CM 4211 1-4

For a Federal SBA Service-Disabled Veteran Owned Business to qualify for the classification it must have a rating of: a. 10% b. 25% c. 0%

0%

What is the typical bond premium for a Surety Bond a. 5-10% b. 1-5% c. 6-8%

1-5%

What percentage is hiring a subcontractor to be cost-effective than hiring full-time staff a. 10-19% b. 11-15% c. 20-30% d. 31-40%

20-30%

What percentage of Joint Ventures get bought out by one partner a. 50% b. 60% c. 70% d. 80%

80%

How many years can an 8(a) participant be in the program? a. 3 years b. 5 years c. 9 years

9 years

What is a Design Bid contract? A. A contract method that addresses design and construction costs simultaneously B. A contract method that uses fast-tracking incentives as the basis of the contract C. A contract method that bids after design

A contract method that addresses design and construction costs simultaneously

What is a Lump-Sum contract? A. The unit prices per unit, which may include materials, labor, overhead, supplies, and profit B. The total fee and price that includes all the risk and unforeseen conditional cost that is unknown C. A contract that includes a set price and fee for all services provided, including all labor and materials

A contract that includes a set price and fee for all services provided, including all labor and materials

What is a Time and Materials contract? A. The maximum price the owner is to pay the subcontractor B. The maximum price the owner is to pay the vendors for materials and equipment C. A contract that requires the client to pay the contractor for all labor and materials at a pre-negotiated rate

A contract that requires the client to pay the contractor for all labor and materials at a pre-negotiated rate

Select the best definition for labor and materials. A. Specific to only construction and small business contracts B. Only used in State and not Federal Contracting language C. A contractor who is responsible for procuring the materials, as well as any costs associated with the labor and materials needed to complete the work

A contractor who is responsible for procuring the materials, as well as any costs associated with the labor and materials needed to complete the work

The delivery method is determined using the following, select all that apply a. An 80% estimate b. A 95% Engineered Design c. A schedule d. A Budget

A schedule A Budget

What is a Design Bid Build contract? A. All of these answers B. The process that saves the owner time and money by combining the design and construction C. A traditional construction project delivery method that involves the completion of three distinct phases in sequence D. The maximum price the owner is to pay the vendors for materials and equipment

A traditional construction project delivery method that involves the completion of three distinct phases in sequence

After signing the contract Owner, A&E Firm, and contractor discuss, select all that apply a. Review the quality control plan b. Review the safety plan c. Pre-Construction Activities d. Finalize the Baseline Schedule e. All of the above

All of the above

In the bid submission many items must be in it, select all that apply a. Equipment b. Materials c. Overhead d. Labor e. All of the above

All of the above

The increasing complexities of procurement routes led to the rise of different tender procurement methods. a. Negotiated Tendering b. Open Tendering c. Selective Tendering d. Serial Tendering e. All of the above

All of the above

To win more BIDS you need to understand, select all that apply a. being selective of the projects you pursue b. Bidding Process c. demonstrating your value d. Knowing your competition e. All of the above

All of the above

The GMP will include which of the following. Select all that apply. Select one: A. Fees and percentages to make a profit B. Overhead and Profit C. Labor and Materials D. All of these answers

All of these answers

What are examples of an Incentive construction contract? A. Zero quality defects B. Safety awards C. All of these answers D. Fast tracking

All of these answers

What are examples of construction contract clauses for escalation? A. Fuel and gas B. Steel C. Construction materials and equipment D. All of these answers

All of these answers

What are examples of contract documents? A. Blueprints B. Scope of Work C. Design drawings D. All of these answers E. Technical specifications

All of these answers

Some Projects use a Work Order that requests the services of a. Inspection, Maintenance, and Electrical b. Emergency Repairs c. Safety and Quality Inspections d. All the above

All the above

The advantages of Time and Material contracts consist of which of the following. a. Helps budget overall costs b. Reduce risk to Prime Contractor of fluctuating material and labor cost c. Reduces cost-cutting methods by the owner d. Incurs a known profit to the Prime Contractor e. All the above

All the above

The contractor is awarded the contract based on price and past performance a. Best Value Source Method b. Low Bid Method c. Negotiated Method

Best Value Source Method

When a contractor is attempting to win a bid for a big construction project, what bond falls under the contract bond umbrella and can be viewed as a pre-qualifier. a. Bid Bond b. Maintenance Bond c. Payment Bond

