Legal Aspects Final Exam (GRADED
A) Questions and Answer 2023
The right or authority granted over a geographical region
Jurisdiction
Type of law which is written and set by our governmental legislature
statute law
00:1401:18
Which type of contracts do we typically use in construction (hint, there are 2 to choose from)
Bilateral, Express
A term which indicates a contract can become binding in spite of no formal agreement being in place - a
contract exists based mostly on actions/behaviors of parties.
estoppel
A contract element which allows for agreement on basic meaning and legal implications of the contract,
and eliminates "mistakes of fact" prior to entering into contract:
Meeting of the minds
A government entity (not in all states) cannot be sued without its consent due to:
Sovereign Immunity
T or F. To form a Proprietorship, formal documents are required to establish the business.
False
T or F. An oral agreement is a sufficient means of forming a Partnership (meaning no formal
documentation is required).
True
A legal entity (or business) created to act as an individual, and is also viewed as an artificial tax-paying
individual.
Corporation
Contracting method where an owner hires a Contractor and Design Firm (Architect/Engineer) as a single
contract to utilize the construction firm's experience in the designing phases.
Design/ build
High Risk/High Reward
GC
, More open-book style of cost control.
CM at risk
00:0201:18
Allows for Contractor input during design
CM at risk
Plans and Specs should be close to 100% complete before construction starts (or before Contractor sees
them at least)
GC
Incentivizes Contractor to abuse Subs, cut corners and look for loopholes
GC
May risk losing money in pre-construction due to amount of time spent on it and not see the project
actually take place
CM at risk
Seen as having a stronger and fair market competition for bidding
GC
Low Risk/Low Reward
CM at risk
Typically stronger relationship environment between the Owner/AE/Contractor
CM at risk
Which type of lien waiver states that full payment has been received and there is no claim of lien against
the homeowners' property.
Full unconditional
A contracting method where the Owner is usually represented by a firm who is responsible for the
drawings (and other contract documents), and the owner's contract is direct with the general contractor.
General contract
Legal right to limited use of a property.
Easement
In which type of contracting method is the Contractor NOT responsible for means and methods of
construction activities since they are not directly contracted with the subcontractors, but instead acts as
an adviser (or representative) to the Owner?
CM as agent
A form of augmenting or supporting the standard Contract Documents.
supplemental conditions
Defines specific administrative protocols and processes directly associated with a given (or specific)
project.
general requirements
Establishes rights, authorities, and obligations of contracting parties.
A) Questions and Answer 2023
The right or authority granted over a geographical region
Jurisdiction
Type of law which is written and set by our governmental legislature
statute law
00:1401:18
Which type of contracts do we typically use in construction (hint, there are 2 to choose from)
Bilateral, Express
A term which indicates a contract can become binding in spite of no formal agreement being in place - a
contract exists based mostly on actions/behaviors of parties.
estoppel
A contract element which allows for agreement on basic meaning and legal implications of the contract,
and eliminates "mistakes of fact" prior to entering into contract:
Meeting of the minds
A government entity (not in all states) cannot be sued without its consent due to:
Sovereign Immunity
T or F. To form a Proprietorship, formal documents are required to establish the business.
False
T or F. An oral agreement is a sufficient means of forming a Partnership (meaning no formal
documentation is required).
True
A legal entity (or business) created to act as an individual, and is also viewed as an artificial tax-paying
individual.
Corporation
Contracting method where an owner hires a Contractor and Design Firm (Architect/Engineer) as a single
contract to utilize the construction firm's experience in the designing phases.
Design/ build
High Risk/High Reward
GC
, More open-book style of cost control.
CM at risk
00:0201:18
Allows for Contractor input during design
CM at risk
Plans and Specs should be close to 100% complete before construction starts (or before Contractor sees
them at least)
GC
Incentivizes Contractor to abuse Subs, cut corners and look for loopholes
GC
May risk losing money in pre-construction due to amount of time spent on it and not see the project
actually take place
CM at risk
Seen as having a stronger and fair market competition for bidding
GC
Low Risk/Low Reward
CM at risk
Typically stronger relationship environment between the Owner/AE/Contractor
CM at risk
Which type of lien waiver states that full payment has been received and there is no claim of lien against
the homeowners' property.
Full unconditional
A contracting method where the Owner is usually represented by a firm who is responsible for the
drawings (and other contract documents), and the owner's contract is direct with the general contractor.
General contract
Legal right to limited use of a property.
Easement
In which type of contracting method is the Contractor NOT responsible for means and methods of
construction activities since they are not directly contracted with the subcontractors, but instead acts as
an adviser (or representative) to the Owner?
CM as agent
A form of augmenting or supporting the standard Contract Documents.
supplemental conditions
Defines specific administrative protocols and processes directly associated with a given (or specific)
project.
general requirements
Establishes rights, authorities, and obligations of contracting parties.
