CM 4211 FINAL EXAM UPDATED
QUESTIONS AND CORRECT ANSWERS.
All of the following statements are TRUE, except one. Which one? - ANS A conditional
agreement with an offer is an acceptance.
All of the following statements are TRUE, except one. Which one? - ANS Consideration is
always measured in money.
All of the following statements are TRUE, except one. Which one? - ANS Most contract
breaches are of express conditions.
All of the following statements are TRUE, except one. Which one? - ANS The main advantage
to an owner of using a cost-plus-percentage fee arrangement is the incentive for the contractor
to hold down construction cost.
Only one of the following statements are TRUE. Which one? - ANS Liquidated damages are
an agreed-upon daily amount for finishing late.
All of the following statements are TRUE, except one. Which one? - ANS In a guaranteed
maximum price contract the contractor cannot lose money.
All of the following statements are TRUE, except one. Which one? - ANS The bid form itself is
drafted and completed by the owner.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, All of the following statements are TRUE, except one. Which one? - ANS The changes clause
usually does not give the owner the unilateral right to make changes to the contract.
All of the following statements are TRUE, except one. Which one? - ANS If Physical
Conditions Reports are included in the bid documents, they can always be relied on by the
contractor even if there is a disclaimer in the contract made by the owner.
All of the following statements are TRUE, except one. Which one? - ANS The cost of materials
stored onsite, but not yet incorporated into the project will be owed by the owner to the
contractor even when there is provision in the contract documents to do so.
All of the following statements are TRUE, except one. Which one? - ANS An "escalation"
clause may be included in a short-term lump sum contract.
All of the following statements are TRUE, except one. Which one? - ANS A purchase order is
usually given by the owner to the contractor.
All of the following statements are TRUE, except one. Which one? - ANS "F.O.B." means
freight overboard.
All of the following statements are TRUE, except one. Which one? - ANS A 24-hour clause
gives a prime contractor the right to terminate a subcontractor after giving 24 hour notice to
the subcontractor.
All of the following statements are TRUE, except one. Which one? - ANS The principal reason
for licensing of contractors is to allow incompetent people to be in the industry.
All of the following statements are TRUE, except one. Which one? - ANS A proprietorship
may use any name it wants without restriction.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND CORRECT ANSWERS.
All of the following statements are TRUE, except one. Which one? - ANS A conditional
agreement with an offer is an acceptance.
All of the following statements are TRUE, except one. Which one? - ANS Consideration is
always measured in money.
All of the following statements are TRUE, except one. Which one? - ANS Most contract
breaches are of express conditions.
All of the following statements are TRUE, except one. Which one? - ANS The main advantage
to an owner of using a cost-plus-percentage fee arrangement is the incentive for the contractor
to hold down construction cost.
Only one of the following statements are TRUE. Which one? - ANS Liquidated damages are
an agreed-upon daily amount for finishing late.
All of the following statements are TRUE, except one. Which one? - ANS In a guaranteed
maximum price contract the contractor cannot lose money.
All of the following statements are TRUE, except one. Which one? - ANS The bid form itself is
drafted and completed by the owner.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, All of the following statements are TRUE, except one. Which one? - ANS The changes clause
usually does not give the owner the unilateral right to make changes to the contract.
All of the following statements are TRUE, except one. Which one? - ANS If Physical
Conditions Reports are included in the bid documents, they can always be relied on by the
contractor even if there is a disclaimer in the contract made by the owner.
All of the following statements are TRUE, except one. Which one? - ANS The cost of materials
stored onsite, but not yet incorporated into the project will be owed by the owner to the
contractor even when there is provision in the contract documents to do so.
All of the following statements are TRUE, except one. Which one? - ANS An "escalation"
clause may be included in a short-term lump sum contract.
All of the following statements are TRUE, except one. Which one? - ANS A purchase order is
usually given by the owner to the contractor.
All of the following statements are TRUE, except one. Which one? - ANS "F.O.B." means
freight overboard.
All of the following statements are TRUE, except one. Which one? - ANS A 24-hour clause
gives a prime contractor the right to terminate a subcontractor after giving 24 hour notice to
the subcontractor.
All of the following statements are TRUE, except one. Which one? - ANS The principal reason
for licensing of contractors is to allow incompetent people to be in the industry.
All of the following statements are TRUE, except one. Which one? - ANS A proprietorship
may use any name it wants without restriction.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