Bid Bond

This is when the project owner lays out the project requirements, specifies the contract type, and defines the delivery method. What delivery method is this a. Bid Submission b. Bid Solicitation c. Bid Selection

Bid Solicitation

What Bid Process Area will you find the RFP or IFB a. Bid Solicitation b. Bid Submission c. Contract Formation

Bid Solicitation

There are 5 areas for the Bid Process, select all that apply a. Be Early b. Bid Solicitation c. Sign in the Log to get credit for attending d. Bid Selection

Bid Solicitation Bid Selection

Timeline is defined by which of the following. A. Finish Date B. Start Date C. Both

Both

This policy helps pay for damages when a fire or windstorm damages or destroys a building in progress. It also covers theft of construction materials from a job site. a. General Liability b. Professional Liability c. Builder's Risk Insurance

Builder's Risk Insurance

Owning a Construction Business, you always be protected by a. Commercial Insurance b. Bodyguards c. Security System

Commercial Insurance

This policy pays to replace damaged or stolen business property, such as your tools and equipment. It also covers the building where they are kept, if you own it. a. General Liability b. Builders Risk Insurance c. Commercial Property Insurance

Commercial Property Insurance

A strong construction contract will outline the project's scope and leave little to no room for which of the following. A. Confusion on either side B. Additional addendums C. Red-line drawings

Confusion on either side

This delivery method is an alternative to the DBB method and reduces costs a. Construction Management at Risk b. Design Build c. Integrated Project Delivery

Construction Management at Risk

Details for Payment Terms are defined by which of the following. A. Contract B. Owner C. Prime Contractor

Contract

The difference between a contract and service agreement is a. Must be 100 pages or more b. Must be in Times New Roman c. Contract is a formal legal document

Contract is a formal legal document

Bond serves as a commitment to ensure the safety of your clients and is required to get a contractor license a. Performance Bond b. Improvement Bond c. Supply Bond d. Contractor License Bond

Contractor License Bond

A noun that describes a type of business entity a. Corporation b. Incorporation c. LLC

Corporation

Benefits of subcontracting to a GC is a. Cost Efficient and Risk Adverse b. The GC can't find anyone else c. The two owners are best friends

Cost Efficient and Risk Adverse

Negotiating a contract with no compromise can affect which of the following. A. Delay award banquet and ceremony B. Delay payment C. Delay the start date

Delay the start date

Select the best definition for change request. A. Describes how any requested changes will be communicated to the general contractor, as well as any fees required for change orders and timelines for when changes can be requested and handled B. A request for better working conditions and pay C. A request for additional work

Describes how any requested changes will be communicated to the general contractor, as well as any fees required for change orders and timelines for when changes can be requested and handled

The contractor submits a contract covering both the project's design and construction phases, is what delivery method? a. Design Bid Build b. Design Build c. Integrated Project Delivery

Design Build

A C Corporation can be subject to ? and issue ? a. Double Taxation, stock b. Single Taxation, marketing merchandise c. Legal issues for paying taxes, Letters of Recommendation

Double Taxation, stock

Before Bidding, a company must perform proper ? to ensure the project is right for them a. b. Repair the Work Trucks c. Safety Stand Down

Due Diligence

Sole proprietorships are the simplest form of business structure and are? a. Easy and cheap to start due to few government rules b. Easy and expensive to start due to few government rules

Easy and cheap to start due to few government rules

A breach of contract is considered a crime or even a tort, and punitive damages are awarded for failing to perform promised obligations. (T/F)

False

All states offer asset protection for LLCs with a single owner (T/F)

False

An anticipatory breach is when a party states in advance that they will be delivering on the terms of the contract (T/F)

False

Direct selection is a multiple-source method that uses more than one provider to satisfy all the project requirements. This method is also a non-competitive procurement method that can benefit contractors. (T/F)

False

GC have to pay employment taxes on all their subcontractors a. True b. False c. It's Labor Law requirement

False

GCs can tell the owners of subcontractors how to run their business if they are under contract a. True b. False c. Legally Binding per the Contract

False

GCs must afford subcontractors the same legal protections as its own employees a. True b. False c. It's required by Federal Labor Law

False

Hiring Full-Time employees has the same cost impacts as hiring a Subcontractor a. True b. False c. Neither True nor False, it's the same cost

False

If your contract requires a Performance Bond, Payment Bond, or a Payment and Performance Bond together, the premium rate does change. (T/F)

False

In Sole proprietorship there is a legal separation between the owner and the business? (T/F)

