Construction Management Practice Test Latest Update 2024 Questions and Verified Correct Answers Guaranteed A+ ----------- is a form of deduction that companies can use to decrease their tax payments
due to shortened service life of their equipment over time. - CORRECT ANSWER:
Depreciation
Arbitration is a more serious method of dispute resolution compared to mediation.
T or F - CORRECT ANSWER: T
Based on the guide quantity of 100 CY on a bid document for rock excavation, a contractor bid a unit price of $20/CY. If the owner's representative determined that the contractor excavated 85 CY of rock during construction, how much will the contractor get paid?(a). $2000 (b). $1700 (c). $300
(d). $1800 - CORRECT ANSWER: (b)
Based on the guide quantity of 120 CY on a bid document for rock excavation, a contractor bid a unit price of $50/CY. If the owner's representative determined that the contractor excavated 70 CY of rock during the construction, how much will the contractor get paid?(a) $2000 (b). $1700 (c). $3500
(d). $6000 - CORRECT ANSWER: (c)
Choose the correct attributes of a partnership (a) Risk is divided between the partners equally (b) Profits and control is divided among general partners based on degree of ownership (c) There is no limit on liability for partners (d) Limited partners can increase assets of the company although they have no voice in management (e) Signature of all partners is necessary for a binding contract (f) Death of a partner ends the partnership unless there are clauses in the charter that
makes arrangements for this situation - CORRECT ANSWER: (b), (c), (d), (f)
Clauses of General Conditions documents published by organizations like AIA and EJCDC can be modified by the owner for a specific project using -----------. - CORRECT
ANSWER: Special conditions documents
Conceptual cost estimates can be established using historical cost data without significant information on the final design of a project. 1 / 2
T or F - CORRECT ANSWER: T
Depreciation of an equipment decreases the tax of a corporation as much as a tax credit equal to the depreciation.
T or F - CORRECT ANSWER: F
Design error or omissions cannot be used as a basis for change orders even if corrections increase the cost of construction.
T or F - CORRECT ANSWER: F
General conditions clauses that deal with compensation of the owner for damages due to late completion of the project are called ----------- clauses. - CORRECT ANSWER: Liquidated Damages
General conditions contain generic information on subjects like bonds and insurance, contractor's responsibilities, changes in the work, and others.
T or F - CORRECT ANSWER: True
Generic articles of the selected general conditions document can be changed using the
[A] conditions document. - CORRECT ANSWER: supplementary/special
If a company posts a Net Operating Loss (NOL) in a given year, they are allowed to get back some or all of the taxes they paid in the last three years which is called carrying the loss back.
T or F - CORRECT ANSWER: T
If a subcontractor or vendor doesn't get paid during the project, he/she may file a [A]
against the property. - CORRECT ANSWER: lien
If the contractor gets bankrupt during the construction, the owner may use the [A] bond
to complete the work. - CORRECT ANSWER: performance
If the contractor goes bankrupt during the construction, the owner may use the funds
from a ------------ bond to complete the work. - CORRECT ANSWER: Performance
If the guide quantities on the proposal are suspected to be lower than actual quantities, the contractor may submit higher unit prices to increase his profit.
T or F - CORRECT ANSWER: F
If the owner agrees to make a mobilization payment at the beginning of the project, the contractor will (a) decrease the bid price because he/she won't pay for mobilization (b). Decrease the bid price because he/she won't have to borrow money (c). Decrease the bid price because the loan he/she will have to get will get less
(d). increase the bid price if he/she unbalanced the bid - CORRECT ANSWER: (c)
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