CON 496: Construction Contract Administration Exam
With A+ Graded Solutions 2026/2027
1. What is the primary purpose of the "General Conditions" in a construction contract?
A) To specify the brand of materials used.
B) To establish the legal relationship and responsibilities of all parties.
C) To provide a detailed schedule of the work.
D) To list the names of all subcontractors.
Correct Answer: B. General Conditions set the "rules of the game" for the project,
defining roles, dispute resolution, and payment terms.
2. Which document takes precedence if there is a conflict between the Specifications and the
Drawings?
A) The Drawings.
B) The Specifications.
C) The Agreement.
D) The most recent change order.
Correct Answer: C. Usually, the signed Agreement or a specific "Order of
Precedence" clause dictates this; however, in many standard forms, the
Specifications often override drawings for quality, while drawings override for
quantity.
3. What is a "Notice to Proceed" (NTP)?
A) A letter from the contractor stating they are finished.
B) A formal notification from the owner to the contractor to start work.
C) A request for more money.
D) A building permit from the city.
Correct Answer: B. The NTP officially starts the contract time clock.
4. What does "Retainage" refer to in progress payments?
A) Money paid to the contractor for early completion.
B) A percentage of earned money held back by the owner to ensure project
completion.
C) The cost of insurance.
D) Taxes paid to the government.
Correct Answer: B. Retainage provides the owner leverage to ensure the contractor
finishes the punch list and pays subcontractors.
,5. What is a "Schedule of Values"?
A) A list of the contractor's employees.
B) A breakdown of the contract sum into portions of the work for payment purposes.
C) A calendar of holidays.
D) A list of project milestones only.
Correct Answer: B. It serves as the basis for reviewing the contractor's monthly
applications for payment.
6. A "Change Order" must be signed by which parties?
A) Contractor and Subcontractor.
B) Owner and Architect/Engineer only.
C) Owner, Architect/Engineer, and Contractor.
D) The City Inspector.
Correct Answer: C. A Change Order is a bilateral agreement modifying the scope,
price, or time.
7. What is the difference between a "Change Order" and a "Construction Change Directive"
(CCD)?
A) There is no difference.
B) A CCD is used when there is not yet a total agreement on terms, but work must
proceed.
C) A CCD is only for decreasing the price.
D) Change Orders are only signed by the owner.
Correct Answer: B. A CCD allows the owner to order changes to keep the project
moving while costs are settled later.
8. What is "Substantial Completion"?
A) When the contractor leaves the site.
B) When the project is 50% finished.
C) When the work is sufficiently complete for the owner to occupy or use it for its
intended purpose.
D) When the final payment is made.
Correct Answer: C. This stage usually stops the clock on liquidated damages and
starts the warranty period.
9. What are "Liquidated Damages"?
A) Payments for water damage.
, B) A pre-agreed daily amount paid by the contractor for late completion.
C) The cost of cleaning the site.
D) Bonuses for finishing early.
Correct Answer: B. They represent a reasonable estimate of the owner's actual
losses for delays.
10. A "Lien Waiver" is used to:
A) Give a subcontractor the right to sue.
B) Relinquish the right to place a claim against the owner's property in exchange for
payment.
C) Extend the project schedule.
D) Approve a change in materials.
Correct Answer: B. Owners require these to ensure the property remains clear of
legal encumbrances.
11. What is the purpose of an RFI (Request for Information)?
A) To demand payment.
B) To clarify ambiguities or missing information in the contract documents.
C) To hire a new employee.
D) To report an accident.
Correct Answer: B. RFIs are the formal communication tool between the contractor
and the design team.
12. Who typically issues the "Certificate for Payment"?
A) The Owner.
B) The Contractor.
C) The Architect or Engineer.
D) The Bank.
Correct Answer: C. The design professional reviews the work in place and certifies
that the contractor is entitled to payment.
13. What is a "Punch List"?
A) A list of items to be fixed or completed before final payment.
B) A list of subcontractors.
C) The project schedule.
