Payment Terms and Milestone Completion Quiz
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Questions and Answers

What is the Contractor agreeing to do in a Labor Contract?

  • Provide materials for the construction
  • Complete the work based on the Owner's design
  • Perform a stipulated job of work in exchange for a fixed sum of money (correct)
  • Take responsibility for the project's design adequacy

    • In a UNIT PRICE CONTRACT, how is the payment calculated?

  • Per unit of work completed (correct)
  • Fixed sum of money
  • Based on the completion time
  • Percentage of the total cost

    • What is a disadvantage of a Labor Contract?

  • Ability to control design changes
  • Limited involvement in the project design
  • Uncertainty about project cost (correct)
  • Ease of determining project timeline

    • What should be done in case of a discrepancy between Drawings and Specifications in a contract?

    <p>The Owner should be informed immediately for correction</p> Signup and view all the answers

    Which party is responsible for the sufficiency of the Drawings and Specifications in a contract?

    <p>Owner</p> Signup and view all the answers

    What does the Contractor agree to do in a UNIT PRICE CONTRACT?

    <p>Perform work within a fixed amount of time</p> Signup and view all the answers

    What type of contract involves payment based on milestones and the completion of stages?

    <p>Unit price contract</p> Signup and view all the answers

    When using a labor contract, who arranges and supplies all materials for the construction?

    <p>Owner</p> Signup and view all the answers

    What is an advantage of using a labor contract for the contractor?

    <p>Increased profit opportunities</p> Signup and view all the answers

    Why might competent contractors decide not to bid for a high-risk lump sum contract?

    <p>To avoid high-risk contracts</p> Signup and view all the answers

    Which type of contract has the advantage of the final price being known to the owner before work commences?

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

    In which type of contract is payment to the contractor based on measures?

    <p>Unit price contract</p> Signup and view all the answers

    What is the role of OWNER'S REPRESENTATIVE?

    <p>To act on behalf of the Owner</p> Signup and view all the answers

    What does a PERFORMANCE BOND serve as?

    <p>A guarantee of good faith by the Contractor</p> Signup and view all the answers

    In the context of the text, what does the term SUB-CONTRACTOR refer to?

    <p>A contractor executing any part of the Contract on behalf of the Contractor</p> Signup and view all the answers

    Which term best defines 'WORK' as mentioned in the text?

    <p>Contractor-provided labor, materials, and facilities necessary to complete construction</p> Signup and view all the answers

    What is the primary function of a PERFORMANCE BOND according to the text?

    <p>Guarantee good faith on the part of the Contractor</p> Signup and view all the answers

    What rules are followed in case of conflict between Contract provisions?

    <p>'Rule 1: The Agreement and Contract documents explain each other'</p> Signup and view all the answers

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