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CEM 100 - Exam 2 Questions with Answers
(100% Correct Answers)
What is a contract clause? Answer: protects owner and/or the architect
engineer by transferring risk and uncertainty to the contractor
Is the contractor responsible for end results? Are they liable for the
consequences of design defects? Answer: No
What is indemnification? Answer: - Protects owners and architect-engineer
from third person liability
- construction contracts include indemnification or "hold-harmless" clauses
What is a hold-harmless clause? Answer: requires that the contractor indemnify
and hold harmless the owner and architect-engineer, from all loss or expense by
a reason of liability imposed by law on them for damages because of bodily
injury or damage to property arising out of, or as a consequence of, the work
Limited form indemnification Answer: holds owner and architect-engineer
harmless against claims caused solely by the negligence of the prime contractor
or subcontractor
intermediate-form indemnification Answer: includes not only claims caused by
contractor or subcontractors but also in which the owner and/or architect-
engineer may be jointly responsible, regardless of degree of fault
Broad-form indemnification Answer: Indemnifies the owner and/or architect-
engineer against all losses, even when the party indemnified is solely
responsible for the loss
what is a complication of a subcontract? Answer: if general contractor presents
a subcontract agreement for the subcontractor to sign that contains significant
conditions not set forth in the bidding documents or contract documents, it can
be considered as a counteroffer by the general contractor, and the bid of the
subcontractor may not be binding
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Subcontract provisions Answer: - similar to subcontract agreements in both
form and content
- pass-through clauses
What is a scope statement? Answer: detailed description of work to be done by
the subcontractor. This should be included in the subcontract agreement
What is a no damage for delay clause? Answer: In case of delay caused by
general contractor, the subcontractor's only remedy will be an extension of time
to complete its work
What is contract time? Answer: contract documents state duration (# of days)
in which a contractor must satisfactorily complete all the requirements of the
contract documents
- often uses the term calendar days
What is liquidated damages? Answer: An assessment. Used in lieu of a
determination of the actual damages suffered
What are extensions of time? Answer: occurrences that delay or add to the
period of time necessary to build the project
T or F: failure to complete a project in a certain amount of time is a breech in
contract Answer: True
What is acceleration? Answer: Owner's directing the prime contractor to
accelerate its performance of the work so as to complete the project at an earlier
date than the current rate work advancement will permit
What is differing site? Answer: - a physical aspect of project or its site that
differs materially from that indicated by the contract documents
Owner-caused delay Answer: Project delayed by act of omission or commission
on owner or part of the owner or contractor
CEM 100 - Exam 2 Questions with Answers
(100% Correct Answers)
What is a contract clause? Answer: protects owner and/or the architect
engineer by transferring risk and uncertainty to the contractor
Is the contractor responsible for end results? Are they liable for the
consequences of design defects? Answer: No
What is indemnification? Answer: - Protects owners and architect-engineer
from third person liability
- construction contracts include indemnification or "hold-harmless" clauses
What is a hold-harmless clause? Answer: requires that the contractor indemnify
and hold harmless the owner and architect-engineer, from all loss or expense by
a reason of liability imposed by law on them for damages because of bodily
injury or damage to property arising out of, or as a consequence of, the work
Limited form indemnification Answer: holds owner and architect-engineer
harmless against claims caused solely by the negligence of the prime contractor
or subcontractor
intermediate-form indemnification Answer: includes not only claims caused by
contractor or subcontractors but also in which the owner and/or architect-
engineer may be jointly responsible, regardless of degree of fault
Broad-form indemnification Answer: Indemnifies the owner and/or architect-
engineer against all losses, even when the party indemnified is solely
responsible for the loss
what is a complication of a subcontract? Answer: if general contractor presents
a subcontract agreement for the subcontractor to sign that contains significant
conditions not set forth in the bidding documents or contract documents, it can
be considered as a counteroffer by the general contractor, and the bid of the
subcontractor may not be binding
, 2
Subcontract provisions Answer: - similar to subcontract agreements in both
form and content
- pass-through clauses
What is a scope statement? Answer: detailed description of work to be done by
the subcontractor. This should be included in the subcontract agreement
What is a no damage for delay clause? Answer: In case of delay caused by
general contractor, the subcontractor's only remedy will be an extension of time
to complete its work
What is contract time? Answer: contract documents state duration (# of days)
in which a contractor must satisfactorily complete all the requirements of the
contract documents
- often uses the term calendar days
What is liquidated damages? Answer: An assessment. Used in lieu of a
determination of the actual damages suffered
What are extensions of time? Answer: occurrences that delay or add to the
period of time necessary to build the project
T or F: failure to complete a project in a certain amount of time is a breech in
contract Answer: True
What is acceleration? Answer: Owner's directing the prime contractor to
accelerate its performance of the work so as to complete the project at an earlier
date than the current rate work advancement will permit
What is differing site? Answer: - a physical aspect of project or its site that
differs materially from that indicated by the contract documents
Owner-caused delay Answer: Project delayed by act of omission or commission
on owner or part of the owner or contractor
