Contracts

T or F Regardless of the size of the project, every contractor has access to the bonding capacity necessary to perform public works projects.

F

T or F A General Contractor is awarded a construction under the Design- Bid-Build project delivery method on the basis of qualifications alone.

F

T or F A contract is not used to shift and allocate risk from the construction.

F

T or F A contractor does not shift the risk from the project to its subcontractors.

F

T or F A general construction company should not expect to purchase and maintain commercial general liability insurance.

F

T or F An Arizona employer may employ an unauthorized alien without recourse from the state.

F

T or F An employer is not required to pay its employees a minimum wage mandated by the state where the work is to be performed.

F

T or F An employer may allow for a hostile working environment without violating applicable employee laws.

F

T or F An indemnity provision is not a useful tool for shifting risk of injury or property damage to another person.

F

T or F Completed operations coverage in a commercial general liability insurance policy covers claims for bodily injury or property damage that arise before the work is complete.

F

T or F Directors and Officers Insurance will not protect directors and officers from decisions made on behalf of a corporation.

F

T or F Ethics can be easily learned in a classroom and applied in the industry.

F

T or F It is good practice for an employer to treat its employees as independent contractors.

F

T or F It is good practice to perform construction work without a written agreement.

F

T or F On a Cost-Plus project, the general contractor provides the owner with a lump sum bid before the work commences.

F

T or F The Construction Manager at Risk project delivery method requires an agreement between the General Contractor and the Architect.

F

T or F The Double AA Builders case involved a dispute between a general contractor and the project owner.

F

T or F The Invitation for Bids (IFB) or Request for Qualifications (RFQ) sent to the contracting community constitutes an offer capable of acceptance by the contractor.

F

T or F The architect typically enters into a contract with the contractor.

F

T or F The owners of a corporation are typically called limited partners.

F

T or F A professional liability insurance policy is intended to provide coverage for the errors or omissions of a design professional, such as an architect.

T

T or F A general contractor that intends to construct a $1,000,000 commercial building from the ground up should pay transaction privilege tax.

T

T or F In Arizona, a general contractor is required to purchase and maintain worker's compensation insurance.

T

T or F A commercial general liability insurance policy will cover loss or damage resulting from a contractor's negligence.

T

T or F A competent contractor will use communication to control risk.

T

T or F A payment bond is commonly required for public works construction projects.

T

T or F A person that rejects an offer and makes a new offer is making a counteroffer.

T

T or F A subcontractor's bid to perform work that is submitted to the general contractor constitutes an offer.

T

T or F An employer can protect its business and confidential information through the use of restrictive covenants, such as a confidentiality provision, anti-piracy provision, and non-compete provision.

T

T or F An employer is required to purchase and maintain workers compensation insurance if the employer has employees.

T

T or F Another way to manage risk is by purchasing insurance.

T

T or F Arizona requires a general contractor that intends to bid on a $1,000,000 commercial building to purchase and maintain a contractor's license.

T

T or F Davis-Bacon wages must be paid on federally funded projects.

T

T or F Ethics is a capability.

T

T or F Ethics is a systemic problem in the construction industry.

T

T or F Ethics is when people treat others as they treat themselves.

T

T or F For a contract to exist there must be offer, acceptance, and consideration.

T

T or F Good writing skills are critical to managing risk.

T

T or F In most cases, an Arizona employer must pay wages at least 2 times per month.

T

T or F Insurance can be used to mitigate risk on a construction project.

T

T or F Most commercial general liability insurance excludes coverage for crane or helicopter operations.

T

T or F One way to shift risk is through the use of an indemnity provision.

T

T or F Overtime must be paid for all time worked by an employee in excess of 40 hours during a work week.

T

T or F The Davis-Bacon law requires the submission of certified payroll.

T

T or F The entity performing the construction is responsible for the design on a design build project.

T

T or F The members of a limited liability company are not responsible for the debts of the limited liability company.

T

T or F The owner may hire a construction manager to manage the construction.

T

T or F The owner of a sole proprietorship is personally liable for the debts of the business.

T

T or F The owner shifts construction related risk to the general contractor.

T

T or F The owner typically hires a contractor and architect for a construction project.

T