Subcontractor & Vendor Management Flashcards
7 cards from real CPE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Subcontractor & Vendor Management flashcards as text
A subcontractor's certificate of insurance does not list the general contractor as an additional insured. The estimator should:
Answer: Require the subcontractor to update the certificate before award
The GC must be named as additional insured to receive direct protection under the subcontractor's policy in the event of a claim.
Flow-down clauses in a subcontract are designed to:
Answer: Transfer applicable prime contract obligations from the GC to the subcontractor
Flow-down clauses ensure subcontractors are bound by the same terms in the prime contract that are relevant to their work scope.
When soliciting bids from vendors, the estimator should include:
Answer: Detailed specifications, quantity take-offs, and required delivery schedule
A complete vendor solicitation package with specifications, quantities, and schedule enables accurate and comparable vendor quotations.
A subcontractor includes a 'bid clarification' that excludes sales tax. The estimator should:
Answer: Add applicable sales tax to the subcontractor's price in the estimate
Sales tax is a legitimate project cost; if excluded from a bid, the estimator must add it to ensure the total estimate is complete.
Which subcontractor management practice best reduces the risk of back-charges during construction?
Answer: Clearly defining scope boundaries and interfaces in the subcontract
Well-defined scope boundaries minimize disputes over who is responsible for work at the interface between subcontractors, reducing back-charge potential.
A 'pay-if-paid' clause in a subcontract means:
Answer: The subcontractor is only paid after the GC receives payment from the owner
A pay-if-paid clause makes the GC's receipt of payment from the owner a condition precedent to the GC's obligation to pay the subcontractor.
When tracking subcontractor costs against the estimate, the estimator uses which tool to monitor variance?
Answer: Cost-to-complete analysis with a cost code breakdown
A cost-to-complete analysis broken down by cost code allows the estimator to compare actual subcontractor spending against the original budget by work category.