CMGT 3500 Final exam Questions And Answers Graded A+!!!

Expenditures for new construction are highest when the economy is _____ and when the economy is _____, a greater percentage of expenditures are devoted to renovation and remodeling. - ANS Strong; Weak T/F: The construction industry accounts for nearly 5% of the GDP. - ANS True Prices in the industry tend to rise as competition is _________. - ANS Decreased How does the construction industry differ from typical manufacturing? - ANS Construction is characterized by custom-built projects while typical manufacturing is based on mass production of products Which of the following is NOT a reason entry into the construction industry is easy? - ANS Employees are considered less valuable than the equipment and materials T/F: The cyclical nature of construction work also means that construction workers do not usually face limited employment opportunities during certain time periods, keeping the unemployment rate within the industry low in comparison to industrial workers. - ANS False Which of the following is considered the most important resource and is often responsible for the greatest fluctuations in total anticipated costs? - ANS Labor Statistics on the number of __________ placed under construction in a stated period of time (generally one month), are often used to indicate how well the industry is responding to the economy. - ANS New homes Which of the four broad categories of construction would a church fall under? - ANS Nonresidential building construction What is the term for when a company is formed just to construct a single project? - ANS Joint venture In a construction project, which party determines when a particular project is needed? - ANS Owner T/F: Once the decision is made to have a project built, it is not necessary to obtain designer services. - ANS False Which method consists of a contract drawn up between the owner and a general contractor? - ANS General In the general contract method, after the owner enters into contracts with the designer and constructor, which of the following comes next? - ANS A public advertisement is made which advises all interested parties of the particulars of the project and the upcoming bid date In which method does the owner take charge of the management of the project, assuming the managerial functions ordinarily performed by the general contractor? - ANS Separate If the owner possesses the necessary abilities to MANAGE a construction project, which method would you suggest to them? - ANS Separate Which of the following is true under the force account method? - ANS The owner decides to do some of the construction work or essentially do the work in-house, and their own workers or employees are solely assigned the task of performing the construction work What is the difference between the general contract method and the design-build method? - ANS In the general method, the designer role and contractor role are two separate entities, whereas in the design-build method, the contractor is also responsible for the design of the project. In the professional construction management method, when is value engineering considered most cost-effective? - ANS During the design phase The CM at risk firm is responsible for all of the following EXCEPT: - ANS Pay for all of the materials used in the project When a dispute arises with a contract, in order for it to be quickly resolved, the language must be _________. - ANS Clear T/F: Most construction contracts are express contracts - ANS True When a party has not complied with the terms of a contract, they have _________ the contract. - ANS Breached A contract is ________ when both parties to the agreement have fully performed in accordance with the contract's terms, and __________ when some portion of the agreement remains to be done. - ANS Executed; Executory What is the difference between an express contract and an implied contract? - ANS Express contracts have clear and concise terms of agreement that are usually established verbally or written down and implied contracts have terms of the agreement that are not clearly stated but are established through inference and deduction. A _________ arrangement is where individuals are "joined," in a legal and liability sense, as one party in the action. - ANS Joint In a __________ arrangement, each party in a contract is considered separate and each party has a liability separate from that of any other parties. - ANS Several If a contractor promises to perform the construction work as specified, and the owner promises to pay a stated amount for this work, what type of agreement is this? - ANS Bilateral T/F: A construction contract is still executory if the owner has not paid for the work. - ANS True Which of the following is NOT one of the criteria a contract has to meet to be considered valid? - ANS Time specified A ___________________ is a right created by law that permits workers and material suppliers who provide improvements to real property, to place a claim on that land if they are not paid. - ANS Mechanic's Lien Which court case tested the government's denial of land use for a particular purpose constitute public seizure of property? - ANS State of Washington v. Lake Lawrence Public Lands Protection Association Although the practice of eminent domain may seem harsh to the individual landowner, the purpose of this governmental power is to benefit _________. - ANS The Public What is the purpose of an easement? - ANS To grant specific right of use to nonowners of particular property by stating limited and specific use can be made of said property