retainage - ANSWER A certain percentage of money owed to the contractor for work progress that is held back by the owner to encourage completion of the project.
liquidated damages - ANSWER A daily amount of money aid by the contractor to the owner for each day that the project fails to meet the ...
CMGT Final questions answers with
solutions 2025
retainage - ANSWER A certain percentage of money owed to the contractor for work progress that is
held back by the owner to encourage completion of the project.
liquidated damages - ANSWER A daily amount of money aid by the contractor to the owner for each day
that the project fails to meet the completion date specified in the contract. Not all contracts contain a
liquidated damages clause.
notice to proceed - ANSWER The owner's official notification to the contractor to start work on the
project. The contractor may or may not begin on the exact day of the notice but is authorized to proceed
in whatever manner deemed appropriate.
request for information - ANSWER (RFI) A written request for clarification regarding the plans or
specifications. The requests are usually made by subcontractors through the general contractor to the
architect.
unbalanced bidding - ANSWER A contractor's bid based on increased unit costs for tasks to be preformed
early and decrease unit cost for later tasks. Used to get money early to finance later parts of a job.
bid shopping - ANSWER Sharing the contractor pricing information among potential bid or proposal
respondents prior to award. Practice is considered to be unethical and sometimes illegal.
prevailing wage/ David Bacon - ANSWER Requires laborers and mechanics on a federally funded
construction projects be paid no less than local prevailing wages. Applies to all federally funded contracts
over a specified value.
alternate - ANSWER A specified item of construction that is set apart by a separate sum.
addendum - ANSWER A change or addition to the contract documents issued after the documents have
been released but before the bids are due.
, prequalification - ANSWER The process in which an owner, based upon minimum financial, management,
and other qualitative data, determines whether a construction firm is fundamentally qualified to
compete for a certain project, or class of projects.
responsive bidder - ANSWER A bid or proposal package that meets all of the requirements of the
solicitation instrument.
responsible bidder - ANSWER The bidder who has submitted the lowest legitimate bid.
punch list - ANSWER The minor adjustments, repairs, and work items that must be done before
substantial completion can be achieved. The list is prepared jointly by the owner, architect, and
contractor. The architect confirms completion of each item on the list.
substantial completion - ANSWER The point at which all punch list work has been completed and the
owner can occupy or take possession of the new facility.
change order - ANSWER Requests made by the owner to add or subtract features to the scope of the
project resulting in changes to the contract.
bid withdrawal - ANSWER Request must be received by the owner, in writing or electronically, before the
time set for opening of proposals.
progress payment - ANSWER A scheduled partial payment made during the work process to cover cost of
work completed or materials delivered to date.
schedule of values - ANSWER A budget template established early on in the project against which
progress payments are measured. The schedule summarizes the total project cost by the various
divisions of work.
competitive bids - ANSWER A step in the initial public offering process whereby an underwriter submits a
sealed bid to a company that is making its first issue of stock. After collecting competitive bids from
several underwriters, the issuer awards the contract to the underwriter with the best price and contract
terms.
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