CON 496 PETRIE EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
A contractor does not shift the risk from the project to its subcontractors. T or F - Answers False
Mediation is a binding dispute resolution method. T or F - Answers False
A competent contractor will use communication to control risk. T or F - Answers True
The owner shifts construction related risk to the general contractor. T or F - Answers True
Litigation is always non-binding dispute resolution method T or F - Answers False
One way to shift risk is through the use of an indemnity provision. T or F - Answers True
Mediation can be more costly than litigation. T or F - Answers False
Arbitration is typically non-binding dispute resolution method. T or F - Answers True
Good writing skills are critical to managing risk. T or F - Answers True
A contract is not used to shift and allocate risk from the construction. T or F - Answers False
Insurance can be used to mitigate risk on a construction project. T or F - Answers True
A general construction company should not expect to purchase and maintain commercial general
liability insurance. T or F - Answers False
In Arizona, a general contractor is required to purchase and maintain workers compensation
insurance. t or f - Answers True
A commercial general liability insurance policy will cover loss or damage resulting from a contractors
negligence. t or f - Answers True
completed operations coverage in a commercial general liability insurance policy covers claims for
bodily injury or property damage that arises before the work is complete. T or F - Answers False
A Professional Liability Insurance policy is intended to provide coverage for the errors or omissions of
a design professional, such as an architect. T or F - Answers True
Most commercial general liability insurance excludes coverage for crane or helicopter operations. t or
f - Answers true
an indemnity provision is not a useful tool for shifting risk of injury or property damage to another
person. t or f - Answers false
a payment bond is commonly required for public works construction projects. t or f - Answers True
regardless of the size of the project, every contractor has access to the bonding capacity necessary to
perform public works projects. t or f - Answers False
On a design build project the contractor and architect have a contract with each other. t or f -
Answers true
every project delivery method is the same. t or f - Answers false
the term CMAR stands for Construction manager at risk. t or f - Answers true
on a lump sum project the owner knows the cost of the construction at the time the work
commences. t or f - Answers true
Cost-plus requires the owner to pay for the actual cost of the work. t or f - Answers true
There is one ethical code that should be followed for everyone. t or f - Answers false
You should always adopt the ethical principles of your boss. t or f - Answers False
A cost-plus contract always has a guaranteed max price. t or f - Answers False
it is bid shopping if you take ABC's bid and call Sun Devil construction and tell them that ABC bid the
job at $150,000 and then you ask Sun Devil to perform the same scope of work for less money. t or f -
Answers True
The AGC has adopted a code of ethics. t or f - Answers True
A LLC company can be managed by its members or managers. t or f - Answers true
A corporation is operated by its Board of directors and officers appointed by the board of directors. t
or f - Answers true
a LLC is formed by the filing of Articles of Organization. T or F - Answers True
One person can form a general partnership. t or f - Answers False
The partners in a general partnership are not liable for the debts or obligations of the business. t or f -
Answers false
If an employer hires employees, the business must purchase and maintain workers compensation
insurance. t or f - Answers True
An arizona employer may employ an unauthorized alien without recourse from the state. t or f -
Answers False
Overtime must be paid for all time worked by a laborer in excess of 40 hours during a workweek. t or f
- Answers True
A contractor does not shift the risk from the project to its subcontractors. T or F - Answers False
Mediation is a binding dispute resolution method. T or F - Answers False
A competent contractor will use communication to control risk. T or F - Answers True
The owner shifts construction related risk to the general contractor. T or F - Answers True
Litigation is always non-binding dispute resolution method T or F - Answers False
One way to shift risk is through the use of an indemnity provision. T or F - Answers True
Mediation can be more costly than litigation. T or F - Answers False
Arbitration is typically non-binding dispute resolution method. T or F - Answers True
Good writing skills are critical to managing risk. T or F - Answers True
A contract is not used to shift and allocate risk from the construction. T or F - Answers False
Insurance can be used to mitigate risk on a construction project. T or F - Answers True
A general construction company should not expect to purchase and maintain commercial general
liability insurance. T or F - Answers False
In Arizona, a general contractor is required to purchase and maintain workers compensation
insurance. t or f - Answers True
A commercial general liability insurance policy will cover loss or damage resulting from a contractors
negligence. t or f - Answers True
completed operations coverage in a commercial general liability insurance policy covers claims for
bodily injury or property damage that arises before the work is complete. T or F - Answers False
A Professional Liability Insurance policy is intended to provide coverage for the errors or omissions of
a design professional, such as an architect. T or F - Answers True
Most commercial general liability insurance excludes coverage for crane or helicopter operations. t or
f - Answers true
an indemnity provision is not a useful tool for shifting risk of injury or property damage to another
person. t or f - Answers false
a payment bond is commonly required for public works construction projects. t or f - Answers True
regardless of the size of the project, every contractor has access to the bonding capacity necessary to
perform public works projects. t or f - Answers False
On a design build project the contractor and architect have a contract with each other. t or f -
Answers true
every project delivery method is the same. t or f - Answers false
the term CMAR stands for Construction manager at risk. t or f - Answers true
on a lump sum project the owner knows the cost of the construction at the time the work
commences. t or f - Answers true
Cost-plus requires the owner to pay for the actual cost of the work. t or f - Answers true
There is one ethical code that should be followed for everyone. t or f - Answers false
You should always adopt the ethical principles of your boss. t or f - Answers False
A cost-plus contract always has a guaranteed max price. t or f - Answers False
it is bid shopping if you take ABC's bid and call Sun Devil construction and tell them that ABC bid the
job at $150,000 and then you ask Sun Devil to perform the same scope of work for less money. t or f -
Answers True
The AGC has adopted a code of ethics. t or f - Answers True
A LLC company can be managed by its members or managers. t or f - Answers true
A corporation is operated by its Board of directors and officers appointed by the board of directors. t
or f - Answers true
a LLC is formed by the filing of Articles of Organization. T or F - Answers True
One person can form a general partnership. t or f - Answers False
The partners in a general partnership are not liable for the debts or obligations of the business. t or f -
Answers false
If an employer hires employees, the business must purchase and maintain workers compensation
insurance. t or f - Answers True
An arizona employer may employ an unauthorized alien without recourse from the state. t or f -
Answers False
Overtime must be paid for all time worked by a laborer in excess of 40 hours during a workweek. t or f
- Answers True
