CM 4211 Final Exam Study Questions Solved
100% Correct | Verified Solutions
Which of the following statements is true regarding the Louisiana Public Works Act? -
✔✔A lawsuit to enforce a claim must be filed within one year of the date of the
recordation of acceptance of the project by the Owner.
Which one of the following is not a red flag issue regarding purchase orders?
- The contractors financial statement
- Identifying information, such as the owner, contractor, project, and the seller
- Description of the materials being purchased
- Shipping instructions
- Pricing and basis of quantity measurement - ✔✔- The contractors financial statement
Which one of the following statements is true?
- A subcontractor solely controls when he does his work
- A subcontractor solely controls how he does his work
- The contractor solely controls when a subcontractor does his work
- The contractor solely controls how a subcontractor does his work
- The contactor never controls how a subcontractor does his work - ✔✔- The
contractor solely controls when a subcontractor does his work
Which one of the following statements is true regarding materials used in a construction
project? - ✔✔- "FOB construction site" means that ownership of the materials is
completed upon delivery to the construction site
Which of the following statements is false? - ✔✔- A 24-hour clause gives the right to
the contractor to change work required of a subcontractor after giving 24 hours notice
,Which one of the following statements is false?
- A "no-pay-until-paid" provision means that the contractor does not owe payment to a
subcontractor until the owner pays the contractor for the work done by the subcontractor
- If a "no-pay-until-paid" clause includes "conditions precedent" language, then the contractor
will not owe a subcontractor at all if the owner never pays the contractor for the work done by
the subcontractor
- "Flow down" language that means that if the contractor has to pay liquidated damages to
the owner for finishing late when the subcontractor caused the delay, then those liquidated
damages will be owed by the subcontractor to the contractor
- "Flow of contract" language means that other damages suffered by a contractor due to
delays caused by a subcontractor will be owed to the contractor by the subcontractor
- All of the above are true statements - ✔✔- All of the above are true statements
1. How much is the difference in workers compensation insurance premiums on $10 million of
base level payroll for Contractor A with an experience modifier of 1.10 versus Contractor B with
an experience modifier of .90? Assume that the average cost of the insurance is $15.00 per
$100 of payroll - ✔✔300,000
Which one of the following is a risk a contractor is not exposed to on a construction project?
a. The construction work itself
b. The health and safety of employees
c. Injury of property damage losses to third parties
d. Loss or damage to equipment
e. All of the above are risk - ✔✔All of the above are risk
Which one of the following statements is false?
a. Named peril builders risk insurance insures against loss for those risks or peril named in
the policy
, b. All risk builder's risk insurance protects against loss caused by any risk or peril subjected
to exclusions named in the policy
c. Builder's risk insurance covers the risk of damages to a third person caused by construction
d. Additional risk can be covered in a named peril policy by an endorsement or rider
e. An umbrella insurance policy is designed to raise the monetary limits of coverage
- ✔✔Builder's risk insurance covers the risk of damages to a third person caused
by construction
4. A public liability insurance policy covers what risk?
a. Construction operations at the project site
b. Ownership, operation, or use of the project site
c. Operations of subcontractors
d. None of the above
e. A,B, and C - ✔✔A,B, and C
5. In the insurance world, XCU stands for:
X-rays, critical care, umbrella coverage
Explosion, critical care, umbrella coverage
Explosion, construction accidents, umbrella coverage
Explosion, collapse, umbrella coverage
None of the above - ✔✔none of the above (explosion, collapse, underground)
6. Which one of the following is not one of the red flag insurance
provisions? Deductibles
100% Correct | Verified Solutions
Which of the following statements is true regarding the Louisiana Public Works Act? -
✔✔A lawsuit to enforce a claim must be filed within one year of the date of the
recordation of acceptance of the project by the Owner.
Which one of the following is not a red flag issue regarding purchase orders?
- The contractors financial statement
- Identifying information, such as the owner, contractor, project, and the seller
- Description of the materials being purchased
- Shipping instructions
- Pricing and basis of quantity measurement - ✔✔- The contractors financial statement
Which one of the following statements is true?
- A subcontractor solely controls when he does his work
- A subcontractor solely controls how he does his work
- The contractor solely controls when a subcontractor does his work
- The contractor solely controls how a subcontractor does his work
- The contactor never controls how a subcontractor does his work - ✔✔- The
contractor solely controls when a subcontractor does his work
Which one of the following statements is true regarding materials used in a construction
project? - ✔✔- "FOB construction site" means that ownership of the materials is
completed upon delivery to the construction site
Which of the following statements is false? - ✔✔- A 24-hour clause gives the right to
the contractor to change work required of a subcontractor after giving 24 hours notice
,Which one of the following statements is false?
- A "no-pay-until-paid" provision means that the contractor does not owe payment to a
subcontractor until the owner pays the contractor for the work done by the subcontractor
- If a "no-pay-until-paid" clause includes "conditions precedent" language, then the contractor
will not owe a subcontractor at all if the owner never pays the contractor for the work done by
the subcontractor
- "Flow down" language that means that if the contractor has to pay liquidated damages to
the owner for finishing late when the subcontractor caused the delay, then those liquidated
damages will be owed by the subcontractor to the contractor
- "Flow of contract" language means that other damages suffered by a contractor due to
delays caused by a subcontractor will be owed to the contractor by the subcontractor
- All of the above are true statements - ✔✔- All of the above are true statements
1. How much is the difference in workers compensation insurance premiums on $10 million of
base level payroll for Contractor A with an experience modifier of 1.10 versus Contractor B with
an experience modifier of .90? Assume that the average cost of the insurance is $15.00 per
$100 of payroll - ✔✔300,000
Which one of the following is a risk a contractor is not exposed to on a construction project?
a. The construction work itself
b. The health and safety of employees
c. Injury of property damage losses to third parties
d. Loss or damage to equipment
e. All of the above are risk - ✔✔All of the above are risk
Which one of the following statements is false?
a. Named peril builders risk insurance insures against loss for those risks or peril named in
the policy
, b. All risk builder's risk insurance protects against loss caused by any risk or peril subjected
to exclusions named in the policy
c. Builder's risk insurance covers the risk of damages to a third person caused by construction
d. Additional risk can be covered in a named peril policy by an endorsement or rider
e. An umbrella insurance policy is designed to raise the monetary limits of coverage
- ✔✔Builder's risk insurance covers the risk of damages to a third person caused
by construction
4. A public liability insurance policy covers what risk?
a. Construction operations at the project site
b. Ownership, operation, or use of the project site
c. Operations of subcontractors
d. None of the above
e. A,B, and C - ✔✔A,B, and C
5. In the insurance world, XCU stands for:
X-rays, critical care, umbrella coverage
Explosion, critical care, umbrella coverage
Explosion, construction accidents, umbrella coverage
Explosion, collapse, umbrella coverage
None of the above - ✔✔none of the above (explosion, collapse, underground)
6. Which one of the following is not one of the red flag insurance
provisions? Deductibles
