construction law

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Description

This activity has the purpose of helping students describe the different dispute resolution techniques that are currently used in the construction industry, indicate the characteristics that are important for negotiators to possess, explain the advantages of using arbitration over litigation, describe the different types of liability insurance, explain why it is important for construction firms to provide worker’s compensation insurance to its employees, identify how professional liability insurance protect engineers, determine what types of items are excluded and included from builder’s risk policies and recognize when an employee is eligible to collect social security.

Instructions

Part I (70 pts.):

Read each question carefully and answer it to the best of your ability. The test is composed of true and false, multiple choice questions.  Some of the multiple choice questions may have more than one answer that may be selected.

Part II (30 pts.):

Read each question carefully and answer it to the best of your ability. The test is composed essay and case questions.  All questions need to be answered in essay format (must be typed, doubled spaced, Times New Roman, 12 point font, with 1" margins, and all sources must be sited).  Please follow APA format.

Multiple Attempts

Not allowed. This test can only be taken once.

Your answers are saved automatically.

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QUESTION 1

Engineers need to understand contract law because they are the ones that write contracts.

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 True

 False

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1 points   

QUESTION 2

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Contractors have to understand contract law because they are the ones that interpret contracts.

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 True

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 False

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1 points   

QUESTION 3

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Only construction lawyers are allowed to write construction contracts.

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 True

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 False

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1 points   

QUESTION 4

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The three main branches of the United States government are the executive, legislative, and judicial.

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 True

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 False

1 points   

QUESTION 5

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The United States court system uses a civil law legal system.

 True

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 False

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1 points   

QUESTION 6

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Once a law is passed by the legislature, the executive branch has no power to change the law.

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 True

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 False

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1 points   

QUESTION 7

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The different types of first level courts include which of the following?

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trial court

municipal court

small claims court

supreme court

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1 points   

QUESTION 8

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A prejudgment remedy allows the assets of the opposing party to be tied up or seized through the court system to ensure that if the person initiating the lawsuit wins the judgment the assets could be collected from the defendant.

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 True

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 False

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1 points   

QUESTION 9

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If a defendant is found guilty but refuses to voluntarily pay the settlement, there is no way for the plaintiff's attorney to force the defendant to pay the settlement.

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 True

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 False

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1 points   

QUESTION 10

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Pretrial activities include "Discovery" that allows which of the following?

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Revealing relevant documents

Depositions of witnesses

Developing the list of witnesses

Testimony of witnesses under oath

Written record of questions to be asked during the trial

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1 points   

QUESTION 11

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The Davis Bacon Act would not be cited in government construction contracts.

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 True

 False

1 points   

QUESTION 12

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The states that tried to succeed from the Union during the Civil War in the United States are all closed shop states.

 True

 False

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1 points   

QUESTION 13

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Double-breasting in construction refers to

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having more than one subsidiary.

being able to bid on a job.

having an open shop and a closed shop subsidiary.

being able to work on multiple projects with the same project team.

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1 points   

QUESTION 14

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The term "holding out" means that the engineers are practicing without professional registration for their particular profession.

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 True

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 False

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1 points   

QUESTION 15

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Estoppel takes place if a party to a contract hinders the contract and causes failure of the conditions or promise and then tries to claim later that they could not finish the job because of that failure.

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 True

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 False

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1 points   

QUESTION 16

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Apparent authority includes which of the following?

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It is conferred for a specified period.

It is a way to protect the party that creates the contract from breach.

It exists when a third party believes that the principal consents to acts done on his or her behalf by the person purporting to act for him or her.

It functions to award a remedy for contract breach to compensate third parties.

It does not have a termination date.

It is only used when there is no actual authority.

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1 points   

QUESTION 17

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Commercial efficiency and protection of reasonable expectations does not provide a third party with assurance that they are able to hold the principal liable if they are dealing with an agent.

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 True

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 False

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1 points   

QUESTION 18

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The conditions that must exist for an injured party to successfully sue another party in a tort action are that it must be shown by the injured party that another party had a duty to act and that this action did not take place. It must also be shown that the damage was a direct result of the inaction.

