DBIA Dispute Resolution and Claims Management 4

Question 1

In a design-build contract, a 'differing site condition' claim is most commonly triggered when:

Accepted Answer

Subsurface conditions materially differ from those indicated in contract documents

Answer

A differing site condition (Type I) arises when actual subsurface conditions materially differ from those represented in the contract documents.

Question 2

Which document format is most effective when a design-builder submits a formal Request for Equitable Adjustment (REA) to the owner?

Accepted Answer

A detailed written submission with cost breakdown, schedule impact, and supporting documentation

Answer

An REA should be a formal, documented submission that includes cost impact, schedule analysis, and supporting records to substantiate the adjustment requested.

Question 3

Under DBIA standard contract forms, the 'notice of claim' provision primarily serves to:

Accepted Answer

Alert the owner to investigate the issue while contemporaneous records are still available

Answer

Timely notice of claim allows the owner to investigate and mitigate the situation while evidence and conditions are still fresh.

Question 4

A design-builder encounters an undisclosed utility line that causes a two-week delay. The FIRST action the design-builder should take is:

Accepted Answer

Provide written notice to the owner within the contract's specified timeframe

Answer

Most contracts require written notice of a claim-generating event within a specified period; failing to provide timely notice can forfeit the right to recover.

Question 5

The 'total cost' method of calculating damages is generally disfavored in design-build disputes because:

Accepted Answer

It assumes all cost overruns are the owner's fault, which courts find unreliable

Answer

The total cost method is disfavored because it assumes the entire cost overrun is caused by the owner's actions, ignoring the design-builder's own inefficiencies or errors.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Dispute Resolution and Claims Management 4