CPE Contract Management and Project Documentation 2 — Questions and Answers
Question 1: A contractor submits a Request for Information (RFI) when:
- The owner requests additional work beyond scope
- Clarification is needed on ambiguous contract documents (Correct answer)
- A subcontractor fails to perform
- The project schedule is delayed
Correct answer: Clarification is needed on ambiguous contract documents
An RFI is used to seek clarification from the design team when contract documents are unclear or contradictory.
Question 2: Which document formally authorizes a change in contract scope, cost, or schedule?
- Request for Information
- Submittal log
- Change order (Correct answer)
- Notice to proceed
Correct answer: Change order
A change order is the executed agreement between owner and contractor that modifies the original contract terms.
Question 3: What is the primary purpose of a schedule of values on a construction project?
- To list all subcontractor bids received
- To allocate contract value across work activities for progress billing (Correct answer)
- To rank material suppliers by cost
- To document owner-furnished equipment
Correct answer: To allocate contract value across work activities for progress billing
The schedule of values breaks the contract sum into line items so that monthly pay applications can be processed proportionally.
Question 4: Liquidated damages in a construction contract are best described as:
- Punitive fines imposed by the owner for poor quality
- A pre-agreed daily sum the contractor pays for late completion (Correct answer)
- Reimbursement for materials damaged on site
- Penalties assessed by a government inspector
Correct answer: A pre-agreed daily sum the contractor pays for late completion
Liquidated damages represent a reasonable pre-estimate of the owner's daily loss if the contractor fails to complete on time.
Question 5: A contractor's 'as-built' drawings differ from the original construction documents because they:
- Are prepared by the architect before construction begins
- Reflect actual field conditions and deviations made during construction (Correct answer)
- Show the owner's intended design only
- Are used solely for permitting purposes
Correct answer: Reflect actual field conditions and deviations made during construction
As-built drawings record the actual installed locations and dimensions of all work, capturing field changes made during construction.
Question 6: Under AIA contract documents, the Contractor's contingency is most accurately described as:
- An amount the owner holds back until project closeout
- A reserve within the contractor's GMP for unanticipated costs (Correct answer)
- A line item for design errors only
- The retainage withheld from each pay application
Correct answer: A reserve within the contractor's GMP for unanticipated costs
In a GMP contract, the contractor's contingency is a reserved allowance for unforeseen costs that arise during construction.
Question 7: A Notice of Intent to Claim (NOI) is important because it:
- Automatically grants the contractor additional compensation
- Preserves the contractor's right to seek additional time or money (Correct answer)
- Requires the owner to stop work immediately
- Replaces the need for a formal change order
Correct answer: Preserves the contractor's right to seek additional time or money
Timely submission of an NOI is typically a contractual prerequisite to filing a formal claim, protecting the contractor's rights.
CPE Contract Management and Project Documentation 2
A contractor submits a Request for Information (RFI) when: