Lesson 10 - Construction Contract Administration

Question 1

AGENT

Answer 1

Is someone who is authorized to act on behalf of another party, the PRINCIPAL

Question 2

MECHANIC LIEN

Answer 2

is a legal claim against someone’s property

Question 3

BOND

Answer 3

Is essentially a Guarantee — the bonding company’s role being similar to that of a co-signer on a bank loan

Question 4

SUBROGATION

Answer 4

Is a procedure by which an insurance company, after it pays a loss to its insured, can attempt to recover this amount from some other party who may have actually caused the loss