EXAC SECTION 4 - SIMPLY EXAM
QUESTIONS AND ANSWERS
Bond - Correct Answers -- A financial security that represents a promise to repay a fixed
amount of funds
- Financial security for the performance of an obligation; usually a written document
supported by a pledge of collateral.
Surety - Correct Answers -The party (company) that issues a bond which guarantees
the performance of the person bonded (in construction, the contractor) to fulfill
obligations under contract within the financial and time limitations stated in the bond.
Warranty (warranty against the quality) - Correct Answers -A statement of fact or quality
intended to be relied upon by another party, carrying with it an implied or express
promise to make good any breach
Take-over Procedure Tasks - Correct Answers -- certification of substantial performance
and Release of Holdback
- Final Certificate for Payment
- certification of the operation of various systems and building occupancy
- production of Record Drawings
Project Management Goals - Correct Answers -- Get the job done on time and within
budget
- Assign task to each person
- Follow up to confirm completion
- Be creative and solve problems
- Manage risks
- Report on progress
Business Plan - should include... - Correct Answers -- Business Overview (brief
description where company stands in market)
- sales and marketing plan (strategies to target customers)
- operating plan (physical operations)
- Human Resources plan (details on key staff, HR policies, procedures)
- action plan (future plans)
- executive summary (reasons you are seeking financing - summarized with business
operations)
- financial appendix - facts and figures to back up your plan
, Certificate of Substantial Performance - Correct Answers -A certificate issued under the
appropriate lien legislation attesting that the contract between the owner and the
contractor is substantially complete.
Holdback - Correct Answers -"A percentage of the monetary amount payable under a
(construction) contract, which is held back as security for a certain period of time. The
percentage and period of time are based on the provincial lien legislation."
Lien - Correct Answers -- legal claim on real property to satisfy a debt owed to the lien
claimant by the property owner. This claim can carry the right to sell the property upon
default.
- a right to keep possession of property belonging to another person until a debt owed
by that person is discharged.
Shop Drawings - Correct Answers -A drawing, prepared on behalf of the contractor to
indicate precise details of the construction materials, for fabrication, production or
installation.
Shop Drawing Review - Correct Answers -First, Gen. Contractor reviews shop
drawings. Second, architect and consultant review (snd approved construction dwgs
prior to fabrication). Lastly, shop drawings are returned to contractor for use, use w/
change, or resubmission.
General Review/ Field Review - Correct Answers -"Review during visits to the Project
site (at intervals appropriate to the stage of the construction)" ... "to determine that the
Work is in general conformity with the construction documents."
Project Management - Correct Answers -"The process of planning, scheduling,
directing, organizing and controlling all resources (financial, physical and human) from
the start to the completion of the project goals and objectives." In many projects, the
owner is, by default, the Project Manager (PM)."
Construction Management - Correct Answers -- Construction manager (CM) may take
on the roles and responsibilities of an advisor, an agent or a constructor. The CM is
most frequently confined to:
- Advising on, or preparing schedules, budgets, material selection and detailing, during
the design phase
- Advising on and arranging for all services and trade and supervising the activities of
all trade contractors
Design-Bid-Build - Correct Answers -CCDC 2 ‐ Stipulated Price Contract
CCDC 3 ‐ Cost Plus Contract
CCDC 4 ‐ Unit Price Contract
- Involves three parties: Owner, Consultant and Contractor
- Not always best value to customer as costs are generally higher
QUESTIONS AND ANSWERS
Bond - Correct Answers -- A financial security that represents a promise to repay a fixed
amount of funds
- Financial security for the performance of an obligation; usually a written document
supported by a pledge of collateral.
Surety - Correct Answers -The party (company) that issues a bond which guarantees
the performance of the person bonded (in construction, the contractor) to fulfill
obligations under contract within the financial and time limitations stated in the bond.
Warranty (warranty against the quality) - Correct Answers -A statement of fact or quality
intended to be relied upon by another party, carrying with it an implied or express
promise to make good any breach
Take-over Procedure Tasks - Correct Answers -- certification of substantial performance
and Release of Holdback
- Final Certificate for Payment
- certification of the operation of various systems and building occupancy
- production of Record Drawings
Project Management Goals - Correct Answers -- Get the job done on time and within
budget
- Assign task to each person
- Follow up to confirm completion
- Be creative and solve problems
- Manage risks
- Report on progress
Business Plan - should include... - Correct Answers -- Business Overview (brief
description where company stands in market)
- sales and marketing plan (strategies to target customers)
- operating plan (physical operations)
- Human Resources plan (details on key staff, HR policies, procedures)
- action plan (future plans)
- executive summary (reasons you are seeking financing - summarized with business
operations)
- financial appendix - facts and figures to back up your plan
, Certificate of Substantial Performance - Correct Answers -A certificate issued under the
appropriate lien legislation attesting that the contract between the owner and the
contractor is substantially complete.
Holdback - Correct Answers -"A percentage of the monetary amount payable under a
(construction) contract, which is held back as security for a certain period of time. The
percentage and period of time are based on the provincial lien legislation."
Lien - Correct Answers -- legal claim on real property to satisfy a debt owed to the lien
claimant by the property owner. This claim can carry the right to sell the property upon
default.
- a right to keep possession of property belonging to another person until a debt owed
by that person is discharged.
Shop Drawings - Correct Answers -A drawing, prepared on behalf of the contractor to
indicate precise details of the construction materials, for fabrication, production or
installation.
Shop Drawing Review - Correct Answers -First, Gen. Contractor reviews shop
drawings. Second, architect and consultant review (snd approved construction dwgs
prior to fabrication). Lastly, shop drawings are returned to contractor for use, use w/
change, or resubmission.
General Review/ Field Review - Correct Answers -"Review during visits to the Project
site (at intervals appropriate to the stage of the construction)" ... "to determine that the
Work is in general conformity with the construction documents."
Project Management - Correct Answers -"The process of planning, scheduling,
directing, organizing and controlling all resources (financial, physical and human) from
the start to the completion of the project goals and objectives." In many projects, the
owner is, by default, the Project Manager (PM)."
Construction Management - Correct Answers -- Construction manager (CM) may take
on the roles and responsibilities of an advisor, an agent or a constructor. The CM is
most frequently confined to:
- Advising on, or preparing schedules, budgets, material selection and detailing, during
the design phase
- Advising on and arranging for all services and trade and supervising the activities of
all trade contractors
Design-Bid-Build - Correct Answers -CCDC 2 ‐ Stipulated Price Contract
CCDC 3 ‐ Cost Plus Contract
CCDC 4 ‐ Unit Price Contract
- Involves three parties: Owner, Consultant and Contractor
- Not always best value to customer as costs are generally higher
