CVEN 437 Exam 2: CH 1-6 Ques ons and answers |
Updated Rated A+ | 2026 | NEW
Privity of Contract
Privity is a doctrine of contract law which says contracts are only binding on the par es signing
the contract. An actual contract connec on between the par es, allowing them to sue each
other to enforce the agreement.
On a typical construc on project, name 3 people whom the prime contractor has Privity of
Contract with.
owner, vendor, and subcontractor
Construc on Manager (CM)
professional who enters a contract with the owner, and by the terms of that contract provides a
variety of diff services to the owner
How did the concept of having construc on managers originate?
they came part of the design and construc on process years ago at a me when design-bid-
build was the predominant project delivery method. A number of owners saw value within the
process of entering a contract with a 3rd party to represent the owner's interests in the his
contract with the architect-engineer and in his contract with the construc on contractor.
Why are unit-price contracts employed most prevalently on engineered and heavy construc on
sites?
Because exact quan es of materials required and/or of the work to be performed cannot be
determined in advance of construc on with sufficient accuracy to permit lump-sum es ma ng
Construc on Management at Risk
(CMAR)
Construc on Manger (CM) provides consul ng services to the owner during design and acts as
the contractor for the comple on of the project
-responsible for the project from on-set of design thru construc on
Construc on Management Agency
(CMA)
,CM enters a contract with owner whereby he represents the owner's interests in owner's
contracts with architect-engineer and the prime contractor
-CM has no contractual rela onship with architect-engineer or with general contractor
-CM provides his counsel and assistance to owner, then owner decides to take ac on
Can a construc on firm that is a subcontractor on one construc on project simultaneously be a
prime contractor on another project? Explain.
Yes
-separate units
Name 3 of the most common reasons for construc on company business failures as defined this
chapter.
1) lack of business knowledge
2) lack of managerial experience
3) poor accoun ng system
4) insufficient capital
5) inability to be compe ve
6) heavy opera ng expenses
7) lack of early warning measures
8) high employee turnover
List and define each of the bid documents that are typically prepared for a project
1) Adver sement for Bids: a public no ce to all contractors men oning that qualified and
interested ones are required to put forward their proposals for the construc on of the project
2) No ce to Bidders: public no ce to any and all interested contractors
3) Invita on to Bid: made use of by the owner and architect-engineer. This is in fact used when
they need to let know the preselected contractors of the reality of the project and that they
and the others chosen are requested to submit proposals
4) Instruc ons to Bidders: set of bidding procedures established wherein all bidders are
expected to conform so that the package of work is iden cal
5) Proposal Form: tendered by contrac ng firm to owner given in wri ng, indica ng price for
which the contractor consents to carry out the work explained in contract docs
, Four na onal contractor professional associa ons are as follows:
1) AGC: American General Contractors of America
2) ABC: Associated Builders and Contractors
3) ASC: Associated Specialty Contractors
4) ARTBA: American Road and Transporta on Builders Associa on
Open-end contract
-2 forms of contract defined in this chapter that are open ended forms of contract
agreement bt the employer and employee either in wri ng or verbal wherein the start date of
the contract is men oned, but end date is not men oned
Two forms:
1) unit price contracts
2) fast track construc on contracts
Define fast-track construc on, and provide a synonym.
method to deliver a project wherein the inten on is to decrease a minimum the me essen al
for both design and construc on of a project.
Synonym = "phased construc on"
CH 2
add more def's and chapter ques ons
Describe the primary objec ve of fast-track, and the primary risk factors that are inherent in this
project delivery method.
objec ve: minimize the me taken for a project
primary risk factors:
1) errors resul ng in retrofit in some cases
2) tear out and redo happens in certain cases
3) takes longer than usual to complete a project
Building code
the least set of basic necessi es for a building's design and construc on (implemented into a
regula on by some state gov'ts and by many municipal gov'ts)
Main purpose: grant safety, health, and welfare to the public
Updated Rated A+ | 2026 | NEW
Privity of Contract
Privity is a doctrine of contract law which says contracts are only binding on the par es signing
the contract. An actual contract connec on between the par es, allowing them to sue each
other to enforce the agreement.
