contractor agreement

The AIA stipulated-sum agreement between owner and contractor; it incorporates the general conditions and sets contract sum, date, and scope.

Submittal review

The architect's review of shop drawings, product data, and samples for conformance with design intent; review does not relieve the contractor of responsibility for dimensions and quantities.

Request for information

A formal written question from the contractor seeking clarification of contract documents; responses are logged and may lead to a change order if scope or cost is affected.

Schedule of values

A contractor-prepared breakdown of the contract sum allocated to work items; it is the basis for progress payments and must be reviewed and approved by the architect.

Liquidated damages

A pre-agreed amount per day of delay beyond the contract completion date; it must be a reasonable estimate of actual damages, not a penalty.

Bid bond

A surety instrument guaranteeing the bidder will enter the contract if awarded; failure can result in the owner claiming the difference up to the bond amount.

Performance bond

A surety bond protecting the owner if the contractor fails to perform; the surety may complete the work or pay the owner up to the bond amount.

Payment bond

A surety bond that protects subcontractors and suppliers from nonpayment on a project; it provides a claim path when the contractor fails to pay.

Addendum

A written modification issued during bidding to clarify or change the contract documents; bidders must acknowledge addenda in their bids.

Allowance

A stated amount in the contract for an item not yet fully defined; actual cost is reconciled against the allowance and adjusted by change order.

Contingency

A reserve of time or money set aside for identified but uncertain events; it is not a slush fund and should be drawn down only through documented authorization.

Constructability review

A review of design documents for buildability, sequencing, and coordination before construction; it reduces changes and claims during the construction phase.