CM 4211 EXAMINATION TEST 2025/2026 QUESTIONS WITH
ANSWERS TAGGED A+
✔✔o Owner Responsibility - ✔✔telling the contractor about possible differing site
conditions.
✔✔o Joint Ventures: - ✔✔= formed during bid stage
- Item Joint Venture: Ex. One does bridge work, and the other does roads
•T : In an item joint venture, each joint venturer determines its own bid for the work it will
do on the project.
•T : A percentage of the profits, but not the losses, is one of the methods of paying the
managing partner (joint venturer) of a joint venture on a project.
•T : A joint venturer who does not abide by a capital call may lose its share of any profits
made on a project unless the call is made up within a specified number of days.
•The characteristics of an item joint venture company include all but one of the
following?=• The JV does not require agreement as to the terms of the bid.... (Each
venture operates as a separate company except for name and contract bond,The
ventures share in profits and losses of JV assets, There is no common ownership of JV
assets, As to the owner and the general public there is one entity to deal with, i.e., the
JV)
✔✔o Forward Price Change Order - ✔✔Contractor makes money because you look at it
in the worst possible situation.
✔✔Mediation first then binding litigation (from AIA documents)
o If the idea of both sides is to resolve the problem, then mediation is the obvious
choice, but some contractors use mediation to delay the process.
o Problems normally arise during the bidding phase. - ✔✔• T : A lawsuit is not one of
the alternative dispute resolution methods.
• T : Arbitration is heard by one or more persons knowledgeable in the field being
arbitrated.
• T : Arbitration findings can be appealed except in cases of bad faith, exclusion of
evidence, or failure to disclose possible prejudice
• T : Arbitration is less formal than litigation.
• T or F: Mediation results are not admissible in later litigation
• T : In a mini-trial, each party selects a trier and presents the case like a trial.
• T: With a dispute review board, each party selects a member of the board shortly after
the contract is signed.
• T : The findings of a dispute review board are not binding on the parties.
• T : The findings of a dispute review board are admissible in a later litigation.
, •Which one of the following will not get you into a federal court? = A state lawsuit that
does not provide a resolution ( An important legal question, Diversity of citizenship, A
lawsuit against the federal government)
•Which one of the following is not an alternative dispute resolution method? = •Litigation
(Arbitration,
Mediation, Mini-trial, Dispute review board)
Which one of the following statements is false? = •A dispute resolution board will be
formed within a reasonable time after a contractor files a claim against the owner
(Arbitration is considered to be generally less expensive than litigation, Mediation is
required as a first step in conflict resolution in the AIA A201 General Conditions,
Mediation findings are not binding on the parties, Arbitration findings are binding on the
parties)
✔✔o In Negotiated Contracts you cannot afford to sue the owner because you will want
to work with them over and over again. - ✔✔o When negotiating make sure you know
the owner's rep that you will have to deal with as far as change orders and such.
o Building friendly relationships will always help in current contracts and for future
projects you may work on. Build a team with the owner or owner's rep and other hands
involved.
o Communicating with precision and continuing to communicate by follow-ups in writing.
Document everything.
• T : Documentation is another name for well-kept job records.
• T : The cardinal rule of good contract administration is to put-it-in-writing.
• T : Documentation is best when it is kept daily.
• T : "He said she said" is an example of hearsay.
• T : The writer of the documentation must have been present when the events in the
documentation were recorded and/or in a position to have an accurate knowledge of the
events in order for the documentation to be introduced into evidence.
• T : In order introduce documentation into evidence it cannot have been prepared for
the specific purpose of use in litigation.
• T : All documentation should answer the questions "when" and "what."
• T : A letter of transmittal does not require a response.
• T : In a letter of notice, a position is taken as well as a basis for believing the position
is correct.
• T : A job diary is a routine job record.
• T : In order for a claim to be valid, it must be proven that the claimant is entitled to an
adjustment and the amount of the adjustment.
• T : The most important provision regarding claims is the notice requirements.
• T : Risk can only be mitigated, not eliminated.
• T : If the owner does not timely respond to a contractor's claim, then he will be
deemed to have denied the claim.
