CEC Subcontractor & Vendor Management 3

Question 1

A vendor quotes a material price with a 90-day validity period. The project schedule shows delivery needed in 120 days. The estimator should:

Accepted Answer

Request a price extension or add an escalation contingency

Answer

When delivery falls outside a quote's validity period, the estimator must either secure a price extension or include a material escalation contingency to protect the budget.

Question 2

A 'pay-when-paid' clause in a subcontract means:

Accepted Answer

The GC's obligation to pay the sub is conditioned on first receiving payment from the owner

Answer

Pay-when-paid clauses make owner payment a condition precedent to the GC's obligation to pay subcontractors, shifting payment timing risk to the sub.

Question 3

During bid analysis, the estimator discovers two subcontractor bids have identical pricing down to the dollar. This MOST likely indicates:

Accepted Answer

Possible bid shopping or collusion that should be investigated

Answer

Identical bids from competing subcontractors are a red flag for bid rigging or collusion, which violates competitive bidding ethics and potentially anti-trust laws.

Question 4

What is the primary purpose of a subcontractor prequalification process?

Accepted Answer

To assess financial stability, experience, and safety record before inviting bids

Answer

Prequalification screens subcontractors on financial strength, relevant experience, safety history, and bonding capacity to reduce the risk of default or poor performance.

Question 5

A subcontractor's Schedule of Values submitted with their first pay application shows front-loaded values. The estimator reviewing it should:

Accepted Answer

Require rebalancing to reflect actual cost distribution before approving

Answer

Front-loading inflates early payment amounts beyond actual work value, creating GC exposure if the sub defaults; rebalancing the schedule of values ensures payments match work in place.

(CEC) Construction Estimator Certification Practice Test

(CEC) Construction Estimator Certification Practice Test

CEC Subcontractor & Vendor Management 3