CON-367 Exam 2
T/F Our textbook advises that the starting date of a project should not be the date of the
execution (signing) of the agreement. - ANS -True
Under what type of bond, the surety has an obligation to the owner for any additional costs to
complete the project due to the contractor's failure to comply with its contract requirements? -
ANS -Payment Bond
T/F Multiple-Peril Builder's Risk Insurance provides similar but broader coverage than the
Standard Builder's Risk policy - ANS -True
Bid bonds should preferably be in an amount equal to _____ percent of the bid price for the
project. - ANS -10%
T/F The contract documents should require that evidence of specified insurance be submitted at
the time of submitting the bid bond. - ANS -False
T/F The following events are in correct order: Bid Opening-Bid Award-Notice to Proceed-Signing
of Agreement - ANS -False
T/F In construction projects, owners have a direct contractual relationship with the
subcontractors. - ANS -False
T/F The utilization of a contractor quality control (CQC) representative is a requirement in
private construction projects. - ANS -False
Which one of the following is not one of the activities that can be performed after the award of
the contract? - ANS -Obtain and submit a Bid Bond
T/F According to our textbook, the Resident Project Representative should adopt a "firm but fair"
policy in assuring the compliance of the Contractor with the contract documents. - ANS -True
T/F An owner can suspend the work in a construction project due to unsuitable weather
conditions. - ANS -True
T/F Suspensions and extensions of time will necessitate the issuance of a formal change order.
- ANS -True
Which of the following is not a type of a mobilization cost incurred by the Contractor? - ANS
-Preparing the bid
T/F Our textbook advises that the starting date of a project should not be the date of the
execution (signing) of the agreement. - ANS -True
Under what type of bond, the surety has an obligation to the owner for any additional costs to
complete the project due to the contractor's failure to comply with its contract requirements? -
ANS -Payment Bond
T/F Multiple-Peril Builder's Risk Insurance provides similar but broader coverage than the
Standard Builder's Risk policy - ANS -True
Bid bonds should preferably be in an amount equal to _____ percent of the bid price for the
project. - ANS -10%
T/F The contract documents should require that evidence of specified insurance be submitted at
the time of submitting the bid bond. - ANS -False
T/F The following events are in correct order: Bid Opening-Bid Award-Notice to Proceed-Signing
of Agreement - ANS -False
T/F In construction projects, owners have a direct contractual relationship with the
subcontractors. - ANS -False
T/F The utilization of a contractor quality control (CQC) representative is a requirement in
private construction projects. - ANS -False
Which one of the following is not one of the activities that can be performed after the award of
the contract? - ANS -Obtain and submit a Bid Bond
T/F According to our textbook, the Resident Project Representative should adopt a "firm but fair"
policy in assuring the compliance of the Contractor with the contract documents. - ANS -True
T/F An owner can suspend the work in a construction project due to unsuitable weather
conditions. - ANS -True
T/F Suspensions and extensions of time will necessitate the issuance of a formal change order.
- ANS -True
Which of the following is not a type of a mobilization cost incurred by the Contractor? - ANS
-Preparing the bid
