CONTRACTOR'S LIABILITY INSURANCE: Insurance purchased and maintained by the Contractor to protect the Contractor from specified claims which may arise out of or result from the Contractor's operations under the Contract, whether such operations are by the Contractor or by any Subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable. (Ref: AIA Documents A201 and G705, and Handbook Chapter B-2.) CONTRACTOR'S OPTION: Provision of the Contract Documents under which the Contractor may select certain specified materials, methods or systems at the Contractor's own option, without change in the Contract Sum. (Ref: Handbook Chapters B-6 and D-4.)

CONTRACTUAL LIABILITY: Liability assumed by a person or entity under a contract. "Indemnification" or "hold harmless" clauses are examples of contractual liability. (Ref: AIA Documents A201 and G705.)

COST APPRAISAL: Evaluation or estimate (preferably by a qualified professional appraiser) of the market or other value, cost, utility or other attribute of land or other facility.

COST BREAKDOWN: See SCHEDULE OF VALUES. COST PLUS FEE AGREEMENT: An Agreement under which the Contractor (in an Owner-Contractor Agreement) or the Architect (in an Owner-Architect Agreement) is reimbursed for the direct and indirect costs of performance of the Agreement and, in addition, is paid a fee for services. The fee is usually stated as a stipulated sum or as a percentage of cost. (Ref: AIA Documents A111, A117, B141 and B161.)

CRITICAL PATH METHOD (CPM): A charting of all events and operations to be encountered in completing a given process, rendered in a form permitting determination of the relative significance of each event, and establishing the optimum sequence and duration of operations. See also PERT SCHEDULE. (Ref: Handbook Chapter B-7.) CUBAGE: See ARCHITECTURAL VOLUME OF BUILDINGS.

D

DATE OF AGREEMENT: The date stated in the Agreement. If no date is stated, it could be the date on which the Agreement is actually signed, if this is recorded, or it may be the date established by the award.

DATE OF COMMENCEMENT OF THE WORK: The date established in a notice to the Contractor to proceed or, in the absence of such notice, the date of the Owner-Contractor Agreement or such other

date as may be established therein. (Ref: AIA Document A201 and Handbook Chapters B-3, D-3 and D-5.)

DATE OF SUBSTANTIAL COMPLETION: The Date certified by the Architect when the Work or a designated portion thereof is sufficiently complete, in accordance with the Contract Documents, so the Owner can occupy the Work or designated portion thereof for the use for which it is intended. (Ref: AIA Documents A201 and G704, and Handbook Chapters B-7 and D-3.)

DEDUCTION (from Contract Sum): Amount deducted from the Contract Sum by Change Order. DEDUCTIVE ALTERNATE: An Alternate Bid resulting in a deduction from the Base Bid of the same Bidder. See also ALTERNATE BID.

DEFECTIVE WORK: The Work not conforming with the Contract requirements. See also NONCONFORMING WORK.

DEFICIENCIES: See DEFECTIVE WORK.

DEPOSIT FOR BIDDING DOCUMENTS: Monetary deposit required to obtain a set of Bidding Documents. (Ref: AIA Documents A501 and A701, and Handbook Chapters B-6 and D-4.)

DESIGNATED SERVICES (of the Architect): Those services necessary to the Project agreed to be performed directly by the Architect, or through the Architect by utilization of outside services, and by coordination services performed by the Architect on services provided by the Owner. (Ref: AIA Documents B161 and B162.)

DESIGN-BUILD PROCESS: A process in which a person or entity assumes responsibility under a single contract for both the design and construction of the Project. (Ref: Handbook Chapter A-2.) DESIGN DEVELOPMENT DOCUMENTS: Drawings and other documents which fix and describe the size and character of the entire Project as to architectural, structural, mechanical and electrical systems, materials and such other elements as may be appropriate. (Ref: AIA Documents B141, B162 and 8171.)

DESIGN DEVELOPMENT PHASE: The Phase of the Architect's Services in which the Architect prepares from the approved Schematic Design Studies, for approval by the Owner, the Design Development Documents, and submits to the Owner a further Statement of Probable Construction Cost. (Ref: AIA Documents B141, B162, B171 and D200.) DESIGN PROFESSIONS: See ENVIRONMENTAL DESIGN PROFESSIONS.

DETAIL: A drawing, at a larger scale, of a part of another drawing, indicating in detail the design, location, composition and correlation of the elements and materials shown. (Ref: Handbook Chapter 8-6.)