False

Joint Ventures are advantageous cause they are less complex tax arrangements and offer great tax shelters a. True b. False c. All businesses are taxed equally

False

LLC are businesses that are time consuming, difficult, and more expensive to create (T/F)

False

Safety awards for no injuries, fast-tracking, and zero-quality defects are possible examples of incentives in a unit price contract. (T/F)

False

The Bid Submission supports rules, especially in government projects, to ensure that the lowest bidder wins the contract. This rules out any fraud or biases in awarding the contract so that price is eventually the ultimate equalizer. (T/F)

False

The term Bill and Invoice mean the same thing and there is NO difference a. True b. False c. Yes they are the same thing

False

There is no difference between a PO and a Contract (T/F)

False

This is when the project owner lays out the project requirements, specifies the contract type, and defines the delivery method. This is known in the Bid Delivery Method (BDM) (T/F)

False

Unlike construction insurance, a surety bond is a contract between two parties (T/F)

False

Unlike other delivery methods, where the construction manager is chosen using the lowest price criteria, the construction manager is used based on qualifications and experience. This is known as Integrated Project Delivery (T/F)

False

As the business owner, you purchase policies from an insurer to provide what a. Quid Pro Quo b. Partnership c. Financial Protection

Financial Protection

After the owner selects a bid that meets their requirements, the parties involved must, select all that apply a. Request a stipend b. Negotiate Final Pricing c. Finalize unclear contract clauses d. Discuss mobilization before contract is signed e. Form and Sign the Contract

Form and Sign the Contract Negotiate Final Pricing Finalize unclear contract clauses

Of the three contracts LS, LSTK, and GMP, which once affords the most protection financially and allows the owner to secure investors and loans? A. GMP B. All of these answers C. LSTK D. LS

GMP

This construction liability is common, and the coverage protects your business if it's responsible for anything like property damage, bodily injury or incorrect work. a. General Liability b. Workers Compensation c. Builders Risk Insurance

General Liability

Also known as a subdivision bond or a contract bond a. Performance Bond b. Improvement Bond c. Supply Bond d. Contractor License Bond

Improvement Bond

A verb that describes the act of forming a business entity a. Corporation b. Incorporation c. LLC

Incorporation

Service Agreements are a. Informal b. Formal c. LLC

Informal

The owner employs the architect, owner, and contractor together as a team. They share the risk equally as well. What delivery method is this? a. Integrated Project Delivery b. Design Build c. Design Bid Build

Integrated Project Delivery

A minor breach happens when you don't receive what by the due date, select all that apply a. Item b. Receive something different c. Service

Item Service

Which company structure allows for holding appreciating assets, real estate, and stock portfolios a. Non-Profit Corporation b. P Corporation c. LLC

LLC

Is a form of contract bond that guarantees that contractors will finish work according to the agreement's specifications while adhering to all state requirements and providing work that isn't substandard or inadequate. a. Bid Bond b. Maintenance Bond c. Payment Bond

Maintenance Bond

These tenders are helpful for highly specialist contracts or when the owner wants to extend the scope of work a. Negotiated Tendering b. Serial Tendering c. Open Tendering

Negotiated Tendering

What is the next step in the construction contract process after the contract has been drafted and reviewed by all parties? A. Sign and Date B. Negotiations C. Edit and formatting

Negotiations

What company structure increases liability for managers and members a. LLC b. S Corporation c. None of the above

None of the above

This is the main tendering procedure used by both government and the private sector a. Negotiated Tendering b. Selective Tendering c. Open Tendering

Open Tendering

Is a surety bond provided to a contractor for a project to assure that subcontractors, workers, and material suppliers get paid in a timely way for the job they accomplish. a. Bid Bond b. Maintenance Bond c. Payment Bond

Payment Bond

Is a surety bond provided to a contractor before the commencement of a construction project to ensure that the contractor will execute the project's responsibilities to the satisfaction of the project's owner, as agreed upon in the initial contract a. Performance Bond b. Improvement Bond c. Supply Bond d. Contractor License Bond

Performance Bond

When working on a construction project, the contractor secures this bond to guarantee their work and performance under their contract a. Performance Bond b. Improvement Bond c. Bid Bond

Performance Bond

A construction contract is an agreement that is between the OWNER and which of the following. A. Prime/General Contractor B. Supplier C. Subcontractor

Prime/General Contractor

Who is responsible for selecting and managing the sub-contractor on a project? A. Owner Rep B. Subcontractor Executive Management C. Prime/General Contractor

