CM 4211 STUDY GUIDE 2025/2026 QUESTIONS WITH
ANSWERS TAGGED A+
✔✔When a subcontractor provides a bond, the prime contractor is the principal - ✔✔All
of the following statements are true, except one. Which one?
✔✔E. None of the above - ✔✔The miller act:
A. Is a federal pre qualification list of contractors
B. Requires contractors to use disadvantaged business enterprises
C. Requires performance and payment bonds on state projects
D. A, B, and C
E. None of the above
✔✔A material supplier to a sub contractor - ✔✔The miller act does not cover
✔✔Surveyors are not covered by this act - ✔✔All of the following statements regarding
the Louisiana Private Works Act are true, except one. Which one?
✔✔In the courthouse of the parish where the project property is located - ✔✔Where
does a claimant record his written and signed claim in order to get a lien under the
Louisiana private works act?
✔✔Owners - ✔✔All of the following entities are included in the priority ranks under the
louisiana private works act, except one. Which one?
✔✔$150,000 - ✔✔How much is the difference in workers comp. insurance premiums on
$5 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 the average cost of the
insurance is $15.00 per $100 of payroll
✔✔Avoid all risky situations - ✔✔All of the following are steps a construction company
can follow in applying risk management to its business, except one. Which one?
✔✔Health - ✔✔All of the following are typical policies required in a construction
contract, except one. Which one?
✔✔E. A, B, and C - ✔✔A public liability insurance policy covers what risks?
A. Construction operations at the project site
B. Expose to third - party injury or damage claims
C. Operations of subcontractors
D. None of the above
E. A, B, and C
,✔✔Explosion, collapse, underground - ✔✔In the insurance world, XCU stands for?
✔✔Builder's risk insurance covers the owner for damages to his personal property -
✔✔All of the following statements are true, except one. Which one?
✔✔D. B and C - ✔✔Which one of the following does a typical builder risk policy cover?
A. Equipment stored in a temp. structure
B. Materials stored in a temporary structure
C. The temporary structure itself
D. B and C
E. A, B, and C
✔✔Subcontract clause - ✔✔Which one of the following is not one of the six red flag
insurance provisions?
✔✔Lump-sum estimates are applicable when the bidding documents are not well
defined - ✔✔All of the following statements are true, except one. Which one?
✔✔E. All of the above are true - ✔✔All of the following statements are true, except one.
Which one?
A. A lump sum cost summary is done for each major work classification
B. A unit-price cost summary is done for each bid item
C. Wage rates must be considered in calculating direct labor costs
D. Production rates must be considered in calculating direct labor costs
E. All of the above are true
✔✔Taxes - ✔✔All of the following are ownership expenses involving equipment except
for one. Which one?
✔✔office rent - ✔✔all of the following are typical items included in project overhead,
except one. Which one?
✔✔A modification to the bidding documents formally issued by the owner to all entities
after opening the bids - ✔✔What is an addendum?
✔✔Each of the above is one of the five requirements - ✔✔All of the following are broad
requirements of the federal construction contract procurement policy, except one. Which
one?
✔✔A complete, signed set of forms in accordance with the bid instructions, in full
conformance with the bid document requirements, without additions or alterations -
✔✔What does it mean for a bid to be considered responsive?
, ✔✔For the bidder to have sufficient technical and managerial skills and history, and the
financial capability and integrity to perform the work - ✔✔What does it mean for a bidder
to be considered responsible?
✔✔Failure to sign the bid - ✔✔Which one of the following bid irregularities will always
be considered a major irregularity?
✔✔Low bidder is deemed to be responsible - ✔✔All of the following are reasons a
public entity can use to reject all bids, except one? Which one?
✔✔E. Both B and C - ✔✔Regarding mistakes in bids, what is the firm bid rule?
A. When a contractor submits a bid, it must be signed by the President of the firm
B. The project will be constructed for the bid price without exception
C. The bid amount is fixed and not subject to negotiation
D. Provided that the compaction of the project soil is firm, there will be no changes to
the bid price
E. Both B and C
✔✔A party should not be unjustly enriched, and there was no meeting of the minds -
✔✔Under the doctrine of mistake, a contractor who has a mistake in his bid must be
relieved of the duty to perform and/or allowed to correct the mistake and still be
awarded the contract. What are the two reasons for this doctrine?
✔✔It must be capable of subjective determination - ✔✔All of the following are tests that
must be present in order for a contractor to withdraw the bid, except one. Which one?
✔✔Reliance was unreasonable - ✔✔All of the following are necessary elements to
recover damages under the doctrine of promissory estoppel, except one. Which one?
✔✔Defective plans followed by the contractor - ✔✔A contractor is liable for destruction
of a project until it is accepted, with one exception. Which one of the following is the
exception?
✔✔When the project can be used by the owner for its intended purpose - ✔✔When is
substantial performance achieved?
✔✔Damages are owed from the moment of the passive breach - ✔✔All of the following
statements regarding Louisiana law are true, except one. Which one?
✔✔When a party threatens to do something that would be a breach of contract if carried
out - ✔✔What is an anticipatory breach of contract?
