CMGT 3500 Test 3 Exam Questions And Answers

Unlike other businesses, the construction industry is paid on periodic payments for progress of completion of a project. - ANS True An express warranty is one that clearly stated either verbally in writing. - ANS True The duration of a project is measured against substantial completion to determine: - ANS When the last periodic payment can be made Retainage is: - ANS Used as incentive for the contractor to complete the project Project Closeout - ANS - 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 - ANS 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. - ANS False Patent defects are defects not readily observed - ANS False The general contractor is responsible for: - ANS -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. - ANS 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. - ANS True Subcontractors: - ANS Are independent contractors hired by General Contractors General Contractors: - ANS Have the right to "take steps it deems necessary to correct deficiencies and charge the cost..." against subcontractors General Contractors involve themselves into a subcontractor's employer-employee relations when they dictate that "Subcontractors shall not employ any worker whose employment may be objected by any subcontractor or the General Contractor." - ANS True The terms of a subcontract: - ANS -Form the legal document by which the relationship between the general contractor and subcontractor is defined. - Not followed may preclude recover if a claim is made. -Must be understood by the subcontractor What is the most frequently cited disadvantage of resolving disputes through court decisions? - ANS Construction project contractual arrangements are unlike those encountered by the rest of the business world. The best method to use when solving a dispute between contracting parties is: - ANS Negotiation Mediation is a nonbinding method of dispute resolution that contains elements of litigation and arbitration - ANS False Documentation of all information is critical because it is impossible to predict what subject matters may become sources of disputes. - ANS True Which method of dispute resolution is traditionally the most popular alternative to litigation? - ANS Arbitration Which of the following organization shops is no longer legal? - ANS Closed Shop The organized refusal of workers to work at a particular place of employment: - ANS Strike The Davis Bacon Act of 1931: - ANS Protects the local wage rates and economy of the local community. Labor disputes may cause picketing by a union to take place near the Union entrance of a job site. Other union members, not striking, will generally honor a picket line by not passing through it. - ANS True The difference between a lockout and a strike are: - ANS -Lockouts prohibit union workers from entering the place of work -Strikes occur when workers decide to stop working or an employer Differing subsurface site conditions may include: - ANS -Presence of a high water table -unstable foundation materials -unexpected rock in softer materials -undisclosed utility lines Requiring contractors to make an independent site visit and investigation shifts some of the responsibility of site knowledge to the contractor. - ANS True For a contractor to be reimbursed for differing site conditions, the cost of construction has to be proved to be adversely affected by the changed condition. - ANS True Float is owned by the: - ANS Dependent on the terms of the contract Construction Schedules are based on the project duration and the method utilized to determine days - ANS True Liquidated damages provide compensation to the contractor for financial and other losses resulting from delayed completion. - ANS False A submittal log tracks the status of shop drawings, product data, test reports, samples and other documents that are: - ANS -required to be submitted for a construction project -Necessary for quality control of the project -Affects cost, quality, schedule, and project success