ARE 5.0 CE: CONSTRUCTION AND EVALUATION EXAM QUESTIONS AND
ANSWERS - 100% VERIFIED - LATEST 2026 - GUARANTEED PASS
1. What is the primary purpose of The AIA A201 establishes the rights,
the General Conditions of the responsibilities, and relationships of the
Contract for Construction (AIA owner, contractor, and architect during
A201)? construction. It defines roles, procedures
for changes, dispute resolution, and the
general administration of the contract.
2. Who is responsible for means The Contractor is solely responsible for
and methods of construction? construction means, methods, techniques,
sequences, and procedures, as well as
safety precautions on the project site.
3. What is a Supplementary Supplementary Conditions modify or
Conditions document? supplement the General Conditions (AIA
A201) to address project-specific
requirements, local laws, or owner
preferences that differ from the standard
General Conditions.
4. What is the difference between Construction Documents are the drawings
the Contract Documents and the and specifications used for bidding and
Construction Documents? construction. Contract Documents are
broader and include the Agreement,
General Conditions, Supplementary
Conditions, drawings, specifications,
addenda, and modifications—they form the
legal contract.
5. What is a Schedule of Values? A Schedule of Values is a document
prepared by the contractor that allocates the
total contract sum to the various portions of
the work, used as the basis for reviewing
and approving Applications for Payment.
Page 1 — For exam study purposes only
,6. What is the contractor's The contractor must submit shop drawings,
obligation regarding submittals? product data, and samples to the architect
for review and approval. Submittals must
conform to the contract documents, and the
contractor must not proceed with work
covered by a submittal until it has been
reviewed by the architect.
7. What is a Guaranteed Maximum A GMP contract is used with a
Price (GMP) contract? Construction Manager at Risk (CM at
Risk) where the contractor guarantees the
project will be completed within a set
maximum price. Any savings below the
GMP may be shared between owner and
contractor per the agreement.
8. What are liquidated damages? Liquidated damages are a pre-agreed sum
the contractor pays the owner for each day
the project extends beyond the contracted
completion date. They must represent a
reasonable estimate of actual damages, not
a penalty.
9. What is the difference between A bilateral change order (AIA G701) is
a unilateral change order and a agreed upon by both the owner and
bilateral change order? contractor. A unilateral change order
(Construction Change Directive, AIA
G714) is issued by the owner/architect
when agreement cannot be reached,
directing the contractor to proceed with
work while pricing is being negotiated.
10. What is a Notice to Proceed? A Notice to Proceed is a written
communication from the owner to the
contractor authorizing the contractor to
begin work and establishing the official
start date of the contract time.
11. What is retainage? Retainage is a percentage (typically 5–
10%) withheld from each contractor
payment application as security for the
satisfactory completion of the work. It is
released at or near final completion.
Page 2 — For exam study purposes only
,12. What is the architect's role in The architect reviews the contractor's
reviewing Applications for Application for Payment, verifies that work
Payment? has been completed as represented, checks
the Schedule of Values, and issues a
Certificate for Payment to the owner for the
amount the architect determines is properly
due.
13. What does 'substantial Substantial completion is the stage in the
completion' mean under AIA progress of the work when the work is
A201? sufficiently complete so the owner can
occupy or utilize the work for its intended
purpose. A Certificate of Substantial
Completion (AIA G704) is issued at this
milestone.
14. What is a punch list? A punch list (also called a deficiency list)
is a list of items remaining to be completed
or corrected after substantial completion. It
is compiled by the architect and contractor
during the final inspection walkthrough.
15. What is the difference between A bid bond guarantees the bidder will enter
the bid bond, performance bond, a contract if selected. A performance bond
and payment bond? guarantees the contractor will complete the
project per the contract terms. A payment
bond guarantees the contractor will pay
subcontractors, laborers, and suppliers.
16. When is a Construction A CCD (AIA G714) is used when the
Change Directive (CCD) used? owner and contractor cannot agree on price
or time for a change, but the owner wants
to proceed immediately. It directs the
contractor to proceed while the
compensation is being determined.
17. What is the significance of the The date of commencement establishes
'date of commencement' in a when the contract time begins to run. It is
construction contract? typically stated in the owner-contractor
agreement or in the Notice to Proceed.
Page 3 — For exam study purposes only
, 18. What types of costs are Costs of the work include labor costs,
typically included in the cost of subcontractor costs, materials and
the work? equipment costs, bonding and insurance
costs, permit fees, and site overhead. They
typically exclude contractor's overhead and
profit (which are listed separately).
19. What is a contingency A contingency allowance is a sum included
allowance? in the contract sum for unforeseen
conditions or owner-directed changes
during construction. It is distinct from the
contractor's general contingency and is
typically controlled by the owner.
20. What is the contractor's duty The contractor must promptly notify the
when it discovers a discrepancy in architect in writing of any errors,
the contract documents? inconsistencies, or omissions in the
contract documents. The contractor must
not proceed with the affected work until
receiving written direction from the
architect.
21. What is 'force majeure' in a Force majeure refers to unforeseeable
construction contract? events beyond a party's control (such as
natural disasters, wars, or government
actions) that excuse a party from contract
performance or allow an extension of time
without penalty.
22. What is the difference between A lump sum (stipulated sum) contract
a lump sum contract and a cost- requires the contractor to perform the work
plus contract? for a fixed price. A cost-plus contract pays
the contractor for actual costs incurred plus
a fee (either a fixed fee or a percentage).
Cost-plus is riskier for the owner.
23. What is a Request for An RFI is a formal written request from the
Information (RFI)? contractor to the architect seeking
clarification or additional information
regarding the contract documents. The
architect must respond in writing, and if the
response constitutes a change, a change
order may be required.
