CEM 100 EXAM WITH ALL CORRECT & 100%
VERIFIED ANSWERS|2025 LATEST UPDATE|JUST
RELEASED!!!
Concerning a construction contract dispute where there is a CONFLICT BETWEEN DRAWING & SPECIFICATION &
interpretations hierarchy is not spelled out anywhere else in the contract documents, from construction industry
past practice, the governing doc. would be the ___. ✔Correct Answer-specifications
___ are used as a penalty for LATE COMPLETION & is used in LIEU of a determination of actual DAMAGES
suffered by the owner. ✔Correct Answer-liquidated damages
In order to have a VALID CONTRACT, IT MUST HAVE ALL of the following essential elements except ___.
-THESE ARE ALL ✔Correct Answer-- offer & acceptance of the offer (effectively agreement)
- the contract must not be contrary to the public policy
- a price paid (not necessarily money)
- there must be genuineness, proper understanding & consent of what is involved by the parties to the terms of
the contract
In construction contracts, the typical WARRANTY PERIOD is ___. ✔Correct Answer-1 year
In the enforcement of construction contracts, ___ or more technically referred to as the equitable remedy of ___
is in SPECIAL circumstances where by the court may order the CONTRACT-BREAKER to carry out his contractual
promises PRECISELY. An example of ___ is a home builder who had a house under contract w/ 1 buyer to sell @
1 price upon completion but then the market took off (LV Hot Real Estate Market Ex 03-05) & then tried to back
out of the sale. The court in this case who compel ___. ✔Correct Answer-specific performance
Concerning project documentation, GOOD DOCUMENTATION must be all of these except:
- complete
- objective
- credible
- accurate
- uniform ✔Correct Answer-untimely
The ___ clause in a construction contract refers to some physical aspect of the project that is materially
DIFFERENT from that indicated by the contract documents, or that is of an UNUSUAL NATURE & is materially
different from the conditions normally encountered. ✔Correct Answer-differing site conditions
Concerning construction disputes, the cost of disputes as time goes on will have costs escalate & as more
people get involved these costs will also escalate. Therefore to control costs we want to RESOLVE DISPUTES
quickly. Techniques for quickly resolving disputes such as by ARBITRATION & mediation are referred to as ___.
✔Correct Answer-alternative dispute resolution
Time is an important element in the performance of most construction contracts. In the construction contract
documents, contained is usually a statement in the contract documents that "TIME IS OF THE ESSENCE" related
to the contractor's performance of the project. This statement would typically be found in the ____. ✔Correct
Answer-general conditions
CONDITIONS in the contract documents that provide information that is specific to a project IMMEDIATELY
FOLLOWS the general condition in the industry as ✔Correct Answer-supplementary conditions
, Should the contractor fail to complete the work within the time specified in the contract, the owner will often
incur hardship and expense because of these construction delays. Because actual DAMAGES for delay are
difficult to determine with exactness, it is common practice then in construction contracts to provide that the
contractor pay the owner a fixed sum of money for each calendar day of delay in satisfactory completion. This
assessment against the contractor is known as __________ and is used in LIEU of determination of the actual
damages suffered. ✔Correct Answer-liquidated damages
Concerning subcontractors, normally, the general contractor will include in its subcontract agreements express
provisions that the subcontractor is bound to the prime contractor to the same extent that the prime contractor
is bound to the owner by the terms of the PRIME CONTRACT. Provisions of this kind are commonly referred to as
__________. ✔Correct Answer-pass-through clauses
Concerning the duties and AUTHORITY OF ARCHITECT ENGINEER, during project construction, these would
include all of the following except __________.
- oversee the progress of the work
- right to stop the project to correct unsatisfactory contractor work
- approval of materials ✔Correct Answer-responsibility for contractor work methods
The HOLD-HARMLESS clause whereby the owner and architect-engineer are held harmless against claims
caused SOLELY by the negligence of the prime contractor or a subcontractor would be considered __________
according to your textbook. ✔Correct Answer-limited-form indemnification
The beginning of contract time is usually established by the written __________ which the owner dispatches to
the contractor. The date of its receipt, or a date stipulated in the __________ is normally considered to mark the
formal start of construction operations. This _________ usually issued in the FORM OF A LETTER, advises the
contractor that it may enter the owner's site, and directs the contractor to COMMENCE WORK. ✔Correct
Answer-notice to proceed
Concerning surety BONDS, ALL of the below are correct except ___.
- regulated by state insurance departments
- duty to the owner
- a risk transfer mechanism for the owner ✔Correct Answer-bond premium actuarially determined
Surety bonds are required by law on federal public construction jobs over $25,000 by the ____ Act. ✔Correct
Answer-Miller
W/ surety bonding in place, if the general contractor DEFAULTS, or is TERMINATED for default by the owner
surety can ___. ✔Correct Answer-- ALLOW owner to complete work w/ surety paying the costs
- SELECT NEW contractor to contract directly w/ owner
- COMPLETE contract itself through a completion contractor
Concerning payment bonds, on PUBLIC construction projects these payment bonds are ___ in form whereas on
PRIVATE construction projects these payment bonds are ___ in form. ✔Correct Answer-statutory, common law
In surety bonding the surety agrees to ___ the owner, against any default/failure IN DUTY of the general
contractor. ✔Correct Answer-indemnify
The private organization that RATES SURETY FIRMS as to their financial stability & other similar measures is the
___. ✔Correct Answer-A.M. Best Company
In surety bonding, the prOTECTED ENTITY is referred to in technical terms as the ___. ✔Correct Answer-
obligee
VERIFIED ANSWERS|2025 LATEST UPDATE|JUST
RELEASED!!!
