During contract administration, you discover a discrepancy between the plans and specifications. What is the proper procedure?
Correct Answer
C) Submit a Request for Information (RFI) to the architect/engineer
When discrepancies exist between contract documents, the proper procedure is to submit an RFI to the design professional for clarification. This creates a paper trail and ensures the correct interpretation is documented.
Why This Is the Correct Answer
Submitting an RFI is the proper procedure because it formally documents the discrepancy and requests clarification from the design professional who has the authority to interpret their own contract documents. This creates an official paper trail that protects all parties and ensures the correct interpretation is documented in writing. Making assumptions or unilateral decisions about discrepancies can lead to costly mistakes, disputes, and potential liability issues.
Why the Other Options Are Wrong
Option A: Follow the specifications and ignore the plans
Making decisions based on standard industry practice is inappropriate because the contractor does not have the authority to interpret contract documents. Only the design professional who created the documents has the authority to clarify discrepancies and provide official interpretations.
Option B: Make the decision based on standard industry practice
Following only the specifications while ignoring the plans is incorrect because both documents are integral parts of the contract. Arbitrarily choosing one over the other without proper authorization could lead to non-compliance and disputes.
Memory Technique
RFI = 'Request Facts Immediately' - whenever you find discrepancies, don't guess, request the facts through proper channels
Reference Hint
AIA A201 General Conditions, Section 3.2.4 - Contractor's Review of Contract Documents, and Section 4.2 - Architect's Administration of the Contract
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
