General Contractor License Project Management 5 — Questions and Answers
Question 1: A project owner verbally directs the contractor to add extra work not covered by the contract but refuses to issue a written change order. What should the contractor do?
- Proceed with the work since the owner gave verbal authorization
- Decline to start the extra work until a written change order or written direction is provided (Correct answer)
- Complete the work and absorb the cost to maintain the owner relationship
- Submit a mechanic's lien immediately for the anticipated extra cost
Correct answer: Decline to start the extra work until a written change order or written direction is provided
Most contracts require written authorization for extra work; proceeding on verbal direction alone risks non-payment since the contractor waives written change order requirements.
Question 2: Which of the following is the BEST indicator of a well-functioning project safety program on a construction site?
- No OSHA citations have been issued in the past 12 months
- Proactive near-miss reporting, regular toolbox talks, and low Total Recordable Incident Rate (TRIR) (Correct answer)
- All workers have completed their OSHA 10-hour training cards
- The site has a written Injury and Illness Prevention Program (IIPP) on file
Correct answer: Proactive near-miss reporting, regular toolbox talks, and low Total Recordable Incident Rate (TRIR)
Active near-miss reporting and low TRIR reflect a culture of safety, whereas documentation alone does not prove effective hazard prevention.
Question 3: On a federal public works project, what does the term 'certified payroll' require a contractor to submit?
- A monthly report of all subcontractor insurance certificates
- Weekly payroll records documenting worker classifications, hours worked, and wages paid to verify Davis-Bacon compliance (Correct answer)
- Quarterly tax filings for all workers submitted to the IRS on behalf of the owner
- Annual union dues documentation for all craft workers on the project
Correct answer: Weekly payroll records documenting worker classifications, hours worked, and wages paid to verify Davis-Bacon compliance
Certified payrolls (DOL Form WH-347) must be submitted weekly on federal projects, documenting that each worker received the required prevailing wage for their trade classification.
Question 4: When a contractor identifies a design error during construction that will cause a structural deficiency, what is the correct sequence of actions?
- Correct the design yourself and document the change in the as-builts
- Stop work on the affected area, notify the owner and engineer immediately, and await design direction before proceeding (Correct answer)
- Proceed as designed and note the concern in the project log
- Consult only the local building inspector before taking any corrective action
Correct answer: Stop work on the affected area, notify the owner and engineer immediately, and await design direction before proceeding
Structural design errors must be escalated to the engineer of record immediately; the contractor cannot legally modify structural design without licensed engineer authorization.
Question 5: A contractor is awarded a project with a 'no damage for delay' clause in the contract. What does this clause typically mean?
- The contractor cannot file delay claims of any kind on the project
- The contractor is entitled only to time extensions for owner-caused delays, not monetary compensation for delay costs (Correct answer)
- Liquidated damages are waived if the project is delayed by weather events
- The owner waives the right to assess liquidated damages for contractor-caused delays
Correct answer: The contractor is entitled only to time extensions for owner-caused delays, not monetary compensation for delay costs
A 'no damage for delay' clause limits the contractor's remedy for owner-caused delays to a time extension only, barring monetary recovery for delay costs.
Question 6: What is the purpose of a 'look-ahead schedule' on a construction project?
- A long-range schedule projecting the project 5 years into the future
- A short-interval schedule (typically 3–6 weeks) that details upcoming activities, resource needs, and constraints (Correct answer)
- A forecast of material price escalation over the remaining project duration
- A weekly report submitted to the owner showing percentage of work complete
Correct answer: A short-interval schedule (typically 3–6 weeks) that details upcoming activities, resource needs, and constraints
A look-ahead schedule (pull plan or short-interval schedule) focuses on near-term activities to identify and remove constraints before they delay work.
Question 7: A general contractor is managing a public school construction project. Which of the following is the contractor MOST legally required to maintain on-site throughout construction?
- A copy of the contractor's state license certificate
- The posted building permit and a complete set of approved contract documents (Correct answer)
- The owner's certificate of insurance naming the contractor as additional insured
- Signed lien waivers from every subcontractor who has worked on the project
Correct answer: The posted building permit and a complete set of approved contract documents
Building codes and inspection requirements mandate that a valid building permit and approved drawings be kept on-site so inspectors can verify work matches approved documents.
General Contractor License Project Management 5
A project owner verbally directs the contractor to add extra work not covered by the contract but refuses to issue a written change order.
What should the contractor do?