BCM Bachelor of Construction Management MCQ 3 — Questions and Answers
Question 1: What is the purpose of a surety bond in construction contracting?
- To insure workers against on-site injuries
- To guarantee contractor performance and payment obligations (Correct answer)
- To protect equipment from theft or damage
- To cover design errors and omissions
Correct answer: To guarantee contractor performance and payment obligations
A surety bond is a three-party agreement where the surety guarantees to the owner that the contractor will fulfill its performance and payment obligations.
Question 2: In construction, what does AIA Document A201 govern?
- Standard form of agreement between owner and architect
- General conditions of the contract for construction (Correct answer)
- Standard form of agreement between contractor and subcontractor
- Sustainable design certification requirements
Correct answer: General conditions of the contract for construction
AIA A201 is the General Conditions of the Contract for Construction, defining the rights and responsibilities of the owner, architect, and contractor.
Question 3: Which type of foundation is most appropriate when building loads must be transferred past weak surface soils to stronger deep strata?
- Spread footing
- Mat foundation
- Deep pile foundation (Correct answer)
- Grade beam
Correct answer: Deep pile foundation
Deep pile foundations transfer structural loads through weak upper soils down to competent bearing strata such as bedrock or dense sand.
Question 4: What is the primary distinction between a lump-sum contract and a cost-plus contract?
- Lump-sum contracts are only used for small projects
- In a lump-sum contract, the contractor bears the financial risk of cost overruns (Correct answer)
- Cost-plus contracts require competitive bidding
- Lump-sum contracts allow unlimited scope changes
Correct answer: In a lump-sum contract, the contractor bears the financial risk of cost overruns
In a lump-sum contract, the contractor agrees to complete all work for a fixed price and bears the risk if actual costs exceed that amount.
Question 5: Which building system uses pre-manufactured structural components assembled on-site to form a building frame?
- Cast-in-place concrete construction
- Prefabricated or modular construction (Correct answer)
- Tilt-up construction
- Slip form construction
Correct answer: Prefabricated or modular construction
Prefabricated or modular construction involves manufacturing structural components off-site in controlled conditions and assembling them at the project site.
Question 6: What does the term 'substantial completion' mean in a construction contract?
- 100% of the contract work has been completed
- The project is ready for its intended use, though minor items may remain (Correct answer)
- The owner has made final payment to the contractor
- The building has received its certificate of occupancy
Correct answer: The project is ready for its intended use, though minor items may remain
Substantial completion means the work is sufficiently complete that the owner can use or occupy the facility for its intended purpose, with only a punch list remaining.
Question 7: In construction estimating, what does 'contingency' represent?
- Profit margin added to the contractor's bid
- A reserve fund for unforeseen costs and risks (Correct answer)
- The cost of bonding and insurance
- Overhead costs for the home office
Correct answer: A reserve fund for unforeseen costs and risks
Contingency is an allowance added to the project estimate to cover unforeseen conditions, design uncertainties, or risks identified during project planning.
BCM Bachelor of Construction Management MCQ 3
What is the purpose of a surety bond in construction contracting?