IDPX EXAM QUESTIONS & 100% CORRECT ANSWERS
GRADES A+ PASS
Which of the following is NOT true about the Design-Bid-Build project delivery method?
generally produces the lowest cost
takes longer than other delivery methods
the contractor may point out problems, make suggestion or propose changes in the design or
specification to reduce the cost of the project
is the traditional approach to project delivery - CORRECT ANSWER >>>the contractor may point
out problems, make suggestion or propose changes in the design or specification to reduce the
cost of the project
All of the following are true for a sole proprietorship EXCEPT?
is owned by an individual and operates under either the individual's nameor a company name
difficult to raise capital and establish credit
is one of the easier types of business to sell
is one of the simplest types of business to set up - CORRECT ANSWER >>>is one of the easier
types of business to sell
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,In a sole proprietorship, because the business depends primarily on the work and reputation of
the owner, it may be difficult to sell the business, and the company usually ceases to exist when
the owner quits or dies.
What provision may be included in a Owner-Contractor Agreement in order to return
anticipated losses to the owner in the event that the contractor cannot complete the project on
time?
Compensatory damages
Penalty clause
Liquidated damages
Bonus provision - CORRECT ANSWER >>>Liquidated damages
Liquidated damages
represent an amount agreed upon by both the owner and the contractor in the event that the
contractor cannot complete the project on time.
An accident involving the incorrect installation of an office workstation has caused the owner to
file a claim against the interior designer.
Which should provide protection from this claim?
personal injury protection insurance
errors and omissions insurance property
insurance
general liability insurance - CORRECT ANSWER >>>errors and omissions insurance
Errors and omissions insurance
2|Page
,(E&O), sometimes called professional liability insurance, covers lawsuits brought by third parties
(anyone who isn't an employee) who claim you were negligent in your professional duties.
When using B254-2019, prior to entering into a contract with a vendor, the Interior Designer
should provide what to the Owner for written approval?
A portfolio of the vendor's previous work
Proof of Interior Designer's funds held in escrow for the purchase of the FF&E
Descriptions, prices and quantities of the items intended for purchase
Proof of the bidding process used to select the vendor - CORRECT ANSWER >>>Descriptions,
prices and quantities of the items intended for purchase
An interior designer or design firm should carry all of
the following types insurance except?
interior design insurance automobile insurance professional liability insurance
general liability insurance - CORRECT ANSWER >>>interior design insurance
All of the following are important to remember when writing specifications except?
specify the results and the methods to achieve those results together
specifications are legal documents
3|Page
, avoid exculpatory clauses that try to shift the responsibility to the contractor or someone else in
a broad, general way
do not include standards that cannot be measured - CORRECT ANSWER >>>specify the results
and the methods to achieve those results together
They should specify the end result required, but not the specific methods or means used to
achieve those results, to prevent liability for third party claims
.
A residential interior designer operates and works out of a small retail boutique. Why can't the
business use cash accounting?
the designer maintains an inventory
the designer owns and does not lease the property
the designer's business is not a sole proprietorship
does not account for reporting of sales tax - CORRECT ANSWER >>>the designer maintains an
inventory
What type of insurance does an Interior Designer need to protect themselves against problems
resulting from mistakes on drawings and specifications?
Product liability insurance
Interior Designer's Insurance
General liability insurance
4|Page
GRADES A+ PASS
Which of the following is NOT true about the Design-Bid-Build project delivery method?
generally produces the lowest cost
takes longer than other delivery methods
the contractor may point out problems, make suggestion or propose changes in the design or
specification to reduce the cost of the project
is the traditional approach to project delivery - CORRECT ANSWER >>>the contractor may point
out problems, make suggestion or propose changes in the design or specification to reduce the
cost of the project
All of the following are true for a sole proprietorship EXCEPT?
is owned by an individual and operates under either the individual's nameor a company name
difficult to raise capital and establish credit
is one of the easier types of business to sell
is one of the simplest types of business to set up - CORRECT ANSWER >>>is one of the easier
types of business to sell
1|Page
,In a sole proprietorship, because the business depends primarily on the work and reputation of
the owner, it may be difficult to sell the business, and the company usually ceases to exist when
the owner quits or dies.
What provision may be included in a Owner-Contractor Agreement in order to return
anticipated losses to the owner in the event that the contractor cannot complete the project on
time?
Compensatory damages
Penalty clause
Liquidated damages
Bonus provision - CORRECT ANSWER >>>Liquidated damages
Liquidated damages
represent an amount agreed upon by both the owner and the contractor in the event that the
contractor cannot complete the project on time.
An accident involving the incorrect installation of an office workstation has caused the owner to
file a claim against the interior designer.
Which should provide protection from this claim?
personal injury protection insurance
errors and omissions insurance property
insurance
general liability insurance - CORRECT ANSWER >>>errors and omissions insurance
Errors and omissions insurance
2|Page
,(E&O), sometimes called professional liability insurance, covers lawsuits brought by third parties
(anyone who isn't an employee) who claim you were negligent in your professional duties.
When using B254-2019, prior to entering into a contract with a vendor, the Interior Designer
should provide what to the Owner for written approval?
A portfolio of the vendor's previous work
Proof of Interior Designer's funds held in escrow for the purchase of the FF&E
Descriptions, prices and quantities of the items intended for purchase
Proof of the bidding process used to select the vendor - CORRECT ANSWER >>>Descriptions,
prices and quantities of the items intended for purchase
An interior designer or design firm should carry all of
the following types insurance except?
interior design insurance automobile insurance professional liability insurance
general liability insurance - CORRECT ANSWER >>>interior design insurance
All of the following are important to remember when writing specifications except?
specify the results and the methods to achieve those results together
specifications are legal documents
3|Page
, avoid exculpatory clauses that try to shift the responsibility to the contractor or someone else in
a broad, general way
do not include standards that cannot be measured - CORRECT ANSWER >>>specify the results
and the methods to achieve those results together
They should specify the end result required, but not the specific methods or means used to
achieve those results, to prevent liability for third party claims
.
A residential interior designer operates and works out of a small retail boutique. Why can't the
business use cash accounting?
the designer maintains an inventory
the designer owns and does not lease the property
the designer's business is not a sole proprietorship
does not account for reporting of sales tax - CORRECT ANSWER >>>the designer maintains an
inventory
What type of insurance does an Interior Designer need to protect themselves against problems
resulting from mistakes on drawings and specifications?
Product liability insurance
Interior Designer's Insurance
General liability insurance
4|Page
