Which of the following item concerning “contract type” is correct?
A fixed price contract contains the most risk for the buyer.
B. Cost reimbursable contracts potentially offer sellers the highest profit.
C. Lump sum contracts potentially offer sellers the highest profit.
D. Unit price contracts are illegal in many jurisdictions.
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To transfer most of the cost risks to the contractor, the client may use a ___________ contract.
A. cost plus award fee
B. cost plus incentive fee
C. cost plus fixed fee
D. fixed price
Which of the following description is correct?
A. Flow down language makes applicable provisions of the prime contract also applicable to the purchase order.
B. “Free on board (FOB) construction jobsite” means the buyer would have bear risk of loss during transit.
C. In general, parties in item JV mutually share risks.
D. Chinese Law regulates that GC may subcontract part of its work without consent of the owner.
Which of the following item is NOT a basic service provided by an architect-engineer firm?
Analyzing and ascertaining the needs of the owner.
B. Developing a design that will meet the needs of the owner within the owner’s budget.
C. Performing on-site installation of equipment.
D. Assisting the owner in the selection of a contractor.
Which of the following description is INCORRECT about a project manual?
A. The architect-engineer commonly assembles the bid documents and the contract documents into a book or binding, which is referred to as the project manual.
B. A project manual, along with the drawings for the project, is what the architect-engineer will receive when he/she contacts the contractor and requests a copy of the bid / contract documents for the project.
C. This document is sometimes referred to as the specifications.
D. The specifications are a component of the contract documents that are bound into the project manual.
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