COSC 463 TAMU - McCloskey Exam 2
Questions With Correct Answers
3 |Options |Following |Risk |Assessment |- |CORRECT |ANSWER✔✔-Execute |the |contract |and |accept
|them, |Walk |away, |Execute |the |contract |and |manage |them
Must |Have |Clauses: |- |CORRECT |ANSWER✔✔-Differing |Site |Conditions, |Changes, |Delays |- |Force |
Majeure, |Waiver |of |Consequential |Damages, |Flow |Down, |Payment, |Indemnity, |Dispute |
Resolution
Consequential |Damages |are |recoverable: |- |CORRECT |ANSWER✔✔-Only |when |they |are |
reasonably |foreseeable
Flow |Down |Clauses: |- |CORRECT |ANSWER✔✔-Incorporate |all |prime |contract |documents |into |
subcontract
Flow |Down |Clause |Extra |Clauses: |- |CORRECT |ANSWER✔✔-Insurance, |indemnity, |payment, |
warranties, |extras, |time |requirements |for |performance, |suspension |of |performance, |
termination, |claims, |dispute |resolution.
Retainage: |- |CORRECT |ANSWER✔✔-Usually |5-10% |of |the |amount |of |total |contract
Typical |Retainage |Provisions: |- |CORRECT |ANSWER✔✔-reduce |retainage |after |a |percentage |of |
the |Work |is |complete |(usually |50%), |exclude |retainage |on |Contractor's |fee |and |general |
conditions |expenses, |reduce |retainage |to |some |percentage |of |the |value |of |any |punch |list |work
|upon |Substantial |Completion.
Contingent |Payment |Clause |(Pay |if |Paid; |Contingent): |- |CORRECT |ANSWER✔✔-The |receipt |by |
the |GC |of |payment |from |the |Owner |is |a |condition |precedent |to |the |GC's |obligation |to |pay |the |
sub, |then |the |condition |must |be |met |before |the |payment |obligation |ever |arises.
, Contingent |Payment |Clause |(Pay |when |Paid): |- |CORRECT |ANSWER✔✔-Sub |will |get |paid |within |
a |certain |time |period |(e.g. |seven |days) |after |GC |receives |payment |from |the |owner. |If |the |
Owner |never |pays |GC, |the |GC |still |has |an |obligation |to |pay |the |sub.
Prompt |Pay |Act: |- |CORRECT |ANSWER✔✔-Public, |Private |and |Federal |variations. |Prevents |slow |
payment |by |O/GC |by |giving |subs/suppliers |rights |when |remain |unpaid.
Partial/ |Final |Lien |Waivers: |- |CORRECT |ANSWER✔✔-Standard |for |GC |to |require |subs |to |sign |
forms |in |order |to |receive |progress |payments |during |the |course |of |the |sub's |performance |of |
the |contract. |Sub |waives |its |lien |rights |and |claims |against |the |owner, |the |owner's |property, |
and |the |GC.
Indemnity: |- |CORRECT |ANSWER✔✔-Clauses |where |one |party |agrees |to |protect |the |other |from
|the |consequences |of |accidents |resulting |in |personal |injury |or |property |damage |on |the |jobsite.
Limited |Indemnity: |- |CORRECT |ANSWER✔✔-Indemnitor |assumes |liability |for |their |own |
negligence.
Intermediate |Indemnity: |- |CORRECT |ANSWER✔✔-Indemnitor |assumes |all |liability |except |for |
the |sole |negligence |of |the |indemnitee |(GC, |etc.)
Broad |Form: |- |CORRECT |ANSWER✔✔-Entire |risk |of |loss |upon |the |indemnitor, |even |for |sole |
negligence |of |the |indemnitee.
Indemnity |in |Texas: |- |CORRECT |ANSWER✔✔-IF |the |intent |is |to |have |a |broad/intermediate |
form |indemnity, |then |it |must |clearly |state |that |or |it |will |not |be |upheld.
