Construction Management Practice Test Questions with correct Answers (A+ GRADED 100% VERIFIED)| 2025/2026

Construction Management Practice
Test Questions with correct Answers
----------- is a form of deduction that companies can use to decrease their tax
payments due to shortened service life of their equipment over time. -
------------ANSWER: Depreciation

Arbitration is a more serious method of dispute resolution compared to mediation.
T or F - ------------ANSWER: T

Based on the guide quantity of 100 CY on a bid document for rock excavation, a
contractor bid a unit price of $20/CY. If the owner's representative determined that
the contractor excavated 85 CY of rock during construction, how much will the
contractor get paid?
(a). $2000
(b). $1700
(c). $300
(d). $1800 - ------------ANSWER: (b)

Based on the guide quantity of 120 CY on a bid document for rock excavation, a
contractor bid a unit price of $50/CY. If the owner's representative determined that
the contractor excavated 70 CY of rock during the construction, how much will the
contractor get paid?
(a) $2000
(b). $1700
(c). $3500
(d). $6000 - ------------ANSWER: (c)

Choose the correct attributes of a partnership
(a) Risk is divided between the partners equally
(b) Profits and control is divided among general partners based on degree of
ownership
(c) There is no limit on liability for partners
(d) Limited partners can increase assets of the company although they have no
voice in management
(e) Signature of all partners is necessary for a binding contract
(f) Death of a partner ends the partnership unless there are clauses in the charter
that makes arrangements for this situation - ------------ANSWER: (b), (c), (d), (f)

, Clauses of General Conditions documents published by organizations like AIA and
EJCDC can be modified by the owner for a specific project using -----------. -
------------ANSWER: Special conditions documents

Conceptual cost estimates can be established using historical cost data without
significant information on the final design of a project.
T or F - ------------ANSWER: T

Depreciation of an equipment decreases the tax of a corporation as much as a tax
credit equal to the depreciation.
T or F - ------------ANSWER: F

Design error or omissions cannot be used as a basis for change orders even if
corrections increase the cost of construction.
T or F - ------------ANSWER: F

General conditions clauses that deal with compensation of the owner for damages
due to late completion of the project are called ----------- clauses. -
------------ANSWER: Liquidated Damages

General conditions contain generic information on subjects like bonds and insurance,
contractor's responsibilities, changes in the work, and others.
T or F - ------------ANSWER: True

Generic articles of the selected general conditions document can be changed using
the [A] conditions document. - ------------ANSWER: supplementary/special

If a company posts a Net Operating Loss (NOL) in a given year, they are allowed to
get back some or all of the taxes they paid in the last three years which is called
carrying the loss back.
T or F - ------------ANSWER: T

If a subcontractor or vendor doesn't get paid during the project, he/she may file a [A]
against the property. - ------------ANSWER: lien

If the contractor gets bankrupt during the construction, the owner may use the [A]
bond to complete the work. - ------------ANSWER: performance

If the contractor goes bankrupt during the construction, the owner may use the funds
from a ------------ bond to complete the work. - ------------ANSWER: Performance

If the guide quantities on the proposal are suspected to be lower than actual
quantities, the contractor may submit higher unit prices to increase his profit.
T or F - ------------ANSWER: F