Florida General Contractor Practice Exam

What does AIA 201 say about previously unrecognized errors and omissions in damages on a project?

1. They are automatically waived.

2. They can lead to contract termination.

3. They require immediate correction at no cost.

4. They may provide for additional compensation.

The correct answer is: They may provide for additional compensation.

The correct choice highlights that AIA Document A201 recognizes that previously unrecognized errors and omissions can lead to claims for additional compensation. This is important in the context of contract management, as it ensures that a contractor is not penalized for issues that were not previously identified during the project execution phase. Under AIA A201, the terms of the contract allow for adjustments in compensation when unforeseen circumstances relating to errors or omissions arise. This approach is essential in managing risks associated with construction projects, as it acknowledges that not every potential issue can be foreseen during the planning and bidding phases. The contract thus provides a protective measure for contractors, aligning their responsibilities with fair reimbursement when unforeseen issues occur. In contrast, the other options present different perspectives on handling errors and omissions. For instance, waiving these issues outright would undermine the ability to address legitimate concerns effectively. Similarly, viewing them as grounds for contract termination could be excessively punitive and could discourage collaboration and problem-solving on-site. Lastly, requiring immediate correction at no cost would place an undue burden on contractors for issues beyond their initial scope of work, which is not the intent of AIA A201. The acknowledgment of errors and omissions in the framework of the contract aligns with principles of fairness and accountability in the construction