CMGT 3500 Final
Study online at https://quizlet.com/_i393uh
1. Expenditures for new construction are highest when the economy is _____ and
when the economy is _____, a greater percentage of expenditures are devoted
to renovation and remodeling.: Strong; Weak
2. T/F: The construction industry accounts for nearly 5% of the GDP.: True
3. Prices in the industry tend to rise as competition is _________.: Decreased
4. How does the construction industry differ from typical manufacturing?: Con-
struction is characterized by custom-built projects while typical manufacturing is based on mass production of products
5. Which of the following is NOT a reason entry into the construction industry is
easy?: Employees are considered less valuable than the equipment and materials
6. T/F: The cyclical nature of construction work also means that construction
workers do not usually face limited employment opportunities during certain
time periods, keeping the unemployment rate within the industry low in com-
parison to industrial workers.: False
7. Which of the following is considered the most important resource and is often
responsible for the greatest fluctuations in total anticipated costs?: Labor
8. Statistics on the number of __________ placed under construction in a stated
period of time (generally one month), are often used to indicate how well the
industry is responding to the economy.: New homes
9. Which of the four broad categories of construction would a church fall un-
der?: Nonresidential building construction
10. What is the term for when a company is formed just to construct a single
project?: Joint venture
11. In a construction project, which party determines when a particular project
is needed?: Owner
12. T/F: Once the decision is made to have a project built, it is not necessary to
obtain designer services.: False
13. Which method consists of a contract drawn up between the owner and a
general contractor?: General
14. In the general contract method, after the owner enters into contracts with
the designer and constructor, which of the following comes next?: A public advertise-
ment is made which advises all interested parties of the particulars of the project and the upcoming bid date
1/7
, CMGT 3500 Final
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15. In which method does the owner take charge of the management of the pro-
ject, assuming the managerial functions ordinarily performed by the general
contractor?: Separate
16. If the owner possesses the necessary abilities to MANAGE a construction
project, which method would you suggest to them?: Separate
17. Which of the following is true under the force account method?: The owner decides
to do some of the construction work or essentially do the work in-house, and their own workers or employees are solely
assigned the task of performing the construction work
18. What is the difference between the general contract method and the de-
sign-build method?: In the general method, the designer role and contractor role are two separate entities,
whereas in the design-build method, the contractor is also responsible for the design of the project.
19. In the professional construction management method, when is value engi-
neering considered most cost-effective?: During the design phase
20. The CM at risk firm is responsible for all of the following EXCEPT:: Pay for all of the
materials used in the project
21. When a dispute arises with a contract, in order for it to be quickly resolved,
the language must be _________.: Clear
22. T/F: Most construction contracts are express contracts: True
23. When a party has not complied with the terms of a contract, they have
_________ the contract.: Breached
24. A contract is ________ when both parties to the agreement have fully per-
formed in accordance with the contract's terms, and __________ when some
portion of the agreement remains to be done.: Executed; Executory
25. What is the difference between an express contract and an implied contract?-
: Express contracts have clear and concise terms of agreement that are usually established verbally or written down
and implied contracts have terms of the agreement that are not clearly stated but are established through inference
and deduction.
26. A _________ arrangement is where individuals are "joined," in a legal and
liability sense, as one party in the action.: Joint
27. In a __________ arrangement, each party in a contract is considered separate
and each party has a liability separate from that of any other parties.: Several
2/7
Study online at https://quizlet.com/_i393uh
1. Expenditures for new construction are highest when the economy is _____ and
when the economy is _____, a greater percentage of expenditures are devoted
to renovation and remodeling.: Strong; Weak
2. T/F: The construction industry accounts for nearly 5% of the GDP.: True
3. Prices in the industry tend to rise as competition is _________.: Decreased
4. How does the construction industry differ from typical manufacturing?: Con-
struction is characterized by custom-built projects while typical manufacturing is based on mass production of products
5. Which of the following is NOT a reason entry into the construction industry is
easy?: Employees are considered less valuable than the equipment and materials
6. T/F: The cyclical nature of construction work also means that construction
workers do not usually face limited employment opportunities during certain
time periods, keeping the unemployment rate within the industry low in com-
parison to industrial workers.: False
7. Which of the following is considered the most important resource and is often
responsible for the greatest fluctuations in total anticipated costs?: Labor
8. Statistics on the number of __________ placed under construction in a stated
period of time (generally one month), are often used to indicate how well the
industry is responding to the economy.: New homes
9. Which of the four broad categories of construction would a church fall un-
der?: Nonresidential building construction
10. What is the term for when a company is formed just to construct a single
project?: Joint venture
11. In a construction project, which party determines when a particular project
is needed?: Owner
12. T/F: Once the decision is made to have a project built, it is not necessary to
obtain designer services.: False
13. Which method consists of a contract drawn up between the owner and a
general contractor?: General
14. In the general contract method, after the owner enters into contracts with
the designer and constructor, which of the following comes next?: A public advertise-
ment is made which advises all interested parties of the particulars of the project and the upcoming bid date
1/7
, CMGT 3500 Final
Study online at https://quizlet.com/_i393uh
15. In which method does the owner take charge of the management of the pro-
ject, assuming the managerial functions ordinarily performed by the general
contractor?: Separate
16. If the owner possesses the necessary abilities to MANAGE a construction
project, which method would you suggest to them?: Separate
17. Which of the following is true under the force account method?: The owner decides
to do some of the construction work or essentially do the work in-house, and their own workers or employees are solely
assigned the task of performing the construction work
18. What is the difference between the general contract method and the de-
sign-build method?: In the general method, the designer role and contractor role are two separate entities,
whereas in the design-build method, the contractor is also responsible for the design of the project.
19. In the professional construction management method, when is value engi-
neering considered most cost-effective?: During the design phase
20. The CM at risk firm is responsible for all of the following EXCEPT:: Pay for all of the
materials used in the project
21. When a dispute arises with a contract, in order for it to be quickly resolved,
the language must be _________.: Clear
22. T/F: Most construction contracts are express contracts: True
23. When a party has not complied with the terms of a contract, they have
_________ the contract.: Breached
24. A contract is ________ when both parties to the agreement have fully per-
formed in accordance with the contract's terms, and __________ when some
portion of the agreement remains to be done.: Executed; Executory
25. What is the difference between an express contract and an implied contract?-
: Express contracts have clear and concise terms of agreement that are usually established verbally or written down
and implied contracts have terms of the agreement that are not clearly stated but are established through inference
and deduction.
26. A _________ arrangement is where individuals are "joined," in a legal and
liability sense, as one party in the action.: Joint
27. In a __________ arrangement, each party in a contract is considered separate
and each party has a liability separate from that of any other parties.: Several
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