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 True

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 False

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1 points   

QUESTION 19

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Most tort lawsuits are based on negligence.

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 True

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 False

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1 points   

QUESTION 20

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Eminent domain occurs when a city votes to change the zoning laws for a particular section of the city.

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 True

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 False

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1 points   

QUESTION 21

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Real property is

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land.

dwellings on the land.

stocks.

bonds.

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1 points   

QUESTION 22

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If two parties sign a joint venture contract that contains a joint and several clause they would both be liable for the face amount of the entire contract if they are sued if the contract is not completed by either party.

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 True

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 False

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1 points   

QUESTION 23

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The types of business ownership include which of the following?

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sole partnership

corporation

joint venture

decree of ownership

partnership

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1 points   

QUESTION 24

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Eminent domain is described as

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a tract of land used for the operation of highways or public utilities.

the right of the government to retain possession of property until taxes on it are paid.

the right of the federal government, state government, or public agency to take possession of private property for public use.

the division of a city into different zoning areas.

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1 points   

QUESTION 25

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Corporations could be formed by merely putting it in writing.

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 True

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 False

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1 points   

QUESTION 26

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For personal tax purposes, it is better to form a company as a sole proprietorship.

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 True

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 False

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1 points   

QUESTION 27

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In a partnership, each partner is an agent of the partnership and they are able to bind the other partners to agreements without express authority.

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 True

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 False

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1 points   

QUESTION 28

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In order to for a contract to be valid in terms of the legal system, it must have an offer, acceptance, and an adequate time frame.

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 True

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 False

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1 points   

QUESTION 29

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If a person is mentally incompetent and they have signed a contract, the other party to the contract could request that the contract be voided.

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 True

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 False

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1 points   

QUESTION 30

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A unit price contract consists of many different items that each have a unit price calculated for them, and then all of the total unit prices are summed up to provide one final firm, fixed price for the contract.

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 True

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 False

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1 points   

QUESTION 31

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A cost plus a fixed fee contract occurs when a contractor is paid the actual cost for materials, labor, and equipment, plus a set fee for overhead and profit.

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 True

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 False

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1 points   

QUESTION 32

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When a contract has to be "signed, sealed, and delivered" it means that it must be signed by all of the parties to the contract, it has to have a notary republic stamp their seal on it to indicate that they have verified the identity of the parties signing the contract, and it has to be delivered in the manner stated in the contract.

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 True

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 False

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1 points   

QUESTION 33

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When forming a contract there are several parties who are involved, and these parties include which of the following?

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plaintiff

offeree

promisor

defendant

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1 points   

QUESTION 34

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Of the following types of projects, which one(s) would be the most likely to be constructed under unit price contracts? Select all that apply.

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lumber mill

interstate highway

concrete dam

shopping center

warehouse

steel mill

pipeline

apartment building

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1 points   

QUESTION 35

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When bidding on a project a contractor has to fulfill all of the contract requirements or he or she is considered to be

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a noncompetitive bidder.

a non-responsive bidder.

a non-recourse bidder.

disqualified from bidding.

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1 points   

QUESTION 36

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In a construction management contract which of the following contractual relationships should be present?

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The Owner has a contract with the Architect/Engineer

The Architect/Engineer has a contract with the Contractor

The Contractor has contracts with the Subcontractors

The Construction Manager has a contract with the Architect/Engineer

The Construction Manager has a contract with the Contractor

The Construction Manager has a contract with the Owner

The Owner has a contract with the Contractor

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1 points   

QUESTION 37

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Plans are not a legally binding section of construction contracts.

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 True

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 False

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1 points   

QUESTION 38

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The term "boilerplate" is used to describe which part of a construction contract?

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general conditions

special conditions

specifications

drawings

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1 points   

QUESTION 39

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The proper name for the document that both parties to a contract sign when they are indicating their acceptance of the contract terms is which of the following?

