Construction Law - Final Exam Questions With Complete Solutions
What is the most complicated time-related issue in a construction project? - (ANSWER)Delayed
performance
What are the three categories of delays? - (ANSWER)1. The cause of the delay.
2. Whether the delay is excusable or non-excusable.
3. Whether the delay is compensable or non-compensable.
What are the two categories for remedies for delay? - (ANSWER)1. *The party who has been delayed
may seek relief from its obligation* to perform by a particular time.
2. *Contractor may claim compensation* based on an increase in its anticipated spending *because
events occurred that delayed its performance*.
What are the primary purposes of a force majeure clause? - (ANSWER)Relieve the contractor from the
risk of events which it has no control.
What are four questions that must be asked in evaluating a delay claim in which CPM {Critical Path
Method} is going to be employed? - (ANSWER)1. How was the project actually constructed?
2. What are the differences between the project as planned and as constructed?
3. What are the causes of the differences or variations between the project as planned and the actual
performance?
4. What are the effects of the variances as they relate to the costs experienced both by the contractor
and by the owner?
If a contractor has a time extension that is justified, how is the amount of time determined? -
(ANSWER)Project schedule coupled with an analysis of any float
, Construction Law - Final Exam Questions With Complete Solutions
What is the damage formula? - (ANSWER)Value of the lost use of the project caused by the delay
What are the five elements a contractor must prove to establish construction acceleration? -
(ANSWER)1. The contractor experienced a delay and is entitled to an extension.
2. The contractor properly requests a time extension.
3. The owner denies the time extension.
4. The owner demands completion by the original completion date.
5. The contractor incurs reasonable increased costs caused by its acceleration.
What is the purpose of a liquidated damages clause? - (ANSWER)Compensate an owner for the
contractor's unexcused delay.
What are the three elements a contractor must prove in order to establish an early completion claim? -
(ANSWER)1. Intended to complete early.
2. Had the capacity to complete early.
3. Would have completed early but Delay caused by the owner.
Line Item Retention - (ANSWER)Gives the subcontractor the right to be paid after it has fully performed.
(Subs want line item retainage)
What is the principal reason for a "flow-through" or conduit clause? - (ANSWER)*Ensure that
subcontractors commit themselves to the performance requirements of the prime contract. *
(Put the sub under the same provisions as the GC is to the owner)
What is the most complicated time-related issue in a construction project? - (ANSWER)Delayed
performance
What are the three categories of delays? - (ANSWER)1. The cause of the delay.
2. Whether the delay is excusable or non-excusable.
3. Whether the delay is compensable or non-compensable.
What are the two categories for remedies for delay? - (ANSWER)1. *The party who has been delayed
may seek relief from its obligation* to perform by a particular time.
2. *Contractor may claim compensation* based on an increase in its anticipated spending *because
events occurred that delayed its performance*.
What are the primary purposes of a force majeure clause? - (ANSWER)Relieve the contractor from the
risk of events which it has no control.
What are four questions that must be asked in evaluating a delay claim in which CPM {Critical Path
Method} is going to be employed? - (ANSWER)1. How was the project actually constructed?
2. What are the differences between the project as planned and as constructed?
3. What are the causes of the differences or variations between the project as planned and the actual
performance?
4. What are the effects of the variances as they relate to the costs experienced both by the contractor
and by the owner?
If a contractor has a time extension that is justified, how is the amount of time determined? -
(ANSWER)Project schedule coupled with an analysis of any float
, Construction Law - Final Exam Questions With Complete Solutions
What is the damage formula? - (ANSWER)Value of the lost use of the project caused by the delay
What are the five elements a contractor must prove to establish construction acceleration? -
(ANSWER)1. The contractor experienced a delay and is entitled to an extension.
2. The contractor properly requests a time extension.
3. The owner denies the time extension.
4. The owner demands completion by the original completion date.
5. The contractor incurs reasonable increased costs caused by its acceleration.
What is the purpose of a liquidated damages clause? - (ANSWER)Compensate an owner for the
contractor's unexcused delay.
What are the three elements a contractor must prove in order to establish an early completion claim? -
(ANSWER)1. Intended to complete early.
2. Had the capacity to complete early.
3. Would have completed early but Delay caused by the owner.
Line Item Retention - (ANSWER)Gives the subcontractor the right to be paid after it has fully performed.
(Subs want line item retainage)
What is the principal reason for a "flow-through" or conduit clause? - (ANSWER)*Ensure that
subcontractors commit themselves to the performance requirements of the prime contract. *
(Put the sub under the same provisions as the GC is to the owner)
