Delays and Suspension of Work Quiz

An owner that causes a delay may be in breach on contract

• True

• False

What can determined the start date of a project?

• Letter of Intent

• Notice to proceed

• Signed contract with specific start date

• All the alternatives

What damages are paid when the project is delayed due to contractor or the agents?

• Liquidated damages

• Consequential damages

• Incidental damages

• Compensatory Damages

What does "Time is of the Essence" mean in construction contracts?

• Time delays are acceptable in any situation.

• All work must be completed without delay.

• Contractor can change substantial completion date.

• Delays are excusable if due to subcontractors.

What is the prospective approach to determining if liquidated damages are reasonable?

• Estimating the anticipated damages after the project starts

• Calculating the actual damages after the project is completed

• Estimating the anticipated damages before the project starts

• Assigning a fixed damage value regardless of project type or cost

What happens if the owner has caused part of the delay according to modern rules?

• The owner pays all the liquidated damages

• The contractor is exempt from all liquidated damages

• Percentages of fault are assigned to each party

• The project is automatically extended without penalties

What does a contractor receive in the case of a non-compensable excusable delay?

• A) A time extension and extra cost

• B) Only a time extension

• C) only cost incurred due to the delay

• D) No compensation or time extension

In the event of a compensable /excusable delay, what does the contractor receive?

• A) Only a time extension

• B) only extra cost incurred

• C) Both time extension and extra cost incurred

• D) No compensation or time extension

What is a scenario where the no-damages-for-delay clause may not be enforceable?

• Delay is due to a subcontractor's negligence

• Delay is a result of a force majeure event

• Delay is the result of active interference by owner or their agents

• Delay is caused by the contractor

Is this delay excusable, compensable, both or neither?

Subcontractor moving dirt has a primary piece of equipment fail for an extended period of time.

• Excusable

• Compensable

• Both

• Neither