CME Project Management and Legal 2

Question 1

A master electrician is awarded a contract that includes a 'liquidated damages' clause. What does this clause typically specify?

Accepted Answer

A predetermined daily penalty for project delays

Answer

The maximum profit the contractor can earn

Answer

Required insurance coverage amounts

Answer

The bonding requirements for the project

Question 2

Under OSHA 10 standards, which record-keeping form must employers use to log work-related injuries and illnesses?

Accepted Answer

OSHA Form 300

Answer

OSHA Form 101

Answer

OSHA Form 200

Answer

OSHA Form 400

Question 3

A subcontractor on your electrical project files a mechanic's lien. What is the primary purpose of this lien?

Accepted Answer

To secure payment for labor and materials provided

Answer

To delay project completion legally

Answer

To transfer ownership of the project

Answer

To void the general contractor's license

Question 4

When performing a cost-benefit analysis for a large electrical project, which factor is classified as a 'sunk cost'?

Accepted Answer

Money already spent on design drawings that cannot be recovered

Answer

Projected labor costs for the next phase

Answer

Expected permit fees

Answer

Estimated equipment rental costs

Question 5

Which project scheduling technique identifies the sequence of tasks that determines the minimum project duration?

Accepted Answer

Critical Path Method (CPM)

Answer

Gantt charting

Answer

Resource leveling

Answer

Earned value analysis

Question 6

A master electrician's company receives a 'Notice to Cure' from a project owner. What must the contractor do?

Accepted Answer

Correct the specified deficiencies within the stated timeframe or face contract termination

Answer

File a counter-claim immediately

Answer

Suspend all work pending legal review

Answer

Transfer the contract to another licensed electrician

Question 7

Which type of bond guarantees that a contractor will complete the project according to contract terms?

Accepted Answer

Performance bond

Answer

Payment bond

Answer

Bid bond

Answer

License bond