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Payment Terms and Milestone Completion Quiz

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VictoriousHeptagon
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18 Questions

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

Perform a stipulated job of work in exchange for a fixed sum of money

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

Per unit of work completed

What is a disadvantage of a Labor Contract?

Uncertainty about project cost

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

The Owner should be informed immediately for correction

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

Owner

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

Perform work within a fixed amount of time

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

Unit price contract

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

Owner

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

Increased profit opportunities

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

To avoid high-risk contracts

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

Lump sum contract

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

Unit price contract

What is the role of OWNER'S REPRESENTATIVE?

To act on behalf of the Owner

What does a PERFORMANCE BOND serve as?

A guarantee of good faith by the Contractor

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

A contractor executing any part of the Contract on behalf of the Contractor

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

Contractor-provided labor, materials, and facilities necessary to complete construction

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

Guarantee good faith on the part of the Contractor

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

'Rule 1: The Agreement and Contract documents explain each other'

Test your knowledge on payment terms in construction projects, including the preparation of Bill of Quantities (BOQ) and the financial risks for both the Employer/Owner and Contractor. Explore the advantages of staging payments at intervals based on milestone completion.

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