Contracts, Laws, and Agreements Flashcards
7 cards from real General Contractor License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts, Laws, and Agreements flashcards as text
A subcontractor walks off the job without cause after completing 60% of the work. Under common law, what is the general contractor's most appropriate legal remedy?
Answer: Sue for breach of contract and recover cost to complete
When a subcontractor abandons work without justification, the general contractor can sue for breach and recover the additional cost to complete the work.
Which clause in a construction contract typically protects the owner by requiring the contractor to remove and replace defective work discovered after project completion?
Answer: Defects and warranty clause
A defects and warranty clause obligates the contractor to correct defective work or materials discovered within a specified period after completion.
Under the Miller Act, a payment bond on federal construction projects protects which party?
Answer: Subcontractors and suppliers who are not paid
The Miller Act requires payment bonds on federal projects over $150,000 to protect subcontractors and material suppliers who cannot file mechanics liens on federal property.
What is a 'time is of the essence' clause in a construction contract?
Answer: A provision making completion deadlines strict contractual obligations
A 'time is of the essence' clause makes the completion date a material term of the contract, meaning delays can constitute a breach even if the owner suffers no actual damages.
A general contractor submits a bid that contains a clerical error making it significantly lower than intended. Before the contract is signed, can the contractor withdraw the bid?
Answer: Yes, if the error is proven and withdrawal is prompt
Most states allow bid withdrawal based on a material clerical error if the contractor promptly notifies the owner before contract execution and can prove the mistake.
What distinguishes an 'express warranty' from an 'implied warranty' in a construction contract?
Answer: Express warranties are explicitly stated; implied warranties arise by law or custom
An express warranty is one the contractor explicitly states in the contract, while an implied warranty arises automatically by law, such as the implied warranty of habitability.
Under the AIA A201 General Conditions, what must an owner do before terminating a contractor for cause?
Answer: Give the contractor written notice and a 7-day cure period
AIA A201 requires the owner to give the contractor written notice and a 7-day opportunity to cure the default before terminating for cause.