CMGT 3500 Exam 1 Questions And Answers

In a strong economy, a larger percentage of total construction expenditures will be devoted to new construction - ANS True The construction industry represents the largest single production activity in the American economy - ANS True The construction industry differs from manufacturing industry in what way: - ANS Construction projects are relatively complex and are completed by efforts of many Construction is considered an "easy in / easy out" industry. Which is NOT considered a reason for this? - ANS High capitol requirements During periods of recession, one of the first activities to stimulate the economy is through the expansion of publicly financed construction - ANS True Construction workers are limited by: - ANS A & B / Limited employment opportunities during certain time periods, working in a variety of construction locations Construction industry is an economic barometer of the country, especially in commercial starts - ANS False A major concern of the construction industry is - ANS Aging of construction workers / Inability to attach new workers (A & B) The general contract approach is often referred to as design-build - ANS False The general contract approach is an advantage to the owner because it shortens the overall project duration - ANS False A self performance method of contracting requires the Owner to hire a contractor who self performs all the work - ANS False In design-build contracting, the contractor has limited construction input on the design - ANS False Design-Build Construction has a variety of construction components. Identify the component that is NOT used - ANS Because of the Design-Build firms expertise, the project should be completed with a lesser degree of constructibility The CM Agent method of contracting places the CM responsible for the means and methods of construction and guarantees the construction cost, time, and quality of the project - ANS False A bilateral Contract Agreement is created by mutual promises by contracting parties - ANS True If meeting of the minds is achieved, the parties DO NOT enter into a Contract - ANS False If a party does not comply with the terms of a contract, that party has breached the contract - ANS True An expressed contract is one of which: - ANS Are either verbal or written, are clear and concise, are explicit and definite. (A,B,C) Estoppel is a principle by which a contract becomes binding in spite of NO formal agreement made between the parties concerned - ANS True Condemnation is the exercise of eminent domain - ANS True When property is seized through eminent domain, which of the following points is unlawful? - ANS Proper notice by the government (local, state, national) is NOT required Zoning is: A) A division of real property into classification of use B) Used to ensure an orderly development of the community C) Used to maintain the quality of life D) Used to place restriction on the use of the property E) All the above - ANS E) All the above Supplemental conditions are required for all construction projects - ANS False