BCN 3740 Legal Final Study Guide Set
The Betterment Defense in a contract action would - correct answer Be alleged by the
contractor and claim that the owner is seeking completion costs from the work performed by
the replacement contractor which work exceeded the quality, scope and/or amount originally
contracted for by the owner with the original contractor
Work on a public project pursuant to Florida Statue 255.05, requires a bond be posted by -
correct answer the contractor if the contract work is in excess of $200,000
The total Cost Method of Damages calculates damages by - correct answer taking the total cost
of the work loss the original bid amount by the contractor to come up with a damages number
Once a complaint has been served upon - correct answer File a response to the complaint
within 20 days of being served
The amount of the bond on a public project must equal - correct answer The contract price
between the owner and contractor
The preferred method of litigation for a contractor is through - correct answer it depends on
the circumstances
If your contract has an enforceable arbitration clause the parties to that contract must arbitrate
unless - correct answer Both parties to the contract act inconsistent with the arbitration clause
in their contract
Categories of extras to a construction contract for which a contractor may claim additional
monies may include - correct answer Improper site conditions/ work changes as a result of
code requirements
A contractor working on a government project - correct answer None of the above
A general contractor who reviews plans and specifications for a construction project has a duty
to tell the owner and/or architect and/or engineer about defects in the plans and specifications
only if those defects - correct answer Patent Defects
A cardinal change to a contract is - correct answer -a change so significant that it changes the
entire scope of the contract
-a change so significant that the contract is abandoned and the measure of damages is the
reasonable value of the work performed
The most widely accepted method of calculating unabsorbed home office overhead is by using -
correct answer The Eichleay Formula
, Where the Owner is clearly justified in defaulting the contractor, the surety can exercise which
option - correct answer All of the above (rehire the contract the owner terminated to finish
project, rebid and relect the project to a completion contractor, pay the owner an agreed upon
amount and buy back the bond)
In order to obtain unabsorbed home office overhead damages the contractor on a federal
construction project must show - correct answer All of the above (a government imposed delay
occurred, the government required the contractor to standby during the delay, while standing
by the contractor was unable to take on additional work)
A performance bond furnished by a general contractor does which of the following - correct
answer Guarantee the faithful performance of the terms of a written contract for furnishing
supplies or construction of all kinds, in other words it guarantees that the contract to build will
be fully performed
A subcontractor suing under a Florida Statue 255.05 bond on a public project - correct answer
May sue the surety and not include the general contractor in the lawsuit
If a judgement is obtained against a surety in the state of Florida the following is true - correct
answer The surety must pay the judgment within 60 days or its right to do business in the state
of Florida may be revoked
On a private project, extras, or modifications to a contract like change orders, assuming no
contract, language to the contrary may be - correct answer written or oral if no contract
provision to the contrary
Chapter 558 of the Florida Statue - correct answer Was intended to reduce the need for
litigation protect the rights of property owners
The following is true concerning the substantial completion doctrine to a general contractor in
the construction industry - correct answer The court will award the general contractor its full
contract amount even though the contractor has not finished the project if the project is so
nearly complete that the owner may already use it for its intended purpose AND the owner will
et a credit for all amounts of work not fully completed by the general contractor
A Chapter 558 Florida Statue notice is - correct answer not required for a project that has not
been completed
If one of the parties to a contract materially breaches the contract the other party may do
which of the following things - correct answer -Continue to perform and reserve its rights to
sue at the end of the project
- Terminate the agreement
- Waive and ignore the breach
The Betterment Defense in a contract action would - correct answer Be alleged by the
contractor and claim that the owner is seeking completion costs from the work performed by
the replacement contractor which work exceeded the quality, scope and/or amount originally
contracted for by the owner with the original contractor
Work on a public project pursuant to Florida Statue 255.05, requires a bond be posted by -
correct answer the contractor if the contract work is in excess of $200,000
The total Cost Method of Damages calculates damages by - correct answer taking the total cost
of the work loss the original bid amount by the contractor to come up with a damages number
Once a complaint has been served upon - correct answer File a response to the complaint
within 20 days of being served
The amount of the bond on a public project must equal - correct answer The contract price
between the owner and contractor
The preferred method of litigation for a contractor is through - correct answer it depends on
the circumstances
If your contract has an enforceable arbitration clause the parties to that contract must arbitrate
unless - correct answer Both parties to the contract act inconsistent with the arbitration clause
in their contract
Categories of extras to a construction contract for which a contractor may claim additional
monies may include - correct answer Improper site conditions/ work changes as a result of
code requirements
A contractor working on a government project - correct answer None of the above
A general contractor who reviews plans and specifications for a construction project has a duty
to tell the owner and/or architect and/or engineer about defects in the plans and specifications
only if those defects - correct answer Patent Defects
A cardinal change to a contract is - correct answer -a change so significant that it changes the
entire scope of the contract
-a change so significant that the contract is abandoned and the measure of damages is the
reasonable value of the work performed
The most widely accepted method of calculating unabsorbed home office overhead is by using -
correct answer The Eichleay Formula
, Where the Owner is clearly justified in defaulting the contractor, the surety can exercise which
option - correct answer All of the above (rehire the contract the owner terminated to finish
project, rebid and relect the project to a completion contractor, pay the owner an agreed upon
amount and buy back the bond)
In order to obtain unabsorbed home office overhead damages the contractor on a federal
construction project must show - correct answer All of the above (a government imposed delay
occurred, the government required the contractor to standby during the delay, while standing
by the contractor was unable to take on additional work)
A performance bond furnished by a general contractor does which of the following - correct
answer Guarantee the faithful performance of the terms of a written contract for furnishing
supplies or construction of all kinds, in other words it guarantees that the contract to build will
be fully performed
A subcontractor suing under a Florida Statue 255.05 bond on a public project - correct answer
May sue the surety and not include the general contractor in the lawsuit
If a judgement is obtained against a surety in the state of Florida the following is true - correct
answer The surety must pay the judgment within 60 days or its right to do business in the state
of Florida may be revoked
On a private project, extras, or modifications to a contract like change orders, assuming no
contract, language to the contrary may be - correct answer written or oral if no contract
provision to the contrary
Chapter 558 of the Florida Statue - correct answer Was intended to reduce the need for
litigation protect the rights of property owners
The following is true concerning the substantial completion doctrine to a general contractor in
the construction industry - correct answer The court will award the general contractor its full
contract amount even though the contractor has not finished the project if the project is so
nearly complete that the owner may already use it for its intended purpose AND the owner will
et a credit for all amounts of work not fully completed by the general contractor
A Chapter 558 Florida Statue notice is - correct answer not required for a project that has not
been completed
If one of the parties to a contract materially breaches the contract the other party may do
which of the following things - correct answer -Continue to perform and reserve its rights to
sue at the end of the project
- Terminate the agreement
- Waive and ignore the breach
