CM test 1

A contract is a promise for the breach of which the law gives a remedy and the performance of which the law recognizes as a duty.

True

A contract is not binding if a party to the contract can prove that he was drunk at the time the contract was signed.

True

An action can be legal but unethical; an action cannot be illegal but ethical

True

An uncle promised his nephew $5,000 if the boy refrained from smoking until reaching the age of 21. The boy did this and upon turning 21 asked his uncle for the $5,000. When payment was refused, the nephew sued his uncle.Q: Was there consideration?

True

At pre-construction phase, detailed budgets and schedules are completed.

True

Buildings are designed by a team led by an architect, whereas infrastructure works are designed by a team led by a civil engineer.

True

Construction is more conservative than manufacturing

True

Construction is more labor intensive than manufacturing.

True

During programming and design stage the owner will specify project requirements and the architect will complete the documents necessary to price and build the project.

True

In general, the construction industry is tainted by prevalent acts that are considered to be unethical

True

In the context of contract law, consideration means something (money, or any object or thing) given in return for services performed or for products delivered.

True

No matter what the project is, the contractor's job is to safely complete the work, On time, On budget, and according to the project requirements for scope and quality.

True

Owner is responsible for financing and land acquisition

True

Owner is responsible for identifying an political and community concerns.

True

Professionals who commit illegal acts are likely to be fined or jailed by a court of law

True

The construction company displays a highly decentralized temporary organization because of the many projects that start and finish at different times.

True

The construction industry is used by governments as an economic regulator.

True

The contractor coordinates the close-out. The owner is responsible for occupancy.

True

Under DBB, there being no contractual relationship between the A/E and the contractor,there is also no contractual relationship between the A/E and the subcontractors and suppliers.

True

Which one of the following is an example of publicly financed non-building construction project?

Tunnels

All of the following are TRUE regarding project activities except?

Used to keep track of your progress on the job

The Contractor submits a bid for $1,303,071 with the appropriate forms. They receive aNotice of Award letter indicating that their bid has been selected. The Contractor decides notto accept the contract. Will the Contractor lose anything?

Yes, they will lose the amount of their Bid Bond Face Value

Which document guarantees to the Owner that the successful Contractor will sign a contract?

Bid Bond

The forward pass is used to determine the?

Early Finish

A television assembly plant has a variable production output ranging from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. Most of the components that go into the assembly are also produced in the plant. An example for fixed cost in this plant is ______________.

Equipment cost

A contract has to be enforced regardless of whether the subject of the contract is legal or not. No

False

A contractor is selected and signs a construction contract with the owner during Pre-Construction stage.

False

Construction drawings will be completed during the stage of feasiblity.

False

Construction professionals perform well when faced with ethical dilemmas because they are trained well in ethical issues in college.

False

Design is a written statement which identifies the needs and requirements for a project.

False

In a surety agreement, the contractor is providing the guarantee for himself.

False

In the Agency CM delivery system, the CM (not the owner) contracts with the general contractor

False

In the DBB delivery system, the designer works for the general contractor

False

Surety bonds only covers specific losses.

False

The Codes of Ethics of the National Society of Professional Engineers (NSPE) always supersede the Codes of Ethics of the American Society of Civil Engineers (ASCE)

False

The construction industry is quite independent of manufacturing industries such as glass, cement, plastics, and machinery

False

The construction industry spends more on R&D than manufacturing.

False

The first company that the owner hires in the DBB delivery system is the general contractor.

False

The parties who sign the contract must be legally competent but do not have to be older than 18 years of age.

False

Under DBB, the owner has a contractual relationship with suppliers and subcontractors.

False

What is the primary tool for project planning?

Schedule

Gantt Charts are used to:

Show overall length of the project and each activity

Which of the following is NOT a factor to use when determining what type of schedule to use?

Steel or Concrete Structure

Unit price contracts are most appropriate when the design is 100% complete and the owner knows exactly what is to be built.

f

Bidders can submit their bid whenever their offer is ready

false

Bidders try to bid every job that they see advertised in order to maximize the number of hits

false

Public owners pick the GC with the best reputation and past experience regardless of price

false

The GC goes through the post-qualification process after the job is completed

false

In cost plus contracts, the owner must keep a field force to check the receipts, payrolls, vouchers of reimbursable items submitted by the GC

t

In lump sum contracts, the GC has the obligation to complete the job even if the cost exceeds the contract value

t

In unit price contracts, the GC has the obligation to complete the job regardless of the line item quantities being smaller or larger than the A/E's estimates, as long as the variation is between 15-25%.

t

JOC is especially advantageous when emergencies arise.

t

Many change orders are to be expected in cost plus contracts.

t

Performance bonds are invoked by the owner in case the GC is not able to perform.

t

Performance bonds protect the owner against GC default.

t

For public works project, all bidders must be treated alike and be afforded an opportunity to bid under the same terms and conditions.

true

In the U.S., public owners pick the GC that submits the lowest offer

true

One of the advantage of bidding projects is that the owner has the appearance of being impartial.

true

Private owners can award their construction contract by negotiating with one or more contractors

true

Private owners can reject any and all bids for any reason

true

The owner will issue a qualification certificate to the GC who can prove that he/she has the capacity, experience, reputation, finances, technical personnel, and equipment to do the job.

true

Most public and private contracts are cost plus contracts

f

Contract bonds are submitted by all S/Cs to the construction owner for the protection of the GC.

f

In the JOC contract, owner selects GC only based on pricing.

f

Total fixed cost = $420. Variable cost/unit = $20 Revenue/unit = $30. The breakeven volume is _____________.

