BCM Trivia 3 — Questions and Answers
Question 1: What is the purpose of a 'surety bond' in construction?
- To guarantee contractor performance and payment obligations (Correct answer)
- To insure workers against on-site injuries
- To cover damage to adjacent properties
- To protect construction equipment from theft
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 contractual obligations.
Question 2: The 'earned value' (EV) in project management represents:
- The budgeted cost of work actually performed (Correct answer)
- The actual money spent on completed work
- The planned cost for all scheduled tasks
- The difference between budget and actual costs
Correct answer: The budgeted cost of work actually performed
Earned value equals the planned (budgeted) cost of the work that has actually been completed, enabling cost and schedule performance measurement.
Question 3: What does 'substantial completion' mean in a construction contract?
- The project is sufficiently complete for the owner to use it for its intended purpose (Correct answer)
- All punch list items have been resolved
- The contractor has received final payment
- The building has received its certificate of occupancy
Correct answer: The project is sufficiently complete for the owner to use it for its intended purpose
Substantial completion is the stage where the work is complete enough that the owner can occupy or use the facility, though minor items may remain.
Question 4: In construction, OSHA's 'fall protection' standard for general industry requires fall protection at heights exceeding:
- 4 feet (Correct answer)
- 6 feet
- 10 feet
- 15 feet
Correct answer: 4 feet
OSHA's 29 CFR 1910.23 requires fall protection in general industry when workers are exposed to falls of 4 feet or more.
Question 5: Which delivery method combines design and construction services under a single contract?
- Design-Build (Correct answer)
- Construction Manager at Risk
- Design-Bid-Build
- Integrated Project Delivery
Correct answer: Design-Build
In Design-Build, a single entity is responsible for both design and construction, reducing coordination gaps and often accelerating schedules.
Question 6: What is 'retainage' in a construction contract?
- A percentage of progress payments withheld until project completion (Correct answer)
- A fee paid to retain a contractor's services
- Money held in reserve for change orders
- A bonus paid for early completion
Correct answer: A percentage of progress payments withheld until project completion
Retainage (typically 5-10%) is withheld from each progress payment to protect the owner against incomplete or defective work.
Question 7: The 'General Conditions' section of a construction contract typically covers:
- Administrative procedures, rights, and responsibilities of each party (Correct answer)
- Technical specifications for materials and workmanship
- Unit prices for individual work items
- Insurance certificate requirements only
Correct answer: Administrative procedures, rights, and responsibilities of each party
General Conditions establish the contractual framework including roles, communication protocols, dispute resolution, and standard clauses applicable to all parties.
BCM Trivia 3
What is the purpose of a 'surety bond' in construction?