Question 1

A condition precedent

Accepted Answer

A)  requires certain conditions be met before other conditions are required 
B)  is not legal in Contracts 
C)  should be avoided since it will usually delay payment 
D)  requires an attorney to mitigate the issue 
A)  requires certain conditions be met before other conditions are required 
B)  is not legal in Contracts 
C)  should be avoided since it will usually delay payment 
D)  requires an attorney to mitigate the issue A

Question 2

Retainage

Accepted Answer

A)  is always held by the Owner 
B)  is usually held back as a percentage of the invoicing 
C)  will not be paid until final acceptance 
D)  is illegal in several states and on Federal work involving military projects 
A)  is always held by the Owner 
B)  is usually held back as a percentage of the invoicing 
C)  will not be paid until final acceptance 
D)  is illegal in several states and on Federal work involving military projects B

Question 3

The most common form of payment is

Accepted Answer

A)  Time and Material 
B)  lump sum 
C)  cost plus a fee 
D)  not to exceed 
A)  Time and Material 
B)  lump sum 
C)  cost plus a fee 
D)  not to exceed B

Question 4

A contract begins with a promise and

Accepted Answer

A)  money exchanged 
B)  two signatures 
C)  one signature 
D)  an acceptance 
A)  money exchanged 
B)  two signatures 
C)  one signature 
D)  an acceptance

Question 5

quid pro quo

Accepted Answer

A)  is no longer used in contracts 
B)  stands for money (quid) for whom-meaning who should be paid 
C)  means this for that 
D)  is a way to challenge slow payment 
A)  is no longer used in contracts 
B)  stands for money (quid) for whom-meaning who should be paid 
C)  means this for that 
D)  is a way to challenge slow payment

Question 6

Unit Cost Contracts for the most part are restricted to Heavy and Highway work as well as itemized units within lump Sum contracting for Building Contractors

Accepted Answer

A) True 
 B)False

Question 7

A change order

Accepted Answer

A)  affects cost 
B)  affects time 
C)  can affect both cost and time 
D)  can affect either cost and/or time 
A)  affects cost 
B)  affects time 
C)  can affect both cost and time 
D)  can affect either cost and/or time

Question 8

There cannot be a Contract to commit an illegal act

Accepted Answer

A) True 
 B)False

Question 9

Pay when Paid clauses and Pay if Paid clauses are intended to protect the Contractor's cash flow

Accepted Answer

A) True 
 B)False

Question 10

Estoppel

Accepted Answer

A)  is a great way to force an Owner to pay promptly 
B)  requires previous acts to have set a pattern 
C)  is good for the Owner more than the Contractor 
D)  is one way to improve slow payment 
A)  is a great way to force an Owner to pay promptly 
B)  requires previous acts to have set a pattern 
C)  is good for the Owner more than the Contractor 
D)  is one way to improve slow payment

Question 11

Lump sum is a common form of payment in construction

Accepted Answer

A) True 
 B)False

Question 12

Mistakes made preparing a bid proposal

Accepted Answer

A)  are too bad 
B)  cannot be a reason to withdraw an offer 
C)  can be reason to withdraw an offer so long as the mistake was not judgmental 
D)  are costly 
A)  are too bad 
B)  cannot be a reason to withdraw an offer 
C)  can be reason to withdraw an offer so long as the mistake was not judgmental 
D)  are costly

Question 13

Front-end loading costs on a project

Accepted Answer

A)  is no longer done since the 2004 law banned it 
B)  can cause disruption of work 
C)  requires the Contract Administrator to be extra careful regarding costs and profits 
D)  Should be done whenever possible to maximize profits 
A)  is no longer done since the 2004 law banned it 
B)  can cause disruption of work 
C)  requires the Contract Administrator to be extra careful regarding costs and profits 
D)  Should be done whenever possible to maximize profits

Question 14

A promise constitutes a Contract

Accepted Answer

A) True 
 B)False

Question 15

Oral agreements prior to a Contract are important to understand the Contract once the Contract is signed

Accepted Answer

A) True 
 B)False

Question 16

The parties to a Contract have the implied duty to cooperate

Accepted Answer

A) True 
 B)False

Question 17

A Contract can never be voided simply because one party could not have know the scope required

Accepted Answer

A) True 
 B)False

Question 18

Time and Material payments are based on the actual costs plus a mark-up for overhead and profit

Accepted Answer

A) True 
 B)False

Question 19

There is no Contract

Accepted Answer

A)  to commit an illegal act 
B)  between underage persons 
C)  for mentally impaired individuals 
D)  all of these 
A)  to commit an illegal act 
B)  between underage persons 
C)  for mentally impaired individuals 
D)  all of these

Question 20

A Subcontractor often will not be paid until the General Contractor is paid based on

Accepted Answer

A)  Pay when Paid clause 
B)  Pay if Paid clause 
C)  an architectural error 
D)  A and B 
A)  Pay when Paid clause 
B)  Pay if Paid clause 
C)  an architectural error 
D)  A and B

A condition precedent

Retainage

The most common form of payment is

A contract begins with a promise and

quid pro quo

Unit Cost Contracts for the most part are restricted to Heavy and Highway work as well as itemized units within lump Sum contracting for Building Contractors

A change order

There cannot be a Contract to commit an illegal act

Pay when Paid clauses and Pay if Paid clauses are intended to protect the Contractor's cash flow

Estoppel

Lump sum is a common form of payment in construction

Mistakes made preparing a bid proposal

Front-end loading costs on a project

A promise constitutes a Contract

Oral agreements prior to a Contract are important to understand the Contract once the Contract is signed

The parties to a Contract have the implied duty to cooperate

A Contract can never be voided simply because one party could not have know the scope required

Time and Material payments are based on the actual costs plus a mark-up for overhead and profit

There is no Contract

A Subcontractor often will not be paid until the General Contractor is paid based on

Getting Started

An Introduction to Contracts, Torts, Statutes and Regulations

Owners, Designers, and Constructors

Different Construction Contract Delivery Methods

Interpreting the Contract

Killer Clauses

Insurance

Bonds

Warranties

Getting Started

Differing Site Conditions

Schedule

Liens

Filters

Exam 4: The Basics of Construction Contracts

A condition precedent

Retainage

The most common form of payment is

A contract begins with a promise and

quid pro quo

Unit Cost Contracts for the most part are restricted to Heavy and Highway work as well as itemized units within lump Sum contracting for Building Contractors

A change order

There cannot be a Contract to commit an illegal act

Pay when Paid clauses and Pay if Paid clauses are intended to protect the Contractor's cash flow

Estoppel

Lump sum is a common form of payment in construction

Mistakes made preparing a bid proposal

Front-end loading costs on a project

A promise constitutes a Contract

Oral agreements prior to a Contract are important to understand the Contract once the Contract is signed

The parties to a Contract have the implied duty to cooperate

A Contract can never be voided simply because one party could not have know the scope required

Time and Material payments are based on the actual costs plus a mark-up for overhead and profit

There is no Contract

A Subcontractor often will not be paid until the General Contractor is paid based on

Getting Started

An Introduction to Contracts, Torts, Statutes and Regulations

Owners, Designers, and Constructors

Different Construction Contract Delivery Methods

Interpreting the Contract

Killer Clauses

Insurance

Bonds

Warranties

Getting Started

Differing Site Conditions

Schedule

Liens

Filters