CM 4211 EXAMS SCRIPT 2025/2026 QUESTIONS WITH
ANSWERS TAGGED A+
✔✔The time provisions in a construction contract are usually measured in work days. -
✔✔false
✔✔A default termination by the owner may be justified if the contractor is doing
unsatisfactory work. - ✔✔true
✔✔A contractor cannot be assessed damages for missing milestone completion dates
provided that he completes the entire contract timely. - ✔✔false
✔✔"Liquidated damages" are assessed based on the actual damages suffered by the
owner. - ✔✔false
✔✔"Liquidated damages" is the amount per day that a contractor owes for completing
the contract late. - ✔✔true
✔✔It is normal for a contract to provide for monthly progress payments to the
contractor. - ✔✔true
✔✔There is no implied obligation for the owner to provide access to the construction
site. - ✔✔false
✔✔Unless provided otherwise in a contract, the contractor is entitled to be paid for the
invoice cost of materials delivered to the site even though they may not have been
incorporated into the project at the time of billing the owner - ✔✔false
✔✔The contractor may rely on physical condition reports provided by the owner,
supported by pre-bid inspection, unless the contract states otherwise - ✔✔true
✔✔Retainage (or retention) is an amount kept by the owner from the progress
payments to the contractor in order to penalize the contractor for completing the project
late. - ✔✔false
✔✔An indemnification clause can hold an owner harmless from losses on the project
even if they are caused by the owner. - ✔✔true
✔✔An "exculpatory" clause is one that shifts liability from one party to another (usually
from the owner to the contractor). - ✔✔true
,✔✔A "variation in quantities" clause is intended to prevent an unfair gain or loss by the
contractor due to a difference in the quantities actually incorporated into the project
compared to what was estimated in the contract. - ✔✔true
✔✔Escalation clauses are used on long-term contracts to allow for increased labor and
material costs. - ✔✔true
✔✔Most construction projects are not unique because they resemble each other. -
✔✔false
✔✔Public and private are the two broad classes of owners on a construction project. -
✔✔true
✔✔In agency construction management the construction manager is at risk. - ✔✔false
✔✔A subcontractor has a contract with the owner. - ✔✔false
✔✔Hospital construction is one of the four broad categories of construction - ✔✔true
✔✔Custom residential building is when the owner has a building designed and built for
the owner. - ✔✔true
✔✔An architect is usually the lead designer on a commercial construction project -
✔✔true
✔✔Long-term financing is used to pay the construction costs. - ✔✔false
✔✔Competitive bidding and negotiated contract are the two basic ways to select a
contractor - ✔✔true
✔✔Design-Build is the traditional approach to construction. - ✔✔false
✔✔Fast-Track refers to overlapping design and construction. - ✔✔true
✔✔Value engineering refers to saving money by cutting the quality of materials. -
✔✔false
✔✔The prime contractor is in privity with the owner on a construction project. - ✔✔true
✔✔Competitive bidding is said to accomplish efficiency and innovation. - ✔✔true
✔✔Most negotiated contracts use the unit price method of construction. - ✔✔False
, ✔✔The owner acts as the prime contractor on a day labor construction project. - ✔✔true
✔✔A set-aside is an amount of work reserved for small disadvantaged business
enterprises - ✔✔true
✔✔The two main reasons for licensing a contractor is to protect public health and
safety. - ✔✔true
✔✔A permanent license surety bond guarantees a contractor before the contractor
becomes licensed. - ✔✔false
✔✔Building codes are enforced by the use of permits, inspections, and testing reports -
✔✔true
✔✔A contract may be formed even when the objective is unclear. - ✔✔false
✔✔An illegal contract is unenforceable. - ✔✔true
✔✔An offer is a conditional willingness to enter into an agreement. - ✔✔false
✔✔An acceptance that has conditions attached to it is a counter offer. - ✔✔true
✔✔Consideration must always be in terms of money for there to be a contract. -
✔✔false
✔✔Privity is the existence of a contractual relationship. - ✔✔true
✔✔Usually, inference is not enough to form a third-party relationship. - ✔✔true
✔✔A prime contract is any contract in which one of the parties is a construction
contractor - ✔✔false
✔✔A design-build (DB) contract reduces the likelihood of a disagreement between the
designer and the contractor. - ✔✔true
✔✔Which of the following statements is true?
Select one:
a. Fast-track services work best when there are separate contracts for design and
construction.
b. In a cost-plus-percentage-fee (CPPF) contract, in addition to the contractor's
reputation, there is a profit incentive for the contractor to hold down the costs of
the construction.
c. In the traditional approach to construction there will be one prime contract.
