CM 4211 MIDTERM EXAM 2026 FULL
QUESTIONS AND DETAILED SOLUTIONS
◉What is a Design Bid Build contract?. Answer: A traditional
construction project delivery method that involves the completion of
three distinct phases in sequence
◉The GMP will include which of the following. Select all that apply..
Answer: Fees and percentages to make a profit, Overhead and Profit,
Labor and Materials
◉The construction contract will specify contract details such as
which of the following.. Answer: Scope of Work
◉A strong construction contract will outline the project's scope and
leave little to no room for which of the following.. Answer: Confusion
on either side
◉A construction contract is an agreement that is between the
OWNER and which of the following.. Answer: Prime/General
Contractor
,◉What does contract termination mean?. Answer: When either
party can legally terminate the contract and any penalties that may
apply to the decision to terminate
◉The Owner can specify in the contract how and what
subcontractors can be sourced for the project.. Answer: True
◉Of the three contracts LS, LSTK, and GMP, which once affords the
most protection financially and allows the owner to secure investors
and loans?. Answer: GMP
◉The advantages of Time and Material contracts consist of which of
the following. Select all that apply.. Answer: Helps budget overall
costs, Reduce risk to Prime Contractor of fluctuating material and
labor cost, Reduces cost-cutting methods by the owner
◉T&M contracts can lead to many disputes on pricing.. Answer:
True
◉What is a Time and Materials contract?. Answer: A contract that
requires the client pay the contractor for all labor and materials at a
pre-negotiated rate
, ◉What are examples of construction contract clauses for
escalation?. Answer: Steel, Construction materials and equipment,
Fuel and gas
◉Safety awards for no injuries, fast-tracking, and zero-quality
defects are possible examples of incentives in a unit price contract..
Answer: False
◉What does Indemnification mean?. Answer: The responsibility of
the contractor for any damages or loss incurred by the owner due to
the work of the contractor
◉The advantage of cost plus is that the Prime Contractor will incur a
profit.. Answer: True
◉What are examples of an Incentive construction contract?. Answer:
Safety awards, Fast tracking, Zero quality defects
◉Scope of Work is a description of which of the following. Select all
that apply.. Answer: The list of construction obligations, as well as
the work activties that all contractors, subcontractors, and suppliers
are obligated to do.
◉What are examples of contract documents?. Answer: Technical
specifications, Scope of work, Design drawings, Blueprints
QUESTIONS AND DETAILED SOLUTIONS
◉What is a Design Bid Build contract?. Answer: A traditional
construction project delivery method that involves the completion of
three distinct phases in sequence
◉The GMP will include which of the following. Select all that apply..
Answer: Fees and percentages to make a profit, Overhead and Profit,
Labor and Materials
◉The construction contract will specify contract details such as
which of the following.. Answer: Scope of Work
◉A strong construction contract will outline the project's scope and
leave little to no room for which of the following.. Answer: Confusion
on either side
◉A construction contract is an agreement that is between the
OWNER and which of the following.. Answer: Prime/General
Contractor
,◉What does contract termination mean?. Answer: When either
party can legally terminate the contract and any penalties that may
apply to the decision to terminate
◉The Owner can specify in the contract how and what
subcontractors can be sourced for the project.. Answer: True
◉Of the three contracts LS, LSTK, and GMP, which once affords the
most protection financially and allows the owner to secure investors
and loans?. Answer: GMP
◉The advantages of Time and Material contracts consist of which of
the following. Select all that apply.. Answer: Helps budget overall
costs, Reduce risk to Prime Contractor of fluctuating material and
labor cost, Reduces cost-cutting methods by the owner
◉T&M contracts can lead to many disputes on pricing.. Answer:
True
◉What is a Time and Materials contract?. Answer: A contract that
requires the client pay the contractor for all labor and materials at a
pre-negotiated rate
, ◉What are examples of construction contract clauses for
escalation?. Answer: Steel, Construction materials and equipment,
Fuel and gas
◉Safety awards for no injuries, fast-tracking, and zero-quality
defects are possible examples of incentives in a unit price contract..
Answer: False
◉What does Indemnification mean?. Answer: The responsibility of
the contractor for any damages or loss incurred by the owner due to
the work of the contractor
◉The advantage of cost plus is that the Prime Contractor will incur a
profit.. Answer: True
◉What are examples of an Incentive construction contract?. Answer:
Safety awards, Fast tracking, Zero quality defects
◉Scope of Work is a description of which of the following. Select all
that apply.. Answer: The list of construction obligations, as well as
the work activties that all contractors, subcontractors, and suppliers
are obligated to do.
◉What are examples of contract documents?. Answer: Technical
specifications, Scope of work, Design drawings, Blueprints
