COSC 463 QUASTION AND ANSWER
2024-2025(GRADING A+)
Definition of terms
Prime Contractor, Subcontractors, Suppliers (correct answer)Successful project
performance depends on the legal and business relationship among the _________ and
_______ and _____ as much as any other factor
Prime Contractor (correct answer)Party responsible to the owner for the satisfactory and
timely completion of the project
Subcontractor (correct answer)Party responsible for performing much of the work
Price (correct answer)Disputes at the Bidding Stage:
Disputes dealing with pricing of jobs
Reputation (correct answer)A firm can avoid numerous headaches and possible losses
simply through the investigation of a company's ______
Financial resources (correct answer)A contractor that lacks adequate __________
brings problems to the project, such as suppliers holding deliveries until they are sure
that they have received payment, making way for delays
Experience and qualifications (correct answer)A prime contractor looking to subcontract
work should investigate the sub's _______ on similar projects in order to ensure the job
will be completed ideally
its own union status (correct answer)A prime contractor's choice of a union or nonunion
subcontractor generally depends on what?
right to terminate contract if labor problems delay progress of work (correct answer)In
the event that a nonunion prime contractor is contracting a union subcontractor, what
provisions should be made to protect the prime contractor?
Double Breasted (correct answer)A union contractor that forms a second separate
company that operates "open shop"
Gives the contractor the advantage of being able to operate without a union where it is
feasible, while at the same time continuing operation of a union company
No (correct answer)Do double breasted operations guarantee freedom from labor
problems?
,When both parties have signed the subcontract agreement (correct answer)When is
there an enforceable agreement between a prime contractor and subcontractor?
UCC (correct answer)What code generally governs the creation of a binding contract
involving primarily the sale of goods?
Requiring that bidders agree it will not be revoked (correct answer)How do prime
contractors combat subcontractor bids being revoked?
Expectation Damages (correct answer)In the event that a subcontractor revokes a bid
that the prime contractor relied upon in order to bid on a project and a replacement sub
must be hired, the difference between the two contracts may be paid back to the prime
contractor
Bidding stage (correct answer)When does dispute avoidance begin?
Subcontract (correct answer)Refers to the contract between parties at any level below
the contract to which the owner is a party
AIA, ConsensusDocs, EJCDC (correct answer)What three organizations create form
subcontracts?
particular project (correct answer)A subcontract should be tailored to fit the needs of a
___________
inclusion, cut and paste (correct answer)In what two ways are "monsters" created?
(Collection of uncoordinated provisions that may create substantial unanticipated
contracts for both parties)
Flow down clause (correct answer)A clause which contractually ties the subcontractor to
the prime contractor in the same manner as the prime contractor is bound to the owner
Flow down clause (correct answer)The absence of a ______ can can leave the
subcontractor exposed to liability but unable to demand of the subcontractor the
performance that it is required to undertake
scope of work (correct answer)Every subcontract must have a clear and defined ______
reference, owner, prime contractor (correct answer)It is very difficult to define all of a
subcontractor's work in a description of the scope of work in a subcontract, so, the form
should _____ all of the applicable contract documents between the _____, and _____
payment (correct answer)Terms of _____ should be clearly and unambiguously set out
in the subcontract agreement
, Pay when paid Clause (correct answer)Obligates the prime contractor to make payment
to the subcontractor when it is paid by the owner or within a reasonable time period
after receipt of corresponding payment from the owner
Pay if paid clause (correct answer)A prime contractor's payment obligation to a
subcontract arises only if the prime contractor is paid by the owner
Prevention Doctrine (correct answer)A subcontractor may seek payment from a prime
contractor even with a valid pay if paid clause in the event that the prime contractor
prevented the condition precedent from occurring, such as not submitting change order
requests for work the subcontractor performed
Final Payment Terms (correct answer)When will the subcontractor receive its final
payment, and what are the conditions to be met before final payment will occur?
Express Termination Clause (correct answer)Clause outlining the right for a contractor
to terminate a subcontractor for listed actions, such as not supplying enough labor to
perform work as scheduled
Obligation to Proceed (correct answer)Considerations in Drafting a Default Clause:
Requires a subcontractor to carry out its work as directed by the prime contractor in the
event of a dispute
Notice (correct answer)Considerations in Drafting a Default Clause:
Does the subcontract specifically outline requirements for ____ to the subcontractor if
the subcontractor fails to comply with the prime contractors instructions or the terms of
the contract
Cure right (correct answer)Considerations in Drafting a Default Clause:
The time that the subcontractor will be given the change to cure a default should be
specified
Termination for Convenience (correct answer)What can be used to protect the prime
contractor in circumstances involving an improper default termination?
