Construction Law Exam 1 questions with correct answers

Why is it important for contractors to have a basic understanding of contract law? CORRECT ANSWER - Responsible for following the laws that guide society - Implementing the laws that have a direct impact on their profession - Obligated to protect the welfare of the public - Conduct business in a manner that is consistent with this standard - Understand whether the contract is addressing requirements of an engineering or construction project - Determine whether the contract favors the owner to the detriment of every other party Why would it be difficult for a construction professional who is not familiar with construction law to administer a contract as the owner's representative? CORRECT ANSWER They will not be responsible to determine if the project is being built per contract, plans, and specifications Why is a breach of contract the central focus of all of the parties to a contract? CORRECT ANSWER - The objective of any contract is to complete it on time and within the budget - If that is not completed, then the party responsible is in breach of the contract - Every party must focus on being in compliance with every clause Why do construction professionals need to understand what tort liability is, and how they might be affected by tort liability, while they are working at construction job sites? CORRECT ANSWER - This is the area of the law that addresses negligence