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Construction Contracts Exam 2 Questions And 100% Correct Answers
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Construction Contracts Exam 2 Questions And 100% Correct Answers...
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Construction Contracts Exam 2 Questions And100% Correct Answers
Contract Disputes - Answer Often concern issues such as changes, differing site
conditions, delays and payments
How do courts interpret provisions on which contracting parties cannot agree? -
Answer They look back at similar past cases
Torts - Answer Disputes that relate to matters not addressed by statutory law or
contract obligations. Wrongs committed against others that do not involve contracts
For a tort to occur: - Answer 1. one party owes a duty to another party
2. that party does not conform (breach) to the standard
3. the second party is harmed by the act or failure to act
4. there is a clear casual relationship between the act and the harm that results
Attractive Nuisance - Answer When kids trespass onto construction sites, the company
doesn't take measures to keep trespassers out
Surety - The bond company, is obligated to perform or to pay a specified amount of
money if the principal does not perform. The surety is the guarantor on the bond
Principal - The principal debtor, or principal, is the party whose performance is
promised or guaranteed
Obligee - The party to which the owner promise of the principals' performance is made.
The oblige in the beneficiary of the bond
, Who has what bond -The principal is the subcontractor
The oblige is the GC
The surety is the bonding company
Surety Underwriting - Contractor will get surety for their bonds as a form of protection
Miller Act-Answer Created in 1935, mandating surety bonds of all construction
contractors on federal projects. Surety bonds protect awarding agency, laborers, subs
and material suppliers
Bid Bond-Answer Issued to ensure the obligee that the contractor will enter into a
bidding construction contract and provide the required payment and performance
bonds upon contract award
Performance Bond - Answer Ensures that a financially responsible party will stand
behind the prime contractor if they fail to perform properly
Payment Bond - Answer Protects owner in case subcontractors and suppliers are not
paid by the prime contractor
Bonding Limit for the contractor - Answer Sureties typically specify maximum value of
uncompleted work which a contractor can take on at any one time
Contractor Default - Answer If the contractor for whatever reason is unable to continue
to perform work and therefore can't pay back their surety bonds
Subcontractor Bonds - Answer Protection is afforded to the GC by requiring the subs to
provide them with a payment and performance bond
Bonds of Design-Build and Professional CM Projects - Answer DB offers a performance
bond that can be considered an extended liability as surety during the design.
CM, the owner required the cm to purchase 100% of the performance bonds and
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