Termination for Convenience (correct answer)Allows the contractor to terminate the
subcontract without cause
no damages for delay (correct answer)Clause limiting a subcontractor's delay damages
to a percentage of an amount paid by the owner, especially in the event that the prime
contractor was responsible for the delays
2024-2025(GRADING A+)
Definition of terms
Prime Contractor, Subcontractors, Suppliers (correct answer)Successful project
performance depends on the legal and business relationship among the _________ and
_______ and _____ as much as any other factor
Prime Contractor (correct answer)Party responsible to the owner for the satisfactory and
timely completion of the project
Subcontractor (correct answer)Party responsible for performing much of the work
Price (correct answer)Disputes at the Bidding Stage:
Disputes dealing with pricing of jobs
Reputation (correct answer)A firm can avoid numerous headaches and possible losses
simply through the investigation of a company's ______
Financial resources (correct answer)A contractor that lacks adequate __________
brings problems to the project, such as suppliers holding deliveries until they are sure
that they have received payment, making way for delays
Experience and qualifications (correct answer)A prime contractor looking to subcontract
work should investigate the sub's _______ on similar projects in order to ensure the job
will be completed ideally
its own union status (correct answer)A prime contractor's choice of a union or nonunion
subcontractor generally depends on what?
right to terminate contract if labor problems delay progress of work (correct answer)In
the event that a nonunion prime contractor is contracting a union subcontractor, what
provisions should be made to protect the prime contractor?
Double Breasted (correct answer)A union contractor that forms a second separate
company that operates "open shop"
Gives the contractor the advantage of being able to operate without a union where it is
feasible, while at the same time continuing operation of a union company
No (correct answer)Do double breasted operations guarantee freedom from labor
problems?
,When both parties have signed the subcontract agreement (correct answer)When is
there an enforceable agreement between a prime contractor and subcontractor?
UCC (correct answer)What code generally governs the creation of a binding contract
involving primarily the sale of goods?
Requiring that bidders agree it will not be revoked (correct answer)How do prime
contractors combat subcontractor bids being revoked?
Expectation Damages (correct answer)In the event that a subcontractor revokes a bid
that the prime contractor relied upon in order to bid on a project and a replacement sub
must be hired, the difference between the two contracts may be paid back to the prime
contractor
Bidding stage (correct answer)When does dispute avoidance begin?
Subcontract (correct answer)Refers to the contract between parties at any level below
the contract to which the owner is a party
AIA, ConsensusDocs, EJCDC (correct answer)What three organizations create form
subcontracts?
particular project (correct answer)A subcontract should be tailored to fit the needs of a
___________
inclusion, cut and paste (correct answer)In what two ways are "monsters" created?
(Collection of uncoordinated provisions that may create substantial unanticipated
contracts for both parties)
Flow down clause (correct answer)A clause which contractually ties the subcontractor to
the prime contractor in the same manner as the prime contractor is bound to the owner
Flow down clause (correct answer)The absence of a ______ can can leave the
subcontractor exposed to liability but unable to demand of the subcontractor the
performance that it is required to undertake
scope of work (correct answer)Every subcontract must have a clear and defined ______
reference, owner, prime contractor (correct answer)It is very difficult to define all of a
subcontractor's work in a description of the scope of work in a subcontract, so, the form
should _____ all of the applicable contract documents between the _____, and _____
payment (correct answer)Terms of _____ should be clearly and unambiguously set out
in the subcontract agreement
, Pay when paid Clause (correct answer)Obligates the prime contractor to make payment
to the subcontractor when it is paid by the owner or within a reasonable time period
after receipt of corresponding payment from the owner
Pay if paid clause (correct answer)A prime contractor's payment obligation to a
subcontract arises only if the prime contractor is paid by the owner
Prevention Doctrine (correct answer)A subcontractor may seek payment from a prime
contractor even with a valid pay if paid clause in the event that the prime contractor
prevented the condition precedent from occurring, such as not submitting change order
requests for work the subcontractor performed
Final Payment Terms (correct answer)When will the subcontractor receive its final
payment, and what are the conditions to be met before final payment will occur?
Express Termination Clause (correct answer)Clause outlining the right for a contractor
to terminate a subcontractor for listed actions, such as not supplying enough labor to
perform work as scheduled
Obligation to Proceed (correct answer)Considerations in Drafting a Default Clause:
Requires a subcontractor to carry out its work as directed by the prime contractor in the
event of a dispute
Notice (correct answer)Considerations in Drafting a Default Clause:
Does the subcontract specifically outline requirements for ____ to the subcontractor if
the subcontractor fails to comply with the prime contractors instructions or the terms of
the contract
Cure right (correct answer)Considerations in Drafting a Default Clause:
The time that the subcontractor will be given the change to cure a default should be
specified
Termination for Convenience (correct answer)What can be used to protect the prime
contractor in circumstances involving an improper default termination?
Termination for Convenience (correct answer)Allows the contractor to terminate the
subcontract without cause
no damages for delay (correct answer)Clause limiting a subcontractor's delay damages
to a percentage of an amount paid by the owner, especially in the event that the prime
contractor was responsible for the delays
