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Construction Law
University of Kansas School of Law
McAllister, Stephen R.

Construction Law Outline

I. Introduction to the Construction Process (8-25), [Chapter 8] 1. There are three main actors
a. Owner
i. Provides the site, the design, the organizational process, and the money for the project.
ii. There is a significant difference between public and private entities
1. Private
a. Usually one-shot person.
b. Experience limited.
c. Not skilled.
d. Usually doesn’t know what to do.
e. Can hand select people
a. can select design professional by:
i. competition
i. competitive bid
i. negotiation
b. can select contractor by
i. single contract
i. multiple prime
i. sepearte contracts
2. Public
a. Limited by statute
b. Lowest responsible bidder wins through competitive bidding
c. Their contracts have been used to accomplish goals that go beyond simply getting the best project built at the best price in the optimal period of time.
a. Minority contracting
i. This affects how the owner has to do the business. This may raise costs.
b. Contractor
i. Controls the project and subs it out
1. “Sub it out”
a. one guy does concrete, another does plumbing, electrical, etc.
ii. Contractors usually obtain their work by competitive bidding
iii. Contractors have insurance; surety bonds; and has to pay employees. They also have suppliers and manufactures.
iv. The general contractor is liable to the owner for the work of the subcontractors

c. Design Professional (architect)
i. They work for the owner but are expected to make impartial decisions during construction.
d. The supporting cast
i. Lender
ii. Contractor Chain
iii. Insurers

How a project is organized (8-26) [Chapter 17] 2. How is the project going to be priced?
a. Fixed-Price
i. Definition
1. A contract requiring that prices remain firm. During the term of such contracts the contractor must absorb any increases which would reduce the profit.
2. Almost all of the performance risks fall on the contractor.
ii. Advantages
1. Allows the owner to procure the funds.
2. No issues with record keeping unlike cost plus.
iii. Disadvantages
1. It is more costly (8-26)
2. It is incentive for a contract to do everything o

. it is a method developed by the federal procurement system which attempts to provide an incentive to the contractor to analyze each contract item or task
e. Unit Pricing (p. 334)
i. The contractor is paid a designated amount for each work unit performed
1. For every 100ft of work, you get paid X –or-
2. Allocated the price on the grade.
3. BEWARE of latent conditions.
3. How is a project managed?
a. Traditional method: Design-bid-build (p. 338)
i. Definition
1. Traditional system separates design and construction.
a. Design done by independent design professional
b. Construction done by a contractor or contractors
ii. Sequence of events
1. Creation of the design followed by the contract award followed by the execution.
iii. Who coordinates?
1. 1st off, coordination is essential
We have to put this shit in the k. Make sure who is in charge.