CWD CWD Business Operations & Contract Management

Question 1

Which document legally defines the scope of work, payment terms, and liability for a well drilling project?

Accepted Answer

Written contract or work order

Answer

Drilling log

Answer

Well completion report

Answer

Permit application

Question 2

A driller's 'mobilization cost' in a bid refers to:

Accepted Answer

Expense of moving equipment to and setting up at the job site

Answer

Cost of drilling permits

Answer

Labor cost per foot of drilling

Answer

Disposal cost for drill cuttings

Question 3

When bidding a well drilling project on a time-and-materials basis, the contractor's risk compared to a lump-sum bid is:

Accepted Answer

Lower, because actual costs plus markup are reimbursed

Answer

Higher, because unknown formations may increase costs

Answer

The same regardless of formation conditions

Answer

Higher due to fixed overhead recovery

Question 4

General liability insurance for a well drilling contractor primarily protects against:

Accepted Answer

Third-party bodily injury and property damage claims

Answer

Employee injury on the job site

Answer

Equipment breakdown costs

Answer

Non-payment by clients

Question 5

A certificate of insurance (COI) is typically requested from a well driller by:

Accepted Answer

A client or property owner before work begins to verify coverage

Answer

The state well driller licensing board

Answer

The equipment manufacturer

Answer

The local health department

Question 6

Which business structure provides the strongest personal liability protection for a well drilling business owner?

Accepted Answer

Limited Liability Company (LLC) or Corporation

Answer

Sole proprietorship

Answer

General partnership

Answer

Joint venture with no formal agreement