CMGT 3500 FINAL EXAM 2025
QUESTIONS AND ANSWERS
Expenditures for new construction are highest when the economy is _____ and
when the economy is _____, a greater percentage of expenditures are devoted to
renovation and remodeling. - ANSWER-Strong; Weak
T/F: The construction industry accounts for nearly 5% of the GDP. - ANSWER-True
Prices in the industry tend to rise as competition is _________. - ANSWER-
Decreased
How does the construction industry differ from typical manufacturing? - ANSWER-
Construction is characterized by custom-built projects while typical manufacturing is
based on mass production of products
Which of the following is NOT a reason entry into the construction industry is easy? -
ANSWER-Employees are considered less valuable than the equipment and
materials
T/F: The cyclical nature of construction work also means that construction workers
do not usually face limited employment opportunities during certain time periods,
keeping the unemployment rate within the industry low in comparison to industrial
workers. - ANSWER-False
Which of the following is considered the most important resource and is often
responsible for the greatest fluctuations in total anticipated costs? - ANSWER-Labor
Statistics on the number of __________ placed under construction in a stated period
of time (generally one month), are often used to indicate how well the industry is
responding to the economy. - ANSWER-New homes
Which of the four broad categories of construction would a church fall under? -
ANSWER-Nonresidential building construction
What is the term for when a company is formed just to construct a single project? -
ANSWER-Joint venture
In a construction project, which party determines when a particular project is
needed? - ANSWER-Owner
T/F: Once the decision is made to have a project built, it is not necessary to obtain
designer services. - ANSWER-False
Which method consists of a contract drawn up between the owner and a general
contractor? - ANSWER-General
, In the general contract method, after the owner enters into contracts with the
designer and constructor, which of the following comes next? - ANSWER-A public
advertisement is made which advises all interested parties of the particulars of the
project and the upcoming bid date
In which method does the owner take charge of the management of the project,
assuming the managerial functions ordinarily performed by the general contractor? -
ANSWER-Separate
If the owner possesses the necessary abilities to MANAGE a construction project,
which method would you suggest to them? - ANSWER-Separate
Which of the following is true under the force account method? - ANSWER-The
owner decides to do some of the construction work or essentially do the work in-
house, and their own workers or employees are solely assigned the task of
performing the construction work
What is the difference between the general contract method and the design-build
method? - ANSWER-In the general method, the designer role and contractor role are
two separate entities, whereas in the design-build method, the contractor is also
responsible for the design of the project.
In the professional construction management method, when is value engineering
considered most cost-effective? - ANSWER-During the design phase
The CM at risk firm is responsible for all of the following EXCEPT: - ANSWER-Pay
for all of the materials used in the project
When a dispute arises with a contract, in order for it to be quickly resolved, the
language must be _________. - ANSWER-Clear
T/F: Most construction contracts are express contracts - ANSWER-True
When a party has not complied with the terms of a contract, they have _________
the contract. - ANSWER-Breached
A contract is ________ when both parties to the agreement have fully performed in
accordance with the contract's terms, and __________ when some portion of the
agreement remains to be done. - ANSWER-Executed; Executory
What is the difference between an express contract and an implied contract? -
ANSWER-Express contracts have clear and concise terms of agreement that are
usually established verbally or written down and implied contracts have terms of the
agreement that are not clearly stated but are established through inference and
deduction.
A _________ arrangement is where individuals are "joined," in a legal and liability
sense, as one party in the action. - ANSWER-Joint
QUESTIONS AND ANSWERS
Expenditures for new construction are highest when the economy is _____ and
when the economy is _____, a greater percentage of expenditures are devoted to
renovation and remodeling. - ANSWER-Strong; Weak
T/F: The construction industry accounts for nearly 5% of the GDP. - ANSWER-True
Prices in the industry tend to rise as competition is _________. - ANSWER-
Decreased
How does the construction industry differ from typical manufacturing? - ANSWER-
Construction is characterized by custom-built projects while typical manufacturing is
based on mass production of products
Which of the following is NOT a reason entry into the construction industry is easy? -
ANSWER-Employees are considered less valuable than the equipment and
materials
T/F: The cyclical nature of construction work also means that construction workers
do not usually face limited employment opportunities during certain time periods,
keeping the unemployment rate within the industry low in comparison to industrial
workers. - ANSWER-False
Which of the following is considered the most important resource and is often
responsible for the greatest fluctuations in total anticipated costs? - ANSWER-Labor
Statistics on the number of __________ placed under construction in a stated period
of time (generally one month), are often used to indicate how well the industry is
responding to the economy. - ANSWER-New homes
Which of the four broad categories of construction would a church fall under? -
ANSWER-Nonresidential building construction
What is the term for when a company is formed just to construct a single project? -
ANSWER-Joint venture
In a construction project, which party determines when a particular project is
needed? - ANSWER-Owner
T/F: Once the decision is made to have a project built, it is not necessary to obtain
designer services. - ANSWER-False
Which method consists of a contract drawn up between the owner and a general
contractor? - ANSWER-General
, In the general contract method, after the owner enters into contracts with the
designer and constructor, which of the following comes next? - ANSWER-A public
advertisement is made which advises all interested parties of the particulars of the
project and the upcoming bid date
In which method does the owner take charge of the management of the project,
assuming the managerial functions ordinarily performed by the general contractor? -
ANSWER-Separate
If the owner possesses the necessary abilities to MANAGE a construction project,
which method would you suggest to them? - ANSWER-Separate
Which of the following is true under the force account method? - ANSWER-The
owner decides to do some of the construction work or essentially do the work in-
house, and their own workers or employees are solely assigned the task of
performing the construction work
What is the difference between the general contract method and the design-build
method? - ANSWER-In the general method, the designer role and contractor role are
two separate entities, whereas in the design-build method, the contractor is also
responsible for the design of the project.
In the professional construction management method, when is value engineering
considered most cost-effective? - ANSWER-During the design phase
The CM at risk firm is responsible for all of the following EXCEPT: - ANSWER-Pay
for all of the materials used in the project
When a dispute arises with a contract, in order for it to be quickly resolved, the
language must be _________. - ANSWER-Clear
T/F: Most construction contracts are express contracts - ANSWER-True
When a party has not complied with the terms of a contract, they have _________
the contract. - ANSWER-Breached
A contract is ________ when both parties to the agreement have fully performed in
accordance with the contract's terms, and __________ when some portion of the
agreement remains to be done. - ANSWER-Executed; Executory
What is the difference between an express contract and an implied contract? -
ANSWER-Express contracts have clear and concise terms of agreement that are
usually established verbally or written down and implied contracts have terms of the
agreement that are not clearly stated but are established through inference and
deduction.
A _________ arrangement is where individuals are "joined," in a legal and liability
sense, as one party in the action. - ANSWER-Joint
