CMGT Study Guide Exam 2 Questions & Answers 100% Accurate

A contract is a. Something of value given by one party to another in change for something else b. The ability of each party to have mutual agreement c. A legally binding agreement between both parties d. Never written down or documented - ANSWERc Issues that impact the choice of contract include all EXCEPT: Risk allocation The type of project The project's delivery method A breach of contract - ANSWERd a specified amount of work provided by the contractor for a set price known up front - ANSWERLump Sum Contract the owner reimburses the contractor for actual costs and pays a fee for overhead and profit - ANSWERCost Plus a Fee Contract the owner is invoiced for actual expenditures and reduces the owners risk - ANSWERCost Plus a Guaranteed Maximum Price Contract The contractor bids a fixed unit price and, at the completion of the job, the total quantities are determined and payment is made to the contractor based on actual quantities - ANSWERUnit Price Contract The bid documents and the contract documents include all except: Change orders Drawings TH General Conditions Addenda - ANSWERa Changes made to the work before the bids are submitted are called addenda - ANSWERTrue Signatures are not evidence of mutual agreement - ANSWERFalse Failure to complete a job on time can result in