ANSWERS TAGGED A+
✔✔The time provisions in a construction contract are usually measured in work days. -
✔✔false
✔✔A default termination by the owner may be justified if the contractor is doing
unsatisfactory work. - ✔✔true
✔✔A contractor cannot be assessed damages for missing milestone completion dates
provided that he completes the entire contract timely. - ✔✔false
✔✔"Liquidated damages" are assessed based on the actual damages suffered by the
owner. - ✔✔false
✔✔"Liquidated damages" is the amount per day that a contractor owes for completing
the contract late. - ✔✔true
✔✔It is normal for a contract to provide for monthly progress payments to the
contractor. - ✔✔true
✔✔There is no implied obligation for the owner to provide access to the construction
site. - ✔✔false
✔✔Unless provided otherwise in a contract, the contractor is entitled to be paid for the
invoice cost of materials delivered to the site even though they may not have been
incorporated into the project at the time of billing the owner - ✔✔false
✔✔The contractor may rely on physical condition reports provided by the owner,
supported by pre-bid inspection, unless the contract states otherwise - ✔✔true
✔✔Retainage (or retention) is an amount kept by the owner from the progress
payments to the contractor in order to penalize the contractor for completing the project
late. - ✔✔false
✔✔An indemnification clause can hold an owner harmless from losses on the project
even if they are caused by the owner. - ✔✔true
✔✔An "exculpatory" clause is one that shifts liability from one party to another (usually
from the owner to the contractor). - ✔✔true
,✔✔A "variation in quantities" clause is intended to prevent an unfair gain or loss by the
contractor due to a difference in the quantities actually incorporated into the project
compared to what was estimated in the contract. - ✔✔true
✔✔Escalation clauses are used on long-term contracts to allow for increased labor and
material costs. - ✔✔true
✔✔Most construction projects are not unique because they resemble each other. -
✔✔false
✔✔Public and private are the two broad classes of owners on a construction project. -
✔✔true
✔✔In agency construction management the construction manager is at risk. - ✔✔false
✔✔A subcontractor has a contract with the owner. - ✔✔false
✔✔Hospital construction is one of the four broad categories of construction - ✔✔true
✔✔Custom residential building is when the owner has a building designed and built for
the owner. - ✔✔true
✔✔An architect is usually the lead designer on a commercial construction project -
✔✔true
✔✔Long-term financing is used to pay the construction costs. - ✔✔false
✔✔Competitive bidding and negotiated contract are the two basic ways to select a
contractor - ✔✔true
✔✔Design-Build is the traditional approach to construction. - ✔✔false
✔✔Fast-Track refers to overlapping design and construction. - ✔✔true
✔✔Value engineering refers to saving money by cutting the quality of materials. -
✔✔false
✔✔The prime contractor is in privity with the owner on a construction project. - ✔✔true
✔✔Competitive bidding is said to accomplish efficiency and innovation. - ✔✔true
✔✔Most negotiated contracts use the unit price method of construction. - ✔✔False
, ✔✔The owner acts as the prime contractor on a day labor construction project. - ✔✔true
✔✔A set-aside is an amount of work reserved for small disadvantaged business
enterprises - ✔✔true
✔✔The two main reasons for licensing a contractor is to protect public health and
safety. - ✔✔true
✔✔A permanent license surety bond guarantees a contractor before the contractor
becomes licensed. - ✔✔false
✔✔Building codes are enforced by the use of permits, inspections, and testing reports -
✔✔true
✔✔A contract may be formed even when the objective is unclear. - ✔✔false
✔✔An illegal contract is unenforceable. - ✔✔true
✔✔An offer is a conditional willingness to enter into an agreement. - ✔✔false
✔✔An acceptance that has conditions attached to it is a counter offer. - ✔✔true
✔✔Consideration must always be in terms of money for there to be a contract. -
✔✔false
✔✔Privity is the existence of a contractual relationship. - ✔✔true
✔✔Usually, inference is not enough to form a third-party relationship. - ✔✔true
✔✔A prime contract is any contract in which one of the parties is a construction
contractor - ✔✔false
✔✔A design-build (DB) contract reduces the likelihood of a disagreement between the
designer and the contractor. - ✔✔true
✔✔Which of the following statements is true?
Select one:
a. Fast-track services work best when there are separate contracts for design and
construction.
b. In a cost-plus-percentage-fee (CPPF) contract, in addition to the contractor's
reputation, there is a profit incentive for the contractor to hold down the costs of
the construction.
c. In the traditional approach to construction there will be one prime contract.
