Construction Operations Quiz 3

Which legal entity is considered perpetual?

Corporation

Which type of legal entity requires a charter?

Corporation

What are the two fee methods that an Agency CM firm may offer an Owner?

Fixed Price or Guaranteed Maximum Price.

What graphical measurement tool is a pictorial representation of a process?

Flow Chart

What graphical measurement tool is a bar graph displaying a frequency distribution?

Histogram

What are the quality standards used internationally called?

ISO 9000

Which document establishes the reference date from which the beginning of the project is calculated and that the contractor can occupy the site

Notice to Proceed

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

Offer, Acceptance, Meeting of the Minds and Consideration

Which type of legal entity allows the income and deductions of the corporation to flow through to the individual tax returns of the shareholders and it avoids federal taxes?

Subchapter S Corporation.

A contract has been entered into whereby the Contractor agrees to design, build, purchase the land and finance the project. What is this type of contract called?

Turn Key

A contract is entered into whereby the design and scope are undefined and the Owner agrees to pay for all Direct Labor, Materials, Equipment plus some agreed upon allowance to the Contractor for their services. What is this type of contract called?

Cost Plus

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 type of contract called?

Construction Management

The Owner wants to Fast-Track a construction project, Which type of contract best supports this process?

Design-Build

What is the name of the clause that is sometimes used if the contract has the potential of an uncertainty in either labor or material prices?

Escalation

Which legal entity makes it extremely difficult to generate new capital to expand the business?

Sole Proprietorship

Which law are corporations formed under?

State

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 your proposal would be considered responsive?

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

What management philosophy tries to maximize the competitiveness of an organization through continuous improvement?

Total Quality Management

What management philosophy is defined as a performance and processed-oriented approach to safety and health that is improved continually and applies proven principles to maximize an organization's long-term competitiveness?

Total Safety Management.

Which legal entity affords an individual the most protection of individual assets from creditors of the business?

Corporation

Which legal entity is taxed twice?

Corporation

A contract is entered into whereby two Contractors agree to combine their resources to bid and build a specific project. What is this type of contract called?

Joint Venture

Which legal entity exposes the personal assets of a person to pay for actions of other people involved in the business?

Partnership

A clause in the contract states that "if the Quantities of an item of work varies from the estimated quantities by more than 20 percent, then the price will be adjusted." Which type of contract will this clause be primarily used in?

Unit Price

A contract is entered into whereby the Design, Scope and Bid quantities are established and payment for the work is to be made upon the basis of the actual quantity placed. What is this type of contract called?

Unit Price