NPPE Risk Management and Liability 5

Question 1

Which contract clause is most effective at allocating the risk of unforeseen subsurface conditions to the owner rather than the contractor?

Accepted Answer

Differing site conditions clause

Answer

A differing site conditions clause shifts the risk of subsurface surprises to the owner, allowing contractors to bid without including contingency for unknown underground conditions.

Question 2

A professional engineer stamps drawings prepared by a junior engineer without thoroughly reviewing them. If the drawings contain an error that causes injury, the PE is most likely liable under which theory?

Accepted Answer

Professional negligence for negligent supervision

Answer

A licensed professional who stamps drawings without adequate review breaches the duty of professional care and can be held liable for professional negligence based on that failure to supervise.

Question 3

An owner terminates an architect for convenience mid-project. Under AIA B101, the architect is entitled to compensation for:

Accepted Answer

Services rendered plus reasonable termination expenses

Answer

AIA B101 entitles the architect to compensation for all services performed to date plus reasonable costs directly attributable to the termination.

Question 4

What is the primary purpose of a 'project-specific' professional liability policy, compared to a firm's annual practice policy?

Accepted Answer

It provides coverage tied to a single project that remains in force for the statute of repose period

Answer

A project-specific policy is purchased for one project and can be kept in force for the duration of the applicable statute of repose, preventing future claims from eroding the firm's annual aggregate.

Question 5

A contractor submits a shop drawing with a significant design change. The architect reviews and approves it without noting the deviation. A defect results. Liability most likely falls on:

Accepted Answer

Both the contractor and architect under shared negligence principles

Answer

When an architect approves a deviant shop drawing without flagging the departure from contract documents, both the contractor (for the deviation) and the architect (for the failure to catch it) may share liability.

NPPE - National Professional Practice Examination Practice Test

NPPE - National Professional Practice Examination Practice Test

NPPE Risk Management and Liability 5