Test Chapter 4_Contracts II Flashcards
Changes in the general conditions of a contract are expressed in the form of
Supplementary conditions
The listing of subcontractors is often troublesome for contractors when it comes to bidding on projects with
Alternates
Of the following, it is NOT a typical right assigned to an owner under the terms of a construction contract to
Intervene in the direction and control of the work
In most states, oral purchase agreements are NOT enforceable when
The price of goods is $500 or more
Which of the following elements of a project manual is NOT usually included under the Sample Forms heading?
Supplementary conditions
As part of a construction contract, a retainage arrangement can substantially serve an owner in each of the following ways EXCEPT
Protection against breach of contract
In general, the submission of qualified bids by a contractor is not permissible in public bidding because it
Will make the bid subject to rejection
Which of the following bonds is given by a self-insured contractor to the state to guarantee payment of statutory benefits to injured employees
Workman’s compensation bond
The divisions of the CSI Masterformat of specifications are based on four major categories. which of the following is NOT one of the categories?
Levels of specialization
On construction contract law, what is the term for a promise that certain facts are true as represented and will remain so?
Warranty
An owner may occasionally want a contractor to start construction operations before the formalities associated with the signing of the contract can be completed. In this case, a(n) _________ should be conveyed to authorize the start of work.
Letter of intent
In performance specifying, the term “criterion” refers to a(n)
Quantitative statement of desired performance
A construction contract may be terminated on the grounds of the doctrine of IMPOSSIBILITY of performance. Which of the following would be most likely to be interpreted as constituting impossibility of performance?
Unexpected site conditions found that make the construction impracticable.
What type of specification is most commonly used for public work?
Open
Which of the following contracts is NOT typically defined in a contractual liability insurance policy that is included in a construction contract?
Hold-harmless agreements
Which type of specification is most commonly used for public work?
Open
For a contractor, the main disadvantage associated with lump-sum contracts is that
adverse changes in the contractor’s project costs will not be compensated.
When a bidder’s list of substitutions is used in the specifications of a construction contract, each of the following is generally true EXCEPT
it is the best method for achieving pure competition
In a(n) _____ contract, it is especially important that the work must be of such a nature that it can be fairly well-defined and a reasonably good estimate of cost can be approximated at the time of negotiations.
cost-plus-fixed-fee
In a typical surety bond arrangement written into a construction contract, the principal is the
Contractor
When several prime contracts are desired in a construction project, the limits of each prime contract will usually be established in the
Specifications
Under the terms of a liquidated damages bid bond, the surety agrees to pay the _____ as damages for a contractor’s default on a bid.
Entire bond amount
Which of the following descriptions in a technical section would appear in Part 3, according to the CSI standard format?
Installation
Before a contract award is made, the bids must be carefully studied and evaluated by the owner and architect-engineer, a process which is typically referred to as
Canvassing
On small projects, office functions are usually carried out in a contractor’s main office and particular items of office overhead are difficult to establish. If the contractor is working on such a project on a cost-plus basis, it is common practice to
eliminate office overhead altogether as a reimbursed cost and increase the contractor’s fee by a reasonable amount.
In the absence of any clause in a construction contract that addresses the point of excusable delay by a contractor, the contractor may only expect relief from delays with specified causes. Which of the following is NOT one of the causes?
The law
