ECM366_3 APRIL24

What are the two parties involved in construction contracts?

• Owners and suppliers

• Owners and contractors

Do construction contracts typically include methods of communication and dispute resolution?

• TRUE

• FALSE

Who executes the job in a construction contract?

• Owners

• Contractors

A lump-sum contract (also called a fixed price contract) names a total price for the entire job. This price accounts for all time and materials regardless of changes or issues. This type of contract protects owners against unforeseen changes and setbacks

• TRUE

• FALSE

What is the purpose of a performance bond in construction contracts?

• To ensure timely completion of the project

• To provide insurance coverage for the project

What is the difference between a cost-plus contract and a lump-sum contract?

• Cost-plus contract has a fixed price, while lump-sum contract is based on actual costs

• Cost-plus contract includes all expenses, while lump-sum contract has a set total price

Why is it important to have a clear scope of work defined in a construction contract?

• To avoid disputes and misunderstandings

• To increase the overall cost of the project

Unit Price Contract is a good way to protect against potential future inflation of material prices.

• TRUE

• FALSE

What role does a project manager play in construction contracts?

• To provide insurance coverage for the project

• To oversee the planning, execution, and completion of the project

What is the purpose of a change order in construction contracts?

• To increase the project cost

• To document changes in the project scope