CM 4211 midterm Questions with Correct Answers (Grade A+)
Question 1: Scope of Work is a description of which of the following. Select all that apply.
Answer: The list of construction obligations, as well as work activities that all contractors, subcontractors,
and suppliers are obligated to do
Question 2: What is the next step in the construction contract process after the contract has been
drafted and reviewed by all parties?
Answer: A. Negotiations
Question 3: Select the best definition for General Contractor.
Answer: The company or individual responsible for overseeing the construction process and managing any
subcontractors, if applicable
Question 4: There is no difference between lump sum and fixed price.
Answer: True
Question 5: What is a Guaranteed Maximum Price contract?
Answer: The maximum amount the owner will have to pay the contractor is capped and is not to exceed
Question 6: Safety awards for no injuries, fast-tracking, and zero-quality defects are possible examples
of incentives in a unit price contract.
Answer: False
Question 7: What does contract termination mean?
Answer: When either party can legally terminate the contract and any penalties that may apply to the
decision to terminate
Question 8: Of the three contracts LS, LSTK, and GMP, which once affords the most protection
financially and allows the owner to secure investors and loans?
Answer: GMP
Question 9: What are examples of construction contract clauses for escalation?
Answer: (A.Fuel and gas B.Construction materials and equipment C.Steel) All of these answers
Page 1
, Question 10: Who is responsible for selecting and managing the sub-contractor on a project?
Answer: Prime/General Contractor
Question 11: The right to subcontract any project work has to be outlined by which of the following.
Select all that apply.
Answer: The contract
Question 12: The advantage of cost plus is that the Prime Contractor will incur a profit.
Answer: True
Question 13: Select the best definition for Owner.
Answer: The individual or company hiring the general contractor and entering into the contract to have
construction work done
Question 14: Negotiating a contract with no compromise can affect which of the following.
Answer: Delay the start date
Question 15: A construction contract is an agreement that is between the OWNER and which of the
following.
Answer: Prime/General Contractor
Question 16: The Prime Contractor can terminate its contract when the owner is in breach of contract
or acting in bad faith.
Answer: True
Question 17: You can have a multiple-contract method under one project.
Answer: True
Question 18: What does Indemnification mean?
Answer: The responsibility of the contractor for any damages or loss incurred by the owner due to the work
of the contractor
Question 19: What are examples of contract documents?
Answer: (A. Scope of Work B.Technical specifications C.Blueprints D.Design drawings) All of these
answers
Page 2
Question 1: Scope of Work is a description of which of the following. Select all that apply.
Answer: The list of construction obligations, as well as work activities that all contractors, subcontractors,
and suppliers are obligated to do
Question 2: What is the next step in the construction contract process after the contract has been
drafted and reviewed by all parties?
Answer: A. Negotiations
Question 3: Select the best definition for General Contractor.
Answer: The company or individual responsible for overseeing the construction process and managing any
subcontractors, if applicable
Question 4: There is no difference between lump sum and fixed price.
Answer: True
Question 5: What is a Guaranteed Maximum Price contract?
Answer: The maximum amount the owner will have to pay the contractor is capped and is not to exceed
Question 6: Safety awards for no injuries, fast-tracking, and zero-quality defects are possible examples
of incentives in a unit price contract.
Answer: False
Question 7: What does contract termination mean?
Answer: When either party can legally terminate the contract and any penalties that may apply to the
decision to terminate
Question 8: Of the three contracts LS, LSTK, and GMP, which once affords the most protection
financially and allows the owner to secure investors and loans?
Answer: GMP
Question 9: What are examples of construction contract clauses for escalation?
Answer: (A.Fuel and gas B.Construction materials and equipment C.Steel) All of these answers
Page 1
, Question 10: Who is responsible for selecting and managing the sub-contractor on a project?
Answer: Prime/General Contractor
Question 11: The right to subcontract any project work has to be outlined by which of the following.
Select all that apply.
Answer: The contract
Question 12: The advantage of cost plus is that the Prime Contractor will incur a profit.
Answer: True
Question 13: Select the best definition for Owner.
Answer: The individual or company hiring the general contractor and entering into the contract to have
construction work done
Question 14: Negotiating a contract with no compromise can affect which of the following.
Answer: Delay the start date
Question 15: A construction contract is an agreement that is between the OWNER and which of the
following.
Answer: Prime/General Contractor
Question 16: The Prime Contractor can terminate its contract when the owner is in breach of contract
or acting in bad faith.
Answer: True
Question 17: You can have a multiple-contract method under one project.
Answer: True
Question 18: What does Indemnification mean?
Answer: The responsibility of the contractor for any damages or loss incurred by the owner due to the work
of the contractor
Question 19: What are examples of contract documents?
Answer: (A. Scope of Work B.Technical specifications C.Blueprints D.Design drawings) All of these
answers
Page 2
