Question
1.Questions 1-6 relate to the Shanghai Department Store Project we viewed in class.This building was constructed out of this reliable building material: A.Pre Cast Concrete
1.Questions 1-6 relate to the Shanghai Department Store Project we viewed in class.This building was constructed out of this reliable building material:
A.Pre Cast Concrete
B.Structural Steel
C.Reinforced Concrete
2.All of the materials listed below were installed on the Shanghai project.Which material was fabricated locally, in Shanghai, and to a very high standard.To such a high standard, in fact, that the subcontractor was given additional work on the subway canopy structural trusses and decorative elements.
A.Pre-cast Concrete
B.Granite
C.Wood
D.Steel
3.In Shanghai, the subway canopy was a challenge because:
A.The government built the canopy before construction began so it was in the way during the entire project.
B.The canopy was never built
C.The subway location was provided to the team by the city in very broad terms, and was only made more specific when the earth began to move and workers literally began climbing out of the ground
D.The canopy itself was delayed for several years, so the store sat empty for a long time getting dusty
4.Shannon had a unique relationship with the other team members, Mr. K.H.Wong of Hip Hing Construction and Mr. Frank Lo, the Owner.In class, Shannon said that thanks to this relationship between Architect, Contractor and Owner, and the slower pace of construction, ....
A.the project went way over budget and nobody was happy
B.the project team was able to work collaboratively to solve many problems, allowing for reasonable design changes on the fly that added value to the building at a reasonable cost.
C.the project team was fined for delaying the subway opening
D.the project team was able to take a team trip to Bali and everyone surfed together for a month
5.This element of the building was developed, manufactured and installed by a local entrepreneur who came to the site trying to sell Shannon decorative Italianate style fountains and lawn accessories he fabricated out of fiberglass.Shannon went to his shop and worked with them to develop the designs.
A.The Precast Concrete Cornices
B.The elevator lobby cabinetry
C.The decorative panels and frieze
D.The acid etched elevator doors
6.The budget for the department store project was about
A.$1 million USD
B.$5 million USD
C.$20 million USD
D.$220 million USD
7.Questions 7 thru 12 are related to risk. The first few focus on who bears risk. In 7-10, match the risk with the TYPICAL PRIMARY OWNER of that type of risk. Who bears the risk when a subcontractor fails to perform?
A.Architect
B.Owner
C.Contractor
D.Inspector
8.Who bears the risk associated with Acts of God?
A.Architect
B.Owner
C.Contractor
D.Inspector
9.Who bears the risk associated with discrepancies in quantity variations?
A.Architect
B.Owner
C.Contractor
D.Inspector
10.Who bears the risk associated with seasonally typical weather?
A.Architect
B.Owner
C.Contractor
D.Inspector
11.Risk must be transferred to a receiving party that can properly assess the risk, AND can properly control the risk.
A.True
B.False
12.Owners typically fail to transfer enough of the risk for the project to the Contractor.Historically Owners have tried to hold on to most of the risk, because they want to keep control.Contractors often need to push owners to transfer more risk.
A.True
B.False
13.Questions 13,14 and 15 describe situations in which a delay has occurred.Based upon the scenario described, identify which TYPE of delay we are looking at.
Example 1:Both the Contractor and the Owner cause delays to the project, and the impacts take place at the same time during construction.
This type of delay is called a:
A.Excusable Delay
B.Concurrent Delay
C.Compensable Delay
D.Cluster Delay
14.The delay has resulted in the Owner agreeing to a time extension.
However, it has also been agreed that there will be no monetary compensation for the Contractor.
This type of delay is called a:
A.Excusable
B.Delay Concurrent
C.Delay Compensable
D.Delay Cluster Delay
15.The Owner agrees both a time extension AND monetary compensation are appropriate due to the delay.
This type of delay is called a:
A.Excusable Delay
B.Concurrent Delay
C.Compensable
D.Delay Cluster Delay
16.Questions 16, 17, 18 and 19 relate to Site Conditions.
True or False, the are many legitimate costs associated with differing site conditions.By far the EASIEST cost to document and claim is loss in productivity.
A.True
B.False
17.In attempting to demonstrate the impact of differing site conditions, one common strategy that is used is The Measured Mile.
A.True
B.False
18.An "Unclassified" site places responsibility for all costs relating to the subsurface conditions, as required to complete the contract, on the Contractor.
A.True
B.False
C.
19.Scenario:
The Owner has inserted an ALLOWANCE for potential Differing Site Conditions into the contract's Schedule of Values.
