10 Questions
What was the reason the contractor had to seek relief in court?
Because the engineering firm refused to pay for the delay costs
What principle suggests that if a risk is imposed upon a party, an opportunity for reward should exist for properly dealing with the risk?
Principle of risk allocation
To whom should the risk be allocated if they are in the best position to control it?
The owner
What is one of the guidelines suggested for producing construction at the lowest possible cost?
Allocate risks to parties best able to financially undertake them
What should be done when it's not apparent how a given risk should be allocated according to the text?
Consider the motivation of the parties involved
What department typically prepares the contract forms offered to bidders?
Owner's legal department
In traditional construction contracting practice, how were risks typically allocated by owners to contractors?
Mostly allocated to the owner
What was a consequence of contractors adding high contingencies to their bids due to risk allocation?
Litigation of construction contract claims
Which aspect of construction risks is typically reserved to the contractor?
Risks related to third-party actions
Why did construction law become a profitable field for lawyers according to the text?
To handle litigation of construction contract claims
Test your knowledge on contractor payment disputes, particularly on entitlement to payment for work delays and seeking relief in court. Explore concepts related to the changed conditions clause of contracts and risk allocation.
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