CM 334 - Module 4 Exam || with 100% Error-free Answers.
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Course
CM 334 - Module 4
Institution
CM 334 - Module 4
novation correct answers a legal device for transferring the duties and rights of a prime contractor to a different contractor
requires agreement of both parties: prime contractor and owner
trade financing correct answers the postponement of cash spending that occurs through subcontracting
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CM 334 - Module 4 Exam || with 100% Error-free Answers.
novation correct answers a legal device for transferring the duties and rights of a prime contractor to a different contractor
requires agreement of both parties: prime contractor and owner
trade financing correct answers the postponement of cash spending that occurs through subcontracting
subcontractor is "financing" the cost of labor
Flow-thru Clause correct answers conduit clause
compels the prime contractor to bind each subcontractor to the terms and conditions as the prime contractor
incorporation by reference correct answers makes the prime contract an integral part of each subcontract
states that the contractor and subcontractor are equally bound by the terms of the prime contract and it extends duties and rights in the subcontract in the same way that they are assumed in the prime contract
contract of adhesion correct answers a one-sided contract offered on a take it or leave it basis
now both prime contractor and sub have negotiated a fully enforceable agreement
pay when pay clause correct answers subcontractor has to wait for payment when the owner doe snot pay the prime contractor
pay if paid clause correct answers subcontractor never gets paid for the work he properly performed
retention correct answers a set percentage of each progress payment that is witheld
surety correct answers an independent third party with ample financial resources who has the capability to discharge the duties of the contractor either by completing the work of the contract or by paying the owner to have it completed
guarantor correct answers surety ensures the completion of work
principal correct answers contractor purchases the surety bond and indemnifies the surety for any
cost incurred by the surety in executing its guarantee face value/penal sum correct answers sets cap on the monetary amount of a surety's liability under a bond
The Miller Act correct answers federal statue that mandates performance bonds and payment bonds for all federal construction contracts in excess of $100,000
performance bond correct answers a guarantee by a surety of the performance of a particular contract
technical defenses correct answers change orders
takeover agreement correct answers negotiation between the owner and the surety over the terms of a takeover
payment bond correct answers a guarantee by the surety that laborers, tradespersons, subcontractors and suppliers, will be paid for work performed under a construction contract
alternative to a mechanic's lien
bid bond correct answers a guarantee to the owner, by a surety, that the surety will assume liability if a bidder, upon notification of award, fails to execute the owner contractor agreement and furnish all surety bonds and insurance policies that are stipulated in the contract documents
forfeiture type bond correct answers owners may recover the full penal sum of a forfeiture type bond regardless of the amount of actual damages that they incurred
damages type bond correct answers owner's recovery under a bid bond is limited to its actual damages
license bond correct answers a surety bond
the purpose of which is to protect consumers from defective construction that arises from the contractor licensing law violations
liens release bond correct answers a surety bond that is utilized to discharge a mechanic's lien
enables the sale of real property
considered risky, the principal may be required to post collateral or other assets to secure the bond
indemnification agreements correct answers exchanges the surety's commitment to offer surety bonds for the contractor's pledge to indemnify the surety for any losses that the surety might sustain due to a default by the contractor
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