CON 367 MIDTERM 2 EXAM QUESTIONS
WITH CORRECT ANSWERS
An |"Exculpatory |Clause" |in |a |contract |attempts |to |shift |a |certain |risk |from |one |party |to |
another. |- |CORRECT |ANSWER✔✔-True
Managerial |Competence |is |considered |one |of |the |many |types |of |risks. |- |CORRECT |
ANSWER✔✔-True
Site |access |as |a |risk |is |allocated |to, |and |mostly |the |responsibility |of |- |CORRECT |ANSWER✔✔-
Owner
Even |though |some |permits |should |be |obtained |by |the |owner |in |advance |of |construction, |it |is |
a |good |idea |to |let |the |contractor |obtain |certain |types |of |permits. |- |CORRECT |ANSWER✔✔-
True
Which |one |of |the |following |is |not |a |principal |construction |risk |category |as |detailed |by |the |
American |Society |of |Civil |Engineering |(ASCE) |in |1979? |- |CORRECT |ANSWER✔✔-Safety |Risks
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |owner |- |CORRECT |
ANSWER✔✔-Funding
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |A/E |(Designer)? |- |
CORRECT |ANSWER✔✔-Defective |Design
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |Contractor? |- |
CORRECT |ANSWER✔✔-Material |& |equipment |risk
, The |more |risks |are |assigned |to |the |Contractor |through |the |Contract |Documents, |the |more |
likely |it |is |that |the |Owner |will |receive |lower |(in |terms |of |$) |bids. |- |CORRECT |ANSWER✔✔-False
Waiting |until |the |end |of |the |project |to |resolve |disputes |is |preferable |over |resolving |disputes |
soon |after |they |surface. |- |CORRECT |ANSWER✔✔-False
According |to |the |textbook, |all |risks |in |a |construction |project |belong |to |the |Owner |unless |
transferred |by |the |contract |- |CORRECT |ANSWER✔✔-True
The |assigned |textbook |advises |that |the |starting |date |of |a |project |should |not |be |the |date |of |
the |execution |(signing) |of |the |agreement. |- |CORRECT |ANSWER✔✔-True
Under |what |type |pf |bond, |the |surety |has |an |obligation |to |the |owner |for |any |additional |costs |
to |complete |the |project |due |to |the |contractor's |failure |to |comply |with |its |contract |
requirements? |- |CORRECT |ANSWER✔✔-Performance |Bond
Multiple-Peril |Builder's |Risk |Insurance |provides |similar |but |broader |coverage |than |the |
Standard |Builder's |Risk |policy. |- |CORRECT |ANSWER✔✔-True
Under |a |Bid |Bond, |the |surety |guarantees |the |payment |of |all |labor |and |material |bills |that |
result |from |the |performance |of |the |contract. |- |CORRECT |ANSWER✔✔-False
According |to |the |assigned |textbook, |which |of |the |following |is |not |one |of |the |items |that |
contribute |significantly |to |the |cost |of |establishing |and |operating |a |construction |field |office |for |
the |owner |or |design |firm. |- |CORRECT |ANSWER✔✔-Construction
A |quality |control |plan |provides |for |a |more |orderly |administration |of |the |entire |construction |
phase |of |the |job. |- |CORRECT |ANSWER✔✔-True
WITH CORRECT ANSWERS
An |"Exculpatory |Clause" |in |a |contract |attempts |to |shift |a |certain |risk |from |one |party |to |
another. |- |CORRECT |ANSWER✔✔-True
Managerial |Competence |is |considered |one |of |the |many |types |of |risks. |- |CORRECT |
ANSWER✔✔-True
Site |access |as |a |risk |is |allocated |to, |and |mostly |the |responsibility |of |- |CORRECT |ANSWER✔✔-
Owner
Even |though |some |permits |should |be |obtained |by |the |owner |in |advance |of |construction, |it |is |
a |good |idea |to |let |the |contractor |obtain |certain |types |of |permits. |- |CORRECT |ANSWER✔✔-
True
Which |one |of |the |following |is |not |a |principal |construction |risk |category |as |detailed |by |the |
American |Society |of |Civil |Engineering |(ASCE) |in |1979? |- |CORRECT |ANSWER✔✔-Safety |Risks
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |owner |- |CORRECT |
ANSWER✔✔-Funding
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |A/E |(Designer)? |- |
CORRECT |ANSWER✔✔-Defective |Design
Which |one |of |the |following |risks, |in |general, |should |be |allocated |to |the |Contractor? |- |
CORRECT |ANSWER✔✔-Material |& |equipment |risk
, The |more |risks |are |assigned |to |the |Contractor |through |the |Contract |Documents, |the |more |
likely |it |is |that |the |Owner |will |receive |lower |(in |terms |of |$) |bids. |- |CORRECT |ANSWER✔✔-False
Waiting |until |the |end |of |the |project |to |resolve |disputes |is |preferable |over |resolving |disputes |
soon |after |they |surface. |- |CORRECT |ANSWER✔✔-False
According |to |the |textbook, |all |risks |in |a |construction |project |belong |to |the |Owner |unless |
transferred |by |the |contract |- |CORRECT |ANSWER✔✔-True
The |assigned |textbook |advises |that |the |starting |date |of |a |project |should |not |be |the |date |of |
the |execution |(signing) |of |the |agreement. |- |CORRECT |ANSWER✔✔-True
Under |what |type |pf |bond, |the |surety |has |an |obligation |to |the |owner |for |any |additional |costs |
to |complete |the |project |due |to |the |contractor's |failure |to |comply |with |its |contract |
requirements? |- |CORRECT |ANSWER✔✔-Performance |Bond
Multiple-Peril |Builder's |Risk |Insurance |provides |similar |but |broader |coverage |than |the |
Standard |Builder's |Risk |policy. |- |CORRECT |ANSWER✔✔-True
Under |a |Bid |Bond, |the |surety |guarantees |the |payment |of |all |labor |and |material |bills |that |
result |from |the |performance |of |the |contract. |- |CORRECT |ANSWER✔✔-False
According |to |the |assigned |textbook, |which |of |the |following |is |not |one |of |the |items |that |
contribute |significantly |to |the |cost |of |establishing |and |operating |a |construction |field |office |for |
the |owner |or |design |firm. |- |CORRECT |ANSWER✔✔-Construction
A |quality |control |plan |provides |for |a |more |orderly |administration |of |the |entire |construction |
phase |of |the |job. |- |CORRECT |ANSWER✔✔-True
