Subcontractor and Vendor Management Flashcards

Which document formally authorizes a subcontractor to mobilize and begin work on a construction project after the subcontract has been executed?

Answer: Notice to proceed

A notice to proceed (NTP) is the formal written directive from the GC to the subcontractor authorizing them to begin work, and it typically establishes the start date from which contract time is measured.

When multiple subcontractors must work in the same limited space during the same time period, the GC should use which coordination tool to manage daily workflow?

Answer: A short-interval production schedule

A short-interval production schedule (typically a 2–3 week lookahead) details day-by-day activities by trade, enabling the GC to sequence overlapping subcontractor work and prevent conflicts in congested areas.

A material supplier differs from a subcontractor primarily because a supplier:

Answer: Furnishes materials only and does not perform installation or labor at the jobsite

A material supplier provides materials or equipment that others install, whereas a subcontractor both supplies and installs; this distinction affects contracting requirements, bond obligations, and lien rights.

When a subcontractor identifies a conflict between the project drawings and specifications, the appropriate action for the GC is to:

Answer: Submit a request for information (RFI) to the design team for an official clarification

An RFI is the proper channel to funnel conflicts between contract documents to the design team, who have the authority and responsibility to issue a clarification or clarifying sketch.

Which subcontract pricing arrangement provides a financial incentive by sharing cost savings with the subcontractor if the work is completed for less than a predetermined target cost?

Answer: Incentive-based contract

An incentive-based contract shares agreed-upon savings between the GC and subcontractor when actual costs come in below the target, motivating the subcontractor to find efficiencies and control costs.

A subcontractor who consistently fails to maintain the project schedule and causes delays to other trades may be subject to:

Answer: Assessment of liquidated damages as defined in the subcontract agreement

Liquidated damages are a pre-agreed daily monetary amount specified in the subcontract that the GC may assess against a subcontractor whose delays cause measurable harm to the project schedule.

In a construction bonding arrangement, the 'surety' is best described as:

Answer: The third party—typically an insurance or bonding company—that guarantees the principal will fulfill their contractual obligations

The surety is the bonding company that issues performance and payment bonds, guaranteeing to the obligee (owner or GC) that the principal (subcontractor) will perform as contracted; the surety is liable if the principal defaults.