ANSWERS TAGGED A+
✔✔o Owner Responsibility - ✔✔telling the contractor about possible differing site
conditions.
✔✔o Joint Ventures: - ✔✔= formed during bid stage
- Item Joint Venture: Ex. One does bridge work, and the other does roads
•T : In an item joint venture, each joint venturer determines its own bid for the work it will
do on the project.
•T : A percentage of the profits, but not the losses, is one of the methods of paying the
managing partner (joint venturer) of a joint venture on a project.
•T : A joint venturer who does not abide by a capital call may lose its share of any profits
made on a project unless the call is made up within a specified number of days.
•The characteristics of an item joint venture company include all but one of the
following?=• The JV does not require agreement as to the terms of the bid.... (Each
venture operates as a separate company except for name and contract bond,The
ventures share in profits and losses of JV assets, There is no common ownership of JV
assets, As to the owner and the general public there is one entity to deal with, i.e., the
JV)
✔✔o Forward Price Change Order - ✔✔Contractor makes money because you look at it
in the worst possible situation.
✔✔Mediation first then binding litigation (from AIA documents)
o If the idea of both sides is to resolve the problem, then mediation is the obvious
choice, but some contractors use mediation to delay the process.
o Problems normally arise during the bidding phase. - ✔✔• T : A lawsuit is not one of
the alternative dispute resolution methods.
• T : Arbitration is heard by one or more persons knowledgeable in the field being
arbitrated.
• T : Arbitration findings can be appealed except in cases of bad faith, exclusion of
evidence, or failure to disclose possible prejudice
• T : Arbitration is less formal than litigation.
• T or F: Mediation results are not admissible in later litigation
• T : In a mini-trial, each party selects a trier and presents the case like a trial.
• T: With a dispute review board, each party selects a member of the board shortly after
the contract is signed.
• T : The findings of a dispute review board are not binding on the parties.
• T : The findings of a dispute review board are admissible in a later litigation.
, •Which one of the following will not get you into a federal court? = A state lawsuit that
does not provide a resolution ( An important legal question, Diversity of citizenship, A
lawsuit against the federal government)
•Which one of the following is not an alternative dispute resolution method? = •Litigation
(Arbitration,
Mediation, Mini-trial, Dispute review board)
Which one of the following statements is false? = •A dispute resolution board will be
formed within a reasonable time after a contractor files a claim against the owner
(Arbitration is considered to be generally less expensive than litigation, Mediation is
required as a first step in conflict resolution in the AIA A201 General Conditions,
Mediation findings are not binding on the parties, Arbitration findings are binding on the
parties)
✔✔o In Negotiated Contracts you cannot afford to sue the owner because you will want
to work with them over and over again. - ✔✔o When negotiating make sure you know
the owner's rep that you will have to deal with as far as change orders and such.
o Building friendly relationships will always help in current contracts and for future
projects you may work on. Build a team with the owner or owner's rep and other hands
involved.
o Communicating with precision and continuing to communicate by follow-ups in writing.
Document everything.
• T : Documentation is another name for well-kept job records.
• T : The cardinal rule of good contract administration is to put-it-in-writing.
• T : Documentation is best when it is kept daily.
• T : "He said she said" is an example of hearsay.
• T : The writer of the documentation must have been present when the events in the
documentation were recorded and/or in a position to have an accurate knowledge of the
events in order for the documentation to be introduced into evidence.
• T : In order introduce documentation into evidence it cannot have been prepared for
the specific purpose of use in litigation.
• T : All documentation should answer the questions "when" and "what."
• T : A letter of transmittal does not require a response.
• T : In a letter of notice, a position is taken as well as a basis for believing the position
is correct.
• T : A job diary is a routine job record.
• T : In order for a claim to be valid, it must be proven that the claimant is entitled to an
adjustment and the amount of the adjustment.
• T : The most important provision regarding claims is the notice requirements.
• T : Risk can only be mitigated, not eliminated.
• T : If the owner does not timely respond to a contractor's claim, then he will be
deemed to have denied the claim.
