CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
Size and complexity of the construction industry - Correct
Answers ✅Approx $2/3 Trillion per year
5% of GDP
Approx 5% of industrial work force
2.5 million firms
Largest single production activity
• Contrast the differences between Construction and
Manufacturing industries. - Correct Answers ✅Custom built
vs. Mass production
Quality control implications
Plant location ( fixed vs. mobile)
Changing partners ( subcontractors)
• Public Construction - Correct Answers ✅Federal, state,
county, municipal and other jurisdictions
1/3 of all construction projects
Competitive bidding required
mostly engineered construction projects
• Compare/contrast the basic contracting methods
General Contract - Correct Answers ✅Consists of contract
drawn up between owner and general contractor. owner
,CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
usually represented by the firm that was responsible for
drawing up the contract documents. Usually either
architectual design firm or or engineering firm
• Compare/contrast the basic contracting methods
Mulitiple Prime contract - Correct Answers ✅an
arrangment by which the owner lets contracts directly to
specialty contractor for the various portions of work.
• Compare/contrast the basic contracting methods
Self Performance - Correct Answers ✅owner provides
necessary materials, labor, equipment, and supervision.
Designer plays minor role
• Compare/contrast the basic contracting methods
Design build - Correct Answers ✅the owner lets a single
contract for both the design and construction of a project.
This approach has been very popular in constructing large
industrial type projects.
Define contract - Correct Answers ✅an agreement that
affects the legal relationship between two or more persons
A promise or set of promises for the breach of which law in
some way recognizes duty
,CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
Elements of Contract:
Offer and Acceptance - Correct Answers ✅Offer Made:
When one person (offerer)signifies to another person
(offeree)a willingness to enter into a binding contract on
certain specified terms.
Acceptance: Creates the contract, provided it is made in the
manner and at the time specified in the offer.
Must be definite, unqualified, and unconditional, if not it is a
counteroffer.
Elements of Contract: Meeting of the minds - Correct
Answers ✅Contracting parties agree on the basic meaning
and legal implications of the contract.
This is the underlying purpose of a contract.
If a meeting of the minds is not achieved, the parties do not
enter into a contract.
Elements of Contract
Consideration - Correct Answers ✅Is something of Value
The primary reason for a person to enter a contract
Both parties must obtain consideration, or the contract is not
valid.
, CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
Elements of Contract:
Lawful Subject Matter - Correct Answers ✅The Subject of
the Contract must be definite and clearly defined.
Subject Matter cannot violate any fundamental dictates of
Common Law.
Cannot be contrary to public policy. (Primary relevance for
public works contracts)
Elements of Contract
Competent Parties - Correct Answers ✅Anyone, acting in
good faith may enter into a binding contract
Exceptions: minors, persons determined to be insane,
Drunken persons.
If one of the contracting parties is judged incompetent, the
contract is nullified.
• Define and explain estoppel. - Correct Answers ✅A
principle by which a contract becomes binding in spite of the
fact that NO formal agreement was made between the
parties concerned.
Is a result of a court action asserting that an agreement or
contract exists, based largely on the behavior or actions of
the involved parties.
An implied agreement
Answers (Top Grade Assured) 2026
Update
Size and complexity of the construction industry - Correct
Answers ✅Approx $2/3 Trillion per year
5% of GDP
Approx 5% of industrial work force
2.5 million firms
Largest single production activity
• Contrast the differences between Construction and
Manufacturing industries. - Correct Answers ✅Custom built
vs. Mass production
Quality control implications
Plant location ( fixed vs. mobile)
Changing partners ( subcontractors)
• Public Construction - Correct Answers ✅Federal, state,
county, municipal and other jurisdictions
1/3 of all construction projects
Competitive bidding required
mostly engineered construction projects
• Compare/contrast the basic contracting methods
General Contract - Correct Answers ✅Consists of contract
drawn up between owner and general contractor. owner
,CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
usually represented by the firm that was responsible for
drawing up the contract documents. Usually either
architectual design firm or or engineering firm
• Compare/contrast the basic contracting methods
Mulitiple Prime contract - Correct Answers ✅an
arrangment by which the owner lets contracts directly to
specialty contractor for the various portions of work.
• Compare/contrast the basic contracting methods
Self Performance - Correct Answers ✅owner provides
necessary materials, labor, equipment, and supervision.
Designer plays minor role
• Compare/contrast the basic contracting methods
Design build - Correct Answers ✅the owner lets a single
contract for both the design and construction of a project.
This approach has been very popular in constructing large
industrial type projects.
Define contract - Correct Answers ✅an agreement that
affects the legal relationship between two or more persons
A promise or set of promises for the breach of which law in
some way recognizes duty
,CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
Elements of Contract:
Offer and Acceptance - Correct Answers ✅Offer Made:
When one person (offerer)signifies to another person
(offeree)a willingness to enter into a binding contract on
certain specified terms.
Acceptance: Creates the contract, provided it is made in the
manner and at the time specified in the offer.
Must be definite, unqualified, and unconditional, if not it is a
counteroffer.
Elements of Contract: Meeting of the minds - Correct
Answers ✅Contracting parties agree on the basic meaning
and legal implications of the contract.
This is the underlying purpose of a contract.
If a meeting of the minds is not achieved, the parties do not
enter into a contract.
Elements of Contract
Consideration - Correct Answers ✅Is something of Value
The primary reason for a person to enter a contract
Both parties must obtain consideration, or the contract is not
valid.
, CMGT 3500 Final Exam Questions and
Answers (Top Grade Assured) 2026
Update
Elements of Contract:
Lawful Subject Matter - Correct Answers ✅The Subject of
the Contract must be definite and clearly defined.
Subject Matter cannot violate any fundamental dictates of
Common Law.
Cannot be contrary to public policy. (Primary relevance for
public works contracts)
Elements of Contract
Competent Parties - Correct Answers ✅Anyone, acting in
good faith may enter into a binding contract
Exceptions: minors, persons determined to be insane,
Drunken persons.
If one of the contracting parties is judged incompetent, the
contract is nullified.
• Define and explain estoppel. - Correct Answers ✅A
principle by which a contract becomes binding in spite of the
fact that NO formal agreement was made between the
parties concerned.
Is a result of a court action asserting that an agreement or
contract exists, based largely on the behavior or actions of
the involved parties.
An implied agreement
