CPE Subcontractor & Vendor Management 3

Question 1

A subcontractor's certificate of insurance does not list the general contractor as an additional insured. The estimator should:

Accepted Answer

Require the subcontractor to update the certificate before award

Answer

The GC must be named as additional insured to receive direct protection under the subcontractor's policy in the event of a claim.

Question 2

Flow-down clauses in a subcontract are designed to:

Accepted Answer

Transfer applicable prime contract obligations from the GC to the subcontractor

Answer

Flow-down clauses ensure subcontractors are bound by the same terms in the prime contract that are relevant to their work scope.

Question 3

When soliciting bids from vendors, the estimator should include:

Accepted Answer

Detailed specifications, quantity take-offs, and required delivery schedule

Answer

A complete vendor solicitation package with specifications, quantities, and schedule enables accurate and comparable vendor quotations.

Question 4

A subcontractor includes a 'bid clarification' that excludes sales tax. The estimator should:

Accepted Answer

Add applicable sales tax to the subcontractor's price in the estimate

Answer

Sales tax is a legitimate project cost; if excluded from a bid, the estimator must add it to ensure the total estimate is complete.

Question 5

Which subcontractor management practice best reduces the risk of back-charges during construction?

Accepted Answer

Clearly defining scope boundaries and interfaces in the subcontract

Answer

Well-defined scope boundaries minimize disputes over who is responsible for work at the interface between subcontractors, reducing back-charge potential.

(CPE) Certified Professional Estimator Practice Test

(CPE) Certified Professional Estimator Practice Test

CPE Subcontractor & Vendor Management 3