CBP Subcontractor and Vendor Management 3

Question 1

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

Accepted Answer

Notice to proceed

Answer

Letter of intent

Answer

Certificate of insurance

Answer

Submittal register

Question 2

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?

Accepted Answer

A short-interval production schedule

Answer

A procurement log

Answer

An RFI (request for information) log

Answer

A submittal register

Question 3

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

Accepted Answer

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

Answer

Is not required to carry general liability insurance on the project

Answer

Cannot file a mechanic's lien against the property for nonpayment

Answer

Is not subject to the terms of the prime contract

Question 4

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

Accepted Answer

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

Answer

Direct the subcontractor to use whichever document is more stringent at no additional cost

Answer

Issue an immediate change order to resolve the conflict

Answer

Allow the subcontractor to resolve the conflict at their own discretion

Question 5

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?

Accepted Answer

Incentive-based contract

Answer

Lump sum fixed price

Answer

Unit price contract

Answer

Cost-plus with guaranteed maximum price

Question 6

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

Accepted Answer

Assessment of liquidated damages as defined in the subcontract agreement

Answer

A mechanic's lien filed by the GC

Answer

An OSHA stop work order for schedule non-compliance

Answer

Issuance of a certificate of nonconformance by the design team

Question 7

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

Accepted Answer

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

Answer

The party that guarantees subcontractors will receive timely payment

Answer

The owner's designated representative responsible for contract oversight

Answer

The insurance company providing the subcontractor's general liability policy