ANSWERS TAGGED A+
✔✔When a subcontractor provides a bond, the prime contractor is the principal - ✔✔All
of the following statements are true, except one. Which one?
✔✔E. None of the above - ✔✔The miller act:
A. Is a federal pre qualification list of contractors
B. Requires contractors to use disadvantaged business enterprises
C. Requires performance and payment bonds on state projects
D. A, B, and C
E. None of the above
✔✔A material supplier to a sub contractor - ✔✔The miller act does not cover
✔✔Surveyors are not covered by this act - ✔✔All of the following statements regarding
the Louisiana Private Works Act are true, except one. Which one?
✔✔In the courthouse of the parish where the project property is located - ✔✔Where
does a claimant record his written and signed claim in order to get a lien under the
Louisiana private works act?
✔✔Owners - ✔✔All of the following entities are included in the priority ranks under the
louisiana private works act, except one. Which one?
✔✔$150,000 - ✔✔How much is the difference in workers comp. insurance premiums on
$5 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 the average cost of the
insurance is $15.00 per $100 of payroll
✔✔Avoid all risky situations - ✔✔All of the following are steps a construction company
can follow in applying risk management to its business, except one. Which one?
✔✔Health - ✔✔All of the following are typical policies required in a construction
contract, except one. Which one?
✔✔E. A, B, and C - ✔✔A public liability insurance policy covers what risks?
A. Construction operations at the project site
B. Expose to third - party injury or damage claims
C. Operations of subcontractors
D. None of the above
E. A, B, and C
,✔✔Explosion, collapse, underground - ✔✔In the insurance world, XCU stands for?
✔✔Builder's risk insurance covers the owner for damages to his personal property -
✔✔All of the following statements are true, except one. Which one?
✔✔D. B and C - ✔✔Which one of the following does a typical builder risk policy cover?
A. Equipment stored in a temp. structure
B. Materials stored in a temporary structure
C. The temporary structure itself
D. B and C
E. A, B, and C
✔✔Subcontract clause - ✔✔Which one of the following is not one of the six red flag
insurance provisions?
✔✔Lump-sum estimates are applicable when the bidding documents are not well
defined - ✔✔All of the following statements are true, except one. Which one?
✔✔E. All of the above are true - ✔✔All of the following statements are true, except one.
Which one?
A. A lump sum cost summary is done for each major work classification
B. A unit-price cost summary is done for each bid item
C. Wage rates must be considered in calculating direct labor costs
D. Production rates must be considered in calculating direct labor costs
E. All of the above are true
✔✔Taxes - ✔✔All of the following are ownership expenses involving equipment except
for one. Which one?
✔✔office rent - ✔✔all of the following are typical items included in project overhead,
except one. Which one?
✔✔A modification to the bidding documents formally issued by the owner to all entities
after opening the bids - ✔✔What is an addendum?
✔✔Each of the above is one of the five requirements - ✔✔All of the following are broad
requirements of the federal construction contract procurement policy, except one. Which
one?
✔✔A complete, signed set of forms in accordance with the bid instructions, in full
conformance with the bid document requirements, without additions or alterations -
✔✔What does it mean for a bid to be considered responsive?
, ✔✔For the bidder to have sufficient technical and managerial skills and history, and the
financial capability and integrity to perform the work - ✔✔What does it mean for a bidder
to be considered responsible?
✔✔Failure to sign the bid - ✔✔Which one of the following bid irregularities will always
be considered a major irregularity?
✔✔Low bidder is deemed to be responsible - ✔✔All of the following are reasons a
public entity can use to reject all bids, except one? Which one?
✔✔E. Both B and C - ✔✔Regarding mistakes in bids, what is the firm bid rule?
A. When a contractor submits a bid, it must be signed by the President of the firm
B. The project will be constructed for the bid price without exception
C. The bid amount is fixed and not subject to negotiation
D. Provided that the compaction of the project soil is firm, there will be no changes to
the bid price
E. Both B and C
✔✔A party should not be unjustly enriched, and there was no meeting of the minds -
✔✔Under the doctrine of mistake, a contractor who has a mistake in his bid must be
relieved of the duty to perform and/or allowed to correct the mistake and still be
awarded the contract. What are the two reasons for this doctrine?
✔✔It must be capable of subjective determination - ✔✔All of the following are tests that
must be present in order for a contractor to withdraw the bid, except one. Which one?
✔✔Reliance was unreasonable - ✔✔All of the following are necessary elements to
recover damages under the doctrine of promissory estoppel, except one. Which one?
✔✔Defective plans followed by the contractor - ✔✔A contractor is liable for destruction
of a project until it is accepted, with one exception. Which one of the following is the
exception?
✔✔When the project can be used by the owner for its intended purpose - ✔✔When is
substantial performance achieved?
✔✔Damages are owed from the moment of the passive breach - ✔✔All of the following
statements regarding Louisiana law are true, except one. Which one?
✔✔When a party threatens to do something that would be a breach of contract if carried
out - ✔✔What is an anticipatory breach of contract?
