Incentives for Efficiency in Contract Agreements
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Questions and Answers

What type of specifications are used when only one specific product can be used for an installation?

  • Performance specifications
  • Prescriptive specifications
  • Standard specifications
  • Proprietary specifications (correct)
  • Which element of organizational structures focuses on how functions are divided among different parts of an organization?

  • Communication and decision processes
  • Vertical and horizontal authority relationships
  • Structural organization
  • Distribution of functions (correct)
  • What is the driving force behind every organization?

  • Management team (correct)
  • Target estimate contract
  • Guaranteed maximum cost contract
  • Construction specifications
  • Which type of contract involves a situation where the final cost is determined after completion based on the actual costs incurred during the project?

    <p>Cost Plus Variable Percentage Contract</p> Signup and view all the answers

    What is the primary purpose of an organization in terms of administration?

    <p>To direct and coordinate activities</p> Signup and view all the answers

    Which type of structure in an organization focuses on coordinating activities to implement a given strategy?

    <p>Structural organization</p> Signup and view all the answers

    What are some key components found in a construction specification document?

    <p>Materials, Workmanship, and Performance Standards</p> Signup and view all the answers

    Which of the following is NOT typically included in a simple contract agreement document?

    <p>Detailed Construction Specifications</p> Signup and view all the answers

    What does a construction specification document primarily outline?

    <p>Quality and Performance Criteria</p> Signup and view all the answers

    Which type of specification provides details on both the types of materials needed and how to measure installations?

    <p>Prescriptive Specification</p> Signup and view all the answers

    In a construction agreement, what element describes the operational requirements in a project?

    <p>Performance Description</p> Signup and view all the answers

    Which document type includes Owner General Contractor License number in a contract agreement?

    <p>Simple Document</p> Signup and view all the answers

    What type of contract is a Lump Sum Contract also known as?

    <p>Stipulated sum contract</p> Signup and view all the answers

    Under a Unit Price Contract, how is the contractor paid?

    <p>For the actual quantity of each line item performed</p> Signup and view all the answers

    What does a Cost Plus Fixed Fee Contract involve?

    <p>Paying a fee based on the actual costs plus a fixed fee</p> Signup and view all the answers

    What does a Target Estimate Contract specify?

    <p>An estimate that may change during construction</p> Signup and view all the answers

    Which element is typically outlined in a Construction Agreement?

    <p>Rights of both parties involved</p> Signup and view all the answers

    What is Guaranteed Maximum Cost Contract synonymous with?

    <p>Cost Plus Variable Percentage Contract</p> Signup and view all the answers

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