Contract Administration & Legal Issues Flashcards
7 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Administration & Legal Issues flashcards as text
A construction contract clause requiring all disputes to be resolved in a specific state's courts is called a:
Answer: Forum selection clause
A forum selection clause designates the jurisdiction (court location) where disputes must be litigated, distinct from a choice of law clause which designates the governing law.
On a federal public project, a contractor who believes the contracting officer's final decision is wrong must file a claim under the Contract Disputes Act within:
Answer: 1 year of the decision
The Contract Disputes Act requires contractors to appeal a contracting officer's final decision to the appropriate Board of Contract Appeals or the U.S. Court of Federal Claims within one year.
In a design-build contract, the design-builder's liability for design errors differs from a traditional GC's liability because the design-builder:
Answer: Assumes responsibility for both design adequacy and construction quality
In design-build delivery, the single entity assumes responsibility for both design errors and construction defects, eliminating the owner's defense under the Spearin Doctrine.
A 'termination for convenience' clause in a construction contract entitles the contractor to recover:
Answer: Costs incurred plus a reasonable profit on work performed, but not anticipated profit on unperformed work
Termination for convenience entitles the contractor to costs incurred and profit on work performed, but courts generally disallow anticipated profits on work not yet performed.
Which of the following best describes 'cardinal change' in construction contract law?
Answer: A series or magnitude of changes so significant they alter the essential nature of the original contract
A cardinal change is a change so drastic it alters the fundamental nature of the contract, potentially entitling the contractor to treat it as a breach rather than a modification.
In construction law, 'quantum meruit' is used when:
Answer: A party seeks recovery for the value of services rendered where no enforceable contract exists
Quantum meruit ('as much as deserved') is an equitable remedy allowing recovery for the reasonable value of work performed when there is no valid contract governing the relationship.
A contractor's request for equitable adjustment (REA) differs from a formal claim primarily because an REA:
Answer: Is a negotiation tool submitted before converting to a formal claim, with no mandatory decision deadline
An REA is an informal negotiation mechanism that allows parties to resolve compensation issues without triggering the formal dispute resolution process or strict CDA deadlines.