Contractor Payment Dispute Quiz
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Questions and Answers

What was the reason the contractor had to seek relief in court?

  • To speed up the construction process
  • Because the engineering firm refused to pay for the delay costs (correct)
  • To avoid paying the costs of the delay
  • To make the construction project more expensive
  • 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 cost reduction
  • Principle of risk allocation (correct)
  • Principle of reward allocation
  • Principle of risk avoidance
  • To whom should the risk be allocated if they are in the best position to control it?

  • The contractor
  • The court system
  • The owner (correct)
  • The engineering firm
  • What is one of the guidelines suggested for producing construction at the lowest possible cost?

    <p>Allocate risks to parties best able to financially undertake them</p> Signup and view all the answers

    What should be done when it's not apparent how a given risk should be allocated according to the text?

    <p>Consider the motivation of the parties involved</p> Signup and view all the answers

    What department typically prepares the contract forms offered to bidders?

    <p>Owner's legal department</p> Signup and view all the answers

    In traditional construction contracting practice, how were risks typically allocated by owners to contractors?

    <p>Mostly allocated to the owner</p> Signup and view all the answers

    What was a consequence of contractors adding high contingencies to their bids due to risk allocation?

    <p>Litigation of construction contract claims</p> Signup and view all the answers

    Which aspect of construction risks is typically reserved to the contractor?

    <p>Risks related to third-party actions</p> Signup and view all the answers

    Why did construction law become a profitable field for lawyers according to the text?

    <p>To handle litigation of construction contract claims</p> Signup and view all the answers

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