Subcontractor & Vendor Management Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Subcontractor & Vendor Management flashcards as text
A subcontractor's performance bond protects the general contractor against:
Answer: Subcontractor default and cost to complete
A performance bond guarantees that the surety will complete the subcontractor's scope or cover the cost to engage a replacement contractor if the sub defaults.
Which method of subcontractor bid solicitation generally produces the most competitive pricing?
Answer: Open competitive bidding with a broad invitation to multiple qualified firms
Open competitive bidding among multiple qualified subcontractors increases market pressure, driving bids toward fair market value and improving cost competitiveness.
In construction estimating, 'scope gaps' in subcontractor coverage refer to:
Answer: Work items not included in any subcontractor's bid
Scope gaps are portions of the total project scope not covered by any subcontractor bid, requiring the GC to either self-perform or identify and fill the gap before award.
A lien waiver submitted by a subcontractor at final payment serves to:
Answer: Release the owner and GC from mechanic's lien claims for that scope of work
A final lien waiver is a legal release in which the subcontractor relinquishes the right to file a mechanic's lien against the property for the completed work.
When comparing subcontractor bids, an estimator creates a bid tabulation primarily to:
Answer: Identify scope inclusions, exclusions, and price differences across all bidders systematically
A bid tabulation organizes all bidders' scope inclusions, exclusions, clarifications, and pricing side-by-side, enabling an apples-to-apples comparison beyond just total price.
A subcontractor bond requirement threshold of $100,000 means:
Answer: All subcontracts over $100,000 require performance and payment bonds
A bond threshold establishes the minimum subcontract value at which the GC requires performance and payment bonds, managing surety costs while protecting against default on larger scopes.
During project execution, a subcontractor consistently submits pay applications late. The BEST course of action for the estimator/project team is to:
Answer: Issue a formal notice and establish a corrective schedule for submissions
A formal notice with a corrective submission schedule documents the issue, protects the GC's rights, and gives the subcontractor an opportunity to comply before more drastic measures.