CRIS Contract Analysis & Indemnification Flashcards
6 cards from real CRIS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRIS Contract Analysis & Indemnification flashcards as text
What is the key risk management concern when a construction contract contains a 'consequential damages waiver'?
Answer: It prevents the contractor from recovering lost profits or delay damages beyond direct costs if the owner breaches
A mutual waiver of consequential damages limits each party's exposure to direct damages only, excluding indirect losses like lost profits, financing costs, or business interruption.
Which provision in a construction contract allocates the risk of encountering unexpected subsurface conditions?
Answer: Differing site conditions clause
A differing site conditions clause shifts the financial risk of encountering subsurface or latent conditions materially different from those indicated in the contract documents to the owner.
A 'no-damage-for-delay' clause in a construction contract primarily affects the contractor by:
Answer: Limiting the contractor's remedy for owner-caused delays to time extensions only, not additional compensation
No-damage-for-delay clauses bar monetary recovery for owner-caused delays, leaving the contractor with schedule relief but no financial compensation for extended overhead or idle resources.
What is the purpose of a 'certificate of insurance' (COI) in construction contract administration?
Answer: It provides evidence that the named insured carries the required coverage at the time of issuance
A COI is an informational document summarizing coverage in force at issuance; it does not confer rights, alter policy terms, or guarantee future coverage.
Under the 'insured contract' exception in a commercial general liability policy, coverage for assumed contractual liability applies when:
Answer: The insured assumes the tort liability of another party in an 'insured contract' as defined by the policy
CGL policies exclude assumed contractual liability but restore coverage for liability assumed in contracts meeting the definition of 'insured contract,' which includes construction agreements that meet ISO standards.
What is the significance of the 'your work' exclusion in a contractor's commercial general liability policy?
Answer: It excludes property damage to the work the contractor performed once the job is complete
The 'your work' exclusion bars CGL coverage for damage to the named insured's own completed work, reflecting the principle that CGL is not a performance bond or warranty.