42

Construction industry constitutes about ______ of the gross domestic product (GDP).

5%

total fixed cost = $420. Variable cost/unit = $20. Revenue/unit = $30. Determine the profit that can be made for a volume of 50.

80

What is one type of Network Diagram?

Activity on the Node

Schedules are timetables which:

All of the above

Which of the following entities are responsible for design compliance with the authoritieshaving jurisdiction?

Architect

Which of the following is a major difference between a CM agency and a CM at risk?

CM Agency

How do you determine the overall project duration?

Complete a forward and backward pass on your network logic diagram

A contract is entered into whereby the Design and Scope are partially undefined, the Owner holds a contract with the A/E, the Owner holds the contracts with each trade and the Owner also holds a contract with a management service company to perform the trade coordination, cost control and scheduling services. What is this project delivery called?

Construction Management

In economic decision making related engineering projects, which of the following factor is a non-economic factor.

Morale

A city electrical inspector makes the following statement after discovering that the new condominium building # 13 of 25 buildings have been drywalled without an electrical inspection. The inspector says to you, the superintendent, "Gee! It will be pretty expensive to remove all of the drywall. I'd bet it will cost you at least $5, 000. I'd like to have that kind of money myself!" (You suspect that the inspector is asking for a bribe).

Contact the building department supervisor and ask to have hidden areas removed

Overhead cost may be considered as _________________.

Costs not attributable directly to a product.

According to the Constructor's Code of Ethics, The Constructor shall ensure that when providing a service or advice such advice shall be to treat all parties in a fair and unbiased way. What is the best way for a Constructor to achieve this?

Don't engage in any practice which creates an unfair advantage for one party

Which document specifies the Bid Bond Percentage?

Instruction to Bidders

An example for variable cost in a typical manufacturing plant is ______________.

Labor cost.

This problem requires an economic analysis for making a better decision.

Lease or buy

You, as a Masonry Subcontractor recently submitted a bid of $450,000 to a General Contractor for the masonry portion of a new office building. You are invited to the General Contractor's office to discuss the project. In the midst of negotiations, theGeneral Contractor's representative is called out of the room. In his absence, you notice the spreadsheet listing all the bids received including yours. It is apparent from the spreadsheet that you are $22,000 higher than the low bidder. The next highest bidder is$8,000 above you. What action should you take?

Maintain your original price quotation, extol the virtues of your company to beable to meet the schedule, the high quality of your work and your relationship

After a $15,000,000 bid on a new pump house, you are publicly regarded as the apparentsecond low bidder. The following day one of the subcontractors for a $4,500,000 portionof the project calls and asks how he compared with his competitors. He is the low bidderwith you. What do you tell the subcontractor?

Maintain your silence in respect for the other subcontractors who provided quotes

When a local cement supplier ran out of stock, a contractor ordered 850 bags to be delivered by an upriver source at a higher price. Shortly after placing the order, the local supplier's cement shipment came in. The contractor decided to buy from the local supplier and pay damages for returning the cement upriver. Two days later a shipment of 1,000 bags from upriver arrived. Since 850 bags had been ordered, the contractor said he refused the entire shipment of 1,000 bags.Q: Must the contractor buy any up river cement?

NO

A city ordinance stated that no erection or repair work on buildings was to commence prior to obtaining a building permit. A contract in that city stated work should be carried out "without obtaining any building permit". The contractor defaulted on the contract. The owner sued the contractor.Q: Should the contractor pay damages?

No

Long lead items that fall into procurement activities include all of the following except?

None of the above

Which of the following contract formation principles are needed to form a valid contract?

Offer, Acceptance, Meeting of the Minds, and Consideration

One of the advantages of the CM delivery system is the excellent value engineering.

One caps the construction costs the owner is required to pay

Which party invokes a bond?

Owner

The contractual relationship in DBB governed by the conditions of the contract is between:

Owner and contractor

Which document guarantees to the Owner that all third parties will be paid or else the Bondwill be invoked?

Payment Bond

The owner requests that you submit a proposal supplement titled "Statement of contractors' Qualifications All Contracts" and under the officers/principals section it requests the names and titles of the vice president and the president. A proposal is submitted to the Owner with a bid bond, signed addenda, and the proposal form is attached and signed by the chief estimator. Have all of the contract formation principles been satisfied and would the proposal be considered responsive?

The principle of Legal Capacity has not been met, therefore, a non-responsive bid

What is the typical period of time used in a Short-interval schedule?

Three Weeks

Lump sum contracts are most appropriate when the design is not complete and the owner does not have a good idea of what is to be built

f

A big advantage of the unit price contract is that the owner knows the final cost of the job right at the outset with certainty.

f