D) A safety violation report.
With A+ Graded Solutions 2026/2027
1. What is the primary purpose of the "General Conditions" in a construction contract?
A) To specify the brand of materials used.
B) To establish the legal relationship and responsibilities of all parties.
C) To provide a detailed schedule of the work.
D) To list the names of all subcontractors.
Correct Answer: B. General Conditions set the "rules of the game" for the project,
defining roles, dispute resolution, and payment terms.
2. Which document takes precedence if there is a conflict between the Specifications and the
Drawings?
A) The Drawings.
B) The Specifications.
C) The Agreement.
D) The most recent change order.
Correct Answer: C. Usually, the signed Agreement or a specific "Order of
Precedence" clause dictates this; however, in many standard forms, the
Specifications often override drawings for quality, while drawings override for
quantity.
3. What is a "Notice to Proceed" (NTP)?
A) A letter from the contractor stating they are finished.
B) A formal notification from the owner to the contractor to start work.
C) A request for more money.
D) A building permit from the city.
Correct Answer: B. The NTP officially starts the contract time clock.
4. What does "Retainage" refer to in progress payments?
A) Money paid to the contractor for early completion.
B) A percentage of earned money held back by the owner to ensure project
completion.
C) The cost of insurance.
D) Taxes paid to the government.
Correct Answer: B. Retainage provides the owner leverage to ensure the contractor
finishes the punch list and pays subcontractors.
,5. What is a "Schedule of Values"?
A) A list of the contractor's employees.
B) A breakdown of the contract sum into portions of the work for payment purposes.
C) A calendar of holidays.
D) A list of project milestones only.
Correct Answer: B. It serves as the basis for reviewing the contractor's monthly
applications for payment.
6. A "Change Order" must be signed by which parties?
A) Contractor and Subcontractor.
B) Owner and Architect/Engineer only.
C) Owner, Architect/Engineer, and Contractor.
D) The City Inspector.
Correct Answer: C. A Change Order is a bilateral agreement modifying the scope,
price, or time.
7. What is the difference between a "Change Order" and a "Construction Change Directive"
(CCD)?
A) There is no difference.
B) A CCD is used when there is not yet a total agreement on terms, but work must
proceed.
C) A CCD is only for decreasing the price.
D) Change Orders are only signed by the owner.
Correct Answer: B. A CCD allows the owner to order changes to keep the project
moving while costs are settled later.
8. What is "Substantial Completion"?
A) When the contractor leaves the site.
B) When the project is 50% finished.
C) When the work is sufficiently complete for the owner to occupy or use it for its
intended purpose.
D) When the final payment is made.
Correct Answer: C. This stage usually stops the clock on liquidated damages and
starts the warranty period.
9. What are "Liquidated Damages"?
A) Payments for water damage.
, B) A pre-agreed daily amount paid by the contractor for late completion.
C) The cost of cleaning the site.
D) Bonuses for finishing early.
Correct Answer: B. They represent a reasonable estimate of the owner's actual
losses for delays.
10. A "Lien Waiver" is used to:
A) Give a subcontractor the right to sue.
B) Relinquish the right to place a claim against the owner's property in exchange for
payment.
C) Extend the project schedule.
D) Approve a change in materials.
Correct Answer: B. Owners require these to ensure the property remains clear of
legal encumbrances.
11. What is the purpose of an RFI (Request for Information)?
A) To demand payment.
B) To clarify ambiguities or missing information in the contract documents.
C) To hire a new employee.
D) To report an accident.
Correct Answer: B. RFIs are the formal communication tool between the contractor
and the design team.
12. Who typically issues the "Certificate for Payment"?
A) The Owner.
B) The Contractor.
C) The Architect or Engineer.
D) The Bank.
Correct Answer: C. The design professional reviews the work in place and certifies
that the contractor is entitled to payment.
13. What is a "Punch List"?
A) A list of items to be fixed or completed before final payment.
B) A list of subcontractors.
C) The project schedule.
D) A safety violation report.
