CMGT 3500 TEST 3 2025 EXAM
QUESTIONS AND ANSWERS
Unlike other businesses, the construction industry is paid on periodic payments for
progress of completion of a project. - ANSWER-True
An express warranty is one that clearly stated either verbally in writing. - ANSWER-
True
The duration of a project is measured against substantial completion to determine: -
ANSWER-When the last periodic payment can be made
Retainage is: - ANSWER-Used as incentive for the contractor to complete the project
Project Closeout - ANSWER-- Preparations should begin at the start of construction
- Should include Contractor self-inspections
- May create a loss on a project to the contractor if it is drawn out
-Provides the creation of a punchlist
A warranty is - ANSWER-A certification that an aspect of a contract is promised to
be, and based on a specified time period of validity
When a project is accepted, the Owner should carefully inspect the project for any
defects, and resolution of defects should take place after final payment is made. -
ANSWER-False
Patent defects are defects not readily observed - ANSWER-False
The general contractor is responsible for: - ANSWER--Performance of
subcontractors
-All materials and equipment furnished
-Contractor assisted selection of materials with the owner
An implied warranty means that the contractor guarantees that the completed project
will be suitable for its intended purpose. - ANSWER-False
The courts have ruled that Owner's inspection and acceptance of work waive any
claims that result from the Contractor's defective performance, except latent defects.
- ANSWER-True
Subcontractors: - ANSWER-Are independent contractors hired by General
Contractors
General Contractors: - ANSWER-Have the right to "take steps it deems necessary to
correct deficiencies and charge the cost..." against subcontractors
QUESTIONS AND ANSWERS
Unlike other businesses, the construction industry is paid on periodic payments for
progress of completion of a project. - ANSWER-True
An express warranty is one that clearly stated either verbally in writing. - ANSWER-
True
The duration of a project is measured against substantial completion to determine: -
ANSWER-When the last periodic payment can be made
Retainage is: - ANSWER-Used as incentive for the contractor to complete the project
Project Closeout - ANSWER-- Preparations should begin at the start of construction
- Should include Contractor self-inspections
- May create a loss on a project to the contractor if it is drawn out
-Provides the creation of a punchlist
A warranty is - ANSWER-A certification that an aspect of a contract is promised to
be, and based on a specified time period of validity
When a project is accepted, the Owner should carefully inspect the project for any
defects, and resolution of defects should take place after final payment is made. -
ANSWER-False
Patent defects are defects not readily observed - ANSWER-False
The general contractor is responsible for: - ANSWER--Performance of
subcontractors
-All materials and equipment furnished
-Contractor assisted selection of materials with the owner
An implied warranty means that the contractor guarantees that the completed project
will be suitable for its intended purpose. - ANSWER-False
The courts have ruled that Owner's inspection and acceptance of work waive any
claims that result from the Contractor's defective performance, except latent defects.
- ANSWER-True
Subcontractors: - ANSWER-Are independent contractors hired by General
Contractors
General Contractors: - ANSWER-Have the right to "take steps it deems necessary to
correct deficiencies and charge the cost..." against subcontractors
