NCE EXAM 2020 QUESTIONS WITH
VERIFIED ANSWERS
When making interpretations, the Architect will not show partiality to ______. - either the owner or the
contractor (be unbiased.)
Name a few items the contractor should submit to the owner, through the architect, during the pre-
construction phase of a design-bid-build project? - Certificate of req insurance, schedule of values, list of
proposed subcontractors...
CMc is the same as: - CM @ Risk (The CM uses available documentation to create a Guaranteed
Maximum Price, or GMP)
Define an "Addendum" - a modification to the contract documents issued for bid/negotiation. Addenda
can be issued any time before the owner-contractor agreement is executed, but are typically issued until
some predetermined time before the bid opening.
Define an "Allowance" - An amount of money, or quantity of materials identified by bidders for work that
is not completely defined in the procurement documents,
Define a "Bid Alternate" - A portion of the work definted in the procurement documents for which
separate pricing is to be identified in bidder's proposals. Alternates can be adds or deducts.
Define "Base Bid". - the construction cost proposed by a contractor for the full scope of the work
(without any alternates).
Define a "Payment Bond". - An amount of money guaranteeing that the contractor will pay
subcontractors, vendors, and suppliers for their work.
What is another name for a Payment Bond? - A "Labor and Materials" Bond.
What do Payment Bonds protect Owners from? - Payment Bonds protect Owners from potential
mechanic's liens and construction delays.
What is a Mechanic's Lien? - An encumbrance on a property in order to secure payment for the
performance of labor, or the furnishing of materials.
What is an Encumbrance? - An encumbrance is a claim against a property by a party that is not the
owner.
What is a "Performance Bond"? - A guarantee by a separate entity which ensures that, should the
contractor default during construction, there are sufficient funds to complete the project.
What is a privately funded project? - A project in which none of the funding is provided by a public
agency.
,What is the Project Delivery Method? - The manner in which the owner contracts for design and
construction services.
What is a Publicly Funded Project? - A project where a portion of the funding is provided by a public
entity, such as federal, state, or local government.
What is Qualifications-Based Selection (QBS)? - QBS is when the owner selects a contractor solely on the
basis of the contractor's qualifications.
What makes a bidder "Responsible"? - They demonstrate financial capacity to perform the work.
What makes a bid "Responsive"? - The bid satisfactorily completes all bidding requirements, including all
elements of the bid form.
What is a "Value-Based Selection" (VBS)? - VBS is when the owner selects a contractor based on the
weighted values of multiple criteria, including construction cost or fee and proposed schedule,a s well as
qualifications-based criteria such as past experience on similar projects and proposed personnel.
What is the "Spearin Gap"? - The difference between defect-free documents and the professional
standard of care.
The cost of document defects that fall within the professional standard of care are borne by the
________________. - Owner
Which bidder is selected to do the work in a Design-Bid-Build project delivery? - The responsible bidder
with the lowest responsive bid.
With the Design-Bid-Build project delivery method, the __________ carries all the Spearin Gap risk. -
Owner.
True or False: It is often possible for an owner to pre-qualify contractors before the bidding process. -
True
What is Multiple Prime contractors (MP)? - A variation of the Design-Bid-Build method in which more
than one prime contractor is selected through competitive bidding. For MP, separate bid packages are
prepared for the different contractors.
What are 3 reasons that an Owner would select Multiple Prime contractors (MP)? - 1. Some states
require publicly funded projects to have multiple prime contractors.
2. If schedule is an important factor for a publicly funded project that must be competitively bid, MP may
accelerate the schedule.
3. Some owners have the capacity to manage the work of multiple contractors.
Which contract is used for Multiple Prime contractors (MP)? - AIA A101, the same as in DBB.
What is Design-Negotiate-Bid (DNB)? - A variation of the DBB Method where the owner requests
proposals instead of bids to construct the work from one or more prospective contractors. This method
is not usually permitted for publicly funded projects. This method may help reduce Spearin Gap risks.
, The selection of a Construction Manager as Contstructor (CMc) is usually _______________ based. -
Qualifications
Use of a CMc can help mitigate __________________ risks. - Spearin Gap
Under a CMc, subcontractors can be selected either by ___________ or _________. - Qualifications
(Private) or Competitive Bidding (Public)
What contract is usually used for a CMc? - AIA A133
What nis na nDesign-Build nproject? n- nA nproject nwhere nthe nowner nhas none ncontract nfor nboth ndesign
nand nconstruction nservices.
