Construction Contracts Exam Questions And
Accurate Answers 100% Pass
Construction parties - Owners- analysis, financing
-realty personnel for the parcel of land on market
-designer, a report describes the program requirements - construction docuemtn
-contructors
contructing procedures - General contract method,
separate contracts,
self-performance,
design-build,
professional construction management method
construction management at risk (CM at risk)
General contract method -design-bid-build approach - owners draw up the contract
documents with the designer and the constructor- open bid for public projects
This procedure has legal controls put in place to avoid fraud and collusion on public
works. The general contractor generally has a major component of the project that
he/she specializes in.
Pros: the general contractor has special skills that have to reduce the costs of
construction to the owner.
There is a firm idea about the final cost of the total project
The owner had the required skills of management in construction projects for
management in construction
It extends the project duration.
,is not represented by an agent, higher
probability of claims
brokerage = Solution general contractor subcontracts all the
work on a project
owner = statutory limitations on the amount of work that may be subcontracted
Separate Contracts Method = Solution many prime contracts, a general contract
method without the general contractor
= the owner maintains the in-house capability to manage a construction project
- many states require a general contractors`s license, owner must have
+
a competent construction manager/ engineer
+ the required specialty work is restricted to a few types of construction
+
eliminate general contractor profit(small)
-owner assume greater risk
Self-Performance Method - Answer 1- "Force account" work
2- No contracts written
3- Owners workers perform work
4- Owner provides materials
5- Minor role for designer
small in scope, simple in character( maintenance projects)
,Davis-Bacon Act of 1931 - Answer This statute requires the payment of "prevailing
wages" to workers of contractors and subcontractors performing work on government
construction projects.
Design-Build - Answer The owner enters into a contract with a single entity (an
individual or firm) to provide both design and construction services, which entity in turn
subcontracts portions of the work to others as required
GMP, guaranteed maximum price
single firm or joint venture
+ no long design to calculate a price
+ design is developed with contractor input, less changes will happen at the time of
construction due to designer mistake
+ owner is not in between the conflict of contractor and designer
+fast-tracking
cadre
+ projects which are large and/or technically complicated
+ owner clearly define the project scope well before a signed design-build contract
-less control by the owner
professional construction management method - Answer the owner hires a firm with
construction expertise to perform construction management(CM) services on the
owner's behalf. - agent - general contractor
hired before any substantial design work and construction work
Value engineering (CM part) reviews the project design
flat fee (share cost savings) or a cost plus a percentage fee
, designers are paid in direct relation to the cost of the construction project
the CM does not perform any of the construction work with its own forces
+ large or complex projects, construction expertise is needed during the design phase
+ flexibility for changing the project as the design evolves
CM at Risk, GC/CM or the CM/GC - Answer -CM agent-> independent contractor
the CM is responsible to the owner to complete the project by the established
substantial completion date and within the agreed budget
the CM at risk firm enters the contract before design is complete
a cost plus a fixed fee with a GMP.
execute a contract - fully executed
execute a contract : signed, bound
executory : some portion of the agreement remains to be done.
express contract/ implied contract -
element of a contract - Answer offer and acceptance
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