CAC Construction Law and Ethics Flashcards
6 cards from real CAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAC Construction Law and Ethics flashcards as text
What is bid shopping in construction, and why is it considered unethical?
Answer: Using a low subcontractor bid to win a job then leveraging it to force lower bids after award, which undermines fair competition
Bid shopping involves using a subcontractor's bid to pressure others into undercutting it post-award, violating trust and fair competition principles.
What is the ethical obligation of a contractor who discovers a significant design error during construction?
Answer: Promptly notify the owner and architect in writing before proceeding with affected work
Contractors have an ethical and contractual duty to promptly notify the design team of discovered errors so the project team can respond before the issue is built in.
Conflicts of interest in construction most commonly arise when:
Answer: A party has a personal or financial stake in a decision that could compromise their professional judgment
A conflict of interest occurs when personal gain or relationships could improperly influence a professional's decisions or recommendations.
What does the term 'differing site conditions' (DSC) mean in US construction contracts?
Answer: Subsurface or concealed physical conditions materially different from those indicated in the contract documents
A Differing Site Condition clause allows contractors to claim equitable adjustment when actual subsurface conditions differ materially from what the contract documents indicated.
Professional licensing for contractors in the US is governed by:
Answer: Individual state licensing boards with varying requirements by state
Contractor licensing is a state-by-state matter; requirements, classifications, and examinations vary significantly across the 50 states.
Anti-kickback laws in federal construction primarily prohibit:
Answer: Paying or receiving money to improperly influence contract awards or subcontract selections
The Copeland Anti-Kickback Act prohibits contractors from requiring employees or subcontractors to kick back any part of their compensation as a condition of employment.