CMGT 385 QUESTIONS WITH VERIFIED ANSWERS
Which of the Following is a financial assurance that the owner will receive a completed
project?
-Performance Bond
-Labor and Materials Bond
-Bid Bond
-Payment Bond - Answers - Performance Bond
Which document guarantees to the Owner that all third parties will be paid or else the
Bond will be
invoked?
-Insurance Certificates
-Labor and Materials Bond
-Bid Bond
-Performance Bond - Answers - Labor and Materials Bond
Title for materials is transferred to the Owner when
-They are delivered to the job site
-Payment is made to the contractor
-They are installed
-They pass inspection - Answers - Payment is made to the contractor
Which document specifies the time frame for submitting the contract bonds &
insurance?
-General Requirements
-General Conditions
-Supplementary Conditions
-Instructions to Bidders - Answers - Instructions to Bidders
If an owner authorizes a partial payment for work that is not yet complete; which of the
following
items will they require in order to limit their financial risk (pick the best answer)?
-Original payment affidavit
-Jurisdictional inspection
-Lien releases
-Insurance waiver - Answers - Lien releases
A ______________ is a legal document for the provision of labor and/or services at a
project site. - Answers - Subcontract agreement
T/F
If an unforeseeable weather event occurs and the construction is delayed, the
contractor is entitled
, to additional compensation from the owner. - Answers - FALSE
Which of the following protects the owner if a contractor does not enter into a contract
after
submitting a price?
-Payment Bond
-Labor and Materials Bond
-Performance Bond
-Bid Bond - Answers - Bid Bond
Insurance is protection from construction risk while bonds are a guarantee of
performance. - Answers - TRUE
A _______________ is a legal document used for the sale of goods for delivery to the
project site. - Answers - Purchase Order
Since public project owners don't actually own the property; a subcontractor cannot use
the lien
process to get paid. What is the process for forcing payment on public projects? -
Answers - Stop Notices
In a competitive bid; if a contractor fails to correctly complete the bid form, the owner
might be able
to reject his bid for being not...
-responsible
-responsive
-complete
-competant - Answers - responsive
T/F
The term "Tort" refers to wrongful acts done by one person to another, but only those
for which
the victim may demand legal redress. - Answers - True
Which of the following can place a Mechanic's Lien against the owner's property?
-Subcontractor
-Jurisdictional inspector
-Architect
-Contractor on public project - Answers - Subcontractor
Which of the following is a method that a contractor can use to force a subcontractor to
honor
their bid (assuming the contractor was awarded the job)?
-Performance bond
-Flow down provision
-Promissory Estoppel
Which of the Following is a financial assurance that the owner will receive a completed
project?
-Performance Bond
-Labor and Materials Bond
-Bid Bond
-Payment Bond - Answers - Performance Bond
Which document guarantees to the Owner that all third parties will be paid or else the
Bond will be
invoked?
-Insurance Certificates
-Labor and Materials Bond
-Bid Bond
-Performance Bond - Answers - Labor and Materials Bond
Title for materials is transferred to the Owner when
-They are delivered to the job site
-Payment is made to the contractor
-They are installed
-They pass inspection - Answers - Payment is made to the contractor
Which document specifies the time frame for submitting the contract bonds &
insurance?
-General Requirements
-General Conditions
-Supplementary Conditions
-Instructions to Bidders - Answers - Instructions to Bidders
If an owner authorizes a partial payment for work that is not yet complete; which of the
following
items will they require in order to limit their financial risk (pick the best answer)?
-Original payment affidavit
-Jurisdictional inspection
-Lien releases
-Insurance waiver - Answers - Lien releases
A ______________ is a legal document for the provision of labor and/or services at a
project site. - Answers - Subcontract agreement
T/F
If an unforeseeable weather event occurs and the construction is delayed, the
contractor is entitled
, to additional compensation from the owner. - Answers - FALSE
Which of the following protects the owner if a contractor does not enter into a contract
after
submitting a price?
-Payment Bond
-Labor and Materials Bond
-Performance Bond
-Bid Bond - Answers - Bid Bond
Insurance is protection from construction risk while bonds are a guarantee of
performance. - Answers - TRUE
A _______________ is a legal document used for the sale of goods for delivery to the
project site. - Answers - Purchase Order
Since public project owners don't actually own the property; a subcontractor cannot use
the lien
process to get paid. What is the process for forcing payment on public projects? -
Answers - Stop Notices
In a competitive bid; if a contractor fails to correctly complete the bid form, the owner
might be able
to reject his bid for being not...
-responsible
-responsive
-complete
-competant - Answers - responsive
T/F
The term "Tort" refers to wrongful acts done by one person to another, but only those
for which
the victim may demand legal redress. - Answers - True
Which of the following can place a Mechanic's Lien against the owner's property?
-Subcontractor
-Jurisdictional inspector
-Architect
-Contractor on public project - Answers - Subcontractor
Which of the following is a method that a contractor can use to force a subcontractor to
honor
their bid (assuming the contractor was awarded the job)?
-Performance bond
-Flow down provision
-Promissory Estoppel
