Contract and Project Management Flashcards
7 cards from real PC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract and Project Management flashcards as text
A contractor is preparing a bid for a public electrical project requiring a bid bond. What is the typical purpose of a bid bond?
Answer: It assures the owner that if the contractor is awarded the contract, they will execute it and provide required performance and payment bonds
A bid bond protects the owner against the contractor failing to honor a bid by guaranteeing that the contractor will enter into the contract and provide the required bonds if selected.
Under the Miller Act (for federal public works), a payment bond protects which parties?
Answer: Subcontractors and suppliers who furnish labor or materials on federal projects exceeding $150,000
The Miller Act requires payment bonds on federal construction contracts over $150,000 to protect subcontractors and material suppliers who cannot file mechanics liens on federal property.
Which earned value management metric indicates whether a project is running over or under its planned budget at a given point in time?
Answer: Cost Performance Index (CPI)
The Cost Performance Index (CPI) = Earned Value / Actual Cost; a CPI below 1.0 indicates the project is over budget for the work accomplished.
An electrical contractor is terminated for convenience by a private owner. Which costs is the contractor typically entitled to recover?
Answer: Costs for work performed, costs of demobilization, and a reasonable profit on work completed but not anticipated profit on the uncompleted work
Termination for convenience entitles the contractor to costs incurred plus reasonable profit on work done, but generally not lost profits on the unperformed portion of the contract.
What is the critical distinction between an 'assignment' and a 'delegation' of contract rights and duties?
Answer: Assignment transfers rights (such as the right to receive payment); delegation transfers duties (obligations to perform work)
Assignment transfers contractual rights (like the right to collect payment) to a third party, while delegation transfers contractual duties (performance obligations) to another.
What is the primary function of a construction manager acting in an 'agency' role (CM-Agent) as opposed to a 'construction manager at-risk' (CMAR)?
Answer: The CM-Agent acts as the owner's representative and advisor without holding trade contracts or bearing construction cost risk
A CM-Agent advises the owner and manages the project on their behalf but the owner holds contracts directly with trade contractors and retains the construction cost risk.
An electrical subcontractor's scope of work is described in both the subcontract agreement and in a separately attached exhibit. If the two documents conflict, which generally controls?
Answer: The subcontract agreement body, because it is the primary contract document
When the main contract body and an exhibit conflict, the main contract body typically controls unless the contract expressly states that the exhibit takes precedence.