Contract and Project Management Flashcards
7 cards from real PC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract and Project Management flashcards as text
A contractor receives a change order request that would add $12,000 to the contract. The owner asks the contractor to begin work immediately before signing the change order. What is the most prudent course of action?
Answer: Refuse work until the signed change order is received
Work should never begin on changed scope without a signed change order, as verbal agreements are difficult to enforce and payment may be disputed.
Which contract clause typically allows the owner to order changes to the scope of work without voiding the contract?
Answer: Changes clause
A changes clause (or changes in work clause) gives the owner the right to direct changes within the general scope without invalidating the contract.
On a lump-sum electrical contract, the contractor discovers that the specifications contain an error that increases material costs by $8,000. Who typically bears this cost?
Answer: The owner, as errors in their provided documents are their responsibility
When the owner provides defective specifications, the owner bears responsibility for resulting cost increases under the Spearin Doctrine.
A project schedule shows a total float of zero on the critical path. What does this indicate?
Answer: Any delay on critical path activities will delay project completion
Zero total float on the critical path means any delay to those activities will directly delay the project's completion date.
Under a unit price contract for electrical conduit installation, which party bears the risk of quantity variations?
Answer: The owner, because total cost changes with actual quantities installed
Under unit price contracts, the owner bears the risk of quantity variations since payment is based on actual quantities measured in the field.
What is the purpose of a Notice to Proceed (NTP) on a construction contract?
Answer: It officially instructs the contractor to mobilize and begin work on a specific date
A Notice to Proceed is a formal written notice from the owner that authorizes and directs the contractor to begin work, establishing the contract start date.
A subcontract contains a 'pay-when-paid' clause. Under most US state interpretations, what does this mean?
Answer: Payment to the subcontractor is conditioned on receipt of owner payment, creating a timing mechanism
Most courts interpret pay-when-paid clauses as a timing mechanism giving the GC a reasonable time to collect, not as a permanent defense against payment.