Test Chapter 3_Contracts I Flashcards
The most common approach used by a prime contractor to hold its subcontractors to their initial bids is the doctrine of promissory estoppel. In order to bind a subcontractor to its bid price, the prime contractor must prove each of the following EXCEPT that the
Subcontractor’s bid was formally accepted by the prime contractor
Which type of specification in a construction contract is intended to invite the greatest amount of competition?
Open
Written or graphic instruments issued prior to the execution of a contract, which modify or interpret the bidding documents by additions, deletions, clarifications, or corrections, are generally referred to as
Addenda
What type of warranty is used to limit the manufacturer’s responsibility in a construction contract?
Material-only
Which of the following statements represents the most important difference between drawings and specifications?
Specifications segregate information in order to aid in forming subcontracts.
The usual fidelity bond arrangement used in construction contracts is used to protect the contractor against
Dishonest acts of an employee such as theft, forgery or embezzlement
Each of the following is a common purpose of an agreement in construction contract documents EXCEPT to
List the technical specifications that must be adhered to in the construction project
Which of the following is an Attribute that might be considered for the ceiling subsystem in a performance specification?
Fire safety
Of the following types of hold-harmless clauses, ________ indemnification used in construction contracts indemnifies the owner and/or architect engineer even when the party indemnified is solely responsible for the loss.
Broad-form
Unit kitchens are an item that would be described under the _____ Division heading in the CSI Masterformat of specifications.
Equipment
Which of the following information is usually described in contract specifications?
Test and code requirements
The PRIMARY advantage associated with unit-price construction contracts is
Open competition on projects involving quantities of work that cannot be accurately forecast at the time of bidding or negotiation
Which of the following information is usually shown on drawings?
Interrelation of materials, equipment and space
Which of the following is/are typical purposes of a changed-condition clause in a construction contract?
I. To protect the owner from unforeseen increases in project costs
II. To reduce the contractor’s liability for the unexpected
III. To alleviate the need for including large contingency sums in the bid
II, III
In construction contracts, a special warranty most frequently applies to the work of a(n)
Subcontractor
The MAIN advantage associated with the use of bid bonds as security for submitted proposals is that they
don’t immobilize appreciable sums of a contractor’s money
Under most statutes governing contract law, a prime contractor may be relieved from its bid at any time after the opening of bids by the DOCTRINE OF MISTAKE. Which of the following are conditions that would support an argument for applying the doctrine of mistake?
I. Mistake relates to a material feature of the contract
II. Mistake is one of judgement, rather than fact
III. Owner is put in a status quo position, to the extent that he suffers no serious prejudice except the loss of his bargain
IV. Mistake is of a mechanical or clerical nature
I, III, IV
Which of the following is NOT typically a disadvantage associated with the use of retainage arrangements in construction contracts?
Tends to sacrifice workmanship for speed of completion
What is the term for a detailed compilation of the quantity of each elementary work item that is called for on the project?
Takeoff
Which of the following is NOT one of the general types of specifications used in construction contracts?
Surety
When negotiating a cost-plus contract, the owner and contractor must pay particular attention to each of the following considerations EXCEPT
The number of work units to be performed in executing the project
According to construction contract law, what is the term for a promise by a party called the guarantor to make good the mistake, debt, or default of another party?
Guaranty
In a technical section that has been written according to the CSI standard format, which of the following descriptions would be sequenced FIRST?
Summary
In a construction contract, addendum changes to __________ are typically sequenced first.
Prior addenda
Which of the following is typically added to a construction contract as a means of providing financial protection to a contractor?
I. Value engineering clause
II. Escalation clause
III. Escape clause
II, III
