Test Chapter 4_Contracts II

Question 1

Changes in the general conditions of a contract are expressed in the form of

Answer 1

Supplementary conditions

Question 2

The listing of subcontractors is often troublesome for contractors when it comes to bidding on projects with

Answer 2

Alternates

Question 3

Of the following, it is NOT a typical right assigned to an owner under the terms of a construction contract to

Answer 3

Intervene in the direction and control of the work

Question 4

In most states, oral purchase agreements are NOT enforceable when

Answer 4

The price of goods is $500 or more

Question 5

Which of the following elements of a project manual is NOT usually included under the Sample Forms heading?

Answer 5

Supplementary conditions

Question 6

As part of a construction contract, a retainage arrangement can substantially serve an owner in each of the following ways EXCEPT

Answer 6

Protection against breach of contract

Question 7

In general, the submission of qualified bids by a contractor is not permissible in public bidding because it

Answer 7

Will make the bid subject to rejection

Question 8

Which of the following bonds is given by a self-insured contractor to the state to guarantee payment of statutory benefits to injured employees

Answer 8

Workman’s compensation bond

Question 9

The divisions of the CSI Masterformat of specifications are based on four major categories. which of the following is NOT one of the categories?

Answer 9

Levels of specialization

Question 10

On construction contract law, what is the term for a promise that certain facts are true as represented and will remain so?

Answer 10

Warranty

Question 11

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.

Answer 11

Letter of intent

Question 12

In performance specifying, the term “criterion” refers to a(n)

Answer 12

Quantitative statement of desired performance

Question 13

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?

Answer 13

Unexpected site conditions found that make the construction impracticable.

Question 14

What type of specification is most commonly used for public work?

Answer 14

Open

Question 15

Which of the following contracts is NOT typically defined in a contractual liability insurance policy that is included in a construction contract?

Answer 15

Hold-harmless agreements

Question 16

Which type of specification is most commonly used for public work?

Answer 16

Open

Question 17

For a contractor, the main disadvantage associated with lump-sum contracts is that

Answer 17

adverse changes in the contractor’s project costs will not be compensated.

Question 18

When a bidder’s list of substitutions is used in the specifications of a construction contract, each of the following is generally true EXCEPT

Answer 18

it is the best method for achieving pure competition

Question 19

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.

Answer 19

cost-plus-fixed-fee

Question 20

In a typical surety bond arrangement written into a construction contract, the principal is the

Answer 20

Contractor

Question 21

When several prime contracts are desired in a construction project, the limits of each prime contract will usually be established in the

Answer 21

Specifications

Question 22

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.

Answer 22

Entire bond amount

Question 23

Which of the following descriptions in a technical section would appear in Part 3, according to the CSI standard format?

Answer 23

Installation

Question 24

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

Answer 24

Canvassing

Question 25

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

Answer 25

eliminate office overhead altogether as a reimbursed cost and increase the contractor’s fee by a reasonable amount.

Question 26

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?

Answer 26

The law