CMGT 3500 exam 2 study guide Questions And Answers

The performance bond gives primary protection to the contractor as the cost of project completion - ANS False Contract disputes are almost always between contracting parties - ANS true Contractors are traditionally agents rather rather than independent contractors - ANS false A proprietorship business is not personally liable for any incurred indebtedness - ANS False corporation owners are bound personally by any indebtedness of the corporation - ANS False In primarily private sector construction, disputes are often outside the contract, involving the procedures related to the reward of the contract - ANS True Torts are disputes that relate to matters addressed by statutory law of contract obligations - ANS False A surety bond guaranteed the performance of the principals obligations under the contract to the obligee - ANS True A bid bond gives assurance to the subcontractor that the owner will enter into a binding contract with them - ANS False The Miller Act stipulates that all construction contracts must have surety bonds for contracts that exceed $100,000 - ANS False Unit-Price contracts provide the pricing for units of work is determined after the start of construction - ANS False Cost-plus contracts basis of payment is - ANS by receipts, documentation of expenses incurred If a contractor is in need of a few workers for one or two days, the company will: - ANS Contract with a day labor agency The creation of an agency can take place by: - ANS Law or contract; Ratification; Estoppel (A, B, & C) Value engineering refers to: - ANS Critically analyzing the construction documents in relation to the owner's objectives Addenda are changes that take place after the award of the contract - ANS False Job order contracting (JOC) was developed for government agencies for renovation, repair, and construction projects - ANS True