A nDesign-Build nproject ncan nbe nperformed nby nwhat n4 ngroups? n- n1. nContractor-led nwith nan nArchitect
2. nArchitect-led nwith na ncontractor n
3. nAn nArchitect/Contractor nJV nspecific nto nthe nproject
4. nA nfirm nwith nboth nArchitecture nand nConstruction nCapabilities.
Under nthe nDesign-Build nmethod, nthe nowner nsheds nall n__________ nrisks. n- nSpearin nGap.
This nis nbecause nno noutside ndrawings nor nspecs nare ngiven nto nthe ngroup nperforming nthe nwork.
What nis nthe nstandard nAIA ncontract ndocument nfor nDesign-Build? n- nAIA nA141
What nis nBridging? n- nBridging nis nwhen nan nowner nhires nan narchitect nto nprepare ndesign ndocuments,
nand nthen nhands nthose ndocuments nover nto na nDesign-Build nteam. nThis nmay nincrease nSpearin nRisk
nfor nthe nOwner.
Bridging nis na nvariation nof nthe n_______ nproject ndelivery nmethod. n- nDesign-Build
What nare nthe ntwo nmain npros nto nthe nDesign-Build nmethod? n- n1. nOne ncontract nfor nboth ndesign nand
nconstruction
2. nReduced nrisk nof nschedule nand ncost noverruns.
Design-Builders ncan nbe nselected nbased non nboth n__________ nand n___________. n- nLowest
ncompetitive nbid nand nValue-based nselection.
Integrated nProject nDeliery n(IPD) nis nintended nto npromote n_________________. n- nThe ngreatest nlevel
nof nteam nintegration n(by nfocusing nless non nindividual ninterest nand nmore non nthe nproject ngoals.)
What nis nthe nstandard nAIA ncontract ndocument nfor nthe nIntegrated nProject nDelivery n(IPD) nmethod? n-
nAIA nA195
What n3 ncomponents nform nthe nProcurement nDocuments? n- n1. nProject nManual n(Agreements,
nConditions, n+ nSpecs)
2. nContract nDrawings
VERIFIED ANSWERS
When making interpretations, the Architect will not show partiality to ______. - either the owner or the
contractor (be unbiased.)
Name a few items the contractor should submit to the owner, through the architect, during the pre-
construction phase of a design-bid-build project? - Certificate of req insurance, schedule of values, list of
proposed subcontractors...
CMc is the same as: - CM @ Risk (The CM uses available documentation to create a Guaranteed
Maximum Price, or GMP)
Define an "Addendum" - a modification to the contract documents issued for bid/negotiation. Addenda
can be issued any time before the owner-contractor agreement is executed, but are typically issued until
some predetermined time before the bid opening.
Define an "Allowance" - An amount of money, or quantity of materials identified by bidders for work that
is not completely defined in the procurement documents,
Define a "Bid Alternate" - A portion of the work definted in the procurement documents for which
separate pricing is to be identified in bidder's proposals. Alternates can be adds or deducts.
Define "Base Bid". - the construction cost proposed by a contractor for the full scope of the work
(without any alternates).
Define a "Payment Bond". - An amount of money guaranteeing that the contractor will pay
subcontractors, vendors, and suppliers for their work.
What is another name for a Payment Bond? - A "Labor and Materials" Bond.
What do Payment Bonds protect Owners from? - Payment Bonds protect Owners from potential
mechanic's liens and construction delays.
What is a Mechanic's Lien? - An encumbrance on a property in order to secure payment for the
performance of labor, or the furnishing of materials.
What is an Encumbrance? - An encumbrance is a claim against a property by a party that is not the
owner.
What is a "Performance Bond"? - A guarantee by a separate entity which ensures that, should the
contractor default during construction, there are sufficient funds to complete the project.
What is a privately funded project? - A project in which none of the funding is provided by a public
agency.
,What is the Project Delivery Method? - The manner in which the owner contracts for design and
construction services.
What is a Publicly Funded Project? - A project where a portion of the funding is provided by a public
entity, such as federal, state, or local government.
What is Qualifications-Based Selection (QBS)? - QBS is when the owner selects a contractor solely on the
basis of the contractor's qualifications.