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addenda

specifications

agreement

general conditions

special conditions

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1 points   

QUESTION 40

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What are the duties of an architect/engineer working for the owner of a construction project?

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to act as the owner's representative

to direct subcontractors

to approve or disapprove submittals

to initiate progress payments and to give them to the contractor for verification

to reject defective work

to uphold their contractual obligation to the contractor

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1 points   

QUESTION 41

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Bid shopping is legal before a contract is awarded, but it is illegal after a contract is awarded to the prime contractor.

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 True

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 False

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1 points   

QUESTION 42

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Contractors should avoid, if possible, the inclusion of a detailed schedule in the contract documents because departures from the schedule are inevitable and the presence of a schedule in the contract simply enables the owner to harass the contractor with claims of lack of diligence.

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 True

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 False

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1 points   

QUESTION 43

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Impossibility, Destruction of Subject Matter, and Force Majuere are clauses in construction contracts that could be used as a defense against breach of contract if a contractor is constructing a building and it is destroyed by a fire caused by lightning.

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 True

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 False

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1 points   

QUESTION 44

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A broker contractor is a prime contractor that subcontracts out less than fifty percent of a construction contract.

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 True

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 False

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1 points   

QUESTION 45

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If it is determined that there was fraud in the formation of a contract, the legal remedy is

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restitution for the amount the plaintiff has lost.

renegotiate the contract.

cancel the transaction

serve a jail sentence.

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1 points   

QUESTION 46

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If a contractor stops work for any reason during the construction of a project, it is considered which of the following?

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breach of contract

unlawful misconduct

fraud

lease of the specifications

untimely completion of contract

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1 points   

QUESTION 47

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Causation involves

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a series of improbable events combining to lead to large losses.

requires victims of breach to do what is reasonable to mitigate or reduce damages.

showing that the breach is responsible for a loss.

proving the extent of losses with reasonable certainty

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1 points   

QUESTION 48

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If the specifications are written in such a way that it is not reasonably possible to perform the contract as written, the contractor is excused from performance.

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 True

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 False

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1 points   

QUESTION 49

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Concrete strength requirements should be detailed in which section of the specifications?

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Technical specifications

Design specifications

Performance specifications

Supplementary conditions

None of the above

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1 points   

QUESTION 50

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Under the section of "Duties of the Inspector" in the Conditions of the Contract, the function of an inspector is to ensure that the work is completed in accordance with the terms of the contract, and if it is incorrect to change the work.

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 True

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 False

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1 points   

QUESTION 51

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The Construction Specification Institute (CSI) format is only used on projects that cost over a million dollars.

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 True

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 False

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1 points   

QUESTION 52

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When a contractor breaches a contract on a construction project, the surety would be expected to complete the project under the terms of the original performance bond.

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 True

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 False

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1 points   

QUESTION 53

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What are the most common forms of bonds required for construction?

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performance

royalty

builder's risk

payment

bid

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1 points   

QUESTION 54

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Under conditions of default, what is a surety allowed to do?

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cancel the remaining portion of the project

rebid the remaining work

sue the owner

not be entitled to the contract amount

complete the work with the current contractor

adjust for bonded subwork

be liable for the face amount of the contract

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1 points   

QUESTION 55

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In order to file a mechanics lien, which of the following condition(s) must exist?

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A subcontract must have added value to the owner's property.

The subcontractor has to provide legal notice that they will be filing a lien on the owner's property.

The subcontractor has to have not been paid by the contractor.

The subcontractor has to be behind schedule.

The improvement done by the subcontractor must have been designed by the owner.

The contractor has to have the required bonds for the work.

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1 points   

QUESTION 56

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If an owner wanted to protect himself or herself from a contractor withdrawing their bid after they are awarded a contract, what type of bond should they require to be posted with the bid proposal?

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Performance

Royalty

Builder's Risk

Payment

Bid

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1 points   

QUESTION 57

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If a construction claim is not settled during negotiations then the only other option is litigation.

