CEM 100 QUESTIONS AND ANSWERS
WITH SOLUTIONS 2024
Concerning a construction contract dispute where there is a CONFLICT BETWEEN DRAWING &
SPECIFICATION & interpretations hierarchy is not spelled out anywhere else in the contract documents,
from construction industry past practice, the governing doc. would be the ___. - ANSWER specifications
___ are used as a penalty for LATE COMPLETION & is used in LIEU of a determination of actual DAMAGES
suffered by the owner. - ANSWER liquidated damages
In order to have a VALID CONTRACT, IT MUST HAVE ALL of the following essential elements except ___.
-THESE ARE ALL - ANSWER - offer & acceptance of the offer (effectively agreement)
- the contract must not be contrary to the public policy
- a price paid (not necessarily money)
- there must be genuineness, proper understanding & consent of what is involved by the parties to the
terms of the contract
In construction contracts, the typical WARRANTY PERIOD is ___. - ANSWER 1 year
In the enforcement of construction contracts, ___ or more technically referred to as the equitable
remedy of ___ is in SPECIAL circumstances where by the court may order the CONTRACT-BREAKER to
carry out his contractual promises PRECISELY. An example of ___ is a home builder who had a house
under contract w/ 1 buyer to sell @ 1 price upon completion but then the market took off (LV Hot Real
Estate Market Ex 03-05) & then tried to back out of the sale. The court in this case who compel ___. -
ANSWER specific performance
Concerning project documentation, GOOD DOCUMENTATION must be all of these except:
- complete
- objective
- credible
- accurate
- uniform - ANSWER untimely
, The ___ clause in a construction contract refers to some physical aspect of the project that is materially
DIFFERENT from that indicated by the contract documents, or that is of an UNUSUAL NATURE & is
materially different from the conditions normally encountered. - ANSWER differing site conditions
Concerning construction disputes, the cost of disputes as time goes on will have costs escalate & as more
people get involved these costs will also escalate. Therefore to control costs we want to RESOLVE
DISPUTES quickly. Techniques for quickly resolving disputes such as by ARBITRATION & mediation are
referred to as ___. - ANSWER alternative dispute resolution
Time is an important element in the performance of most construction contracts. In the construction
contract documents, contained is usually a statement in the contract documents that "TIME IS OF THE
ESSENCE" related to the contractor's performance of the project. This statement would typically be
found in the ____. - ANSWER general conditions
CONDITIONS in the contract documents that provide information that is specific to a project
IMMEDIATELY FOLLOWS the general condition in the industry as - ANSWER supplementary conditions
Should the contractor fail to complete the work within the time specified in the contract, the owner will
often incur hardship and expense because of these construction delays. Because actual DAMAGES for
delay are difficult to determine with exactness, it is common practice then in construction contracts to
provide that the contractor pay the owner a fixed sum of money for each calendar day of delay in
satisfactory completion. This assessment against the contractor is known as __________ and is used in
LIEU of determination of the actual damages suffered. - ANSWER liquidated damages
Concerning subcontractors, normally, the general contractor will include in its subcontract agreements
express provisions that the subcontractor is bound to the prime contractor to the same extent that the
prime contractor is bound to the owner by the terms of the PRIME CONTRACT. Provisions of this kind are
commonly referred to as __________. - ANSWER pass-through clauses
Concerning the duties and AUTHORITY OF ARCHITECT ENGINEER, during project construction, these
would include all of the following except __________.
- oversee the progress of the work
- right to stop the project to correct unsatisfactory contractor work
- approval of materials - ANSWER responsibility for contractor work methods
WITH SOLUTIONS 2024
Concerning a construction contract dispute where there is a CONFLICT BETWEEN DRAWING &
SPECIFICATION & interpretations hierarchy is not spelled out anywhere else in the contract documents,
from construction industry past practice, the governing doc. would be the ___. - ANSWER specifications
___ are used as a penalty for LATE COMPLETION & is used in LIEU of a determination of actual DAMAGES
suffered by the owner. - ANSWER liquidated damages
In order to have a VALID CONTRACT, IT MUST HAVE ALL of the following essential elements except ___.
-THESE ARE ALL - ANSWER - offer & acceptance of the offer (effectively agreement)
- the contract must not be contrary to the public policy
- a price paid (not necessarily money)
- there must be genuineness, proper understanding & consent of what is involved by the parties to the
terms of the contract
In construction contracts, the typical WARRANTY PERIOD is ___. - ANSWER 1 year
In the enforcement of construction contracts, ___ or more technically referred to as the equitable
remedy of ___ is in SPECIAL circumstances where by the court may order the CONTRACT-BREAKER to
carry out his contractual promises PRECISELY. An example of ___ is a home builder who had a house
under contract w/ 1 buyer to sell @ 1 price upon completion but then the market took off (LV Hot Real
Estate Market Ex 03-05) & then tried to back out of the sale. The court in this case who compel ___. -
ANSWER specific performance
Concerning project documentation, GOOD DOCUMENTATION must be all of these except:
- complete
- objective
- credible
- accurate
- uniform - ANSWER untimely
, The ___ clause in a construction contract refers to some physical aspect of the project that is materially
DIFFERENT from that indicated by the contract documents, or that is of an UNUSUAL NATURE & is
materially different from the conditions normally encountered. - ANSWER differing site conditions
Concerning construction disputes, the cost of disputes as time goes on will have costs escalate & as more
people get involved these costs will also escalate. Therefore to control costs we want to RESOLVE
DISPUTES quickly. Techniques for quickly resolving disputes such as by ARBITRATION & mediation are
referred to as ___. - ANSWER alternative dispute resolution
Time is an important element in the performance of most construction contracts. In the construction
contract documents, contained is usually a statement in the contract documents that "TIME IS OF THE
ESSENCE" related to the contractor's performance of the project. This statement would typically be
found in the ____. - ANSWER general conditions
CONDITIONS in the contract documents that provide information that is specific to a project
IMMEDIATELY FOLLOWS the general condition in the industry as - ANSWER supplementary conditions
Should the contractor fail to complete the work within the time specified in the contract, the owner will
often incur hardship and expense because of these construction delays. Because actual DAMAGES for
delay are difficult to determine with exactness, it is common practice then in construction contracts to
provide that the contractor pay the owner a fixed sum of money for each calendar day of delay in
satisfactory completion. This assessment against the contractor is known as __________ and is used in
LIEU of determination of the actual damages suffered. - ANSWER liquidated damages
Concerning subcontractors, normally, the general contractor will include in its subcontract agreements
express provisions that the subcontractor is bound to the prime contractor to the same extent that the
prime contractor is bound to the owner by the terms of the PRIME CONTRACT. Provisions of this kind are
commonly referred to as __________. - ANSWER pass-through clauses
Concerning the duties and AUTHORITY OF ARCHITECT ENGINEER, during project construction, these
would include all of the following except __________.
- oversee the progress of the work
- right to stop the project to correct unsatisfactory contractor work
- approval of materials - ANSWER responsibility for contractor work methods
