Chapter 3 - AIC Exam Questions and
Verified Correct Answers
____ means the contract must be for legal purposes answer - lawful object
Which type of contract is the most common contract and has the highest amount of risk of costs
and owners have the least? answer - lump sum contract
In a __ contract, the contractor gives the owner a single price to complete the contracted scope
of work. answer - lump sum
In a ___ contract, contractors provide a price for a unit of work such as a square feet of
sidewalks or cubic yards of concrete. answer - unit price
T or F: unit price contracts are typically used when exact quantities cannot be determined in
advance. answer - true
T or F: the unit price includes all labor, material, and equipment costs for one unit of work plus
the contractor's overhead and profit answer - true
in a ____ contract, a contractor is paid for all direct costs, such as labor, materials, equipment,
subcontracts, and field supervision, plus an agreed upon fee answer - cost plus
Three well-known entities offer standardized contract forms:
1.
2.
, 3. answer - 1. AIA (American institute of architects)
2. EJCDC (the engineers joint contract documents committee)
3. Consensus docs
What are the three primary parties in a contract? answer - owner, architect, contractor
The _____ delivery method is commonly referred to as hard bid, stipulated sum, or fixed price.
In this method, the owner has separate contracts directly with the architect and contractor.
answer - design-bid-build
In Design bid build, the _____ designs the project, produces the construction document, and
provides construction administration. answer - architect
In design bid build, the ____ is responsible for constructing the project in accordance with the
construction documents. answer - contractor
What is the project largely rewarded on in design-bid-build? answer - price
Who is generally considered to have the most risk in a design bid build? answer - the contractor
because there is no guarantee that they will earn a profit
in the _____ method, the owner contracts with a single entity for both designs and construction
services answer - design-build
in the _____ delivery method, an independent agency acts as the owner's representative and
coordinates work between the design and construction teams. The owner contracts directly
with the designers, contractors, and construction managers. answer - construction
management (CM) agency
Verified Correct Answers
____ means the contract must be for legal purposes answer - lawful object
Which type of contract is the most common contract and has the highest amount of risk of costs
and owners have the least? answer - lump sum contract
In a __ contract, the contractor gives the owner a single price to complete the contracted scope
of work. answer - lump sum
In a ___ contract, contractors provide a price for a unit of work such as a square feet of
sidewalks or cubic yards of concrete. answer - unit price
T or F: unit price contracts are typically used when exact quantities cannot be determined in
advance. answer - true
T or F: the unit price includes all labor, material, and equipment costs for one unit of work plus
the contractor's overhead and profit answer - true
in a ____ contract, a contractor is paid for all direct costs, such as labor, materials, equipment,
subcontracts, and field supervision, plus an agreed upon fee answer - cost plus
Three well-known entities offer standardized contract forms:
1.
2.
, 3. answer - 1. AIA (American institute of architects)
2. EJCDC (the engineers joint contract documents committee)
3. Consensus docs
What are the three primary parties in a contract? answer - owner, architect, contractor
The _____ delivery method is commonly referred to as hard bid, stipulated sum, or fixed price.
In this method, the owner has separate contracts directly with the architect and contractor.
answer - design-bid-build
In Design bid build, the _____ designs the project, produces the construction document, and
provides construction administration. answer - architect
In design bid build, the ____ is responsible for constructing the project in accordance with the
construction documents. answer - contractor
What is the project largely rewarded on in design-bid-build? answer - price
Who is generally considered to have the most risk in a design bid build? answer - the contractor
because there is no guarantee that they will earn a profit
in the _____ method, the owner contracts with a single entity for both designs and construction
services answer - design-build
in the _____ delivery method, an independent agency acts as the owner's representative and
coordinates work between the design and construction teams. The owner contracts directly
with the designers, contractors, and construction managers. answer - construction
management (CM) agency
