AIC CAC Exam Prep - 3 - Management
Concepts Questions And Answers
Mutual agreement -
correct answer ✅-offer and acceptance
offer -
correct answer ✅-proposed terms
acceptance -
correct answer ✅-unconditional agreement of terms
Capacity -
correct answer ✅-both parties must be legally competent and
authority to enter into a contract on their companies behalf
consideration -
correct answer ✅-promise of exchange in value from one party
for exchange of value by another party
-typically money for work completed
lawful -
correct answer ✅-must be fully legal
-illegal acts are not enforceable
, AIC CAC Exam Prep - 3 - Management
Concepts Questions And Answers
Main contract types in construction -
correct answer ✅-lump sum
-unit price
-cost plus
lump sum contract -
correct answer ✅-most common type of contract
-gives owner a single price
-CO's address changes in scope
-contractors profit is dependent on their ability to complete work
within the budget
-most risk for contractors
-lowest risk for owner
Unit price contractor -
correct answer ✅-fixed price per unit of work
-only for when exact qtys not known in advance
-includes all labor, mats, equip, ovhd, profit
-shared risk
Concepts Questions And Answers
Mutual agreement -
correct answer ✅-offer and acceptance
offer -
correct answer ✅-proposed terms
acceptance -
correct answer ✅-unconditional agreement of terms
Capacity -
correct answer ✅-both parties must be legally competent and
authority to enter into a contract on their companies behalf
consideration -
correct answer ✅-promise of exchange in value from one party
for exchange of value by another party
-typically money for work completed
lawful -
correct answer ✅-must be fully legal
-illegal acts are not enforceable
, AIC CAC Exam Prep - 3 - Management
Concepts Questions And Answers
Main contract types in construction -
correct answer ✅-lump sum
-unit price
-cost plus
lump sum contract -
correct answer ✅-most common type of contract
-gives owner a single price
-CO's address changes in scope
-contractors profit is dependent on their ability to complete work
within the budget
-most risk for contractors
-lowest risk for owner
Unit price contractor -
correct answer ✅-fixed price per unit of work
-only for when exact qtys not known in advance
-includes all labor, mats, equip, ovhd, profit
-shared risk
