AIC 300 PREP -CLAIMS IN AN EVOLVING WORLD
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following is a fundamental element of a contract?
A. Exchange of money
B. Revised scope of work
C. Time extension
D. Mutual acceptance
CORRECT ANSWER
D. Mutual acceptance
Question 2
Which of the following contract types is best used if the scope is defined but not the
quantities of material?
A. Lump Sum
B. Unit price
C. Cost plus
D. Cost plus with GMP
CORRECT ANSWER
B. Unit price
Question 3
1
,Which delivery method is the construction administrator most like a consultant?
A. Lump Sum
B. CM Agency
C. CM at Risk
D. Integrated Project Delivery
CORRECT ANSWER
B. CM Agency
Question 4
Which statement is true about the DesignBuild
delivery method?
A. Design is complete when contractor is
involved
B. Fast tracking is difficult with this delivery
method
C. There is a sole source for fault for
building system failures
D. Most DB firms are temporary affiliation
created for a single project
CORRECT ANSWER
C. There is a sole source for fault for
building system failures
Question 5
2
,Which delivery method has the most risk for the contractor?
A. Design-Bid-Build
B. Design-Build
C. CM at Risk
D. Integrated Project Delivery
CORRECT ANSWER
B. Design-Build
Question 6
Which of the following is a major difference between a CM agency and a CM at risk
A. One manage construction on the owners behalf
B. One has a contract with the designers
C. One provides a lump sum price for construction services
D. One caps the construction costs the owner is required to pay
CORRECT ANSWER
D. One caps the construction costs the owner is required to pay
Question 7
Under which legal entity are the most amount of total taxes paid?
A. Sole proprietorship
B. Partnership
C. Corporation
D. Limited Liability Corporation
CORRECT ANSWER
C. Corporation
3
, Question 8
In the construction industry, which legal entity is often a temporary arrangement?
A. Sole proprietorship
B. Partnership
C. Limited liability corporation
D. Joint ventures
CORRECT ANSWER
D. Joint ventures
Question 9
Which is an advantage of forming a corporation?
A. Reduced personal liability of shareholders
B. Value of corporation can't go down from initial purchase price
C. Less taxes paid then limited liability corporation
D. Quick decision making especially for large companies
CORRECT ANSWER
A. Reduced personal liability of shareholders
Question 10
What is your return on assets assuming a net profit before tax of $15,000 and $30,000
total assets?
A. .5%
B. 2%
4
|ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which of the following is a fundamental element of a contract?
A. Exchange of money
B. Revised scope of work
C. Time extension
D. Mutual acceptance
CORRECT ANSWER
D. Mutual acceptance
Question 2
Which of the following contract types is best used if the scope is defined but not the
quantities of material?
A. Lump Sum
B. Unit price
C. Cost plus
D. Cost plus with GMP
CORRECT ANSWER
B. Unit price
Question 3
1
,Which delivery method is the construction administrator most like a consultant?
A. Lump Sum
B. CM Agency
C. CM at Risk
D. Integrated Project Delivery
CORRECT ANSWER
B. CM Agency
Question 4
Which statement is true about the DesignBuild
delivery method?
A. Design is complete when contractor is
involved
B. Fast tracking is difficult with this delivery
method
C. There is a sole source for fault for
building system failures
D. Most DB firms are temporary affiliation
created for a single project
CORRECT ANSWER
C. There is a sole source for fault for
building system failures
Question 5
2
,Which delivery method has the most risk for the contractor?
A. Design-Bid-Build
B. Design-Build
C. CM at Risk
D. Integrated Project Delivery
CORRECT ANSWER
B. Design-Build
Question 6
Which of the following is a major difference between a CM agency and a CM at risk
A. One manage construction on the owners behalf
B. One has a contract with the designers
C. One provides a lump sum price for construction services
D. One caps the construction costs the owner is required to pay
CORRECT ANSWER
D. One caps the construction costs the owner is required to pay
Question 7
Under which legal entity are the most amount of total taxes paid?
A. Sole proprietorship
B. Partnership
C. Corporation
D. Limited Liability Corporation
CORRECT ANSWER
C. Corporation
3
, Question 8
In the construction industry, which legal entity is often a temporary arrangement?
A. Sole proprietorship
B. Partnership
C. Limited liability corporation
D. Joint ventures
CORRECT ANSWER
D. Joint ventures
Question 9
Which is an advantage of forming a corporation?
A. Reduced personal liability of shareholders
B. Value of corporation can't go down from initial purchase price
C. Less taxes paid then limited liability corporation
D. Quick decision making especially for large companies
CORRECT ANSWER
A. Reduced personal liability of shareholders
Question 10
What is your return on assets assuming a net profit before tax of $15,000 and $30,000
total assets?
A. .5%
B. 2%
4
