Client Relations & Contract Administration Flashcards
7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Client Relations & Contract Administration flashcards as text
A homeowner requests a verbal change order to add a deck during construction. What is the contractor's best practice?
Answer: Document the change in a written change order signed by both parties before starting work
Written change orders signed by both parties protect both the contractor and client by clearly defining scope, cost, and schedule impacts.
Which contract clause specifies the consequences if the project is not completed by the agreed date?
Answer: Liquidated damages clause
A liquidated damages clause establishes a pre-agreed penalty amount the contractor pays for each day the project exceeds the completion date.
A client asks to use materials that do not meet local building code requirements. The contractor should:
Answer: Refuse and explain that code-compliant materials are legally required
Contractors are legally obligated to comply with building codes regardless of client preferences, and non-compliance exposes both parties to liability.
What does a 'cost-plus' contract mean in residential construction?
Answer: The contractor is paid actual costs plus a predetermined fee or percentage
In a cost-plus contract, the owner reimburses the contractor for all actual project costs and pays an additional agreed-upon fee or percentage as profit.
A homeowner refuses to pay a draw because they are dissatisfied with the pace of work. What is the contractor's first step?
Answer: Review the contract draw schedule and meet with the client to resolve the concern
Reviewing the contract terms and communicating directly with the client is the first step to resolving a payment dispute before escalating to legal action.
Which document transfers the risk of loss of materials from the supplier to the contractor at the point of delivery?
Answer: Bill of lading
A bill of lading documents the transfer of goods and establishes when ownership and risk pass from the supplier to the contractor upon delivery.
Under most residential construction contracts, a 'substantial completion' date is significant because it:
Answer: Triggers the warranty period and shifts remaining punch-list responsibility
Substantial completion means the project is usable for its intended purpose, triggering the warranty period and defining remaining punch-list obligations.