CHC CHC Cost Management & Contract Administration 5

Question 1

A hospital project uses a unit-price contract for excavation. The actual quantity excavated is 40% greater than the estimated quantity. What contractual mechanism typically addresses this situation?

Accepted Answer

A quantity variation clause allowing renegotiation of unit prices beyond a threshold

Answer

Unit-price contracts typically include quantity variation clauses that allow for renegotiation of unit prices when actual quantities deviate significantly from estimates.

Question 2

Which cost component is typically included in a contractor's general conditions budget for a healthcare project?

Accepted Answer

Project superintendent salary, temporary facilities, and jobsite office expenses

Answer

General conditions cover the contractor's direct project management costs such as superintendent salaries, temporary facilities, safety equipment, and jobsite offices.

Question 3

A healthcare contractor submits a pay application that the owner's representative believes overstates work completed. What is the appropriate contractual response?

Accepted Answer

Certify only the amount representing actual work in place and document the basis for the reduction

Answer

The owner's representative should certify only the amount substantiated by actual work in place and provide written documentation of any reductions.

Question 4

In healthcare construction, a 'stored materials' payment request requires the contractor to provide which of the following?

Accepted Answer

Proof of insurance, bill of lading, and evidence that materials are properly stored and allocated to the project

Answer

Payment for stored materials requires documentation including insurance coverage, delivery records, and proof that materials are securely stored and designated for the specific project.

Question 5

What is the purpose of a 'no damages for delay' clause in a healthcare construction contract?

Accepted Answer

It limits or eliminates the contractor's ability to recover monetary damages caused by owner-caused delays

Answer

A 'no damages for delay' clause restricts the contractor's remedy for owner-caused delays to a time extension rather than monetary compensation.

(CHC) Certified Health Care Constructor Practice Test

(CHC) Certified Health Care Constructor Practice Test

CHC CHC Cost Management & Contract Administration 5