What makes a bidder "Responsible"? - They demonstrate financial capacity to perform the work.
What makes a bid "Responsive"? - The bid satisfactorily completes all bidding requirements, including all
elements of the bid form.
What is a "Value-Based Selection" (VBS)? - VBS is when the owner selects a contractor based on the
weighted values of multiple criteria, including construction cost or fee and proposed schedule,a s well as
qualifications-based criteria such as past experience on similar projects and proposed personnel.
What is the "Spearin Gap"? - The difference between defect-free documents and the professional
standard of care.
The cost of document defects that fall within the professional standard of care are borne by the
________________. - Owner
Which bidder is selected to do the work in a Design-Bid-Build project delivery? - The responsible bidder
with the lowest responsive bid.
With the Design-Bid-Build project delivery method, the __________ carries all the Spearin Gap risk. -
Owner.
True or False: It is often possible for an owner to pre-qualify contractors before the bidding process. -
True
What is Multiple Prime contractors (MP)? - A variation of the Design-Bid-Build method in which more
than one prime contractor is selected through competitive bidding. For MP, separate bid packages are
prepared for the different contractors.
What are 3 reasons that an Owner would select Multiple Prime contractors (MP)? - 1. Some states
require publicly funded projects to have multiple prime contractors.
2. If schedule is an important factor for a publicly funded project that must be competitively bid, MP may
accelerate the schedule.
3. Some owners have the capacity to manage the work of multiple contractors.
Which contract is used for Multiple Prime contractors (MP)? - AIA A101, the same as in DBB.
What is Design-Negotiate-Bid (DNB)? - A variation of the DBB Method where the owner requests
proposals instead of bids to construct the work from one or more prospective contractors. This method
is not usually permitted for publicly funded projects. This method may help reduce Spearin Gap risks.
, The selection of a Construction Manager as Contstructor (CMc) is usually _______________ based. -
Qualifications
Use of a CMc can help mitigate __________________ risks. - Spearin Gap
Under a CMc, subcontractors can be selected either by ___________ or _________. - Qualifications
(Private) or Competitive Bidding (Public)
What contract is usually used for a CMc? - AIA A133
What nis na nDesign-Build nproject? n- nA nproject nwhere nthe nowner nhas none ncontract nfor nboth ndesign
nand nconstruction nservices.
A nDesign-Build nproject ncan nbe nperformed nby nwhat n4 ngroups? n- n1. nContractor-led nwith nan nArchitect
2. nArchitect-led nwith na ncontractor n
3. nAn nArchitect/Contractor nJV nspecific nto nthe nproject
4. nA nfirm nwith nboth nArchitecture nand nConstruction nCapabilities.
Under nthe nDesign-Build nmethod, nthe nowner nsheds nall n__________ nrisks. n- nSpearin nGap.
This nis nbecause nno noutside ndrawings nor nspecs nare ngiven nto nthe ngroup nperforming nthe nwork.
What nis nthe nstandard nAIA ncontract ndocument nfor nDesign-Build? n- nAIA nA141
What nis nBridging? n- nBridging nis nwhen nan nowner nhires nan narchitect nto nprepare ndesign ndocuments,
nand nthen nhands nthose ndocuments nover nto na nDesign-Build nteam. nThis nmay nincrease nSpearin nRisk
nfor nthe nOwner.
Bridging nis na nvariation nof nthe n_______ nproject ndelivery nmethod. n- nDesign-Build
What nare nthe ntwo nmain npros nto nthe nDesign-Build nmethod? n- n1. nOne ncontract nfor nboth ndesign nand
nconstruction
2. nReduced nrisk nof nschedule nand ncost noverruns.
Design-Builders ncan nbe nselected nbased non nboth n__________ nand n___________. n- nLowest
ncompetitive nbid nand nValue-based nselection.
Integrated nProject nDeliery n(IPD) nis nintended nto npromote n_________________. n- nThe ngreatest nlevel
nof nteam nintegration n(by nfocusing nless non nindividual ninterest nand nmore non nthe nproject ngoals.)
What nis nthe nstandard nAIA ncontract ndocument nfor nthe nIntegrated nProject nDelivery n(IPD) nmethod? n-
nAIA nA195
What n3 ncomponents nform nthe nProcurement nDocuments? n- n1. nProject nManual n(Agreements,
nConditions, n+ nSpecs)
2. nContract nDrawings