Prime/General Contractor

This insurance helps to pay for alleged work oversights that cause a client a financial loss. If someone says you didn't deliver the services you said you'd provide, they can ask you to pay for any losses. Professional liability can help cover the costs to defend your business and/or fix the problem. a. General Liability b. Commercial Property Insurance c. Professional Liability

Professional Liability

A contract can have multiple a. Purchase Orders b. Ford F-150s c. Listings of rare birds

Purchase Orders

An Advantage of having a Joint Venture is a. More Office Space b. Better Office Supplies c. Risk is minimized and shared with JV

Risk is minimized and shared with JV

A S Corp has the benefit of a. Same protection as LLC b. Same protection as Sole Proprietorship c. Same protection as government officials

Same protection as LLC

The construction contract will specify contract details such as which of the following. A. Scope of Work B. Special Tools C. Vendors

Scope of Work

This is an opportunity for contractors to leverage their track record a. Negotiated Tendering b. Open Tendering c. Selective Tendering

Selective Tendering

Sole Proprietors cannot sell what to raise money a. Shares or Interest b. Lease property c. Private Stock

Shares or Interest

A Work Order outlines what a. Specific Tasks on a project b. The size of the Hamburger c. How much a General Worker gets paid

Specific Tasks on a project

The practice of assigning or outsourcing part of a project under a GC is a. LLC b. C Corp c. Subcontractor

Subcontractor

A form of contract bond that ensures that a supplier will deliver all materials, services, and supplies specified a. Performance Bond b. Improvement Bond c. Supply Bond d. Contractor License Bond

Supply Bond

What is the best definition of dispute resolution? A. The method of resolving disagreements through a panel of board members B. The acceptable methods for resolving any disputes that may arise before, during, or after the construction process, such as arbitration, adjudication, or mediation C. The method of meeting with a therapist to discuss one's feelings that were hurt in a dispute

The acceptable methods for resolving any disputes that may arise before, during, or after the construction process, such as arbitration, adjudication, or mediation

Select the best definition for General Contractor. A. The Company that tells everyone on the project how and when to perform B. The company or individual responsible for overseeing the construction process and managing any subcontractors, if applicable C. The Company that performs the Front-End Loading and Engineering design

The company or individual responsible for overseeing the construction process and managing any subcontractors, if applicable

The right to subcontract any project work has to be outlined by which of the following. Select all that apply. A. The Prime Contractor B. The contract C. The Owner

The contract

Select the best definition for Owner. A. The company that supplies the materials and equipment for the project B. The group of investors that form an LLC C. The individual or company hiring the general contractor and entering into the contract to have construction work done

The individual or company hiring the general contractor and entering into the contract to have construction work done

Scope of Work is a description of which of the following. A. The bolts and gaskets that will be installed B. What work will be installed and constructed in the design documents before approval C. The list of construction obligations, as well as work activities that all contractors, subcontractors, and suppliers are obligated to do

The list of construction obligations, as well as work activities that all contractors, subcontractors, and suppliers are obligated to do

What is a Guaranteed Maximum Price contract? A. The maximum amount the owner will have to pay the contractor is capped and is not to exceed B. The maximum price the owner is to pay the vendors for materials and equipment C. The maximum price the owner is to pay the subcontractor

The maximum amount the owner will have to pay the contractor is capped and is not to exceed

A purchase agreement will have a. The price to be paid b. The delivery route of the materials c. The Euro Conversion factor of the Dollar

The price to be paid

What does Indemnification mean? A. Holds the owner responsible for any injuries after the project is over B. The responsibility of the contractor for any damages or loss incurred by the owner due to the work of the contractor C. Legal term to hold the owner responsible for Prime Contractor negligence

The responsibility of the contractor for any damages or loss incurred by the owner due to the work of the contractor

What is a Unit Price contract? A. The unit price contract details prices per unit, which may include materials, labor, overhead, supplies, and profit B. The maximum amount the owner will have to pay the contractor is capped and is not to exceed C. All these answers D. The maximum price the owner is to pay the subcontractor

The unit price contract details prices per unit, which may include materials, labor, overhead, supplies, and profit

A GC would subcontract out a specialty task they are not accustomed to performing a. True b. False c. Partially True and False

True

A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. (T/F)

True

A contract bond is a type of construction surety bond that ensures that a contract is carried out according to the criteria agreed upon by the project's contractor and the owner. (T/F)

True

A contract is binding and will hold weight if taken to court (T/F)

True

A cost-plus contract is looked upon as a favorable contract by Contractors. (T/F)

