Question: In a lump sum or fixed-price contract, who bears the risk of
cost overruns?
a) Owner
b) Contractor
c) Architect
d) Subcontractor
Answer: b) Contractor
Question: Which type of construction contract involves the owner
reimbursing the contractor for all allowable expenses, plus a fee?
a) Fixed-price contract
b) Cost-plus-fee contract
c) Unit price contract
d) Time and materials contract
Answer: b) Cost-plus-fee contract
Question: In a unit price contract, how is the payment determined?
a) Based on a fixed lump sum
b) Based on the actual costs incurred by the contractor
c) Based on the quantity of work performed at a predetermined unit price
d) Based on a percentage of the project's total cost
Answer: c) Based on the quantity of work performed at a predetermined
unit price
Question: Which construction contract type involves a base bid and
separate pricing for additional work?
a) Design-Bid-Build (DBB)
b) Design-Build (DB)
c) Construction Management at Risk (CMAR)
d) Additive Alternate
Answer: d) Additive Alternate
Question: In a Design-Build (DB) contract, who is responsible for both
the design and construction of the project?
a) Owner
b) Contractor
c) Architect
d) Construction Manager
Answer: b) Contractor
Question: Which construction contract type involves the contractor
providing a guaranteed maximum price (GMP) for the project and assuming
responsibility for cost overruns?
a) Cost-plus-fee contract
b) Fixed-price contract
c) Design-Build (DB) contract
d) Construction Management at Risk (CMAR)
Answer: d) Construction Management at Risk (CMAR)
Question: What is the primary advantage of a Time and Materials (T&M)
contract?
a) Fixed total project cost
b) Predictable project timeline
c) Shared risk between owner and contractor
d) Minimized paperwork and documentation
Answer: c) Shared risk between owner and contractor
Question: In a Design-Build (DB) contract, how is the collaboration
between the design and construction teams typically structured?
a) Sequentially, with separate contracts for design and construction
b) Concurrently, with a single contract for both design and construction
c) With the design team working independently from the construction team
d) With the construction team hired after the completion of the design phase
Answer: b) Concurrently, with a single contract for both design and
construction
Question: Which contract type is commonly used when the scope of work is
uncertain, and the project's design is still evolving?
a) Fixed-price contract
b) Cost-plus-fee contract
c) Unit price contract
d) Design-Bid-Build (DBB) contract
Answer: b) Cost-plus-fee contract
Question: What is a key feature of a Design-Bid-Build (DBB) contract?
a) Single-source responsibility for design and construction
b) Early collaboration between the owner, designer, and contractor
c) Competitive bidding among contractors for a completed design
d) Flexibility to accommodate changes during construction
Answer: c) Competitive bidding among contractors for a completed design
Question: What is a characteristic of a Guaranteed Maximum Price (GMP)
contract?
a) Fixed project cost with no adjustments
b) The contractor assumes all financial risks
c) The owner is responsible for cost overruns
d) Cost transparency with a cap on project cost
Answer: d) Cost transparency with a cap on project cost
Question: Which type of contract is commonly used for projects with a
repetitive nature, such as road construction?
a) Fixed-price contract
b) Cost-plus-fee contract
c) Unit price contract
d) Design-Build (DB) contract
Answer: c) Unit price contract
Question: In a Design-Bid-Build (DBB) contract, when does the bidding
process typically occur?
a) During the design phase
b) After the construction phase
c) Before the design phase
d) Concurrently with the design phase
Answer: a) During the design phase
Question: Which contract type is known for encouraging collaboration
between the owner, designer, and contractor from the early stages of a project?
a) Design-Bid-Build (DBB) contract
b) Cost-plus-fee contract
c) Design-Build (DB) contract
d) Fixed-price contract
Answer: c) Design-Build (DB) contract
Question: In a Cost-Plus-Incentive-Fee (CPIF) contract, what does the
contractor receive in addition to allowable costs?
a) A fixed lump sum
b) A percentage of the project cost
c) A bonus based on performance incentives
d) An hourly wage
Answer: c) A bonus based on performance incentives
