Project Management and Legal Flashcards
7 cards from real CME practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Project Management and Legal flashcards as text
A master electrician discovers hidden site conditions that significantly differ from the contract documents. Under which contract clause should the contractor seek additional compensation?
Answer: Differing site conditions clause
A differing site conditions clause entitles contractors to additional time and compensation when they encounter physical conditions materially different from what the contract documents indicated.
What does 'workers' compensation insurance' cover in an electrical contracting business?
Answer: Medical expenses and lost wages for employees injured on the job
Workers' compensation insurance provides no-fault coverage for employees' work-related medical costs and lost income due to occupational injuries or illnesses.
Which contract delivery method requires the contractor to design AND build the project under a single contract?
Answer: Design-Build
In Design-Build contracts, a single entity holds responsibility for both the design and construction phases, streamlining accountability and often reducing project timelines.
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at what rate for hours worked beyond 40 per week?
Answer: 1.5 times the regular rate of pay
The FLSA mandates that covered, non-exempt employees receive at least one and one-half times their regular hourly rate for all hours worked beyond 40 in a workweek.
A master electrician's project is delayed due to a government-ordered shutdown unrelated to the contractor's performance. This scenario is typically covered by which contract clause?
Answer: Force majeure clause
A force majeure clause excuses contractor delays caused by extraordinary events beyond either party's control, such as government-ordered shutdowns, natural disasters, or pandemics.
What is the primary function of an 'indemnification clause' in an electrical contracting agreement?
Answer: To require one party to compensate the other for specified losses or liabilities
An indemnification clause contractually shifts financial responsibility for certain claims, damages, or liabilities from one party to another.
When calculating a bid, a master electrician applies a 15% overhead rate to direct costs. If direct costs total $80,000, what is the overhead amount?
Answer: $12,000
15% of $80,000 equals $12,000 in overhead costs, which covers indirect expenses like insurance, office costs, and equipment not directly billed to the project.