BCN 3740 LEGAL FINAL STUDY GUIDE
SET EXAM 2025/2026 QUESTIONS AND
ANSWERS 100% PASS
The Betterment Defense in a contract action would - ANS Be alleged by the contractor and
claim that the owner is seeking completion costs from the work performed by the replacement
contractor which work exceeded the quality, scope and/or amount originally contracted for by
the owner with the original contractor
Work on a public project pursuant to Florida Statue 255.05, requires a bond be posted by -
ANS the contractor if the contract work is in excess of $200,000
The total Cost Method of Damages calculates damages by - ANS taking the total cost of the
work loss the original bid amount by the contractor to come up with a damages number
Once a complaint has been served upon - ANS File a response to the complaint within 20
days of being served
The amount of the bond on a public project must equal - ANS The contract price between the
owner and contractor
The preferred method of litigation for a contractor is through - ANS it depends on the
circumstances
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If your contract has an enforceable arbitration clause the parties to that contract must arbitrate
unless - ANS Both parties to the contract act inconsistent with the arbitration clause in their
contract
Categories of extras to a construction contract for which a contractor may claim additional
monies may include - ANS Improper site conditions/ work changes as a result of code
requirements
A contractor working on a government project - ANS None of the above
A general contractor who reviews plans and specifications for a construction project has a duty
to tell the owner and/or architect and/or engineer about defects in the plans and specifications
only if those defects - ANS Patent Defects
A cardinal change to a contract is - ANS -a change so significant that it changes the entire
scope of the contract
-a change so significant that the contract is abandoned and the measure of damages is the
reasonable value of the work performed
The most widely accepted method of calculating unabsorbed home office overhead is by using -
ANS The Eichleay Formula
Where the Owner is clearly justified in defaulting the contractor, the surety can exercise which
option - ANS All of the above (rehire the contract the owner terminated to finish project,
rebid and relect the project to a completion contractor, pay the owner an agreed upon amount
and buy back the bond)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
SET EXAM 2025/2026 QUESTIONS AND
ANSWERS 100% PASS
The Betterment Defense in a contract action would - ANS Be alleged by the contractor and
claim that the owner is seeking completion costs from the work performed by the replacement
contractor which work exceeded the quality, scope and/or amount originally contracted for by
the owner with the original contractor
Work on a public project pursuant to Florida Statue 255.05, requires a bond be posted by -
ANS the contractor if the contract work is in excess of $200,000
The total Cost Method of Damages calculates damages by - ANS taking the total cost of the
work loss the original bid amount by the contractor to come up with a damages number
Once a complaint has been served upon - ANS File a response to the complaint within 20
days of being served
The amount of the bond on a public project must equal - ANS The contract price between the
owner and contractor
The preferred method of litigation for a contractor is through - ANS it depends on the
circumstances
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If your contract has an enforceable arbitration clause the parties to that contract must arbitrate
unless - ANS Both parties to the contract act inconsistent with the arbitration clause in their
contract
Categories of extras to a construction contract for which a contractor may claim additional
monies may include - ANS Improper site conditions/ work changes as a result of code
requirements
A contractor working on a government project - ANS None of the above
A general contractor who reviews plans and specifications for a construction project has a duty
to tell the owner and/or architect and/or engineer about defects in the plans and specifications
only if those defects - ANS Patent Defects
A cardinal change to a contract is - ANS -a change so significant that it changes the entire
scope of the contract
-a change so significant that the contract is abandoned and the measure of damages is the
reasonable value of the work performed
The most widely accepted method of calculating unabsorbed home office overhead is by using -
ANS The Eichleay Formula
Where the Owner is clearly justified in defaulting the contractor, the surety can exercise which
option - ANS All of the above (rehire the contract the owner terminated to finish project,
rebid and relect the project to a completion contractor, pay the owner an agreed upon amount
and buy back the bond)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
