CMGT 3500 TEST 1 2025 EXAM
QUESTIONS AND ANSWERS
IFB - ANSWER-Invitation for Bidder
RFP - ANSWER-Request for Proposal
ACM - ANSWER-Agency Construction Manager
AGC - ANSWER-Associated General Contractor
AIA - ANSWER-American Institute of Architects
CMAR - ANSWER-Construction Manager at Risk
D/B - ANSWER-Design Build
What are the elements of a contract? - ANSWER-Offer, Acceptance, Meeting of the
Minds, Consideration, Lawful Subject Matter, and Competent Parties
What are the types of Construction Management Services? - ANSWER-CMAR and
ACM
What are the 3 Basic Forms/Types of Business Organizations? - ANSWER-
Proprietorship, Partnership, and Corporation
What is a Proprietorship? - ANSWER-A business owned and run by just ONE
person.
What is a Partnership? - ANSWER-A business run by TWO or more people. There
should be a written agreement, and it can be run as a joint-venture partnership.
What is a Corporation? - ANSWER-A legal entity or tax-paying individual managed
by a board of directors.
Explain Direct and Indirect Costs - ANSWER-Direct Costs are expenses that can be
directly associated with or specifically identified as being related to a particular
project or activity.
Indirect Costs are costs that cannot be easily and conventionally traced to a specific
cost object.
What is common law? - ANSWER-Common law is the contained codes, statutes,
and man-made laws that support and uphold duties stated in the contract.
, What is the 48-Hour Clause? - ANSWER-The 48-Hour Clause is when a
subcontractor fails to perform, and the general contractor can send a 48-hour notice
to correct it.
What is the 72-Hour Clause? - ANSWER-The 72-Hour Clause gives a subcontractor
72 hours to remedy or fix the defective work before the GC penalizes them.
What is a lump sum? - ANSWER-The agreement to perform contracted work for a
set price. Also called Guaranteed Maximum Price (GMP).
What are unit priced based contracts? - ANSWER-Pricing one unit for each contract
item.
What is the purpose of contract documents? - ANSWER-Defines the project and sets
guidelines for all parties involved. Offers details for the desired product,
communicates intent for the project, and guides it effectively.
What are the 9 Essential Contract Documents? - ANSWER--Agreement
-General Conditions/Requirements
-Supplemental/Special Conditions
-Scope of Work
-Construction Drawings
-Specifications
-Schedule
-Schedule of Values (SOV)/Application for Payment
-Bill of Materials/Quanities
What is an agreement? - ANSWER-Agreed upon the total price for the project and
terms that will govern the construction process, requiring agreement and signatures
from both parties. This will reference other documents, and addenda are bound by
the signing agreement. Depending on the financial strategy chosen for the project,
Lump Sum (Guaranteed Maximum Price; GMP), covering all labor and materials,
cost plus that guarantees payment for all expenses plus profit, a time and materials
contract pays for labor and materials. Within the agreement is the deal between the
client and contractor forming the basis for project details, scope, and schedule.
What are the general conditions/general requirements? - ANSWER-Rulebook for
execution and management of the construction project. A range of terms that
express guidelines and establish the rights and obligations of all parties involved.
Includes administration, responsibilities of Owner/Contractor, submittal guidelines,
Change Order procedures, SOV/Application for payment procedure, insurance,
bonds, dispute methods, and potential terms for termination. Includes provision of
superintendent, project management, and handling of on-site conditions such as
safety and security.
What are supplemental/special conditions - ANSWER-Describe elements that cater
to unique aspects that require attention beyond what general conditions cover. This
may include sustainability features, safety protocols based on location, day-to-day
project management, materials, and liquidated damages.
QUESTIONS AND ANSWERS
IFB - ANSWER-Invitation for Bidder
RFP - ANSWER-Request for Proposal
ACM - ANSWER-Agency Construction Manager
AGC - ANSWER-Associated General Contractor
AIA - ANSWER-American Institute of Architects
CMAR - ANSWER-Construction Manager at Risk
D/B - ANSWER-Design Build
What are the elements of a contract? - ANSWER-Offer, Acceptance, Meeting of the
Minds, Consideration, Lawful Subject Matter, and Competent Parties
What are the types of Construction Management Services? - ANSWER-CMAR and
ACM
What are the 3 Basic Forms/Types of Business Organizations? - ANSWER-
Proprietorship, Partnership, and Corporation
What is a Proprietorship? - ANSWER-A business owned and run by just ONE
person.
What is a Partnership? - ANSWER-A business run by TWO or more people. There
should be a written agreement, and it can be run as a joint-venture partnership.
What is a Corporation? - ANSWER-A legal entity or tax-paying individual managed
by a board of directors.
Explain Direct and Indirect Costs - ANSWER-Direct Costs are expenses that can be
directly associated with or specifically identified as being related to a particular
project or activity.
Indirect Costs are costs that cannot be easily and conventionally traced to a specific
cost object.
What is common law? - ANSWER-Common law is the contained codes, statutes,
and man-made laws that support and uphold duties stated in the contract.
, What is the 48-Hour Clause? - ANSWER-The 48-Hour Clause is when a
subcontractor fails to perform, and the general contractor can send a 48-hour notice
to correct it.
What is the 72-Hour Clause? - ANSWER-The 72-Hour Clause gives a subcontractor
72 hours to remedy or fix the defective work before the GC penalizes them.
What is a lump sum? - ANSWER-The agreement to perform contracted work for a
set price. Also called Guaranteed Maximum Price (GMP).
What are unit priced based contracts? - ANSWER-Pricing one unit for each contract
item.
What is the purpose of contract documents? - ANSWER-Defines the project and sets
guidelines for all parties involved. Offers details for the desired product,
communicates intent for the project, and guides it effectively.
What are the 9 Essential Contract Documents? - ANSWER--Agreement
-General Conditions/Requirements
-Supplemental/Special Conditions
-Scope of Work
-Construction Drawings
-Specifications
-Schedule
-Schedule of Values (SOV)/Application for Payment
-Bill of Materials/Quanities
What is an agreement? - ANSWER-Agreed upon the total price for the project and
terms that will govern the construction process, requiring agreement and signatures
from both parties. This will reference other documents, and addenda are bound by
the signing agreement. Depending on the financial strategy chosen for the project,
Lump Sum (Guaranteed Maximum Price; GMP), covering all labor and materials,
cost plus that guarantees payment for all expenses plus profit, a time and materials
contract pays for labor and materials. Within the agreement is the deal between the
client and contractor forming the basis for project details, scope, and schedule.
What are the general conditions/general requirements? - ANSWER-Rulebook for
execution and management of the construction project. A range of terms that
express guidelines and establish the rights and obligations of all parties involved.
Includes administration, responsibilities of Owner/Contractor, submittal guidelines,
Change Order procedures, SOV/Application for payment procedure, insurance,
bonds, dispute methods, and potential terms for termination. Includes provision of
superintendent, project management, and handling of on-site conditions such as
safety and security.
What are supplemental/special conditions - ANSWER-Describe elements that cater
to unique aspects that require attention beyond what general conditions cover. This
may include sustainability features, safety protocols based on location, day-to-day
project management, materials, and liquidated damages.