Concerning a construction contract dispute where there is a CONFLICT BETWEEN DRAWING & SPECIFICATION &
interpretations hierarchy is not spelled out anywhere else in the contract documents, from construction industry
past practice, the governing doc. would be the ___. ✔Correct Answer-specifications
___ are used as a penalty for LATE COMPLETION & is used in LIEU of a determination of actual DAMAGES
suffered by the owner. ✔Correct Answer-liquidated damages
In order to have a VALID CONTRACT, IT MUST HAVE ALL of the following essential elements except ___.
-THESE ARE ALL ✔Correct Answer-- offer & acceptance of the offer (effectively agreement)
- the contract must not be contrary to the public policy
- a price paid (not necessarily money)
- there must be genuineness, proper understanding & consent of what is involved by the parties to the terms of
the contract
In construction contracts, the typical WARRANTY PERIOD is ___. ✔Correct Answer-1 year
In the enforcement of construction contracts, ___ or more technically referred to as the equitable remedy of ___
is in SPECIAL circumstances where by the court may order the CONTRACT-BREAKER to carry out his contractual
promises PRECISELY. An example of ___ is a home builder who had a house under contract w/ 1 buyer to sell @
1 price upon completion but then the market took off (LV Hot Real Estate Market Ex 03-05) & then tried to back
out of the sale. The court in this case who compel ___. ✔Correct Answer-specific performance
Concerning project documentation, GOOD DOCUMENTATION must be all of these except:
- complete
- objective
- credible
- accurate
- uniform ✔Correct Answer-untimely
The ___ clause in a construction contract refers to some physical aspect of the project that is materially
DIFFERENT from that indicated by the contract documents, or that is of an UNUSUAL NATURE & is materially
different from the conditions normally encountered. ✔Correct Answer-differing site conditions
Concerning construction disputes, the cost of disputes as time goes on will have costs escalate & as more
people get involved these costs will also escalate. Therefore to control costs we want to RESOLVE DISPUTES
quickly. Techniques for quickly resolving disputes such as by ARBITRATION & mediation are referred to as ___.
✔Correct Answer-alternative dispute resolution
Time is an important element in the performance of most construction contracts. In the construction contract
documents, contained is usually a statement in the contract documents that "TIME IS OF THE ESSENCE" related
to the contractor's performance of the project. This statement would typically be found in the ____. ✔Correct
Answer-general conditions
CONDITIONS in the contract documents that provide information that is specific to a project IMMEDIATELY
FOLLOWS the general condition in the industry as ✔Correct Answer-supplementary conditions
, Should the contractor fail to complete the work within the time specified in the contract, the owner will often
incur hardship and expense because of these construction delays. Because actual DAMAGES for delay are
difficult to determine with exactness, it is common practice then in construction contracts to provide that the
contractor pay the owner a fixed sum of money for each calendar day of delay in satisfactory completion. This
assessment against the contractor is known as __________ and is used in LIEU of determination of the actual
damages suffered. ✔Correct Answer-liquidated damages
Concerning subcontractors, normally, the general contractor will include in its subcontract agreements express
provisions that the subcontractor is bound to the prime contractor to the same extent that the prime contractor
is bound to the owner by the terms of the PRIME CONTRACT. Provisions of this kind are commonly referred to as
__________. ✔Correct Answer-pass-through clauses
Concerning the duties and AUTHORITY OF ARCHITECT ENGINEER, during project construction, these would
include all of the following except __________.
- oversee the progress of the work
- right to stop the project to correct unsatisfactory contractor work
- approval of materials ✔Correct Answer-responsibility for contractor work methods
The HOLD-HARMLESS clause whereby the owner and architect-engineer are held harmless against claims
caused SOLELY by the negligence of the prime contractor or a subcontractor would be considered __________
according to your textbook. ✔Correct Answer-limited-form indemnification
The beginning of contract time is usually established by the written __________ which the owner dispatches to
the contractor. The date of its receipt, or a date stipulated in the __________ is normally considered to mark the
formal start of construction operations. This _________ usually issued in the FORM OF A LETTER, advises the
contractor that it may enter the owner's site, and directs the contractor to COMMENCE WORK. ✔Correct
Answer-notice to proceed
Concerning surety BONDS, ALL of the below are correct except ___.
- regulated by state insurance departments
- duty to the owner
- a risk transfer mechanism for the owner ✔Correct Answer-bond premium actuarially determined
Surety bonds are required by law on federal public construction jobs over $25,000 by the ____ Act. ✔Correct
Answer-Miller
W/ surety bonding in place, if the general contractor DEFAULTS, or is TERMINATED for default by the owner
surety can ___. ✔Correct Answer-- ALLOW owner to complete work w/ surety paying the costs
- SELECT NEW contractor to contract directly w/ owner
- COMPLETE contract itself through a completion contractor
Concerning payment bonds, on PUBLIC construction projects these payment bonds are ___ in form whereas on
PRIVATE construction projects these payment bonds are ___ in form. ✔Correct Answer-statutory, common law
In surety bonding the surety agrees to ___ the owner, against any default/failure IN DUTY of the general
contractor. ✔Correct Answer-indemnify
The private organization that RATES SURETY FIRMS as to their financial stability & other similar measures is the
___. ✔Correct Answer-A.M. Best Company
In surety bonding, the prOTECTED ENTITY is referred to in technical terms as the ___. ✔Correct Answer-
obligee