Termination |for |Convenience: |- |CORRECT |ANSWER✔✔-Neither |party |can |terminate |without |
being |liable |to |the |other |party |for |damages. |Termination |for |convenience |clause |gives |a |party |
Questions With Correct Answers
3 |Options |Following |Risk |Assessment |- |CORRECT |ANSWER✔✔-Execute |the |contract |and |accept
|them, |Walk |away, |Execute |the |contract |and |manage |them
Must |Have |Clauses: |- |CORRECT |ANSWER✔✔-Differing |Site |Conditions, |Changes, |Delays |- |Force |
Majeure, |Waiver |of |Consequential |Damages, |Flow |Down, |Payment, |Indemnity, |Dispute |
Resolution
Consequential |Damages |are |recoverable: |- |CORRECT |ANSWER✔✔-Only |when |they |are |
reasonably |foreseeable
Flow |Down |Clauses: |- |CORRECT |ANSWER✔✔-Incorporate |all |prime |contract |documents |into |
subcontract
Flow |Down |Clause |Extra |Clauses: |- |CORRECT |ANSWER✔✔-Insurance, |indemnity, |payment, |
warranties, |extras, |time |requirements |for |performance, |suspension |of |performance, |
termination, |claims, |dispute |resolution.
Retainage: |- |CORRECT |ANSWER✔✔-Usually |5-10% |of |the |amount |of |total |contract
Typical |Retainage |Provisions: |- |CORRECT |ANSWER✔✔-reduce |retainage |after |a |percentage |of |
the |Work |is |complete |(usually |50%), |exclude |retainage |on |Contractor's |fee |and |general |
conditions |expenses, |reduce |retainage |to |some |percentage |of |the |value |of |any |punch |list |work
|upon |Substantial |Completion.
Contingent |Payment |Clause |(Pay |if |Paid; |Contingent): |- |CORRECT |ANSWER✔✔-The |receipt |by |
the |GC |of |payment |from |the |Owner |is |a |condition |precedent |to |the |GC's |obligation |to |pay |the |
sub, |then |the |condition |must |be |met |before |the |payment |obligation |ever |arises.
, Contingent |Payment |Clause |(Pay |when |Paid): |- |CORRECT |ANSWER✔✔-Sub |will |get |paid |within |
a |certain |time |period |(e.g. |seven |days) |after |GC |receives |payment |from |the |owner. |If |the |
Owner |never |pays |GC, |the |GC |still |has |an |obligation |to |pay |the |sub.
Prompt |Pay |Act: |- |CORRECT |ANSWER✔✔-Public, |Private |and |Federal |variations. |Prevents |slow |
payment |by |O/GC |by |giving |subs/suppliers |rights |when |remain |unpaid.
Partial/ |Final |Lien |Waivers: |- |CORRECT |ANSWER✔✔-Standard |for |GC |to |require |subs |to |sign |
forms |in |order |to |receive |progress |payments |during |the |course |of |the |sub's |performance |of |
the |contract. |Sub |waives |its |lien |rights |and |claims |against |the |owner, |the |owner's |property, |
and |the |GC.
Indemnity: |- |CORRECT |ANSWER✔✔-Clauses |where |one |party |agrees |to |protect |the |other |from
|the |consequences |of |accidents |resulting |in |personal |injury |or |property |damage |on |the |jobsite.
Limited |Indemnity: |- |CORRECT |ANSWER✔✔-Indemnitor |assumes |liability |for |their |own |
negligence.
Intermediate |Indemnity: |- |CORRECT |ANSWER✔✔-Indemnitor |assumes |all |liability |except |for |
the |sole |negligence |of |the |indemnitee |(GC, |etc.)
Broad |Form: |- |CORRECT |ANSWER✔✔-Entire |risk |of |loss |upon |the |indemnitor, |even |for |sole |
negligence |of |the |indemnitee.
Indemnity |in |Texas: |- |CORRECT |ANSWER✔✔-IF |the |intent |is |to |have |a |broad/intermediate |
form |indemnity, |then |it |must |clearly |state |that |or |it |will |not |be |upheld.
Termination |for |Convenience: |- |CORRECT |ANSWER✔✔-Neither |party |can |terminate |without |
being |liable |to |the |other |party |for |damages. |Termination |for |convenience |clause |gives |a |party |
