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?

    <p>Likelihood of misunderstandings and disputes will increase</p> Signup and view all the answers

    When is an agency relationship established in construction projects?

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

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

    <p>Express Authority</p> Signup and view all the answers

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

    <p>To shield public agencies from liability</p> Signup and view all the answers

    How can private organizations protect themselves regarding authority delegation?

    <p>By designating authorized individuals and disclaiming responsibility</p> Signup and view all the answers

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

    <p>Persistent conduct inconsistent with the contract terms</p> Signup and view all the answers

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

    <p>Silence or acquiescence</p> Signup and view all the answers

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