CRC Client Relations & Contract Administration 3

Question 1

Which method of dispute resolution in a construction contract requires both parties to present their case before a neutral third party whose decision is legally binding?

Accepted Answer

Arbitration

Answer

Arbitration involves a neutral arbitrator who hears both sides and issues a binding decision, making it faster and less expensive than litigation.

Question 2

A contractor must provide a Notice to Owner in Florida primarily to:

Accepted Answer

Preserve the contractor's right to file a mechanics lien if unpaid

Answer

Serving a Notice to Owner (or preliminary notice) within the required timeframe preserves the contractor's or supplier's lien rights on the property.

Question 3

When a homeowner signs a contract in their home, federal law (FTC Cooling-Off Rule) gives them the right to cancel within:

Accepted Answer

3 business days

Answer

The FTC Cooling-Off Rule allows consumers to cancel contracts signed at their home or away from the seller's permanent place of business within 3 business days.

Question 4

An unconditional lien waiver on final payment means the subcontractor:

Accepted Answer

Waives all lien rights immediately upon signing, regardless of whether payment is received

Answer

An unconditional waiver releases all lien rights immediately upon execution, so contractors must ensure payment is received before signing.

Question 5

A punch list in residential construction serves primarily to:

Accepted Answer

Document incomplete or deficient work items to be corrected before final payment

Answer

A punch list catalogs remaining deficiencies and incomplete items that must be resolved before the contractor can receive final payment.

(CRC) Certified Residential Contractor Practice Test

(CRC) Certified Residential Contractor Practice Test

CRC Client Relations & Contract Administration 3