GCC GCC Subcontractor & Vendor Management

Question 1

What document formally establishes the legal relationship between a general contractor and a subcontractor?

Accepted Answer

Subcontract agreement

Answer

Verbal agreement

Answer

Purchase order

Answer

Letter of intent

Question 2

Which of the following is the primary purpose of requiring subcontractors to provide certificates of insurance?

Accepted Answer

To ensure the GC is named as an additional insured

Answer

To verify subcontractor licensing

Answer

To confirm project bonding capacity

Answer

To document subcontractor workforce size

Question 3

A 'flow-down clause' in a subcontract requires that:

Accepted Answer

Subcontractors comply with all applicable prime contract terms

Answer

Payments flow from owner to GC to subcontractor

Answer

Change orders flow through the project manager

Answer

Risk flows down to the lowest-tier subcontractor

Question 4

What is the standard method for a general contractor to formally solicit pricing from subcontractors?

Accepted Answer

Invitation to bid (ITB) or request for proposal (RFP)

Answer

Telephone bid request

Answer

Informal email estimate

Answer

Verbal scope review

Question 5

A subcontractor 'default' occurs when:

Accepted Answer

The subcontractor fails to perform contractual obligations

Answer

The subcontractor submits a lower-than-expected bid

Answer

The subcontractor requests a schedule extension

Answer

The subcontractor submits a change order request

Question 6

Which bond guarantees that a subcontractor will complete their contracted scope of work?

Accepted Answer

Performance bond

Answer

Bid bond

Answer

Payment bond

Answer

License bond