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72 Cards in this Set

  • Front
  • Back
Law plays a minor role in the construction process
F
State Law Determines:
A.Which contracts will be enforced
B.The remedies granted for breach of contract
C.The conduct that gives rise to civil liability
D.The laws that relate to the ownership of property
E.All the above
F.None of the above
All the above
UCC Stands For
Uniform Commercial Code
Agencies operate through issuance of regulations and through disciplinary actions which are subject to judicial review
T or F
T
Standard prepared printed forms used in contracts for design and construction services are considered adhesion contracts
T or F
F
Federal courts have jurisdiction to hear civil disputes between citizens of different states because of long-arm statutes
T or F
F
If legal action is not commenced within the statute of limitations, it is barred
T or F
T
In litigation, __________ is the legal process to uncover information in the hands of the other party
Discovery
The general contractor is acting as a broker when it subcontracts all the work on a project
T or F
T
One party is said to have _______ the contract if it has not complied with certain terms of the contract
Breached
In a partnership, both the partnership and the individual partners pay income taxes
T or F
F
Three Types of construction contracts are:
Unit Price
Cost-Plus
Lump Sum
"Buying out the contract" includes:
A.Assembling the construction team
B.Singing purchase agreements for materials and equipment
C.Entering into subcontractor agreeements
D.Notifying successfull subcontractors
E.all the above
F.none of the above
E. All the above
The five elements of a contract are
1.an offer and acceptance
2.a meeting of the minds
3.consideration
4.lawful subject matter
5.competent parties
The concept of stare decisis means following precedent
T or F
T
In Agency, one party ________ authorizes another party _________ to represent the first party in certain specified business dealings with third parties
1. the principal
2. the agent
Unit price contracts are the most common type of contact used in the construction industry
T or F
F
List one limitation on who can be an agent
no limitations
Agency is not a fiduciary relationship
T or F
F
List three characteristics of an agent
1.Show complete loyalty
2.Act in good faith
3.obey instructions to the letter
Agency can be created by law, contract, ratification or estopel
T or F
T
Name two typical agents found on a construction site
1.Architectural design firm
2.member of engineering firm
A contract is:
(3)
1.an agreement
2.between 2 parties
3.enforceable by law
A contract is executed when it has been signed by both parties
T or F
F
An implied contract is one in which the terms of the agreement are clear, concise, explicit and definite.
T or F
F
Most construction contracts are not assignable unless expressly allowed in thee contract itself
T or F
F
Although the subcontractor has no direct link to the owner for the receipt of payment, he does have a direct link with regard to matters of acceptance of work
T or F
F
What is it that makes a Front-End document different from a contract document?
???????
What is one of the functions of the surety?
perform or to pay a specified amount of money if the principal does not perform
A Performance Bod ensures that the surety will pay the Contractor's bills for labor and materials in the event of the Contractor's default
T or F
F
If a subcontractor does not provide workers' compensation for its workers, the GC is often held responsible
T or F
T
An Advertisement for Bids is the required OFFER for the Owner to ACCEPT as the first part of a developing a contract
T or F
F
Insurance premiums are considered indirect expenditures
T or F
T
What does a bid bond guarantee?
(2)
1.bidder will enter into a contract
2.furnish Performance Bond and Payment Bond
What is the difference between Addenda and Modification?
Addenda are made during bidding phase, and Modifications are made during construction
The Bidding Documents are part of the Project Manual
T or F
T
Owners and their agents use bid bonds for what purpose?
Make sure bidder will enter into a contract and furnish Performace and Payment Bonds
Builder's Risk Insurance is insurances to cover the structure during construction
T or F
T
The General Contractor should require each of its Subcontractors to have surety bonds
T or F
T
The General Conditions are also known as "Boilerplate"
T or F
T
List three reporting services
1.AGC
2.Labor Builders Exchange
3.F.W Dodge Corp
List any four bid irregularities:
1.???
2.????
3.???
4.????
Key-Man Insurance is specified for each project by the Owner
T or F
F
The General Conditions document typically used by the owner is AIA Document A #______
201-1997
Surety Agents are paid a base salary regardless of whether a bond is issued
T or F
F
The Owner/Contractor agreement typically used by the owner is AIA Document A #_____
101-1997
Occurrence-based liability insurance coverage provides protection only for claims that are filed during the period when the policy is in effect
T or F
F
What does the Miller Act require?
Surety bonds of construction contractors on all federal and federally assisted projects
The General Contractor/Subcontractor agreement typically used by the GC is AIA Document A #_____
401-1997
The bid security should be 100% of the amount of the bid
T or F
F
The Owner determines which Surety Company the General Contractor must use.
T or F
F
Define Liquidated Damages
an agreement made at the drawing of contract describing cost to the contractor for each day exceeding contract time. Compensation to owner for financial loss due to delay.
Underwriting is the rating of the acceptability of risks being solicited
T or F
T
Under Performance Specifications, the specific methods and materials used to construct the product are specified by the Owner
T or F
F
List the three types of Surety Bonds used in the construction industry
1.Performance Bond
2.Bid Bond
3.Payment Bond
Why is "Time" almost always measured in calendar days?
Is used when time extensions are not generally anticipated for example adverse weather problems
Unless noted otherwise, monthly pay requests are assumed and are due the first day of each month
T or F
F
An Implied Warranty must be in writing
T or F
F
Cardinal Changes are changes which are not within the general scope of the contract and are thus not covered in typical changes clauses
T or F
T
What must the A/E verify each month if the contract is a Unit Price Contract?
What are the quantities of materials
For project close-out, the contractor must show the work meets the terms of the agreement by providing:
(4)
1.listing of items
2.requirement for AE final inspection
3.final billing
4.certificate of occupancy
A Maintenance Bond guarantees that the contractor will rectify defects in workmanship or materials for a specified time after project completion
T or F
T
The Final Payment is the last periodic payment made by the owner on the project
T or F
T
When a differing site condition provision exists, the primary point that the contractor must make is that the site conditions were not foreseeable and could not be reasonably known at the time of bidding
T or F
T
A Change Order must state:
(3)
1.the work being changed
2.adjustments to contract sum
3.adjustments to contract time
Define Substantial Completion
less than full completion, but the owner is able to occupy
Contractors are not allowed to initiate Change Orders
T or F
F
Why is the Contractor normally required to submit a schedule and to give periodic updates?
assures the Owner that the contractor can fulfill the terms of the contract in the allotted time
What is the basic difference between Express Warranty and Implied Warranty?
Implied - inferred warranty, doesn't guarantee that the project will meet specs
Express - written warranty, states that the contractor will repair or replace a product if it fails to meet specs
What is included in a punch list?
list of items that must be corrected before the project will be acceptable to the owner
The Retainage Payment is usually made at Substantial Completion
T or F
F
Change Orders are documents describing changes to the contract documents and are issued after execution of the agreement
T or F
T