CPC Contract Administration & Legal Issues 2

Question 1

Under the AIA A201 General Conditions, which party is responsible for coordinating the work of separate contractors on the same project?

Accepted Answer

The Owner

Answer

AIA A201 places the responsibility for coordinating separate contractors on the Owner when multiple prime contracts are used.

Question 2

A contractor submits a claim for additional compensation 45 days after discovering a differing site condition. The contract requires notice within 21 days. The most likely legal outcome is:

Accepted Answer

Denial of the claim due to failure to provide timely notice

Answer

Failure to provide contractually required timely notice for a differing site condition claim typically results in waiver of the claim.

Question 3

The doctrine of 'substantial completion' is most important in construction contracts because it:

Accepted Answer

Shifts risk of loss from the contractor to the owner and starts warranty periods

Answer

Substantial completion transfers risk of loss, begins warranty periods, and shifts from contractor's insurance obligation to owner's.

Question 4

Which type of bond guarantees that a contractor will pay subcontractors and suppliers for labor and materials used on the project?

Accepted Answer

Payment bond

Answer

A payment bond (also called a labor and material payment bond) protects subcontractors and suppliers from nonpayment by the prime contractor.

Question 5

A 'no damage for delay' clause in a construction contract generally:

Accepted Answer

Limits contractor recovery to time extensions only, not monetary damages, for delays

Answer

A no damage for delay clause bars monetary recovery for delays but typically still allows time extensions to the project schedule.

(CPC) Certified Professional Constructor Practice Test

(CPC) Certified Professional Constructor Practice Test

CPC Contract Administration & Legal Issues 2