CVEN 437 Exam 2: CH 1-6 Questions With Complete
Solutions
*Primary advantages of a limited partnership* form of
construction company ownership Correct Answers 1) individual
can *retain exemption from any personal accountability*
2) considered to be an *owner of the share of the company and
not just a creditor*
3) permitted to *share the profits of the company* even while
the business is in progress
4) also *entitled to a return of investment and profits* that aren't
distributed in the event of the *company's dissolution*
2 different forms of alternate Correct Answers 1) Owner-
designated alternates
2) Contractor-designated alternates
4 main primary national model codes Correct Answers 1)
National/Basic Building Code (NBC)
2) Uniform Building Code (UBC)
3) Standard Building Code (SBC)
4) International Building Code (IBC)
*N.U.S.I.*
6 components of contractor's *detailed lump-sum estimate*
Correct Answers 1) materials
2) labor
3) equipment
4) indirect cost
5) subcontractor quotations
,6) markup
M.L.E.I.S.M.
A contractor is usually required to provide a one-year warranty
following his completion of the work on a project. When does
the warranty period begin and what, specifically, is the
contractor required to warrant? Correct Answers The warranty
period begins after either the time of substantial completion or
final acceptance, the point at which the period begins being
variable with the form of contract.
Contractor is required, on notice, to make good at its own
expense defects detected during this period.
About how many firms in the US classify themselves as
construction firms, and what is the most prevalent form of
ownership by those companies? Correct Answers About
700,000
*Individual proprietorship* is the most prevalent form of
ownership
According to usual contract language, who is designated as the
interpreter of the contract documents, in the event, a difference
of opinion arises? Explain how this is sometimes not the case.
Correct Answers the attorney designated as the contractor's
interpreter of contract documents.
, -The contractor's failure to do can result in serious complications
that often could have been avoided had legal advice been
obtained.
Advertisement for Bids Correct Answers method used on most
public construction projects to inform contractors that a project
has been designed and to let contractors know that the owner
and architect-engineer are soliciting bids from contractors
Alternate Correct Answers alternative materials or methods, or
alternative elements of the design, which are *included within
the original contract docs as prepared by the architect-engineer*,
sent to the contractors
provide a means for the architect-engineer and owner to
consider different alternatives to the original design, and *then
give option to include them in the construction contract or not*,
as they choose, after proposals have been received from
contractors
method of allowing the architect-engineer and owner to structure
the contract for construction so as to attain maximum value or,
perhaps, to get the contract price within the owner's budget.
Building code Correct Answers the least set of *basic
necessities for a building's design and construction*
(implemented into a regulation by some *state gov'ts* and by
*many municipal gov'ts*)
*Main purpose: grant *safety, health, and welfare* to the
public*
Solutions
*Primary advantages of a limited partnership* form of
construction company ownership Correct Answers 1) individual
can *retain exemption from any personal accountability*
2) considered to be an *owner of the share of the company and
not just a creditor*
3) permitted to *share the profits of the company* even while
the business is in progress
4) also *entitled to a return of investment and profits* that aren't
distributed in the event of the *company's dissolution*
2 different forms of alternate Correct Answers 1) Owner-
designated alternates
2) Contractor-designated alternates
4 main primary national model codes Correct Answers 1)
National/Basic Building Code (NBC)
2) Uniform Building Code (UBC)
3) Standard Building Code (SBC)
4) International Building Code (IBC)
*N.U.S.I.*
6 components of contractor's *detailed lump-sum estimate*
Correct Answers 1) materials
2) labor
3) equipment
4) indirect cost
5) subcontractor quotations
,6) markup
M.L.E.I.S.M.
A contractor is usually required to provide a one-year warranty
following his completion of the work on a project. When does
the warranty period begin and what, specifically, is the
contractor required to warrant? Correct Answers The warranty
period begins after either the time of substantial completion or
final acceptance, the point at which the period begins being
variable with the form of contract.
Contractor is required, on notice, to make good at its own
expense defects detected during this period.
About how many firms in the US classify themselves as
construction firms, and what is the most prevalent form of
ownership by those companies? Correct Answers About
700,000
*Individual proprietorship* is the most prevalent form of
ownership
According to usual contract language, who is designated as the
interpreter of the contract documents, in the event, a difference
of opinion arises? Explain how this is sometimes not the case.
Correct Answers the attorney designated as the contractor's
interpreter of contract documents.
, -The contractor's failure to do can result in serious complications
that often could have been avoided had legal advice been
obtained.
Advertisement for Bids Correct Answers method used on most
public construction projects to inform contractors that a project
has been designed and to let contractors know that the owner
and architect-engineer are soliciting bids from contractors
Alternate Correct Answers alternative materials or methods, or
alternative elements of the design, which are *included within
the original contract docs as prepared by the architect-engineer*,
sent to the contractors
provide a means for the architect-engineer and owner to
consider different alternatives to the original design, and *then
give option to include them in the construction contract or not*,
as they choose, after proposals have been received from
contractors
method of allowing the architect-engineer and owner to structure
the contract for construction so as to attain maximum value or,
perhaps, to get the contract price within the owner's budget.
Building code Correct Answers the least set of *basic
necessities for a building's design and construction*
(implemented into a regulation by some *state gov'ts* and by
*many municipal gov'ts*)
*Main purpose: grant *safety, health, and welfare* to the
public*