On a typical construc on project, name 3 people whom the prime contractor has Privity of
Contract with.
owner, vendor, and subcontractor
Construc on Manager (CM)
professional who enters a contract with the owner, and by the terms of that contract provides a
variety of diff services to the owner
How did the concept of having construc on managers originate?
they came part of the design and construc on process years ago at a me when design-bid-
build was the predominant project delivery method. A number of owners saw value within the
process of entering a contract with a 3rd party to represent the owner's interests in the his
contract with the architect-engineer and in his contract with the construc on contractor.
Why are unit-price contracts employed most prevalently on engineered and heavy construc on
sites?
Because exact quan es of materials required and/or of the work to be performed cannot be
determined in advance of construc on with sufficient accuracy to permit lump-sum es ma ng
Construc on Management at Risk
(CMAR)
Construc on Manger (CM) provides consul ng services to the owner during design and acts as
the contractor for the comple on of the project
-responsible for the project from on-set of design thru construc on
Construc on Management Agency
(CMA)
,CM enters a contract with owner whereby he represents the owner's interests in owner's
contracts with architect-engineer and the prime contractor
-CM has no contractual rela onship with architect-engineer or with general contractor
-CM provides his counsel and assistance to owner, then owner decides to take ac on
Can a construc on firm that is a subcontractor on one construc on project simultaneously be a
prime contractor on another project? Explain.
Yes
-separate units
Name 3 of the most common reasons for construc on company business failures as defined this
chapter.
1) lack of business knowledge
2) lack of managerial experience
3) poor accoun ng system
4) insufficient capital
5) inability to be compe ve
6) heavy opera ng expenses
7) lack of early warning measures
8) high employee turnover
List and define each of the bid documents that are typically prepared for a project
1) Adver sement for Bids: a public no ce to all contractors men oning that qualified and
interested ones are required to put forward their proposals for the construc on of the project
2) No ce to Bidders: public no ce to any and all interested contractors
3) Invita on to Bid: made use of by the owner and architect-engineer. This is in fact used when
they need to let know the preselected contractors of the reality of the project and that they
and the others chosen are requested to submit proposals
4) Instruc ons to Bidders: set of bidding procedures established wherein all bidders are
expected to conform so that the package of work is iden cal
5) Proposal Form: tendered by contrac ng firm to owner given in wri ng, indica ng price for
which the contractor consents to carry out the work explained in contract docs
, Four na onal contractor professional associa ons are as follows:
1) AGC: American General Contractors of America
2) ABC: Associated Builders and Contractors
3) ASC: Associated Specialty Contractors
4) ARTBA: American Road and Transporta on Builders Associa on
Open-end contract
-2 forms of contract defined in this chapter that are open ended forms of contract
agreement bt the employer and employee either in wri ng or verbal wherein the start date of
the contract is men oned, but end date is not men oned
Two forms:
1) unit price contracts
2) fast track construc on contracts
Define fast-track construc on, and provide a synonym.
method to deliver a project wherein the inten on is to decrease a minimum the me essen al
for both design and construc on of a project.
Synonym = "phased construc on"
CH 2
add more def's and chapter ques ons
Describe the primary objec ve of fast-track, and the primary risk factors that are inherent in this
project delivery method.
objec ve: minimize the me taken for a project
primary risk factors:
1) errors resul ng in retrofit in some cases
2) tear out and redo happens in certain cases
3) takes longer than usual to complete a project
Building code
the least set of basic necessi es for a building's design and construc on (implemented into a
regula on by some state gov'ts and by many municipal gov'ts)
Main purpose: grant safety, health, and welfare to the public
