CRC Client Relations & Contract Administration 2

Question 1

A homeowner requests a verbal change order to add a deck during construction. What is the contractor's best practice?

Accepted Answer

Document the change in a written change order signed by both parties before starting work

Answer

Written change orders signed by both parties protect both the contractor and client by clearly defining scope, cost, and schedule impacts.

Question 2

Which contract clause specifies the consequences if the project is not completed by the agreed date?

Accepted Answer

Liquidated damages clause

Answer

A liquidated damages clause establishes a pre-agreed penalty amount the contractor pays for each day the project exceeds the completion date.

Question 3

A client asks to use materials that do not meet local building code requirements. The contractor should:

Accepted Answer

Refuse and explain that code-compliant materials are legally required

Answer

Contractors are legally obligated to comply with building codes regardless of client preferences, and non-compliance exposes both parties to liability.

Question 4

What does a 'cost-plus' contract mean in residential construction?

Accepted Answer

The contractor is paid actual costs plus a predetermined fee or percentage

Answer

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.

Question 5

A homeowner refuses to pay a draw because they are dissatisfied with the pace of work. What is the contractor's first step?

Accepted Answer

Review the contract draw schedule and meet with the client to resolve the concern

Answer

Reviewing the contract terms and communicating directly with the client is the first step to resolving a payment dispute before escalating to legal action.

(CRC) Certified Residential Contractor Practice Test

(CRC) Certified Residential Contractor Practice Test

CRC Client Relations & Contract Administration 2