Once the project is under construction, the site conditions differ SUBSTANTIALLY.In other words, quite a lot differently.
The allowance is not large enough to cover all of the additional costs.
The ADDITIONAL costs MUST be carried by the:
A.Contractor
B.Owner
a.Excavation
b.Sub and GC split the cost
20.When an Owner or a Contractor or both want to speed up the timeline for construction, either to catch up because of delays, or to finish early, the typical term that is used to describe this is Acceleration, (either Actual or Constructive).
A.True
B.False
21.When the Owner directs the Contractor to complete the project ahead of the baseline schedule completion date, this is called Constructive Acceleration.
A.True
B.False
22.In the PowerPoint presentation, a strong case was made for using Constructive Acceleration as a tool that can benefit both the Owner and the Contractor as a replacement for the more typically used Damages for Delay.
The idea is that the Contractor demonstrates to the Owner that it will actually cost them LESS MONEY to just pay the Contractor to Accelerate the job.
Of course, acceleration will cost the Owner a bit more in the short term (because they will need to pay the Architect to accelerate as well), but with this strategy the Architect will have additional resources available to deal with the problem.
And, the Owner has a chance of actually getting their project completed on time.Win/Win.
A.True
B.False
23.It is rarely beneficial to accelerate early in the project, because you are only asking one or two companies to speed up.
Acceleration, as a tool, is best when left to the very end, when 20, 30 or even 40 different outfits can be coordinated to change their work schedules, work faster and get the project done.
A.TRUE
B.FALSE
24.Scenario: The Owner contacts you to discuss options for speeding up their project.
The Owner appreciates all the work you have been doing to keep their project on schedule, despite a few issues during construction.This is nice, because you have been keeping this job on schedule, and it has not been easy.A few problems early on slowed things down, but you worked with your team to get back on track.
Now the Owner has decided that they actually need to complete WEEKS EARLIER than the original contract stipulates as the completion date.They are even willing to pay the costs associated with this request.
What is the best option going forward for the GC?
A.Agree on Damages for Delay
B.Agree on Actual Acceleration costs
C.Agree upon the Changed Conditions
D.Agree on Constructive Acceleration costs
25.Overtime, as a rule, is only a good idea when it is done in short bursts.
Long term overtime rarely pays.
A.True
B.False
26.Questions 26-28 address delays.
The burden of proof for delays lies on the Architect, because they are documenting the progress on site through their rigorous, regular site inspections. Question 26 options:
A.True
B.False
27.When impact costs are not known, the Contractor should request a Change Order that excludes impact costs, and instead, allows the Contractor to reserve the right to claim impact costs at a later date, once they are known.
A.True
B.False
28.Scenario:
The Contractor is being delayed because the Owner was supposed to select between 3 options for granite floors for the department store ground floor, and they have not done so.
The Contractor can demonstrate that the delay so far is ten working days, and counting.
The Owner is frustrated. They accept that the delay has been caused by them, and they are ready to pick a granite today, but they really want to finish on time before the holiday shopping season.
What would typically be a recommended path going forward in this case?
A.Agree on Damages for Delay
B.Agree on Actual Acceleration costs
C.Agree upon the Changed Conditions
D.Agree on Constructive Acceleration costs
29.Questions 29-32 address changes in the work.
Contractors often submit change orders for additional work. However, in this particular case, after the Contractor submitted a Change Order Request form, the Change Order forms
approved by the Owner and the Architect expressly excluded any impact costs.
In fact, the court in this case made it clear that each change order contained a clause which said "all charges, direct and indirect, arising out of this additional work" have been covered by this Change Order.
Which case is this?
A.Vanlar vs County of Los Angeles
B.Udevco vs Wagner
C.United States vs Spearin
30.Contractors can be put in difficult situations when an Owner or an Architect makes a verbal instruction that is contrary to the contract documents.
How can they prove they were told to do something if it's not put in writing?
Further, what if the contractor agrees to do the work, based upon the conversation, and then the Architect and/or the Owner refuse to agree that this instruction was a change to the contract.
Well, this type of situation was exactly what was at the heart of an important court case, which ended up in the Nevada Supreme Court.
The case was called
A.Vanlar vs County of Los Angeles
B.Udevco vs Wagner
C.United States vs Spearin
31.A Construction Change Directive is:
A.Unilateral Change Order
B.Bilateral Change Order
C.Multilateral Change Order
32.Which of the following recommendations does NOT reflect best practices when preparing and submitting Proposed Change Orders (PCOs):
A.As a Contractor, change your point of view, and ask yourself if you were the Owner, would you approve the PCO based upon the information presented
B.As a Contractor, it is best to be as general as possible.Being to specific leads to questions and problems getting paid.