Page 4 — For exam study purposes only
ANSWERS - 100% VERIFIED - LATEST 2026 - GUARANTEED PASS
1. What is the primary purpose of The AIA A201 establishes the rights,
the General Conditions of the responsibilities, and relationships of the
Contract for Construction (AIA owner, contractor, and architect during
A201)? construction. It defines roles, procedures
for changes, dispute resolution, and the
general administration of the contract.
2. Who is responsible for means The Contractor is solely responsible for
and methods of construction? construction means, methods, techniques,
sequences, and procedures, as well as
safety precautions on the project site.
3. What is a Supplementary Supplementary Conditions modify or
Conditions document? supplement the General Conditions (AIA
A201) to address project-specific
requirements, local laws, or owner
preferences that differ from the standard
General Conditions.
4. What is the difference between Construction Documents are the drawings
the Contract Documents and the and specifications used for bidding and
Construction Documents? construction. Contract Documents are
broader and include the Agreement,
General Conditions, Supplementary
Conditions, drawings, specifications,
addenda, and modifications—they form the
legal contract.
5. What is a Schedule of Values? A Schedule of Values is a document
prepared by the contractor that allocates the
total contract sum to the various portions of
the work, used as the basis for reviewing
and approving Applications for Payment.
Page 1 — For exam study purposes only
,6. What is the contractor's The contractor must submit shop drawings,
obligation regarding submittals? product data, and samples to the architect
for review and approval. Submittals must
conform to the contract documents, and the
contractor must not proceed with work
covered by a submittal until it has been
reviewed by the architect.
7. What is a Guaranteed Maximum A GMP contract is used with a
Price (GMP) contract? Construction Manager at Risk (CM at
Risk) where the contractor guarantees the
project will be completed within a set
maximum price. Any savings below the
GMP may be shared between owner and
contractor per the agreement.
8. What are liquidated damages? Liquidated damages are a pre-agreed sum
the contractor pays the owner for each day
the project extends beyond the contracted
completion date. They must represent a
reasonable estimate of actual damages, not
a penalty.
9. What is the difference between A bilateral change order (AIA G701) is
a unilateral change order and a agreed upon by both the owner and
bilateral change order? contractor. A unilateral change order
(Construction Change Directive, AIA
G714) is issued by the owner/architect
when agreement cannot be reached,
directing the contractor to proceed with
work while pricing is being negotiated.
10. What is a Notice to Proceed? A Notice to Proceed is a written
communication from the owner to the
contractor authorizing the contractor to
begin work and establishing the official
start date of the contract time.
11. What is retainage? Retainage is a percentage (typically 5–
10%) withheld from each contractor
payment application as security for the
satisfactory completion of the work. It is
released at or near final completion.
Page 2 — For exam study purposes only
,12. What is the architect's role in The architect reviews the contractor's
reviewing Applications for Application for Payment, verifies that work
Payment? has been completed as represented, checks
the Schedule of Values, and issues a
Certificate for Payment to the owner for the
amount the architect determines is properly
due.
13. What does 'substantial Substantial completion is the stage in the
completion' mean under AIA progress of the work when the work is
A201? sufficiently complete so the owner can
occupy or utilize the work for its intended
purpose. A Certificate of Substantial
Completion (AIA G704) is issued at this
milestone.
14. What is a punch list? A punch list (also called a deficiency list)
is a list of items remaining to be completed
or corrected after substantial completion. It
is compiled by the architect and contractor
during the final inspection walkthrough.
15. What is the difference between A bid bond guarantees the bidder will enter
the bid bond, performance bond, a contract if selected. A performance bond
and payment bond? guarantees the contractor will complete the
project per the contract terms. A payment
bond guarantees the contractor will pay
subcontractors, laborers, and suppliers.
16. When is a Construction A CCD (AIA G714) is used when the
Change Directive (CCD) used? owner and contractor cannot agree on price
or time for a change, but the owner wants
to proceed immediately. It directs the
contractor to proceed while the
compensation is being determined.
17. What is the significance of the The date of commencement establishes
'date of commencement' in a when the contract time begins to run. It is
construction contract? typically stated in the owner-contractor
agreement or in the Notice to Proceed.
Page 3 — For exam study purposes only
, 18. What types of costs are Costs of the work include labor costs,
typically included in the cost of subcontractor costs, materials and
the work? equipment costs, bonding and insurance
costs, permit fees, and site overhead. They
typically exclude contractor's overhead and
profit (which are listed separately).
19. What is a contingency A contingency allowance is a sum included
allowance? in the contract sum for unforeseen
conditions or owner-directed changes
during construction. It is distinct from the
contractor's general contingency and is
typically controlled by the owner.
20. What is the contractor's duty The contractor must promptly notify the
when it discovers a discrepancy in architect in writing of any errors,
the contract documents? inconsistencies, or omissions in the
contract documents. The contractor must
not proceed with the affected work until
receiving written direction from the
architect.
21. What is 'force majeure' in a Force majeure refers to unforeseeable
construction contract? events beyond a party's control (such as
natural disasters, wars, or government
actions) that excuse a party from contract
performance or allow an extension of time
without penalty.
22. What is the difference between A lump sum (stipulated sum) contract
a lump sum contract and a cost- requires the contractor to perform the work
plus contract? for a fixed price. A cost-plus contract pays
the contractor for actual costs incurred plus
a fee (either a fixed fee or a percentage).
Cost-plus is riskier for the owner.
23. What is a Request for An RFI is a formal written request from the
Information (RFI)? contractor to the architect seeking
clarification or additional information
regarding the contract documents. The
architect must respond in writing, and if the
response constitutes a change, a change
order may be required.
Page 4 — For exam study purposes only
