Skip to main content

Retainage

In AIA document A201, remaining retainage is not due until the Contractor submits a number of items indemnifying the Owner against claims from subcontractors. If a Subcontractor refuses to furnish a release or waiver required by the Owner, what can the Contractor furnish to indemnify the Owner against the subcontractors lien?



Answer: The Contractor may furnish a bond satisfactory to the Owner. If after payments are made and the lien remains unsatisfied, the Contractor shall refund to the Owner the costs plus attorney's fees that the Owner may be compelled to pay to discharge the lien.

are-review CE Exam resources

Comments

Try These Too!

Bidding process

If the Owner would like to change the designated bid opening date and time contained in the Instructions to Bidders for the Owner's convenience, what procedure must be used? Answer

Tensegrity

A type of structure whose integrity is derived from the balance between members in tension and in compression is Tensegrity . Compressive components connected by tensile components to other compressive components form a tensegrity structure. What architect-engineer-cosmologist coined this term? Answer

Risk management

How does an owner provide a financial safeguard for the following situations: - unanticipated price escalation of a particular product - an architect’s omission of flashing in the construction documents - a necessary change during construction, modifying the project’s scope. A. Allowance B. Alternates C. Contingency D. Escalation Answer C. Contingency is an amount, usually a percentage, that is part of the project budget to offset changes in the scope of the project, unknown conditions, and gaps/oversights in the documents. ARE 4.0 exam prep: PPP