CBP Contract Administration and Legal

Question 1

Which document legally binds a contractor to perform specific work for an agreed-upon price and timeline?

Accepted Answer

Construction contract

Answer

A construction contract is the legally binding agreement that obligates the contractor to complete defined work under specified terms.

Question 2

What is a mechanic's lien in the context of construction?

Accepted Answer

A legal claim against a property by unpaid contractors or suppliers

Answer

A mechanic's lien is a security interest in a property filed by contractors, subcontractors, or suppliers who have not been paid for their work or materials.

Question 3

What type of bond guarantees that a contractor will complete a project according to the contract terms?

Accepted Answer

Performance bond

Answer

A performance bond protects the project owner by guaranteeing the contractor will fulfill all contractual obligations.

Question 4

In construction contracts, what does 'substantial completion' typically mean?

Accepted Answer

The project is complete enough for its intended use, with only minor items remaining

Answer

Substantial completion is the stage at which the work is sufficiently complete for the owner to occupy and use the project for its intended purpose.

Question 5

What is a change order in a construction contract?

Accepted Answer

A written amendment modifying the original contract scope, price, or schedule

Answer

A change order is a formal written document that modifies the original contract by adding, deleting, or revising work and adjusting cost or time accordingly.

CBP - Certified Builder Professional Practice Test

CBP - Certified Builder Professional Practice Test

CBP Contract Administration and Legal