Construction Contracts & Law Exam Questions And
100% Correct Answers
Following United States v.Spearin, the contractor CAN be held liable for results of
defective, inaccurate or incomplete drawings and specifications - Answer False
What must one prove in order to successfully bring a claim for negligence? - Answer
There was a duty or obligation to conform to standards of conduct
A contract may be simply defined as a set of promises which one party makes to another
and vice-versa. Answer True
What is strict liability? Answer Liability without regard to fault
Which of the following are examples of breach of contract? Answer
If the owner is justifiably dissatisfied with the performance (product) he may have a
cause of action against the GC for breach of construction warranties - Answer True?*
If a tort was not committed intentionally, it is most likely a case of negligence - Answer
False
To what does the lack of due diligence or care refer? - Answer Negligence
Torts action seeks to recover compensatory damages from the tort-feasor - Answer
True
Contracts and tort bodies of law reflect, rather than dictate, the customs, values, and
,expectation of society's members - Answer True
After an offer is accepted it can still be withdrawn because it is not a contract. - Answer
False
The bid bond mainly serves the purpose of ensuring the contractor that the owner will
pay him against the work done - Answer True
Meeting of minds is expressed usually by parties to a contract in the offer originally
made by one, which then is accepted by other. - Answer True
In case of an offer, it should NOT be accepted without qualification - Answer True
For a contract to be valid, the contracting parties must have the competency required to
make valid and enforceable contracts - True
The special conditions of the contract outlines the rules of the project including the
rights responsibility and authority - Answer False
Two parties in a contract are bound to each other for some duration by a special and
exclusive relationship they created for mutual benefit. - True
Most Bid Bonds must be accepted within the prescribed period of time stated in
Instructions to the Bidders -True
What would information contained in an agreement include? -List of contract
Documents
Contract Sum
Description of work
,When two or more partners borrow money for which they are severally liable, each
partner is liable only for their own obligation. - Answer True
Which of the following are alternative contracting methods? - Answer Multi-Prime
Construction Management CM
Design-Build DB
Engineer-Procure-Construct EPC
Engineer-procure-construct delivery system is common for residential and industrial
construction - Answer False
In CM at risk, the owner directly contracts with multiple specialty or trade contractors
who would otherwise be first tier subcontractors under the traditional system - Answer
False
Some of the merits of the CM project delivery system are - Answer Obtain early
construction contractor involvement
Accelerate Project delivery method
Encourage Innovation
Facilitate value engineering
Mitigate constructability issues
Which of the following project delivery systems does not have a traditional GC and,
instead utilizes a construction manager? - ANS CM
List some of the advantages of the DB delivery system. - ANS Permits owner avoidance
of problems associated w/ changes, claims, and disputes on the project.
Provides owner with a single point of responsibility for potential delay and cost
associated w/ design errors and omissions.
, Dealing with a single entity reduces the administrative burden on the owners as well as
allows them to concentrate on the project rather than manage multiple separate
contracts.
Allows fast-tracking of projects w/o the risk of cost and time impacts due to
defective/untimely design.
The EPC contractor can also be a major equipment supplier who then contracts with
major constructor and material supplier - Answer True
In a design-build delivery system, the DB firm is responsible only for the deficiencies in
the design - Answer False
Program management is utilized where an owner needs several projects to be built
within a time frame - Answer True
There is a belief that the DB delivery system will inevitably compromise the ultimate
quality of the constructed product because of degrading the integrity of the design
process. - Answer True
In the traditional project delivery system does not provide the owner with the complete
design and stated maximum price before the work begins - Answer True?
There are generally accepted form EPC contracts - Answer True
EPC is a project delivery method whereby a single entity executes both engineering and
construction services. - Answer True
CM at risk - The owner directly contracts with multiple specialty or trade contractors
who would otherwise be first tier subcontractors under the traditional system - True or
False?
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