Contracts Midterm Multiple Choice –
Levit Questions and Answers Already
Passed
What is the primary purpose of a construction contract?
A) To outline the project schedule
B) To specify the payment terms
C) To establish legally binding obligations and responsibilities
D) To describe the ...
Contracts Midterm Multiple Choice –
Levit Questions and Answers Already
Passed
What is the primary purpose of a construction contract?
A) To outline the project schedule
B) To specify the payment terms
C) To establish legally binding obligations and responsibilities
D) To describe the project design
✔✔ C) To establish legally binding obligations and responsibilities
Which document typically provides the scope of work in a construction contract?
A) Project Schedule
B) Specification Sheets
C) Contract Drawings
D) Change Orders
✔✔ C) Contract Drawings
1
,What does a "change order" in a construction contract usually address?
A) Changes in project scope or design
B) Payment adjustments
C) Dispute resolution
D) Project completion date
✔✔ A) Changes in project scope or design
What is the purpose of a "performance bond" in a construction contract?
A) To ensure payment for subcontractors
B) To guarantee the completion of the project as specified
C) To cover insurance claims
D) To address environmental compliance
✔✔ B) To guarantee the completion of the project as specified
Which clause in a construction contract addresses delays due to unforeseen circumstances?
2
,A) Liquidated Damages Clause
B) Force Majeure Clause
C) Warranty Clause
D) Indemnity Clause
✔✔ B) Force Majeure Clause
What is typically included in the "general conditions" section of a construction contract?
A) Detailed project specifications
B) Legal obligations and responsibilities of the parties
C) Financial terms and conditions
D) Design details
✔✔ B) Legal obligations and responsibilities of the parties
What is "liquidated damages" in the context of construction contracts?
A) Penalties for late project completion
B) Compensation for damages to property
3
, C) Refunds for unspent project funds
D) Payment for change orders
✔✔ A) Penalties for late project completion
What is a "subcontractor agreement" in a construction project?
A) A document outlining the main contractor’s obligations
B) An agreement between the main contractor and a subcontractor detailing specific tasks
C) A change order for additional work
D) A bond for project completion
✔✔ B) An agreement between the main contractor and a subcontractor detailing specific tasks
What is the purpose of an "indemnity clause" in a construction contract?
A) To outline payment terms
B) To assign responsibility for damages or losses
C) To describe the scope of work
D) To set deadlines for project completion
4
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