T or F The Owner's level of risk, as well as their level of control, is highest on a Design-Bid-Build (Separate contracts) project. T or F Both Fixed Price and Cost Reimbursement contracts may be issued with Incentive clauses T or F Cost Reimbursement contracts are favored over Fixed Price contracts when the scope is indeterminate, the risk is high and/or availability of resources is uncertain T or F Design-Build is known as “Traditional" contracting T or F Privately financed contracts account for 70 – 80% of total construction volume.

T or F The Owner's level of risk, as well as their level of control, is highest on a Design-Bid-Build (Separate contracts) project. T or F Both Fixed Price and Cost Reimbursement contracts may be issued with Incentive clauses T or F Cost Reimbursement contracts are favored over Fixed Price contracts when the scope is indeterminate, the risk is high and/or availability of resources is uncertain T or F Design-Build is known as “Traditional" contracting T or F Privately financed contracts account for 70 – 80% of total construction volume.

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter13: Pricing Subcontractors' Work

Section: Chapter Questions

Problem 7RQ

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A. Addenda C. Cost plus B. Lump sum G. Escape clause H. Liquidated Damages 1. Alternates N. Retainage D. Field Change E. Latent Defect F. Cardinal Change K. Bid Options P. Precon. Meeting L. Value Engineering J. Unit Price O. General conditions M. Fixed fee 29. A change order that is of such magnitude that the original scope of the project is altered to an extent that constitutes a new contract is known as a 30. The underlying purpose of the the rules under which the project will be built. or boilerplate of a construction contract is to outline 31. The exact bid amount is paid in one lump sum payment after completion of the project in a contract. 32. The contractor is reimbursed for actual expenses plus a percentage markup in a contract. 33. The actual number of units put in place is measured, then the unit price is multiplied by the number of units installed in a contract. 34. A study examines the functions of goods and services for the purpose of achieving necessary functions at the…
6. Match the following terms with the most correct explanation Term Explanation Payment Bond Provides the owner with an amount to cover the damages/costs if the apparent low withdraws Bid Bond Provides the owner with a means for completing the work if the contractor cannot complete it. Lien Protects suppliers, subcontractors and employees Non-payment by the General Contractor Performance Bond Used primarily in private contracting; the General contractor and first-tier subcontractors place a debt upon the facility if they haven't been paid.
(a) Design-bid-build is a sequential process to deliver a construction project. Produce a short report on factors that need to be considered in choosing a suitable type of contracts.
1. True or False? A payment bond provides the construction contractor a guarantee that they will receive timely payment for properly completed work 2. True or False? The terms price and cost are the same thing as it applies to a construction estimate. 3. From the following list, which item is least governing when interpreting a contract requirement?a. The Contract Agreementb. Amendments to the Contract Agreementc. Section view drawingsd. Specifications
A contractor provided a surety bond as required by the bid specification for the building project. In this situation, the contractor is referred to Producer Surety Oblige Principle
The basic concept of contract formation is the mutual agreement of all the parties involved. Explain FIVE (5) advantages of having a contract from the perspective of the contractor
what are the advantages and disadvantages of the four basic contract types? -lump sum, cost-plus-free, guaranteed maximum price, unit price contracts
Contractor A fails to complete the contracted Work for a project based on the contract drawings and specifications. The Owner has the Work completed by Contractor B. Who pays for the cost of the Work? O The cost is deducted from amounts owed to Contractor A O It is determined through Mediation O The A/E O The Owner O It is determined through Litigation O It is determined by the A/E O It is determined through Arbitration
Define the term fixed-price contracts?
As the owner of the project MDS, you had defined the contractual relationships between the different parties involved in the project. In other words, you had determined: a. The management plan of your project b. The delivery method of your project C. The contract types of your project d. The organizational system of your project In Guaranteed Maximum Price contracts savings are shared between: Select one: a. Owner and designer O b. Owner and contractor c. Owner and contractor and designer O d. None of the above Change orders requires adjustments in scope, time, and cost Select one: O a. False O b. True
When and under what conditions would the option to contract be executed
Determine the criteria for the selection of a contract. Time Cost Quality Risk