Construction Management Contract Administration & Procurement

Question 1

What document formally establishes the legal relationship between an owner and a general contractor on a construction project?

Accepted Answer

Prime contract

Answer

The prime contract is the legally binding agreement directly between the project owner and the general contractor.

Question 2

Which contract type places the greatest financial risk on the contractor?

Accepted Answer

Lump sum (fixed price)

Answer

Under a lump sum contract, the contractor bears the risk of cost overruns because the price is fixed regardless of actual costs.

Question 3

A Request for Proposal (RFP) differs from a Request for Quotation (RFQ) primarily because an RFP:

Accepted Answer

Invites solutions and methodology, not just pricing

Answer

An RFP solicits the vendor's proposed approach and qualifications in addition to pricing, whereas an RFQ focuses solely on price.

Question 4

What is the purpose of a Notice to Proceed (NTP) in construction contracting?

Accepted Answer

Officially authorizes the contractor to begin work

Answer

An NTP is the owner's formal written authorization for the contractor to mobilize and commence construction activities.

Question 5

Under the AIA A201 General Conditions, who is responsible for coordinating the work of subcontractors?

Accepted Answer

General contractor

Answer

The general contractor is contractually responsible for managing, scheduling, and coordinating all subcontractor activities on site.

Construction Management Practice Test