CMGT 3500 FINAL EXAM
QUESTIONS AND ANSWERS
The construction Industry, per the text, accounts for 25% of the Gross Domestic
Product (DGP) - ANSWER-False; 5%
A self performance method of contracting requires the owner to hire a contractor who
self performs all the work - ANSWER-False
A bilateral contract agreement is created by mutual promises by contracting parties -
ANSWER-True
If a meeting of the minds is achieved, the parties DO NOT enter into a contract -
ANSWER-False
A Dispute takes place because conflict of legal views or interests - ANSWER-True
Give examples of publicly financed building construction projects - ANSWER-
Schools, courthouses, city offices, libraries, airports
Give examples of publicly financed non-building construction projects - ANSWER-
Bridges, roads, dams, tunnels, pipelines, and parks
What is an express contract - ANSWER-where the information and details of the
contract are well written or verbal and clear
What is an implied contract - ANSWER-where the information and details of the
contract are not clear and nor written and are established through inference and
deduction
Purpose of supplementary provisions - ANSWER-to amend and augment the
general conditions which tend to be more specific
Design specifications - ANSWER-require a particular type of item or system and a
particular dimension
Performance specifications - ANSWER-provide the results of the finished product
Purpose of Submittals - ANSWER-They are shop drawings, material data, samples,
and product data.
They are required for the architect and engineer so they can verify the correct
products and quantities will be installed
Elements of a contract - ANSWER-Offer and Acceptance
Meeting of the minds
Consideration
Lawful subject matter
, Competent parties
Offer and Acceptance - ANSWER-One person signifies to another a willingnss to
enter a binding contract.
Accepting means yo entered a contract
Meeting of the minds - ANSWER-Parties of the contract meet and discuss the details
and rules of the contract
Consideration - ANSWER-something of value
Purpose of the general conditions - ANSWER-Establish the procedures and protocol
that the owner and general contractor will follow during the course of construction.
They clearly define the roles that each contracting party will play.
General contract allocating risk - ANSWER-GC has most risk
Multiple primes allocating risk - ANSWER-owner assumes risk
Self-performance allocating risk - ANSWER-Owner assumes risk
Design-build allocating risk - ANSWER-GC/designer assumes most risk, owner
assumes less control
Professional CM allocating risk - ANSWER-GC assumes risk, owner has CM to
oversee work
CM at Risk allocating risk - ANSWER-CM assuming most risk and CM is under
contract to oversee work
A cardinal change is a change which is outside of the scope of the original contract -
ANSWER-True
Additional work constitutes work that must be performed to complete the project as
originally intended. - ANSWER-True
Projects that are to be constructed by fast tracking are well suited for lump sum
(fixed-price) Contracts. - ANSWER-False
The performance bond gives primary protection to the Contractor as the cost of
project completion. - ANSWER-False;
Owner not Contractor
Contract disputes are almost always between the contracting parties. - ANSWER-
True
Creation of an agency takes place by: - ANSWER-Contract
Ratification
Estoppel
QUESTIONS AND ANSWERS
The construction Industry, per the text, accounts for 25% of the Gross Domestic
Product (DGP) - ANSWER-False; 5%
A self performance method of contracting requires the owner to hire a contractor who
self performs all the work - ANSWER-False
A bilateral contract agreement is created by mutual promises by contracting parties -
ANSWER-True
If a meeting of the minds is achieved, the parties DO NOT enter into a contract -
ANSWER-False
A Dispute takes place because conflict of legal views or interests - ANSWER-True
Give examples of publicly financed building construction projects - ANSWER-
Schools, courthouses, city offices, libraries, airports
Give examples of publicly financed non-building construction projects - ANSWER-
Bridges, roads, dams, tunnels, pipelines, and parks
What is an express contract - ANSWER-where the information and details of the
contract are well written or verbal and clear
What is an implied contract - ANSWER-where the information and details of the
contract are not clear and nor written and are established through inference and
deduction
Purpose of supplementary provisions - ANSWER-to amend and augment the
general conditions which tend to be more specific
Design specifications - ANSWER-require a particular type of item or system and a
particular dimension
Performance specifications - ANSWER-provide the results of the finished product
Purpose of Submittals - ANSWER-They are shop drawings, material data, samples,
and product data.
They are required for the architect and engineer so they can verify the correct
products and quantities will be installed
Elements of a contract - ANSWER-Offer and Acceptance
Meeting of the minds
Consideration
Lawful subject matter
, Competent parties
Offer and Acceptance - ANSWER-One person signifies to another a willingnss to
enter a binding contract.
Accepting means yo entered a contract
Meeting of the minds - ANSWER-Parties of the contract meet and discuss the details
and rules of the contract
Consideration - ANSWER-something of value
Purpose of the general conditions - ANSWER-Establish the procedures and protocol
that the owner and general contractor will follow during the course of construction.
They clearly define the roles that each contracting party will play.
General contract allocating risk - ANSWER-GC has most risk
Multiple primes allocating risk - ANSWER-owner assumes risk
Self-performance allocating risk - ANSWER-Owner assumes risk
Design-build allocating risk - ANSWER-GC/designer assumes most risk, owner
assumes less control
Professional CM allocating risk - ANSWER-GC assumes risk, owner has CM to
oversee work
CM at Risk allocating risk - ANSWER-CM assuming most risk and CM is under
contract to oversee work
A cardinal change is a change which is outside of the scope of the original contract -
ANSWER-True
Additional work constitutes work that must be performed to complete the project as
originally intended. - ANSWER-True
Projects that are to be constructed by fast tracking are well suited for lump sum
(fixed-price) Contracts. - ANSWER-False
The performance bond gives primary protection to the Contractor as the cost of
project completion. - ANSWER-False;
Owner not Contractor
Contract disputes are almost always between the contracting parties. - ANSWER-
True
Creation of an agency takes place by: - ANSWER-Contract
Ratification
Estoppel