AIA COPYRIGHT 1970 - 1982

INSURANCE: See (1) ALL RISK INSURANCE; (2)
BOILER AND MACHINERY INSURANCE; (3)
BUILDER'S RISK INSURANCE; (4) COMPLETED OP.
ERATIONS INSURANCE; (5) COMPREHENSIVE AU-
TOMOBILE LIABILITY INSURANCE; (6) COMPRE-
HENSIVE GENERAL LIABILITY INSURANCE; (7)
CONTRACTOR'S LIABILITY INSURANCE; (8) EM-
PLOYER'S LIABILITY INSURANCE; (9) EXCESS LIA-
BILITY INSURANCE; (10) LIABILITY INSURANCE;
(11) LOSS OF USE INSURANCE; (12) OWNER'S LIA-
BILITY INSURANCE; (13) PROFESSIONAL LIABILITY
INSURANCE; (14) PROPERTY DAMAGE INSUR-
ANCE; (15) PROPERTY INSURANCE; (16) PUBLIC LI-
ABILITY INSURANCE; (17) SPECIAL HAZARDS IN-
SURANCE; (18) UMBRELLA LIABILITY INSURANCE;
(19) WORKERS' COMPENSATION INSURANCE.
INTERN ARCHITECT: One pursuing a program of
training in practice under the guidance of practic-
ing Architects, with the objective of qualifying for
registration as an Architect. Preferable to ARCHI-
TECT-IN-TRAINING. (Ref: Handbook Chapter A-4.)
INVITATION TO BID: A portion of the Bidding Docu-
ments soliciting bids for a construction project.
See also ADVERTISEMENT FOR BIDS and NOTICE
TO BIDDERS. (Ref: AIA Document A501.)
INVITED BIDDERS: The bidders selected by the
Owner, after consultation with the Architect, as the
only ones from whom bids will be received. (Ref:
AIA Document A501.)

ISOMETRIC DRAWING: A form of three-dimensional projection in which all of the principal planes are drawn parallel to corresponding established axes and at true dimensions. Horizontals are usually drawn at 30 degrees from the normal horizontal axes; verticals remain parallel to the normal vertical axis.

J

JOB CAPTAIN: The individual within the Architect's office normally responsible for preparation of the construction documents.

JOB SITE: See SITE.

JOB SUPERINTENDENT: See SUPERINTENDENT. JOINT VENTURE: A collaborative undertaking by two or more persons or organizations for a specific Project or Projects, having the legal characteristics of a partnership. (Ref: Handbook Chapter B-3.)

L

LABOR AND MATERIAL PAYMENT BOND: A bond of the Contractor in which a surety guarantees to the Owner that the Contractor will pay for labor and materials used in the performance of the Contract. The claimants under the bond are defined as those

having direct contracts with the Contractor or any Subcontractor. A LABOR AND MATERIAL PAYMENT BOND is sometimes referred to as a PAYMENT BOND. (Ref: AIA Document A311 and Handbook Chapter B-2.)

LAND SURVEY: See (1) BOUNDARY SURVEY; (2) SURVEY.

LATENT DEFECT: A defect in materials, equipment or completed work which reasonably careful observation could not have discovered; distinguished from a patent defect, which may be discovered by reasonable observation. See PATENT DEFECT. LETTER FORM OF AGREEMENT or LETTER AGREE. MENT: A letter stating the terms of an Agreement between addressor and addressee, usually prepared to be signed by the addressee to indicate acceptance of those terms as legally binding. (Ref: Handbook Chapter D-1.)

LETTER OF INTENT: A letter signifying an intention to enter into a formal agreement, usually setting forth the general terms of such agreement. (Ref: Handbook Chapter D-1.)

LETTING (BID): See BID OPENING.
LIABILITY INSURANCE: Insurance which protects the
insured against liability on account of injury to the
person or property of another. See also (1) COM-
PLETED OPERATIONS INSURANCE; (2) COMPRE-
HENSIVE GENERAL LIABILITY INSURANCE; (3)
CONTRACTOR'S LIABILITY INSURANCE; (4) EM-
PLOYER'S LIABILITY INSURANCE; (5) OWNER'S LIA-
BILITY INSURANCE; (6) PROFESSIONAL LIABILITY
INSURANCE; (7) PROPERTY DAMAGE INSURANCE;
(8) PUBLIC LIABILITY INSURANCE; (9) SPECIAL
HAZARDS INSURANCE.

LICENSED ARCHITECT: See ARCHITECT.

LICENSED CONTRACTOR: A person or entity certified by governmental authority, where required by law, to engage in construction contracting.

LICENSED ENGINEER: See PROFESSIONAL ENGINEER.

LIEN: See MECHANIC'S LIEN.

LIMIT OF LIABILITY: The maximum amount which an insurance company agrees to pay in case of loss. LIQUIDATED DAMAGES: A sum established in a Construction Contract, usually as a fixed sum per day. as the measure of damages suffered by the Owner due to failure to complete the Work within a stipulated time. See also (1) BONUS AND PENALTY CLAUSE; (2) BONUS CLAUSE; (3) PENALTY CLAUSE. (Ref: Handbook Chapter D-5.)

LOSS OF USE INSURANCE: Insurance protecting against financial loss during the time required to repair or replace property damaged or destroyed by an insured peril. (Ref: Handbook Chapter B-2.)

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