Contract Administration & Procurement Flashcards
6 cards from real Construction Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contract Administration & Procurement flashcards as text
What document formally establishes the legal relationship between an owner and a general contractor on a construction project?
Answer: Prime contract
The prime contract is the legally binding agreement directly between the project owner and the general contractor.
Which contract type places the greatest financial risk on the contractor?
Answer: Lump sum (fixed price)
Under a lump sum contract, the contractor bears the risk of cost overruns because the price is fixed regardless of actual costs.
A Request for Proposal (RFP) differs from a Request for Quotation (RFQ) primarily because an RFP:
Answer: Invites solutions and methodology, not just pricing
An RFP solicits the vendor's proposed approach and qualifications in addition to pricing, whereas an RFQ focuses solely on price.
What is the purpose of a Notice to Proceed (NTP) in construction contracting?
Answer: Officially authorizes the contractor to begin work
An NTP is the owner's formal written authorization for the contractor to mobilize and commence construction activities.
Under the AIA A201 General Conditions, who is responsible for coordinating the work of subcontractors?
Answer: General contractor
The general contractor is contractually responsible for managing, scheduling, and coordinating all subcontractor activities on site.
A performance bond protects the project owner by:
Answer: Guaranteeing the contractor completes the project per contract terms
A performance bond ensures that if the contractor defaults, the surety will complete the project or compensate the owner up to the bond amount.