CMGT 3500 Final Exam Questions And Answers

The construction Industry, per the text, accounts for 25% of the Gross Domestic Product (DGP) - ANS False; 5% A self performance method of contracting requires the owner to hire a contractor who self performs all the work - ANS False A bilateral contract agreement is created by mutual promises by contracting parties - ANS True If a meeting of the minds is achieved, the parties DO NOT enter into a contract - ANS False A Dispute takes place because conflict of legal views or interests - ANS True Give examples of publicly financed building construction projects - ANS Schools, courthouses, city offices, libraries, airports Give examples of publicly financed non-building construction projects - ANS Bridges, roads, dams, tunnels, pipelines, and parks What is an express contract - ANS where the information and details of the contract are well written or verbal and clear What is an implied contract - ANS 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 - ANS to amend and augment the general conditions which tend to be more specific Design specifications - ANS require a particular type of item or system and a particular dimension Performance specifications - ANS provide the results of the finished product Purpose of Submittals - ANS 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 - ANS Offer and Acceptance Meeting of the minds Consideration Lawful subject matter Competent parties Offer and Acceptance - ANS One person signifies to another a willingnss to enter a binding contract. Accepting means yo entered a contract Meeting of the minds - ANS Parties of the contract meet and discuss the details and rules of the contract Consideration - ANS something of value Purpose of the general conditions - ANS 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 - ANS GC has most risk Multiple primes allocating risk - ANS owner assumes risk Self-performance allocating risk - ANS Owner assumes risk Design-build allocating risk - ANS GC/designer assumes most risk, owner assumes less control Professional CM allocating risk - ANS GC assumes risk, owner has CM to oversee work CM at Risk allocating risk - ANS 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 - ANS True Additional work constitutes work that must be performed to complete the project as originally intended. - ANS True Projects that are to be constructed by fast tracking are well suited for lump sum (fixed-price) Contracts. - ANS False The performance bond gives primary protection to the Contractor as the cost of project completion. - ANS False; Owner not Contractor Contract disputes are almost always between the contracting parties. - ANS True Creation of an agency takes place by: - ANS Contract Ratification Estoppel Contractors are traditionally agents rather than independent contractors. - ANS False Day labor agencies: - ANS Provide a source of needed construction workers. Fulfill short term labor needs. Typically provide workers will need to tools to be productive on a construction site. A Proprietorship business is not personally liable for any incurred indebtedness. - ANS False A Partnership: - ANS is an association of two or more persons. is composed of individuals bring unique and talents or other assets to the organization. means that each partner is an agent to the other partners Corporation owners are bound personally by any indebtedness of the corporation - ANS False In primarily private sector construction, disputes are often outside the contract, involving the procedures related to the reward of the contract. - ANS True Torts are disputes that relate to matters addressed by statutory law or contract obligations - ANS False A surety bond guaranteed the performance of the principal to the obligee - ANS True A bid bond gives assurance to the subcontractor that the owner will enter into a bonding contract with them. - ANS False The Miller act stipulates that all construction contracts must have surety bonds (payment and performant bonds) for contracts that exceed $100,000. - ANS False Advertisements for public works projects require the following of specific procedures. - ANS Invitations posted in public placed and distributed to the construction community. Nature or type of project Pre-qualification may be required. Unit Price Contracts provide that pricing for units of work is determined after the start of construction. - ANS False Cost-plus Contracts basis of payment is: - ANS by receipts, documentation of expenses incurred. Change Orders are always negotiated with the General Contractor and the Owner's Architect-Engineer. - ANS False Party given the most protection by a performance bond - ANS they secure the contractors promise that the work will be completed fully and on time. Party given the most protection by a payment bond - ANS they secure the promise that each laborer, material supplier, and subcontractors that they will be paid for the work completed. Also protects them from non-payment.