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 True

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 False

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1 points   

QUESTION 58

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What are excusable delays on a construction project that would allow a contractor to file a claim for an extension of time?

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Acts of God

Labor strikes

Lack of funds

normal weather

epidemics

riots

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1 points   

QUESTION 59

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If a written and signed contract provides that it could be amended only by a written change order that is signed with the same formality as the original contract, the owner may be bound by an oral order by his/her representative at the site who directs the contractor to perform extra, additional, or changed work.

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 True

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 False

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1 points   

QUESTION 60

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Where the contract provides for "an equitable adjustment" for additional work for delay, the owner has the final say in determining what is fair and equitable.

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 True

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 False

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1 points   

QUESTION 61

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If a dispute arises concerning entitlement of the contractor to a price change for what he/she considers to be a change in his/her contract requirements, under most contract provisions, the contractor is obligated to perform the work with his/her own financing, and wait until the dispute has been settled or litigated to recover the cost of the additional work.

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 True

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 False

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1 points   

QUESTION 62

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The legal manner in which construction disputes could be settled include:

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Mediation

Negotiation

Litigation

Arbitration

Dispute Review Boards

Rent a Judge

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1 points   

QUESTION 63

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If no agreement is reached during a contract dispute, parties do not come to and agreement during mediation, and the contract does not have a clause for binding arbitration, which of the following could be used to settle a dispute?

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Go to court

Give up on the contract and cancel it

Void the contract

Try to find someone else to help them settle their difference

Go bankrupt

Hire a negotiator

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1 points   

QUESTION 64

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What are some of the most frequently cited disadvantages of resolving disputes through court decisions?

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Cost

Time-consuming

They have to use rules of evidence

It takes a long time to get to court

The trial location

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1 points   

QUESTION 65

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A construction job site is considered an attractive nuisance by the legal system.

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 True

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 False

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1 points   

QUESTION 66

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Select the appropriate statements that relate to risk management:

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approach to dealing with exposure to losses

primarily protects third parties

used to identify risks and the magnitude of risks

account for other risks

modified general conditions

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1 points   

QUESTION 67

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An attractive nuisance at a construction site is a sign stating who is building the project.

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 True

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 False

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1 points   

QUESTION 68

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In order to ensure proper standards of performance, a contract should include words such as assure, insure, guarantee, accomplish, or achieve.

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 True

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 False

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1 points   

QUESTION 69

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A performance specification describes very specifically the work to be performed, the exact materials to be used, and the arrangement of all component parts.

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 True

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 False

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1 points   

QUESTION 70

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To guarantee that a contractor realizes what is to be included in the work, a contractor's Warranty Clause is usually included in the conditions of the contract. Which of the following would be included in this section?

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The contractor accepts all risk directly, or indirectly, connected with the performance of the contract.

The contractor warrants that there has been no collusion.

The contractor has reviewed the entire contract and understands it.

The contractor has investigated the site and satisfied himself or herself regarding the character of the work and the local conditions that may affect the contract's performance

The contract requires that the contractor guarantee that the materials and workmanship used for the job will prove satisfactory for one year after completion of the contract.

.

1 points   

QUESTION 71

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Explain what is the primary purpose of requiring engineers to have a professional engineering license and what type of engineering work requires a license.

