Test Bank for CM 2311- Questions Fully Solved Latest Update 2025-2026
What is a contract? - Answers Legally binding promise
What are the primary ingredients of a contract? - Answers Something of value must be exchanged,
mutual agreement between parties, capacity to understand the agreement, and the objects of the
contract must be lawful.
Why would it matter to a contractor if a project does not have the required building permits? - Answers
Because the project can be stopped due to it being unlawful. Which cost money and time due to the
delay
What does it mean to breach a contract? - Answers Breaching a contract is not upholding the promises
you made to another party that you had an agreement with.
You signed an agreement with a friend to build an addition on his house. He was drunk when he signed
the agreement. How might this cause problems if you ever have to take him to court for non-payment? -
Answers Because the friend didn't have the capacity to agree to any terms.
What is the primary distinguishing characteristic of the different contract types? - Answers Different
risks and payments
You are a contractor with a cost plus a fee contract and the project ends up costing $50,000 more than
the budget. What is the impact on you? - Answers The contractor would get more money than
anticipated due to the 5% fee coming out of actual cost, not the original cost.
What type of contract is riskiest for the contractor? Why? - Answers Lump sum contract.
What type of contract is generally used on small or formulaic projects? - Answers Lump sum contract.
How does guaranteed maximum price reduce an owner's risk? - Answers The max price allows for a
tight/fixed budget, which is less risky for the owner, because there won't be any surprise costs.
What is the difference between bid documents and contract documents? - Answers Bid documents have
bid forms, instructions to bidders, and bidder qualifications, but not change orders. Contract documents
have change orders.
What are included in contract documents? - Answers Agreement, drawings, specifications, general and
supplementary conditions, and modifications.
What is an agreement? - Answers Legally binds the parties, states terms of the project, and evidence of
mutual agreement.
Who is responsible for developing the bid documents? - Answers The owner of the project.
What are the general conditions? - Answers General conditions define the terms and conditions for a
project.
, On small projects, where might the general conditions be found? - Answers They may be written as
notes on the construction drawings.
Who is responsible for ensuring that the general conditions are included as part of the bid documents? -
Answers The owner, architect, and contractor.
Which construction document modifies the general conditions? - Answers Supplementary conditions are
used to modify or expand the general conditions.
Give a specific example of when supplementary conditions might be used. - Answers Supplementary
conditions might be used to change a contractor's project site responsibilities such as limiting the time
allowed for the project.
What are the specifications? - Answers The drawings are a graphic representation of a project that show
quantities of materials; they are insufficient alone for pricing and construction purposes.
What does the CSI stand for and what is it? - Answers Construction Specification Institute
How does the MasterFormat assist the contractor? - Answers MasterFormat helps the contractor by
breaking down the details of a project to be examined more closely.
What are four types of writing specifications and describe all of them? - Answers 1) Performance -
Identifies the ends to be achieved, but not how the ends are archived.
2) Descriptive - Provides product details without specifically mentioning a brand name.
3) Reference - Identifies a required standard such as ASTM, State of New York, Federal, and so on.
4) Proprietary. - Identifies the desired product by manufacturer, brand name, model, and so on.
How does a guaranteed maximum price reduce an owner's risk? - Answers The max price allows for a
tight/fixed budget, which is less risky for the owner, because there won't be any surprise costs.
What is the document that indicates the contractor can move onto the job site and begin work? -
Answers Notice to proceed
Why does it reduce a contractor's risk to begin construction only after receiving authorization from the
owner? - Answers Because if you start working before getting the notice to proceed from the owner,
you take the risk of not being reimbursed for start-up cost.
What purpose does insurance serve? - Answers It reduces the risk of loss or damages to the contractor,
to property, and to equipment from accidents.
What is the purpose of a job site layout plan? - Answers The purpose is to plan out the project to be able
to start work as soon as possible when awarded the bid.
What is a contract? - Answers Legally binding promise
What are the primary ingredients of a contract? - Answers Something of value must be exchanged,
mutual agreement between parties, capacity to understand the agreement, and the objects of the
contract must be lawful.
Why would it matter to a contractor if a project does not have the required building permits? - Answers
Because the project can be stopped due to it being unlawful. Which cost money and time due to the
delay
What does it mean to breach a contract? - Answers Breaching a contract is not upholding the promises
you made to another party that you had an agreement with.
You signed an agreement with a friend to build an addition on his house. He was drunk when he signed
the agreement. How might this cause problems if you ever have to take him to court for non-payment? -
Answers Because the friend didn't have the capacity to agree to any terms.
What is the primary distinguishing characteristic of the different contract types? - Answers Different
risks and payments
You are a contractor with a cost plus a fee contract and the project ends up costing $50,000 more than
the budget. What is the impact on you? - Answers The contractor would get more money than
anticipated due to the 5% fee coming out of actual cost, not the original cost.
What type of contract is riskiest for the contractor? Why? - Answers Lump sum contract.
What type of contract is generally used on small or formulaic projects? - Answers Lump sum contract.
How does guaranteed maximum price reduce an owner's risk? - Answers The max price allows for a
tight/fixed budget, which is less risky for the owner, because there won't be any surprise costs.
What is the difference between bid documents and contract documents? - Answers Bid documents have
bid forms, instructions to bidders, and bidder qualifications, but not change orders. Contract documents
have change orders.
What are included in contract documents? - Answers Agreement, drawings, specifications, general and
supplementary conditions, and modifications.
What is an agreement? - Answers Legally binds the parties, states terms of the project, and evidence of
mutual agreement.
Who is responsible for developing the bid documents? - Answers The owner of the project.
What are the general conditions? - Answers General conditions define the terms and conditions for a
project.
, On small projects, where might the general conditions be found? - Answers They may be written as
notes on the construction drawings.
Who is responsible for ensuring that the general conditions are included as part of the bid documents? -
Answers The owner, architect, and contractor.
Which construction document modifies the general conditions? - Answers Supplementary conditions are
used to modify or expand the general conditions.
Give a specific example of when supplementary conditions might be used. - Answers Supplementary
conditions might be used to change a contractor's project site responsibilities such as limiting the time
allowed for the project.
What are the specifications? - Answers The drawings are a graphic representation of a project that show
quantities of materials; they are insufficient alone for pricing and construction purposes.
What does the CSI stand for and what is it? - Answers Construction Specification Institute
How does the MasterFormat assist the contractor? - Answers MasterFormat helps the contractor by
breaking down the details of a project to be examined more closely.
What are four types of writing specifications and describe all of them? - Answers 1) Performance -
Identifies the ends to be achieved, but not how the ends are archived.
2) Descriptive - Provides product details without specifically mentioning a brand name.
3) Reference - Identifies a required standard such as ASTM, State of New York, Federal, and so on.
4) Proprietary. - Identifies the desired product by manufacturer, brand name, model, and so on.
How does a guaranteed maximum price reduce an owner's risk? - Answers The max price allows for a
tight/fixed budget, which is less risky for the owner, because there won't be any surprise costs.
What is the document that indicates the contractor can move onto the job site and begin work? -
Answers Notice to proceed
Why does it reduce a contractor's risk to begin construction only after receiving authorization from the
owner? - Answers Because if you start working before getting the notice to proceed from the owner,
you take the risk of not being reimbursed for start-up cost.
What purpose does insurance serve? - Answers It reduces the risk of loss or damages to the contractor,
to property, and to equipment from accidents.
What is the purpose of a job site layout plan? - Answers The purpose is to plan out the project to be able
to start work as soon as possible when awarded the bid.
