CMGT 385 QUESTIONS WITH VERIFIED ANSWERS
What is negligence? - Answers - Failure to act reasonably, causing damage or injury
What is strict liability? - Answers - Liability regardless of fault (e.g., blasting operations)
What is trespass? - Answers - Unauthorized entry onto another's property
What is nuisance? - Answers - Interference with use/enjoyment of property
What is misrepresentation? - Answers - Providing false information that someone relies
on
What is contract formation? - Answers - Offer + Acceptance + Consideration
What is consideration in contracts? - Answers - Something of value exchanged between
parties
What is the ambiguity rule? - Answers - Interpreted against the party who drafted the
contract
What is Design-Bid-Build (DBB)? - Answers - Owner holds separate contracts with
designer and contractor
What is Design-Build (DB)? - Answers - One contract between owner and design-
builder
What does CM@R / CM/GC stand for? - Answers - CM involved early, then becomes
GC and holds subcontracts
What is a lump sum contract? - Answers - Fixed total price
What is a unit price contract? - Answers - Paid per unit installed
What is a cost plus contract? - Answers - Cost of work + fee
What does GMP stand for in contracts? - Answers - Maximum price contractor
guarantees
What is retainage? - Answers - % withheld until project completion
What does general liability insurance cover? - Answers - Covers injury/property damage
What is builder's risk insurance? - Answers - Covers damage to project during
construction
What is negligence? - Answers - Failure to act reasonably, causing damage or injury
What is strict liability? - Answers - Liability regardless of fault (e.g., blasting operations)
What is trespass? - Answers - Unauthorized entry onto another's property
What is nuisance? - Answers - Interference with use/enjoyment of property
What is misrepresentation? - Answers - Providing false information that someone relies
on
What is contract formation? - Answers - Offer + Acceptance + Consideration
What is consideration in contracts? - Answers - Something of value exchanged between
parties
What is the ambiguity rule? - Answers - Interpreted against the party who drafted the
contract
What is Design-Bid-Build (DBB)? - Answers - Owner holds separate contracts with
designer and contractor
What is Design-Build (DB)? - Answers - One contract between owner and design-
builder
What does CM@R / CM/GC stand for? - Answers - CM involved early, then becomes
GC and holds subcontracts
What is a lump sum contract? - Answers - Fixed total price
What is a unit price contract? - Answers - Paid per unit installed
What is a cost plus contract? - Answers - Cost of work + fee
What does GMP stand for in contracts? - Answers - Maximum price contractor
guarantees
What is retainage? - Answers - % withheld until project completion
What does general liability insurance cover? - Answers - Covers injury/property damage
What is builder's risk insurance? - Answers - Covers damage to project during
construction
