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3 methods of payment common in the construction industry correct answers - Lump sum - Unit price - Cost plus Most common Lump sum correct answers a single payment made at a particular time Unit Price correct answers the cost per unit. Mostly used between contractor and subcontractor ...

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Publié le 4 août 2024
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3 methods of payment common in the construction in

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CNST 2341 Final || with A+ Guaranteed Solutions.
3 methods of payment common in the construction industry correct answers - Lump sum
- Unit price
- Cost plus
Most common

Lump sum correct answers a single payment made at a particular time

Unit Price correct answers the cost per unit.
Mostly used between contractor and subcontractor

Cost Plus correct answers A contract where payment is for material and labor, with a profit
factor added.
Used when you are uncertain what the price will be.
Renovation

Methods to deliver a project in the construction industry correct answers • Design/Bid/Build
• Design/Build
• Turn Key
• Construction Management

Design/Bid/Build correct answers Most common w/lump sum
Government does this a lot
Example: Building a McDonald's where the owner has the plans already

Design/Build correct answers Something the owner can easily describe
Owner is turning over the design and construction to a company to design and build

Turn Key correct answers Owner is turning over the design and construction to a company to
design and build

Construction Management correct answers Collaborative
At risk means there is a maximum price to the owner
Owner wants the contractor and architect to work to together
Fast track work. Begin construction before the design is complete
Owner is involved
Example: Building a McDonald's for the first time.

Joint correct answers A contract in which a number of individuals are represented as one party
and forgiveness of any individual by the plaintiff implies forgiveness of the rest of the
individuals making that party.

Several correct answers A contract in which a number of individuals are represented as one party
but forgiveness of any individual by the plaintiff does not imply forgiveness of the rest of the
individuals making that party...plaintiff can select and choose.

, Contract correct answers A contract is an agreement to do or not to do certain thing

For any contract to be enforceable in a court of law it must have the following 4 elements of
legally enforceable contracts: correct answers Capacity to contract
Legal subject matter
Mutual consent
Consideration

4 corners rule correct answers the meaning of a document is to be gathered from the entire (all
four corners) document.
Applies to any agreement including contracts, subcontracts, insurance policies, bonds, lending
consent agreements, etc.

The two conditions for ending a contract are: correct answers Performance of the contract
Termination of the contract

Substantial Completion correct answers The point at which all punch list work has been
completed and the owner can occupy or take possession of the new facility.

Who determines Substantial Completion? correct answers Architect determines Substantial
Completion

Termination for convenience correct answers contractual right given to the owner but contractor
is paid for work in place
to end the contract at no fault of the contractor.

When is termination for convenience exercised? correct answers 1. owner faces financial
problems
2. the need for the project is eliminated.

Termination for Default correct answers It is a contractual right given to the owner to end the
contract because of contractor's breach (violation) of contract terms.

Termination for Default entitles the owner to: correct answers o withholding all money due to
contractor
o seizing contractor's materials and equipment on site
o holding contractor liable for increased costs.

Types of damages: correct answers Compensatory damages
Liquidated damages
Actual damages

Compensatory damages correct answers To compensate for losses incurred by the non-breaching
party and place it back in the same economical position prior to the breach.

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