CNST 302 Test 2 - Questions and Answers

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CNST 302 Test 2 - Questions and Answers Prime contractors can obtain sets of bidding documents from these sources except _____. a)Plan center b)Plan room c)On-line library d)Sweets e)Dodge Reports f ... )Owner g)A-E The amount of profit a bidder includes is a factor of a)Extent of perceived risk b)Level of expected competition c)Project duration d)The particular client e) All of the above One of the current trends in risk management is towards centralized control of all project insurance. True Why might owners prefer difference-in-price bid bonds over liquidated damages bid bonds? Certainty of obtaining the exact difference between withdrawn low bid and the next lowest valid bid Contractors will need more sets of bidding documents for shorter times of bidding on more complex projects. True When adjusting an estimate for time and location, the adjustment for location must be made first False Contractors have to be qualified for all private and public projects. False When contractors cannot establish their own hourly costs for equipment from their accounting data records, they can use ______. a)Manufacturers' b)Equipment dealers' c)Green Guide d)Rental Rate Blue Book e)Federal Government predetermined values f)All of the above In bids and bidding, the offeree is the ______. Owner Calculate the monthly expense that must be allowed for a concrete vibrator whose initial cost is $1,200. Take the service life to be 3 years, and about $300 must be spent each year for servicing, repairs, and new parts. The annual investment to run it is $54. Assume there are no other costs, and ignore the cost of fuel, oil, etc. Answer: $__________ (state or round your answer in whole number dollars (that is, no fractions or cents) without the dollar sign or punctuations, comma, etc.) 63 A project is rushed into design without a total understanding of the owner's needs. As the project moves through the design, additional requirements are added, increasing the project budget. This is an example of ________. Scope Creep The owner can elect any amount or a percentage of the total contract sum as a provision for liquidated damages False Why may owner and contractor decide to adopt certificates of deposit, security or surety bonds in lieu of retainage? Cash-Flow When assessing the risks applicable to a project, one must also look to the owner organization and the manner in which decision making occurs. True Why do many owners require retainage on contracts even though the contractor has provided the owner with a performance bond? (Choose the best answer) a)Further protection against possible eventualities b)Remedy of defective work c)Settlement of liens d)Damages for late completion e)Inducement for contractor to maintain orderly progress of the work, produce quality construction, and keep the work on schedule f)All of the above __________ contract is suitable to apply to driving of piles and the excavation of large foundations. Unit-Price Retainage can be used to offset liquidated damages. True Does the inclusion of a liquidated damages clause in a contract enable the contractor to recover damages from the owner who has caused undue and costly delays to the progress of the project? False Inclusion of a liquidated damages clause in a contract prevents the owner from recovering its actual damages, even where the actual damages suffered by the owner exceed the amount of the liquidated damages provision. False Warranty period requirement operates to defer final payment. False Bond forms for public contracts are not standardized nationally due to __________. Differing bonding requirements Why may the federal government insist on contractors obtaining specific forms of bond from its listed sureties? Ascertained ability of surety to pay The AIA Document A312 payment bond is a statutory bond. False When may sureties enlist other sureties to underwrite a portion of the contract or act as co-sureties? Large Projects If a performance bond covers the typical one year warranty period, why do some owners require a warranty or maintenance bond as well? Some defects show up in more than one year In a joint venture or prime contracts, the defaulting contractor's surety is liable for interference or disruption to other participating contractors' work together with any consequential damages. False The contractor may elect to provide separate performance and payment bonds or a combined single contract bond. Is the premium cost increased for the contractor if it chooses to secure separate bonds rather than a combined one? [Show More]

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