PC Contract and Project Management 3 — Questions and Answers
Question 1: Which document typically takes precedence in cases of conflict between the project drawings and the specifications?
- The drawings always take precedence over specifications
- The specifications always take precedence over drawings
- The contract documents should specify the order of precedence; if silent, notes on drawings often govern (Correct answer)
- Whichever document was issued more recently
Correct answer: The contract documents should specify the order of precedence; if silent, notes on drawings often govern
Most contracts establish a hierarchy in the order of precedence clause; absent that, most jurisdictions give precedence to more specific written specifications over graphic drawings.
Question 2: A contractor submits a schedule of values at the start of a project. What is the primary purpose of this document?
- To establish the sequence in which work will be performed
- To allocate the contract price among work components for progress payment purposes (Correct answer)
- To list the subcontractors who will perform each scope of work
- To identify which materials will be procured first
Correct answer: To allocate the contract price among work components for progress payment purposes
A schedule of values breaks down the contract sum into component line items so that progress payments can be calculated based on percentage of completion for each item.
Question 3: Under the AIA A201 General Conditions, what is the contractor's obligation when it discovers work that it believes is concealed and contrary to the contract documents?
- Correct the defective work immediately at no additional cost
- Promptly notify the architect before disturbing the condition (Correct answer)
- Continue work and document the discrepancy in the daily log
- Stop all work on the project until the issue is resolved
Correct answer: Promptly notify the architect before disturbing the condition
AIA A201 requires the contractor to promptly notify the architect upon discovering concealed or unknown conditions before proceeding, preserving the right to a claim.
Question 4: What is 'front-loading' in the context of a schedule of values, and why do owners object to it?
- Scheduling the most difficult work first; owners prefer linear work sequencing
- Assigning disproportionately high values to early work items to receive more cash early; owners risk overpaying if the contractor defaults (Correct answer)
- Using union labor at the start; owners prefer open-shop workers early in the project
- Ordering all materials at project start; owners object to excessive storage costs
Correct answer: Assigning disproportionately high values to early work items to receive more cash early; owners risk overpaying if the contractor defaults
Front-loading inflates early payment amounts beyond the actual value of work completed, leaving the owner financially exposed if the contractor abandons the project.
Question 5: An electrical contractor is working under a design-build contract. Which responsibility is unique to design-build compared to design-bid-build?
- Providing a performance bond
- Assuming liability for both design errors and construction defects (Correct answer)
- Submitting shop drawings for approval
- Providing a certificate of insurance
Correct answer: Assuming liability for both design errors and construction defects
In design-build, the contractor assumes responsibility for both design and construction, eliminating the owner's ability to blame the designer separately from the builder.
Question 6: What is the significance of a 'substantial completion' date on a construction project?
- It is when 100% of the punch list items are complete
- It marks when the project is sufficiently complete for the owner's intended use, typically triggering warranty periods and retainage release (Correct answer)
- It is the date the contractor submits the final pay application
- It occurs when the building department issues the Certificate of Occupancy
Correct answer: It marks when the project is sufficiently complete for the owner's intended use, typically triggering warranty periods and retainage release
Substantial completion is the stage when the work is sufficiently complete for the owner to use it for its intended purpose, and it typically starts warranty periods and triggers partial or full retainage release.
Question 7: A contractor experiences a 30-day delay due to the owner failing to provide timely access to the site. The contractor properly notifies the owner. What relief is typically available?
- Monetary damages only; no time extension is granted
- A time extension to the contract completion date and potentially additional compensation for extended overhead (Correct answer)
- Immediate termination rights under the contract
- A time extension only; no additional compensation is available
Correct answer: A time extension to the contract completion date and potentially additional compensation for extended overhead
Owner-caused delays typically entitle the contractor to both a time extension and compensation for extended general conditions and overhead costs.
PC Contract and Project Management 3
Which document typically takes precedence in cases of conflict between the project drawings and the specifications?