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QUESTION 72

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Case Study and Discussion Question PASTORELLI v. ASSOCIATED ENGINEERS, INC. United States District Court of Rhode Island, 1980 176 F. Supp. 150. DAY, DISTRICT JUDGE. In this action, the plaintiff seeks to recover damage for injuries alleged to have been caused by the negligence of the three defendant corporations. The accident resulting in the injuries for which the plaintiff seeks damages occurred on November 10, 1975 upon the premises of the Narragansett Racing Association, Inc. (hereinafter called "the Racing Association") in Pawtucket, Rhode Island. On said date the plaintiff, an employee of the Racing Association, was lawfully upon said premises in a building familiarly known as the "clubhouse," and was engaged in the performance of his duties. While walking through said clubhouse, a heating duct suspended from the ceiling fell and struck him, causing the injuries for which he now seeks damages. The evidence establishes that early in 1974 the defendant Associated Engineers, Inc. (hereinafter called "Associated") contracted in writing with the Racing Association to prepare plans and specifications for the installation of certain heating, ventilating, and air conditioning systems on its premises (including said clubhouse). It also agreed to "supervise the contractors' work throughout the job." The defendant Procaccini and Moroney Plumbing and Heating Corp. (hereinafter called P&M) thereafter contracted with said Racing Association to erect and install said equipment; and Randall Sheet Metal Co. (hereinafter called Randall), as subcontractor, agreed with P&M to install certain heating ducts under the aforesaid contracts. Performance of the work required under said contracts was substantially completed and accepted by the owner on November 30, 1974; installation of the heating ducts in the clubhouse was completed by Randall and approved the Associated sometime in August 1974. It is undisputed that the duct that fell upon the plaintiff was installed by Randall. The duct that fell was approximately 20 feet long and weighed approximately 500 pounds. It was suspended from the ceiling of said clubhouse by the attachment of semi-rigid strips of metal, called hangers, to the sides of the duct, which hangers were then attached to the ceiling. This ceiling was of seven-eighths inch sheeting and was nailed to the joists of the building, leaving a considerable air space between such sheeting and the roof of the clubhouse. The duct was not in any way affixed directly to the roof itself or to the joists of the clubhouse. Considerable expert testimony was offered as to the quality of the ductwork performed by Randall. The specifications for the heating, ventilating, and air conditioning system prepared by Associated, and with which Randall agreed to comply, provided that "all sheet metal work shall be erected in a first class manner and workmanlike manner" and that "ducts shall be securely supported from the building constructed in an approved manner." The credible evidence satisfies me that the securing of a duct of the weight involved here to said ceiling by the means employed was not good practice nor in accordance with generally accepted practice, and that it was not installed in a first class or workmanlike manner. By the terms of its contract with the Racing Association, P&M was obligated to keep a "competent superintendent" on the job throughout the performance of the work called for by its contract so as to give "efficient supervision" thereto. It is clear that it did supervise the day-to-day performance of the work under its contract. Furthermore, it selected Randall to perform the sheet metal work required under its contract, made no objection to the manner in which said work was being performed, and approved it as having been completed in accordance with the contract. Pursuant to its agreement to "supervise the contractor's work throughout the job," Associated prepared and submitted periodic "inspection reports" to the Racing Association while the work was in progress. On November 30, 1974, Associated approved the invoices of P&M for the balance then payable under its contract less the sum of $400 for minor items to be completed thereafter, and certified that the "performance and execution of the contractor's work has been satisfactory." Its employee, the engineer who prepared these reports, testified that his employer assigned to him the task of supervising the installation of said systems, and that in pursuance of his duties he visited the job site on one, two, or three occasions each week to inspect the work of the contractor as it was being done. He also testified, however, that he never observed any of the ducts being hung from the ceiling in said clubhouse, stating that whenever he visited the clubhouse the ducts were either on the floor or already installed. He also admitted that he never climbed a ladder to determine how the hangers were suspended and whether the hangers were attached by nails or by lag screws and he never tested any of the hangers to see how securely they were attached. BASED ON THE ABOVE CASE STUDY, DISCUSS THE FOLLOWING: Based on the textbook, homework, and the discussions in class, who do you think would be held to be negligent in this case and why? Make sure that you discuss this thoroughly and include your reasoning.

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QUESTION 73

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An accident on a construction project was described as follows: A general contractor's worker was drilling holes on the third floor of the project. The vibration of the saw caused a board to work its way to the edge of the building and fall off. The board struck a mason who was working on the next floor down. The injured worker fell against a stack of loose bricks. The bricks then fell from the scaffolding, breaking a plate glass window on the first floor and striking a car that was parked on the public street below. Discuss the different types of insurance that might be involved in this incident and that they would pertain to in this series of events.

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