Question 1

Acceleration clauses cannot require a Constructor to perform work in a manner that is more costly than originally planned

Accepted Answer

Acceleration clauses can indeed require a contractor to complete work in a shorter timeframe than originally planned, which often results in increased costs due to the need for additional resources, overtime, etc.

Question 2

Generally not included in a Time and Material cost is&#10;A) home office personnel&#10;B) required equipment rental&#10;C) consumed material&#10;D) all of these

Accepted Answer

A

Question 3

For progress billing, the Contract Administrator should coordinate with&#10;A) the Design Professional&#10;B) Subcontractors&#10;C) field supervision&#10;D) all of these

Accepted Answer

The Contract Administrator is responsible for coordinating with all parties involved in the progress billing process, including the Design Professional, Subcontractors, and field supervision, to ensure that the billing process runs smoothly and is accurate. Therefore, the best choice is D, all of these.

Question 4

If a Supplier might go bankrupt, the Contract Administrator should&#10;A) get a copy of keys to any storage of materials the Contractor might need&#10;B) have material delivered to the project site or other facility&#10;C) wait for notification of the bankruptcy so no one is pushed into the situation&#10;D) cancel the order and get a new supplier

Accepted Answer

Having materials delivered to the project site or another facility could ensure that the project is still able to continue even if the supplier goes bankrupt. Waiting for notification of bankruptcy or canceling the order and finding a new supplier could result in delays or even a halt in the project, which could result in additional costs and possible legal issues. Getting a copy of keys to storage might not be necessary or feasible.

Question 5

If there is a &#34;&#34;no damage for delay clause&#34;&#34; the Contract Administrator&#10;A) can relax&#10;B) can thank the Owner&#10;C) should still make sure all delays are documented&#10;D) pursue arbitration related to any delays

Accepted Answer

Even if there is a "no damage for delay clause," it is still important for the Contract Administrator to document any delays that occur in the project. This documentation can help in case there is a dispute later on, and can also be helpful for tracking progress and identifying areas for improvement in future projects. While the Contract Administrator may have less financial risk due to the clause, it is still important to fulfill their duties and responsibilities in managing the project.

Question 6

If a hazardous substance is exposed&#10;A) the crew should immediately cover it back&#10;B) the crew should notify management and refrain from disturbing it more&#10;C) should stop all work and leave the project site until it is safe and secure&#10;D) should carefully remove it and dispose of it immediately or as soon as possible

Accepted Answer

If a hazardous substance is exposed on a project site, the crew should notify management and refrain from disturbing it any further. This will prevent any harm to the crew and prevent the hazardous substance from spreading to other areas. Only trained personnel should handle hazardous substances, and they should carefully remove and dispose of the substance according to proper protocols. Until the hazardous substance is secured, all work should stop on the project site.

Question 7

When terminating for cause&#10;A) be sure all reasonable efforts to accommodate the performance of the party to be terminated have been documented&#10;B) stop the party to be terminated from performing work immediately upon notice&#10;C) pay any monies due and then terminate the Contractor&#10;D) all of these

Accepted Answer

When terminating for cause, it is important to document all reasonable efforts to accommodate the performance of the party to be terminated to ensure that the termination is justified and defensible.

Question 8

Exculpatory clauses&#10;A) usually contain risks that are insurable&#10;B) usually contain risks that are not insurable&#10;C) are illegal&#10;D) are not able to be passed on to a lower-tier party

Accepted Answer

Exculpatory clauses typically involve risks that are not insurable because they are agreements in which one party agrees not to hold the other liable for any damage or legal liability. Insurers often exclude coverage for liabilities that a party has contractually agreed to waive or assume, making these risks generally not insurable.

Question 9

Indemnity clauses&#10;A) usually contain issues that are insurable&#10;B) usually contain issues that are not insurable&#10;C) are illegal&#10;D) are not able to be passed on to a lower-tier party

Accepted Answer

Indemnity clauses usually contain issues that are insurable, meaning that they can be covered by insurance policies. This allows parties to transfer the risk of liability to an insurance company rather than assuming it themselves.

Question 10

Contractors should be alert to hazardous substances in buildings&#10;A) constructed before 1990&#10;B) constructed before 1980&#10;C) constructed before 2000&#10;D) all residences and townhouses regardless of when they were built

Accepted Answer

Buildings constructed before 1980 are more likely to contain hazardous substances such as asbestos and lead due to less stringent regulations at the time of construction. Contractors should be cautious and take appropriate safety measures when working in these buildings.

Question 11

It is often said that the most dangerous clause in any Contract is&#10;A) the signature block&#10;B) the one you don't know about&#10;C) the &#34;&#34;Notice Clause&#34;&#34;&#10;D) the General Conditions

Accepted Answer

The answer of It is often said that the most...

Question 12

Constructive Acceleration&#10;A) helps everyone&#10;B) is when the Owner requires the Constructor to increase production without agreeing to pay additional money&#10;C) is determined by the Constructor in counsel with the Subcontractors&#10;D) is usually required based on design errors

Accepted Answer

The answer of Constructive Acceleration&#10;A) helps everyone&#10;B) is when the...

Question 13

Notice clauses can be critical for&#10;A) differing site conditions&#10;B) change orders affecting time and/or money&#10;C) RFI related to an ambiguity&#10;D) all of these

Accepted Answer

The answer of Notice clauses can be critical for&#10;A) differing...

Question 14

When an Owner exercises a &#34;&#34;Termination for Convenience&#34;&#34; the Constructor is not entitled to any further compensation

Accepted Answer

The answer of When an Owner exercises a &#34;&#34;Termination for...

Question 15

An exculpatory clause shifts responsibility for actions done or caused by one party to another party

Accepted Answer

The answer of An exculpatory clause shifts responsibility for actions...

Question 16

Contracts can contain indemnity clauses requiring another party to assume the costs for damages done by another party

Accepted Answer

The answer of Contracts can contain indemnity clauses requiring another...

Question 17

A Constructor cannot be held responsible for hidden conditions

Accepted Answer

The answer of A Constructor cannot be held responsible for...

Question 18

An Owner cannot delay the whole or a portion of the work without compensating the Constructor

Accepted Answer

The answer of An Owner cannot delay the whole or...

Question 19

A PRP does not have to be the party or entity that installed the hazardous material

Accepted Answer

The answer of A PRP does not have to be...

Question 20

A Contract can be terminated for cause or convenience

Accepted Answer

The answer of A Contract can be terminated for cause...

Question 21

UCC stands for Uniform Cost Code

Accepted Answer

The answer of UCC stands for Uniform Cost Code...

Question 22

The contract will usually clearly define what will be included in Time and Material costs

Accepted Answer

The answer of The contract will usually clearly define what...

Question 23

In the event of bankruptcy of a Supplier, materials stored at the Supplier's facility become the property of the Contractor

Accepted Answer

The answer of In the event of bankruptcy of a...

Question 24

Whether there is a &#34;&#34;notice clause&#34;&#34; or not in the contract, the Contract Administrator should notify the owner of any delays

Accepted Answer

The answer of Whether there is a &#34;&#34;notice clause&#34;&#34; or...

Question 25

An Acceleration clause is illegal

Accepted Answer

The answer of An Acceleration clause is illegal...

Question 26

A Mechanics Lien is&#10;A) a bad idea&#10;B) a good way to get quick payment&#10;C) also known as a Construction Lien&#10;D) good for an Owner with poor cash flow

Accepted Answer

The answer of A Mechanics Lien is&#10;A) a bad idea&#10;B)...

Deck 7: Killer Clauses