UNIT 12 Q1 Understanding Construction Procurement and Contracts

What is a Lump Sum Contract in construction?

• A contract where the contractor is paid based on the actual cost of work plus a fee.

• A contract where the contractor agrees to complete the work for a fixed price.

• A contract where the payment is made based on the unit prices for each item.

• A contract where the contractor is reimbursed for all costs plus a percentage of profit.

Which of the following is a key stage in the tendering process?

• Contract termination

• Bid evaluation

• Project commissioning

• Site handover

What is the primary purpose of contract management in construction?

• To ensure the project is completed ahead of schedule

• To manage the financial accounts of the contractor

• To ensure that the terms of the contract are met by all parties

• To design the architectural plans for the project

Which of the following is a type of procurement method?

• Open tendering

• Design and build

• Cost-plus contract

• Lump sum contract

What is included in tender documentation?

• Project timeline

• Contractor's personal details

• Detailed project specifications

• List of potential subcontractors

Which type of tender involves inviting a select group of contractors to bid?

• Open tender

• Selective tender

• Negotiated tender

• Serial tender

What is the first stage in the tendering process?

• Contract signing

• Bid submission

• Invitation to tender

• Project completion

Which procurement method involves the client appointing a contractor to manage the entire project?

• Traditional procurement

• Management contracting

• Design and build

• Construction management

What is a key characteristic of a cost-plus contract?

• Fixed price for the entire project

• Payment based on unit prices

• Reimbursement of actual costs plus a fee

• Payment upon project completion

Which form of procurement involves the client directly purchasing materials and hiring labour?

• Design and build

• Construction management

• Direct procurement

• Traditional procurement