CEM 100 EXAM 1 QUESTIONS WITH
VERIFIED ANSWERS
The ___ serves as a public notice to all contractors that those who are interested and
can qualify are being sought to submit proposals for the construction project. This
method of making contractors aware of the project may be used at the election of the
owner on private projects. On public projects, statutory requirements typically indicate
that this method must be employed - Answer- Advertisement for bids
The 1978, the US Supreme Court ruled that the National Society of Professional
Engineers' ethical ban on competitive bidding for engineering services was not
permissible under the ___ - Answer- Sherman Anti-Trust Act
According to your textbook, legislative law now generally recognizes that an AE can be
held liable to another party if bodily injury or property damage is caused to that party be
reason of negligence or failure in duty of the designer. The law of negligence requires a
professional to exercise ___ to protect the other parties during the performance of the
professionals work - Answer- reasonable care
Concerning detailed cost estimates used in the construction industry, the most common
type of detailed estimate used for building construction is the ___ estimate - Answer-
Lump-sum
Concerning detailed cost estimates used in the construction industry, the most common
type of detailed estimate used for engineering construction projects is the ___ estimate -
Answer- Unit-Price
In estimating the cost of a construction project, the resource with the most risk of
variability is ___ - Answer- Labor
Concerning the calculation of ownership and operating cost for equipment, the
depreciation method by which the depreciation expense is spread uniformly over the
total service life of the equipment, as an example, say 15 years, is referred to as ____ -
Answer- straight-line depreciation
Where a contractor will decide to subcontract the materials takeoff to an outside firm,
the outside firms that perform this work are referred to as ___ firms - Answer- Quantity
surveyor
, In computing average annual value of a piece of construction equipment based on the
straight line depreciation method, all of the below costs would be relevant for this
calculation except ___ - Answer- Operating cost
According to your textbook, ___, which may also be known as price fixing, involves an
arrangement between contractors to control the bid prices for a construction project, or
to divide up customers or market areas - Answer- bid rigging
In bidding a project, during the bidding period, it is not uncommon for the contractor to
find errors, inconsistencies, and missing information in the bidding documents. It is the
responsibility of the contractor to bring such imperfections to the attention of the AE or
owner, so that the suitable modifications might be made by the responsible party. The
contractor will typically submit a number of ___ to the AE during this time. The designer
will respond, to each ___. - Answer- Request for information (RFI)
Statutory entity that combines the limited personal liability feature of a corporation and
the partnership feature of taxation at the owner level is termed a (an) - Answer- LLC
Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships - Answer- 75%
Some of Americas largest construction projects including the Hoover Dam in Southern
Nevada, built by Six companies, have been constructed by this business ownership
from where the assets and other resources of two or more construction firms are
combined for a specific project - Answer- Joint Venture
A business ownership form that has the principal advantages of limited liability of its
owners, perpetual life of the company, relative ease of raising capital, the easy and
workable provision of multiple ownership and the economic benefit that owners pay
taxes only on profits (dividends) actually received is the ____ - Answer- Corporation
In the partnership method of business ownership, a partner that is liable for partnership
debts only up to the amount of their investments in the partnership would be termed a
___ - Answer- Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a temporary
form of ownership whereby two or more companies unite and pool their resources,
assets, and skills to perform a single construction project and then go their separate
ways again following completion - Answer- Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another who
is called the ___ to act for the former in certain types of defined business or commercial
transactions - Answer- Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___ enjoy a
position of first priority - Answer- Outside creditors
VERIFIED ANSWERS
The ___ serves as a public notice to all contractors that those who are interested and
can qualify are being sought to submit proposals for the construction project. This
method of making contractors aware of the project may be used at the election of the
owner on private projects. On public projects, statutory requirements typically indicate
that this method must be employed - Answer- Advertisement for bids
The 1978, the US Supreme Court ruled that the National Society of Professional
Engineers' ethical ban on competitive bidding for engineering services was not
permissible under the ___ - Answer- Sherman Anti-Trust Act
According to your textbook, legislative law now generally recognizes that an AE can be
held liable to another party if bodily injury or property damage is caused to that party be
reason of negligence or failure in duty of the designer. The law of negligence requires a
professional to exercise ___ to protect the other parties during the performance of the
professionals work - Answer- reasonable care
Concerning detailed cost estimates used in the construction industry, the most common
type of detailed estimate used for building construction is the ___ estimate - Answer-
Lump-sum
Concerning detailed cost estimates used in the construction industry, the most common
type of detailed estimate used for engineering construction projects is the ___ estimate -
Answer- Unit-Price
In estimating the cost of a construction project, the resource with the most risk of
variability is ___ - Answer- Labor
Concerning the calculation of ownership and operating cost for equipment, the
depreciation method by which the depreciation expense is spread uniformly over the
total service life of the equipment, as an example, say 15 years, is referred to as ____ -
Answer- straight-line depreciation
Where a contractor will decide to subcontract the materials takeoff to an outside firm,
the outside firms that perform this work are referred to as ___ firms - Answer- Quantity
surveyor
, In computing average annual value of a piece of construction equipment based on the
straight line depreciation method, all of the below costs would be relevant for this
calculation except ___ - Answer- Operating cost
According to your textbook, ___, which may also be known as price fixing, involves an
arrangement between contractors to control the bid prices for a construction project, or
to divide up customers or market areas - Answer- bid rigging
In bidding a project, during the bidding period, it is not uncommon for the contractor to
find errors, inconsistencies, and missing information in the bidding documents. It is the
responsibility of the contractor to bring such imperfections to the attention of the AE or
owner, so that the suitable modifications might be made by the responsible party. The
contractor will typically submit a number of ___ to the AE during this time. The designer
will respond, to each ___. - Answer- Request for information (RFI)
Statutory entity that combines the limited personal liability feature of a corporation and
the partnership feature of taxation at the owner level is termed a (an) - Answer- LLC
Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships - Answer- 75%
Some of Americas largest construction projects including the Hoover Dam in Southern
Nevada, built by Six companies, have been constructed by this business ownership
from where the assets and other resources of two or more construction firms are
combined for a specific project - Answer- Joint Venture
A business ownership form that has the principal advantages of limited liability of its
owners, perpetual life of the company, relative ease of raising capital, the easy and
workable provision of multiple ownership and the economic benefit that owners pay
taxes only on profits (dividends) actually received is the ____ - Answer- Corporation
In the partnership method of business ownership, a partner that is liable for partnership
debts only up to the amount of their investments in the partnership would be termed a
___ - Answer- Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a temporary
form of ownership whereby two or more companies unite and pool their resources,
assets, and skills to perform a single construction project and then go their separate
ways again following completion - Answer- Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another who
is called the ___ to act for the former in certain types of defined business or commercial
transactions - Answer- Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___ enjoy a
position of first priority - Answer- Outside creditors
