CON 367 EXAM STUDY GUIDE 2026 PRACTICE
QUESTIONS AND SOLUTIONS
◉Which one of the following risks, in general, should be allocated to the
Architect/Engineer (Designer)? Answer: Defective Design
◉Which one of the following risks, in general, should be allocated to the
Contractor? Answer: Material and equipment risks
◉The more risks are assigned to a Contractor through the Contract
Documents, the more likely it is that the Owner will receive lower (in
terms of $) bids. (T/F) Answer: False
◉Waiting until the end of the project to resolve disputes is preferable
over resolving disputes soon after they surface. (T/F) Answer: False
◉Contractors protect themselves from unforeseen risks by adding
contingency amounts to their bids. (T/F) Answer: True
◉An "Exculpatory Clause" in a contract attempts to shift a certain risk
from one party to another. (T/F) Answer: True
◉According to the ENR article about green buildings, a new type of
construction risk is the "Green-Building Risk" (T/F) Answer: True
,◉Based on the ENR article about I-485 contractor, what type of issue
led to the dispute between the Contractor and the DOT? Answer: Site
Access
◉Which one of the following is not a principal construction risk
category as detailed by the American Society of Civil Engineers in
1979? Answer: Safety Risks
◉Which one of the following risks, in general, should be allocated to the
Owner? Answer: Site Access
◉According to the textbook, you should minimize risk regardless of
whose risk it is. (T/F) Answer: True
◉Our textbook advises that the starting date of a project should not be
the date of the execution (signing) of the agreement. (T/F) Answer:
True
◉Under what type of bond, the surety has an obligation to the owner for
any additional costs to complete the project due to the contractor's
failure to comply with its contract requirements? Answer: Performance
bond
, ◉Multiple-Peril Builder's Risk Insurance provides similar but broader
coverage than the Standard Builder's Risk policy (T/F) Answer: True
◉Bid bonds should preferably be in an amount equal to _____ percent
of the bid price for the project. Answer: 10
◉The contract documents should require that evidence of specified
insurance be submitted at the time of submitting the bid bond. (T/F)
Answer: False
◉The following events are in correct order: Bid Opening-Bid Award-
Notice to Proceed-Signing of Agreement (T/F) Answer: False
◉In construction projects, owners have a direct contractual relationship
with the subcontractors. (T/F) Answer: False
◉The utilization of a contractor quality control (CQC) representative is
a requirement in private construction projects. (T/F) Answer: False
◉Which one of the following is not one of the activities that can be
performed after the award of the contract? Answer: Obtain and submit
a Bid Bond
QUESTIONS AND SOLUTIONS
◉Which one of the following risks, in general, should be allocated to the
Architect/Engineer (Designer)? Answer: Defective Design
◉Which one of the following risks, in general, should be allocated to the
Contractor? Answer: Material and equipment risks
◉The more risks are assigned to a Contractor through the Contract
Documents, the more likely it is that the Owner will receive lower (in
terms of $) bids. (T/F) Answer: False
◉Waiting until the end of the project to resolve disputes is preferable
over resolving disputes soon after they surface. (T/F) Answer: False
◉Contractors protect themselves from unforeseen risks by adding
contingency amounts to their bids. (T/F) Answer: True
◉An "Exculpatory Clause" in a contract attempts to shift a certain risk
from one party to another. (T/F) Answer: True
◉According to the ENR article about green buildings, a new type of
construction risk is the "Green-Building Risk" (T/F) Answer: True
,◉Based on the ENR article about I-485 contractor, what type of issue
led to the dispute between the Contractor and the DOT? Answer: Site
Access
◉Which one of the following is not a principal construction risk
category as detailed by the American Society of Civil Engineers in
1979? Answer: Safety Risks
◉Which one of the following risks, in general, should be allocated to the
Owner? Answer: Site Access
◉According to the textbook, you should minimize risk regardless of
whose risk it is. (T/F) Answer: True
◉Our textbook advises that the starting date of a project should not be
the date of the execution (signing) of the agreement. (T/F) Answer:
True
◉Under what type of bond, the surety has an obligation to the owner for
any additional costs to complete the project due to the contractor's
failure to comply with its contract requirements? Answer: Performance
bond
, ◉Multiple-Peril Builder's Risk Insurance provides similar but broader
coverage than the Standard Builder's Risk policy (T/F) Answer: True
◉Bid bonds should preferably be in an amount equal to _____ percent
of the bid price for the project. Answer: 10
◉The contract documents should require that evidence of specified
insurance be submitted at the time of submitting the bid bond. (T/F)
Answer: False
◉The following events are in correct order: Bid Opening-Bid Award-
Notice to Proceed-Signing of Agreement (T/F) Answer: False
◉In construction projects, owners have a direct contractual relationship
with the subcontractors. (T/F) Answer: False
◉The utilization of a contractor quality control (CQC) representative is
a requirement in private construction projects. (T/F) Answer: False
◉Which one of the following is not one of the activities that can be
performed after the award of the contract? Answer: Obtain and submit
a Bid Bond
