CAC Construction Law and Ethics Flashcards
6 cards from real CAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAC Construction Law and Ethics flashcards as text
What is the purpose of a mechanic's lien in US construction law?
Answer: To secure payment for contractors or suppliers by placing a claim against the property
A mechanic's lien allows unpaid contractors, subcontractors, and suppliers to claim an interest in the property to secure payment for their work or materials.
Which US federal law governs prevailing wage requirements on federally funded construction projects?
Answer: Davis-Bacon Act
The Davis-Bacon Act requires contractors on federal or federally assisted construction contracts over $2,000 to pay workers prevailing local wages.
The Miller Act requires prime contractors on federal construction projects over $150,000 to furnish:
Answer: Both a performance bond and a payment bond
The Miller Act mandates performance and payment bonds on all federal construction contracts exceeding $150,000 to protect the government and subcontractors.
What does 'indemnification' mean in a construction contract?
Answer: One party agrees to hold the other harmless and cover losses or claims arising from the project
An indemnification clause requires one party (usually the contractor) to defend and compensate the other for specified losses, claims, or damages.
A statute of limitations in construction law refers to:
Answer: The deadline by which a legal claim must be filed after a defect or breach is discovered
A statute of limitations sets a time limit within which a party must file a lawsuit; after that period expires, the legal claim is barred.
Which form of dispute resolution in construction involves a neutral third party making a binding decision?
Answer: Arbitration
Arbitration is a private adjudication where an arbitrator hears both sides and issues a binding award, typically faster and less formal than litigation.