CM 4211 Final

All of the following statements are TRUE, except one. Which one?

"CSI" stands for Construction Specification Industry.

All of the following statements are TRUE, except one. Which one?

"F.O.B." means freight overboard.

All of the following statements are TRUE, except one. Which one?

"LLC" stands for Limited Liability Corporation.

All of the following statements are TRUE, except one. Which one?

A 24-hour clause gives a prime contractor the right to terminate a subcontractor after giving 24 hour notice to the subcontractor.

All of the following statements are TRUE, except one. Which one?

A Type I differing site condition is one that is not normally encountered during the contracted type of construction.

All of the following statements are TRUE, except one. Which one?

A builder's risk policy covers the risk the contractor has underbid the project.

All of the following statements are TRUE, except one. Which one?

A cardinal change is a violation of public bid laws if it is made on a private project.

All of the following statements are TRUE, except one. Which one?

A claim for breach of contract does not require privity of contract.

All of the following statements are TRUE, except one. Which one?

A claim under the Louisiana Private Works Act must include, among other things, the name of the claimant, a legal description of the project property site, and why the claimed amount is owed.

All of the following statements are TRUE, except one. Which one?

A compensable delay entitles the contractor to a cost adjustment only.

All of the following statements are TRUE, except one. Which one?

A conditional agreement with an offer is an acceptance.

All of the following statements are TRUE, except one. Which one?

A construction contractor's claim is triggered by an owner's acceptance of proposal for a contract change in time and/or price.

Which of the following should be considered unethical under all circumstances?

A contractor forward-pricing a change order using overtime amounts when the contractor absolutely knows it can get additional crews at straight time.

Which of the following should be considered unethical under all circumstances?

A contractor lending its contractors license to a friend so he can get a subcontract.

Which of the following should be considered unethical under all circumstances?

A contractor remembering something weeks later that was not in the log book, and then entering in the log book on the date it occurred.

All of the following statements are TRUE, except one. Which one?

A contractor will not be entitled to any overhead and profit if a force account method is used when a change in the work occurs.

All of the following statements are TRUE, except one. Which one?

A conventional joint venture requires all of its members to be licensed contractors if the venture is for a construction project.

Which of the following should be considered unethical under all circumstances?

A government rejecting all bids because it's representative wants the second low bidder to be awarded the project.

Only one of the following statements are TRUE. Which one?

A graveyard shift worker gets paid more for 8 hours of work than a day shift worker.

All of the following statements are TRUE, except one. Which one?

A lawsuit is one of the alternative dispute resolution methods.

All of the following statements are TRUE, except one. Which one?

A letter of submittal does not require a response.

All of the following statements are TRUE, except one. Which one?

A lockout is when a union goes on strike illegally.

All of the following statements are TRUE, except one. Which one?

A long-term contract is one that takes more than one year to preform.

All of the following statements are TRUE, except one. Which one?

A mechanics bond guarantees that if the principal is the low bidder, the principal will enter into the contract.

All of the following statements are TRUE, except one. Which one?

A project engineer (such as you when you first start work for a contractor) will be responsible for the estimating results.

All of the following statements are TRUE, except one. Which one?

A proprietorship may use any name it wants without restriction.

All of the following statements are TRUE, except one. Which one?

A purchase order is usually given by the owner to the contractor.

All of the following statements are TRUE, except one. Which one?

A replacement value equipment floater policy is the least expensive form of such a policy.

All of the following statements are TRUE, except one. Which one?

Accuracy of contract representations by the owner must be an express obligation.

All of the following statements are TRUE, except one. Which one?

An "escalation" clause may be included in a short-term lump sum contract.

Only one of the following statements are TRUE. Which one?

An endorsement to an insurance policy may provide additional coverage.

All of the following statements are TRUE, except one. Which one?

An exculpatory clause in the contract relieving the owner from payment for changes will almost always outweigh a differing site conditions clause.

All of the following statements are TRUE, except one. Which one?

Arbitration is more formal than litigation.

All of the following statements are TRUE, except one. Which one?

As income statement shows the nature and amount of a company's income at a particular point in time.

All of the following statements are TRUE, except one. Which one?

Because the contractor "owns" the project until it has been accepted by the owner, destruction of part of the entire project prior to acceptance is always the liability of the contractor.

All of the following statements are TRUE, except one. Which one?

Consideration is always measured in money.

All of the following statements are TRUE, except one. Which one?

Course of performance is determined by how the owner and the construction contractor performed earlier on the same contract.

All of the following statements are TRUE, except one. Which one?

Damages are owed for an anticipatory breach only if the breach thereafter occurs and provided that the contractor can prove the damages.

All of the following statements are TRUE, except one. Which one?

Deceleration of the project (the owner ordering a slow-down and thereby giving the contractor additional contract time) is not a condition subject to the changes clause.

All of the following statements are TRUE, except one. Which one?

