1. Which of the following does not constitute a "material breach"
of contract in construction?
• A) The contractor fails to meet the project completion date
• B) The contractor performs the work below agreed-upon
quality standards
• C) The contractor encounters a minor delay in the project
timeline
• D) The contractor fails to provide necessary documentation
for the project
• Answer: C) The contractor encounters a minor delay in the
project timeline
• Rationale: A minor delay is typically not considered a
material breach, as it does not significantly affect the overall
project. Material breaches are serious and involve substantial
violations of contract terms.
2. What is a lien in the context of construction projects?
• A) A form of insurance for workers
• B) A claim placed on property for unpaid work or materials
• C) A tax paid to the government
• D) A bond securing payment to contractors
,• Answer: B) A claim placed on property for unpaid work or
materials
• Rationale: A lien allows a contractor, subcontractor, or
supplier to place a legal claim on a property if they have not been
paid for work or materials provided.
3. In which of the following situations is a contractor legally
entitled to terminate a contract?
• A) The client requests a change in design after construction
has started
• B) The project is delayed due to a force majeure event
• C) The client refuses to pay after work has been completed
• D) The construction site is not ready for work on the
scheduled start date
• Answer: C) The client refuses to pay after work has been
completed
• Rationale: Contractors have the legal right to terminate a
contract if the client fails to fulfill their payment obligations as
stipulated in the contract.
4. Which type of insurance is essential for a contractor to protect
against accidents involving workers on the job?
• A) Worker’s compensation insurance
• B) General liability insurance
, • C) Property insurance
• D) Auto insurance
• Answer: A) Worker’s compensation insurance
• Rationale: Worker’s compensation insurance covers medical
expenses and lost wages for employees who are injured on the job,
making it essential for contractors.
5. Which of the following best describes a "construction change
directive" (CCD)?
• A) A document used to cancel the contract
• B) A directive from the architect to change the scope of work
without a signed change order
• C) A contract renewal notice
• D) A document that modifies the payment schedule
• Answer: B) A directive from the architect to change the
scope of work without a signed change order
• Rationale: A construction change directive (CCD) is used to
authorize changes in the scope of work without waiting for a
formal change order, typically in urgent situations.
6. Which of the following is NOT typically a responsibility of a
general contractor on a construction site?
• A) Hiring subcontractors
• B) Purchasing materials
of contract in construction?
• A) The contractor fails to meet the project completion date
• B) The contractor performs the work below agreed-upon
quality standards
• C) The contractor encounters a minor delay in the project
timeline
• D) The contractor fails to provide necessary documentation
for the project
• Answer: C) The contractor encounters a minor delay in the
project timeline
• Rationale: A minor delay is typically not considered a
material breach, as it does not significantly affect the overall
project. Material breaches are serious and involve substantial
violations of contract terms.
2. What is a lien in the context of construction projects?
• A) A form of insurance for workers
• B) A claim placed on property for unpaid work or materials
• C) A tax paid to the government
• D) A bond securing payment to contractors
,• Answer: B) A claim placed on property for unpaid work or
materials
• Rationale: A lien allows a contractor, subcontractor, or
supplier to place a legal claim on a property if they have not been
paid for work or materials provided.
3. In which of the following situations is a contractor legally
entitled to terminate a contract?
• A) The client requests a change in design after construction
has started
• B) The project is delayed due to a force majeure event
• C) The client refuses to pay after work has been completed
• D) The construction site is not ready for work on the
scheduled start date
• Answer: C) The client refuses to pay after work has been
completed
• Rationale: Contractors have the legal right to terminate a
contract if the client fails to fulfill their payment obligations as
stipulated in the contract.
4. Which type of insurance is essential for a contractor to protect
against accidents involving workers on the job?
• A) Worker’s compensation insurance
• B) General liability insurance
, • C) Property insurance
• D) Auto insurance
• Answer: A) Worker’s compensation insurance
• Rationale: Worker’s compensation insurance covers medical
expenses and lost wages for employees who are injured on the job,
making it essential for contractors.
5. Which of the following best describes a "construction change
directive" (CCD)?
• A) A document used to cancel the contract
• B) A directive from the architect to change the scope of work
without a signed change order
• C) A contract renewal notice
• D) A document that modifies the payment schedule
• Answer: B) A directive from the architect to change the
scope of work without a signed change order
• Rationale: A construction change directive (CCD) is used to
authorize changes in the scope of work without waiting for a
formal change order, typically in urgent situations.
6. Which of the following is NOT typically a responsibility of a
general contractor on a construction site?
• A) Hiring subcontractors
• B) Purchasing materials
