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Lines of Authority in Construction Projects

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Lines of Authority in Construction Projects

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Questions and Answers

What is the main purpose of establishing lines of authority in construction projects?

To avoid establishing agency relationships

To decrease the need for daily approvals

To increase the likelihood of misunderstandings

To benefit the project by ensuring necessary decisions are made (correct)

What happens if on-site representatives are not designated and given the necessary authority?

Decreased confusion and disputes

Breakdown in communication leading to confusion (correct)

Increased likelihood of legal ramifications

Improved communication and clarity

In construction projects, which entities are involved in decision-making processes?

Individuals

Non-profit organizations exclusively

Corporations, partnerships, or business associations (correct)

Government agencies only

What is the consequence of establishing lines of authority in a haphazard manner?

Likelihood of misunderstandings and disputes will increase Signup and view all the answers

When is an agency relationship established in construction projects?

When one party designates another to act on its behalf Signup and view all the answers

What type of authority is established by contract documents explicitly stating an individual's decision-making authority?

Express Authority Signup and view all the answers

In public construction projects, why is the existence of actual authority important?

To shield public agencies from liability Signup and view all the answers

How can private organizations protect themselves regarding authority delegation?

By designating authorized individuals and disclaiming responsibility Signup and view all the answers

What may lead to the constructive waiver of a contractual disclaimer regarding authority?

Persistent conduct inconsistent with the contract terms Signup and view all the answers

What is a common form of ratification in the context of authority delegation at a job site?

Silence or acquiescence Signup and view all the answers