Construction Contracts and Specifications

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Questions and Answers

What is the purpose of specifying 'Contract laws' in a construction contract?

To outline the steps involved in submitting bids for the project.
To define the responsibilities of each contractor involved in the project.
To establish a clear and legally binding framework for the project. (correct)
To list the specific materials and equipment needed for the project.

Who is responsible for overseeing the project on behalf of the Owner?

The Subcontractor
The Owner's Representative (correct)
The Contractor
The Philippine Contractors Accreditation Board

Which of the following is NOT a standard component of a construction contract?

Document List
Project Management Software (correct)
Payment and Invoicing Terms
Construction Scope

What is the primary function of the 'Construction Conditions and Responsibilities' section in a construction contract?

To clarify the roles and responsibilities of all parties involved. (C) Signup and view all the answers

What is a 'Subcontractor' in the context of a construction contract?

A contractor who works under the direction of the main Contractor. (C) Signup and view all the answers

What is the role of the Philippine Contractors Accreditation Board (PCAB) in the construction process?

To issue permits and licenses to contractors and subcontractors. (A) Signup and view all the answers

Why is a 'Construction Scope' defined in a contract?

To establish a clear and measurable definition of the work to be done. (B) Signup and view all the answers

What is the purpose of a 'Document List' in a construction contract?

To provide a comprehensive list of all relevant project documents. (C) Signup and view all the answers

Which of the following would NOT be considered a Force Majeure event?

A sudden and unexpected increase in the cost of building materials (D) Signup and view all the answers

What is the primary purpose of the Contract?

To define the specific scope of work to be performed by the Contractor (D) Signup and view all the answers

Which of the following is NOT an example of a Force Majeure event as defined in the text?

A sudden and unexpected increase in the cost of labor (E) Signup and view all the answers

What is the importance of "Written Notice" in the Contract?

To provide a formal record of all important events and decisions related to the project (C) Signup and view all the answers

Which of the following is NOT included in the definition of Force Majeure?

A significant increase in the price of raw materials (D) Signup and view all the answers

What is the standard of conduct required of the parties in the Contract?

They must act with honesty and good faith towards each other (C) Signup and view all the answers

How does the Contract address the resolution of conflicts or discrepancies in interpretation?

The Owner has the final say in interpreting the Contract (E) Signup and view all the answers

Which of the following activities are NOT included in the scope of work defined by the Contract?

Managing the project's budget and financial reporting (A) Signup and view all the answers

What does the term 'COSTS' specifically not include?

Allowances for profit (C) Signup and view all the answers

In which scenario would a party be considered a supplier rather than a Sub-Contractor?

Providing materials without labor (A) Signup and view all the answers

What is the CONTRACT PRICE?

The amount paid for the work execution (B) Signup and view all the answers

What type of bond guarantees the quality of materials provided by the Contractor?

Guarantee Bond (C) Signup and view all the answers

Which bond ensures the Contractor's faithful compliance with payment to workers and suppliers?

Payment Bond (C) Signup and view all the answers

What marks the completion of the Owner's obligation to pay the CONTRACT PRICE?

The final payment to the Contractor (C) Signup and view all the answers

What is required from the Contractor to guarantee the performance of the Work?

Securities or bonds (D) Signup and view all the answers

Which type of bond ensures that the Contractor executes the Work according to the Contract?

Performance Bond (D) Signup and view all the answers

What is the purpose of the Invitation to Bid?

To notify potential bidders about the project and its requirements. (D) Signup and view all the answers

What does a Bid Bond guarantee?

The bidder will enter into the Contract if awarded. (A) Signup and view all the answers

Which of the following best describes Specifications?

They detail the qualities of materials and methods of construction. (B) Signup and view all the answers

What are Special Provisions or Conditions intended for?

They modify the general conditions of the contract. (D) Signup and view all the answers

What does the term 'WORK' refer to in a construction contract?

All labor, materials, and equipment necessary for contract fulfillment. (C) Signup and view all the answers

What information does a Bid Bulletin typically provide?

Additional information regarding Bid Documents before the bidding date. (B) Signup and view all the answers

Which statement is incorrect regarding Change Orders?

They specify the penalties for non-compliance by the contractor. (B) Signup and view all the answers

What role do Supplementary Specifications play in the bidding process?

They amend or add information to existing Specifications. (A) Signup and view all the answers

What happens if the Owner fails to issue the instruction in writing?

The work will be perceived as done according to the Owner's interpretation. (D) Signup and view all the answers

What should the Contractor do upon spotting a discrepancy in the documents?

Report it immediately to the Owner. (A) Signup and view all the answers

Who is primarily responsible for the adequacy of the design and sufficiency of the drawings?

The Owner. (C) Signup and view all the answers

What is one of the responsibilities of the Owner regarding the Contractor's timely completion of work?

To express satisfaction and determination of value in a timely manner. (B) Signup and view all the answers

What happens to work done by the Contractor if discrepancies are found but not reported to the Owner?

It is considered done at the Contractor's risk. (A) Signup and view all the answers

In terms of notices and submissions, what is the Contractor required to do?

Give notices in a timely manner to avoid delays. (D) Signup and view all the answers

What must the Owner consider when making decisions that affect the Contractor's work?

Completion Time and the approved construction schedule. (B) Signup and view all the answers

When the Contractor is designing any part of the work, who assumes responsibility for that design?

The Contractor assumes all responsibilities. (D) Signup and view all the answers

Which of the following is NOT considered a Contract Document?

Project Budget (B) Signup and view all the answers

What is the primary purpose of the 'Project Description' section in a construction contract?

To define the scope of work and the problem being addressed. (A) Signup and view all the answers

What is the difference between the 'Agreement' and the 'Contract Documents'?

The Agreement is signed by the Owner and Contractor, while the Contract Documents are attached to the Agreement. (B) Signup and view all the answers

'Contract' is a term used to describe which of the following:

The agreement signed by the Owner and Contractor and any attached documents. (B) Signup and view all the answers

Which of the following sections is LEAST likely to be modified in a construction contract agreement based on the specific project?

Contractor's standard operating procedures (B) Signup and view all the answers

What is the main purpose of a contract agreement in construction projects?

To protect the interests of both the owner and the contractor. (B) Signup and view all the answers

What does the term 'Contract Documents' typically include?

The specifications, drawings, and other bid documents. (A) Signup and view all the answers

According to the content, what is the main difference between the Special Provisions and the General Conditions?

Special Provisions are specific to a particular project, while General Conditions apply to all projects. (B) Signup and view all the answers

Flashcards

Construction Contract Agreement

A legal document outlining the terms of a construction project.

Contract

Combination of Agreement and Contract Documents in construction.