True

A performance bond is different from a payment bond (T/F)

True

A surety bond is required in industries like construction to ensure that you abide by any rules, regulations, or laws governing your industry. (T/F)

True

Actual breach is when one party refuses to fully perform the terms of the contract (T/F)

True

All contracts are considered agreements but not all agreements are considered contracts a. False b. True c. Neither False or True

True

An effective tendering method ensures the right contractor is chosen and the ongoing relationship is mutually beneficial for both parties (T/F)

True

An invoice is an accounting document that lists products or services that a company provides to a client or customer a. True b. False c. Half True and False

True

Construction Insurance is a contract between two Parties (T/F)

True

In a Joint Venture each company maintains its separate business structure a. False b. True c. Absolutely False

True

In serial tendering, the tenders are based on the work schedules of bills of quantities. The rates are used to value results over a given number of projects, and with time the procedure can be repeated for different projects. (T/F)

True

Investors and project owners utilize contract and construction bonds to safeguard themselves and their assets from fraudulent work, damage, financial loss, or other disturbances throughout the building process. (T/F)

True

Many Owners require you to have construction insurance to work on their project site (T/F)

True

Performance bonds provide legal and financial protection for those involved in construction projects. (T/F)

True

Proposals will include a Bid Bond and Insurance Letter. (T/F)

True

Purchase and Sales Agreements protect the builder and the buyer (T/F)

True

Services agreements and contracts are essential commercial legal instruments a. True b. False c. Neither True or False

True

Some states charge extra fee for operating an LLC (T/F)

True

Subcontracting is beneficial to large projects a. False b. True c. It doesn't matter

True

Subcontractors will often offer great professional services as they have experience on multiple projects doing the same tasks a. True b. False c. Maybe

True

T&M contracts can lead to many disputes on pricing. (T/F)

True

The Owner can specify in the contract how and what subcontractors can be sourced for the project. (T/F)

True

The PO outlines the price and quantity of goods or services necessary to complete the project as agreed upon by both parties. (T/F)

True

The Prime Contractor can terminate its contract when the owner is in breach of contract or acting in bad faith. (T/F)

True

The advantage of cost plus is that the Prime Contractor will incur a profit. (T/F)

True

The bid submission needs to have a professional touch. It is the face of the company (T/F)

True

The drawback of design build is that the price may be higher for the Owner. (T/F)

True

The low bid method selects competitive bids based on the procurement method's lowest bid. Government and public construction entities use this method. (T/F)

True

The owner can terminate a contract for cause and breach of contract anytime it has evidentiary proof to do so. (T/F)

True

The pre-bid meeting is usually open to all interested prospective bidders but can conduct prequalifications (T/F)

True

There is no difference between lump sum and fixed price. (T/F)

True

To qualify as a DBE entity, the organization must qualify for one of the federally recognized disadvantaged populations. (T/F)

True

When a site visit is planned, the details of the date and time must be stated in the solicitation documents (T/F)

True

Work Orders can be part of a PO and Service Agreement (T/F)

True

Work orders are also ways for construction companies to record and file the details of their projects a. True b. False c. Neither True or False

True

You can have a multiple-contract method under one project. (T/F)

True

A Joint Venture is when a. Two or more companies work together under a legal agreement b. Subcontractor works for another GC not on the same project c. A sole proprietor working for his brother for free

Two or more companies work together under a legal agreement

What does contract termination mean? A. When both parties decide to divorce one another from future project participation B. When either party can legally terminate the contract and any penalties that may apply to the decision to terminate C. When both parties walk away due to not liking each other or one party has made bad claims against the other

When either party can legally terminate the contract and any penalties that may apply to the decision to terminate

There are 4 areas to know about PRE-BIDS, Identify 2 below a. Who attends the Pre-Bid b. The conference room has a video teleconferencing system c. The Time and Place d. What color is the OPS Bldg

Who attends the Pre-Bid The Time and Place

Covers employee medical costs and a percentage of lost wages if they become ill or injured at work. a. General Liability b. Workers Compensation c. Builders Risk Insurance

Workers Compensation

Does a Lump Sum Turnkey have better protections than a normal Lump Sum contract? A. Yes B. Not applicable C. No

Yes

Before you submit a Bid you need to answer two queries, select all that apply a. Enough Paper to Print the Bid b. capacity to handle the new contracts c. Submitting the Bid to the right Address d. Is your backlog too much for you to take up a new deal

capacity to handle the new contracts Is your backlog too much for you to take up a new deal