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CONSTRUCTION LAW EXAM 1 (Latest Update 2026 / 2027) Questions & Answers {Grade A} 100% Correct
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Money award - correct answer judgments that state the defendant owes an amount of money. Specific performance - correct answer judgments that order the defendant to do something Injunction - correct answer judgments that specifically order the defendant to stop doing something. Declaratory judgment - correct answer judgments that declare the parties' contract rights.
The book's best method of proving delay damages - correct answer Lost use The primary options a court judgment seeks to do when it grants compensatory damages to an injured party - correct answer • Put the injured party in position, had there been no breach.
**- Restore the injured party to position before performance.
Environmental laws - correct answer a) RCRA (Resource Conservation & Recovery Act) b) CERCLA (Comprehensive Environmental Response, Compensation, & Liability Act) c) CWA (Clean Water Act) d) CAA (Clean Air Act) e) NEPA (National Environmental Policy Act) f) NESHAP (National Emission Standards for Hazardous Air Pollutants) RESTRICTIVE COVENANTS - correct answer promise from each buyer relating to land use
CERCLA REQUIREMENTS - correct answer government to clean up waste and pollution ZONING ORDINANCES - correct answer division of land into districts and development within BUILDING CODES - correct answer promote safety on design and construction of project AIA-A201-2007 which party purchases the building permit according to this document.
Multi-Prime - correct answer owner directly contracts with trade contractors, rather than prime contractor who then hire the subcontractors. Integrated Project Delivery (IPD) - correct answer teamwork between the owner, design team and major constructors, which a party is financially rewarded or penalized, based on meeting predetermined goals, and there is a release of liability among the parties. What can a CMc expect when he agrees to a GMP contract? - correct answer • A cost contract with a "cap".
- Se en as 'hard-bid' by court. Architect's "hybrid" relationship with the Owner. - correct answer Design-Bid-Build
Performance Bond - correct answer backstops the prime contractor's obligation to build the project in conformity with the contract requirements. Payment Bond - correct answer backstops the prime contractor's obligation to pay the subcontractors. Who should carry E&O (errors and omissions) insurance? - correct answer • Lawyers
**- Architects
Objective theory - correct answer a party is bound by what it manifests to the other party. Promissory Estoppel - correct answer makes a promise binding on the promisor Exculpatory clauses - correct answer shields protected party from liability of own negligence Doctrine of Consideration - correct answer giving up something to gain something of benefit Contract sum - correct answer total money agreed to be paid to contractor Liquidated damages - correct answer amount to cover damages incurred by the owner, from contractors failure to complete the work on time
Lost Profits - correct answer money lost because project was not completed on time. Overhead - correct answer expense towards general upkeep of business The methods to prove home office overhead damages in a delay-by-owner claim - correct answer Idleness, underemployment, more expensive modes of operation, shutdown and restarting costs, etc. The types of judicial remedies for contract breach - correct answer • Money award
**- Specific performance
Which legal process is used to uncover information in the hands of the other party - correct answer Discovery Sole proprietorships - correct answer a one-person business Partnerships - correct answer two or more persons to carry on a business for profit as co-owners Corporations - correct answer a business which is a legal entity separate from its shareholders S-Corporations - correct answer has shareholders LLC (Limited Liability Company) - correct answer a hybrid containing tax benefits of a partnership with the limited liability protections of a corporation
Typical agreements between labor and management on construction projects - correct answer Union vs. Nonunion, strikes, lockouts, Project Labor Agreement Workers' Compensation - correct answer employees are guaranteed compensation without regard to fault, and cannot sue their employer in tort Every contract must satisfy __ conditions to be enforceable - correct answer • An agreement between parties.
**- Consideration.