Documentation is not necessary on small projects.

All of the following statements are TRUE, except one. Which one?

If Physical Conditions Reports are included in the bid documents, they can always be relied on by the contractor even if there is a disclaimer in the contract made by the owner.

All of the following statements are TRUE, except one. Which one?

If a bid mistake is found by the contractor, the only relief for the contractor is withdrawal of the bid.

All of the following statements are TRUE, except one. Which one?

If the prime contractor purchases a surety bond, the obligee will always be the owner.

All of the following statements are TRUE, except one. Which one?

Impact costs are inconsequential cost directly related to the work.

All of the following statements are TRUE, except one. Which one?

In a guaranteed maximum price contract the contractor cannot lose money.

All of the following statements are TRUE, except one. Which one?

In general, late bids on a public project are allowed.

All of the following statements are TRUE, except one. Which one?

In order to introduce documentartion into evidence it must have been prepared for the specific purpose of use in litigation.

All of the following statements are TRUE, except one. Which one?

In partnership dissolution, a commercial lender gets paid before a partner lender.

All of the following statements are TRUE, except one. Which one?

Joint venture participation percentages are always prorata based on the number of members in the venture.

Only one of the following statements are TRUE. Which one?

Liquidated damages are an agreed-upon daily amount for finishing late.

All of the following statements are TRUE, except one. Which one?

Losses due to a war are usually covered by a builder's risk policy.

All of the following statements are TRUE, except one. Which one?

Material suppliers to other material suppliers are almost always covered by a payment bond provided that they can prove their materials were used in the project.

All of the following statements are TRUE, except one. Which one?

Most contract breaches are of express conditions.

All of the following statements are TRUE, except one. Which one?

Office overhead is one of the job cost subject to considerable variability.

Only one of the following statements are TRUE. Which one?

One of the defining characteristics of a corporation is perpetual duration (until liquidation).

All of the following statements are TRUE, except one. Which one?

One of the general rules for a withdrawal of a bid is if there is a mistake regarding the materials to be used on the project.

All of the following statements are TRUE, except one. Which one?

Public liability policies provide liability coverage for a construction contractor in the event the contractor is hurt on the job site.

All of the following statements are TRUE, except one. Which one?

So long as a contractor has a written contract with an individual to provide services for the contractor, the individual will never be considered a statutory employee of the contractor.

All of the following statements are TRUE, except one. Which one?

Termination of a contract by the owner may be on only part of the project.

All of the following statements are TRUE, except one. Which one?

The Louisiana Private Works Act covers only two tiers of subcontractors under the prime contractor.

All of the following statements are TRUE, except one. Which one?

The bid form itself is drafted and completed by the owner.

All of the following statements are TRUE, except one. Which one?

The cardinal rule of contract administration is to give notice in a timely fashion.

All of the following statements are TRUE, except one. Which one?

The changes clause usually does not give the owner the unilateral right to make changes to the contract.

All of the following statements are TRUE, except one. Which one?

The cost of materials stored onsite, but not yet incorporated into the project will be owed by the owner to the contractor even when there is provision in the contract documents to do so.

All of the following statements are TRUE, except one. Which one?

The courts may not enforce liquidated damages unless they are a reasonable approximation of the actual damages measured at the completion of the project.

All of the following statements are TRUE, except one. Which one?

The critical path is the branch where the construction activities follow sequentially with floats in each activity.

All of the following statements are TRUE, except one. Which one?

The doctrine of contra proferentem states that the contract will be construed in favor of the drafter of the document when all other manifestations do not resolve the problem.

All of the following statements are TRUE, except one. Which one?

The findings of a dispute review board are not admissible in a later litigation.

All of the following statements are TRUE, except one. Which one?

The identification of the funding institution is one of the four main things that should be in an advertisement for bids on a public project.

All of the following statements are TRUE, except one. Which one?

The main advantage to an owner of using a cost-plus-percentage fee arrangement is the incentive for the contractor to hold down construction cost.

All of the following statements are TRUE, except one. Which one?

The owner does not have to give a time extension until just before the project is completed when a supported claim is made.

All of the following statements are TRUE, except one. Which one?

The owner has an implied right to accelerate the work.

All of the following statements are TRUE, except one. Which one?

The penal sum on a performance bond is the amount the surety must always pay to the obligee if the bond is called upon.

All of the following statements are TRUE, except one. Which one?

The principal reason for licensing of contractors is to allow incompetent people to be in the industry.

All of the following statements are TRUE, except one. Which one?

The project manager is responsible for the actual scheduling of subcontractors.

All of the following statements are TRUE, except one. Which one?

Union security provisions require membership in the union as a pre-condition of employment.

All of the following statements are TRUE, except one. Which one?

Usually, an item joint venture itself will own whatever equipment is needed for the project.

All of the following statements are TRUE, except one. Which one?

Whether or not a bidder on a public project is responsible must be determined at the bid opening.