CON 421 Contracts - Exam 1
*True*
>>>A design firm and construction company can team up to bid a D/B contract.
*True*
>>>By law, all corporations have to issue financial reports periodically for the benefit of shareholders and the public at large.
1% *5%* 10% 15%
>>>Construction industry constitutes about ______ of the gross domestic product (GDP)?
*False*
>>>In the Agency CM delivery system, the CM (not the owner) contracts with the General Contractor.
Partnership *Corporation* Sole Proprietorship Joint Venture
>>>Which legal entity is considered perpetual?
*True*
Generally, losses are shared by the partners always in the same proportion as profits.
*No*
In 1925, Gustav Refsnes paid $800 to Fox Farmers for 4 blue foxes. A check was made out to Fox Farmers. When the foxes were not delivered, Refsnes filed suit against the three major shareholders, as the articles of incorporation were not on file in King County. Since the articles were not on file, Refsnes claimed that the three men were copartners. *Q: Are the major shareholders liable?*
*Owner and contractor* A/E and contractor Owner and subcontractors Owner, contractor, and A/E
The contractual relationship in DBB governed by the conditions of the contract is between:
*False*
The first company that the Owner hires in the DBB delivery system is the general contractor.
Lump Sum *CM Agency* CM at Risk Integrated Project Delivery
Which delivery method is the construction administrator most like a consultant?
*Corporation*
Which legal entity affords an individual the most protection of individual assets from creditors of the business?
*Sole Ownership*
Which legal entity makes it extremely difficult to generate new capital to expand the business?
Owner *Architect* Contractor Subcontractor
Which of the following entities are responsible for design compliance with the authorities having jurisdiction?
One manages construction on the owners behalf One has a contract with the designers One provides a lump sum price for construction services *One caps the construction costs the Owner is required to pay*
Which of the following is a major difference between a CM Agency and a CM at Risk?
Office buildings Hospitals Courthouses *Tunnels*
Which one of the following is an example of publicly financed non-building construction project?
Design is complete when contractor is involved Fast tracking is difficult with this delivery method *There is a sole source for fault for building system failures* Most DB firms are temporary affiliations created for a single project
Which statement is true about the Design-Build delivery method?
*Corporation*
Which type of legal entity requires a charter?
Partnering Joint Venture Design-Build *Construction Management*
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. *Q: What is this project delivery called?*
*True*
A corporation cannot operate outside the business stated in the charter of the corporation.
*True*
An important advantage of the D/B delivery system is that construction can start while design is proceeding.
*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.
*No*
In 1959, a limited partnership (Pacific International Fisheries) was formed. Nelson was the general partner, and Lieberman and Winkleman were limited partners. The primary purchase of the partnership was a ship called the Jamene. On May 1, 1959 the Jamene was destroyed by an explosion and fire initiated by Nelson. Lieberman and Winkleman sued the insurer (Atlantic Mutual Ins. Co.) to recover their loss. *Q: Are Lieberman and Winkleman entitled to payment?*
True
In the D/B delivery system, the owner signs a single contract with the D/B firm rather than separate contracts with a designer and a contractor
*False*
In the DBB delivery system, the Designer works for the General Contractor.
*True*
One of the advantages of the CM delivery system is excellent value engineering.
*False*
Partnerships are owned by shareholders who elect the partners.
*True*
Partnerships constitute the large majority of design firms in the US.
*False*
Sole owners have to file periodic public reports just like corporations do.
*True*
Sole ownership's constitute the large majority of construction companies in the US.
*True*
Sole ownership's do not have to pay taxes other than the income tax of the owner.
*True*
The Board of Directors makes bylaws to regulate the day-to-day operations of the corporation.
*Design-Build* Partnering Design-Bid-Build Sole Ownership
The Owner wants to Fast-Track a construction project. Which project delivery system best supports this process?
*True*
The construction company displays a highly decentralized temporary organization because of the many projects that start and finish at different times.
*False*
The construction industry is quite independent of manufacturing industries such as glass, cement, plastics, and machinery.
*True*
The construction industry is used by governments as an economic regulator.
*False*
The construction industry spends more on R&D than manufacturing.
*False*
Under DBB, the Owner has a contractual relationship with suppliers and subcontractors.
*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.