C.As a Contractor, review all PCO related materials from Subs carefully to ensure that their documentation is in order, and bulletproof
D.As a Contractor, be sure to include back up documentation that illustrate the billing in detail
33.Questions 33 and 34 address Liquidated Damages.
True or False, Liquidated Damages (LDs) are best viewed as a penalty for being late.
A.True
B.False
34.The reality is that Liquidated Damages may well be better than the alternative, Actual Damages, which could be much higher
A.True
B.False
35.Questions 35 -39 address costs. Pick the type of cost which includes: estimation costs, equipment costs, labor and benefits, additional insurance and/or bond premiums, taxes, subcontractor costs.
A.Direct Costs
B.Indirect Costs
C.Impact Costs
36.Pick the type of cost which includes: Field overhead, home office overhead and management, home office accounting
A.Direct Costs
B.Indirect Costs
C.Impact Costs
37.Pick the type of cost which includes: Lost productivity, idle equipment, disruption to planned work flow and sequencing
A.Direct Costs
B.Indirect Costs
C.Impact Costs
38.Andy Hedberg summarized COSTS for Walsh very simply.He said it all comes down to MOLES. Material, Overhead, Labor, Equipment, Subcontractors
A.True
B.False
39.Questions 39-43 specifically deal with the Walsh presentation.
The Walsh team said that the best ways to address escalating costs in lumber, and any other project material undergoing rapid inflation in price, is to first, try and use an ALLOWANCE for that material rather than a hard bid, OR, if the Owner will not go for that, insert an "escalation clause" in the contract.
A.True
B.False
40.True or False, Walsh Construction typically likes to work on a Cost of the Work plus a Fee contract, the "fee" is typically 3%, they carry a $250,000 deductible on their insurance and still pay over $1million/year in premiums, AND, they have an EMR of .66 which is very low for an industry that averages 1.0.Walsh also averages over $500 million in revenue each year, and they are one a few LARGE GCs in PDX who self-perform much of their work.
A.True
B.False
41.Walsh was contacted by an Owner who was working with a building forensics team who claimed there were multiple defects in a project that Walsh built.Walsh investigated and rather than fighting it out with lawyers in arbitration or litigation, agreed they had made an error with their siding installation on a project, and agreed to fix all "defects" free of charge for the Owner.In fact, Walsh actually MADE MONEY on the job, because the Owner was so impressed with their professionalism, they gave them ANOTHER JOB.
A.True
B.False
42.True or False, Andy Hedger said he reviews a lot of contracts.When he is looking at contracts, he always makes sure it says Walsh will take "every precaution" to ensure safety on the jobsite.Some contractors use "reasonable precautions", but Andy said this does not represent Walsh culture, so this insist it say "every precaution" will be taken.
A.True
B.False
43.One of the interesting aspects of the Blackburn housing project that Walsh built was:
A.It was too far from Portland and they really struggled with the commute
B.The exterior cladding system was too small for the building
C.The project had multiple contracts, one for the lower part of the building, and another for the upper floors!
D.The Owner's representative was a nightmare, eventually fired by the Owner
44.When this is issued the construction, period ends and the warranty period begins (and the building can be used by the owner for its intended use):
A.Partial Lien Release
B.Payment Certificate
C.Certificate of Occupancy
D.Certificate of Substantial Completion
45.Owners can seek compensation from the Architect for over-certifying the Payment Certificates to the Contractor.
A.True
B.False
46.An Owner is under no obligation, when asked, to demonstrate to the Contractor that they have the financial ability to pay for the work.
A.True
B.False
47.The AIA contract does not allow the Owner to hire separate Contractors for different scopes of work on the same project.
A.True
B.False
48.Scenario:Your project is nearing completion.You are on time, and on budget.Your Owner is very happy with the whole project. Certificate of Substantial Completion has been issued, and the building is being used.
You and your team are busy collecting Lien Release forms from every one of the subcontractors who have completed all work, and you are calling the remaining ones to let them know you will need these as soon as work is done at the end of the week.
You want all of these Lien Releases, because you are going to hand these over to the Owner when you submit your final Request for Payment. Since everything will be in order, when you submit all this material, you have confidence that 100% of your ______________ will be returned as part of the Final Payment.
A.Allowance
B.Retainage
C.Contingency
D.Liquidated Damages
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