Chapter 7, Problem 7.1Q

To determine

(a)

The definition and listing of elements of loan applications.

Explanation of Solution

Documents that provide the vital economic and other borrower data on which the lender bases the lending decision are known as loan applications. Loan applications differ according to the lender's demands.

The elements of the loan applications are listed as follows:

1. Plan of the plot (3 copies of each lot).
2. Prints (3 copies of each plan). The following should be included in prints:
1. Four elevations i.e. front, rear, right side, and leftside.
2. Plan(s) of the floor.
3. Plan of Foundation.
4. Section(s) of the wall.
5. Plan of the roof.
6. Cross-sections of exterior walls, stairs, and otherrelevant details.
7. Elevations of cabinet and cross-section also.
8. Detail of Fireplace.
9. Detail of truss and engineering.
10. Plan of heating.
11. Location of wall units along with watts and cfm atthe register.
3. Specifications (1 copy of each print), includinginformation as follows:
1. Appliances.
2. Smoke detectors.
3. Detail for each type of plant.
4. Plumbing fixtures.
5. Carpet.
6. Carpet pad.
7. Truss manufacturer.
8. Manufacturer of fireplace and modelnumber.
4. Public Utility District (PUD) or heat loss calculation of heating contractor(one per specification sheet).
5. Proposed sale price.
6. Copy of earnest money agreement, blank or completedfor a presale.

Conclusion:

Documents that provide the vital economic and other borrower data on which the lender bases the lending decision are known as loan applications.

To determine

(b)

The definition and listing of elements of contracts.

Explanation of Solution

Building contracts are very complicatedrecordsfor large-scale company construction housing projectsor brief forms. The primary issue in the contractpreparation is that all partiesknowwhat is specific to be accomplished in the project, inwhat time frame, and for whatprice. The contractbecomes an agreement between the client, architect and general contractor.

The contractormust be authorized, bonded, and insured under thestate requirements of the state wherethe construction takes place.The contract defines the terms and conditions under which itcan be terminated. A contractmay be ended if one party fails to meetthe needs, if one party isdisabled or dies, and for many other reasons.

The elements of the loan applications are listed as follows:

• Construction drawings
• Construction specifications

Conclusion:

The contract becomes an agreement between the client, architect and general contractor.

To determine

(c)

The definition and listing of elements of building permits.

Explanation of Solution

The application of building permit is an important form which defines the mainfeatures of the structure to be constructed, the legal description and place of the property, and the applicant’s data.

It may fall to the architect, designer, builder or owner to complete the building permit application. To determine the method to be followed, the architect should contact the local building official.

The elements of the building permit are listed as follows:

1. 2 sets of plans
2. 5 sets of site plans

Conclusion:

The application of building permit is an important form which defines the main features of the structure to be constructed, the legal description and place of the property, and the applicant’s data.

To determine

(d)

The definition and listing of elements of completion notices.

Explanation of Solution

The completion notice refers to a document that is posted on or near the structure at a noticeable location. This completion notice notifies that work has been significantly finished to all parties engaged in the project.

The completion notice shall be registered in the local jurisdiction. These legal records serve numerous tasks.

Conclusion:

The completion notice refers to a document that is posted on or near the structure at a noticeable location.

To determine

(e)

The definition and listing of elements of bids.

Explanation of Solution

Construction bids are part of the process of construction estimate when an architect, designer, or general contractor seeks estimates from subcontractors that cover the portion of their project’s materials and expenses.

Different kinds of subcontractorsmaybe asked to give distinct bids to the architect or generalcontractor.Construction bids are muchreceived for the client by the architector a general contractor. The bid becomes the component of the project completion oflegal records.

Conclusion:

Construction bids are part of the process of construction estimate when an architect seeks estimates from subcontractors that cover the portion of their project’s materials and expenses.

To determine

(f)

The definition and listing of elements of change orders.

Explanation of Solution

The change order notes whether the change outlined is in increment or decrement in value and by what amount. If the structure is sold, the change order must be signed by the lender, the builder,and the buyer.The Federal Housing Administration (FHA) or the lender should submit any physical change in the plans or requirements.

Estimators can handle the cost of changing orders during construction and negotiate and settle anyadditional expenses or mitigatefuture claims.

Conclusion:

The change order notes whether the change outlined is in increment or decrement in value and by what amount.