There is more than one type of legal relationship that may exist between an owner and the CM.

There is more than one type of legal relationship that may exist between an owner and the CM.

True or False

Answer: True

A CM, acting as an agent of the owner, will bond a multi-prime job.

A CM, acting as an agent of the owner, will bond a multi-prime job.

True or False

Answer: False

In the selection of a CM as an agent, the owner should include price as a primary consideration.

In the selection of a CM as an agent, the owner should include price as a primary consideration.

True or False

Answer: False

CMAA defines construction management as a professional management practice applied to construction projects from project inception to completion for the purpose of controlling time, cost, scope, and quality.

CMAA defines construction management as a professional management practice applied to construction projects from project inception to completion for the purpose of controlling time, cost, scope, and quality.

True or False

Answer: True

A CM response/proposal to an owner's request for proposal can be considered an offer to enter into a contract.

A CM response/proposal to an owner's request for proposal can be considered an offer to enter into a contract. 

True or False

Answer: True

CM services, like A/E services, can be accurately defined to provide a basis for a bid.

CM services, like A/E services, can be accurately defined to provide a basis for a bid.

True or False

Answer: False

A/E services are required to be competitively bid under the "Brooks Act."

A/E services are required to be competitively bid under the "Brooks Act."

True or False

Answer: False

The owner's selection of a project delivery system should be made before a decision by the owner to select a CM and designer.

The owner's selection of a project delivery system should be made before a decision by the owner to select a CM and designer.

True or False

Answer: True

The CM is responsible to ensure that the contracts used on the project are legally enforceable.

The CM is responsible to ensure that the contracts used on the project are legally enforceable.

True or False

Answer: True

The CM does not have the responsibility to generate and track the project budget.

The CM does not have the responsibility to generate and track the project budget.

True or False

Answer: False

A project schedule must always be in a CPM format.

A project schedule must always be in a CPM format.

True or False

Answer: False

A key element leading to successful project management is decision making based on adequate information.

A key element leading to successful project management is decision making based on adequate information.

True or False

Answer: A

The contractor is solely responsible for safety on the job site.

The contractor is solely responsible for safety on the job site.

True or False

Answer: False

In cases where standard construction contract forms are proposed to be used, it is imperative that legal counsel be utilized to review and assess the contract as to form, the scope of services to be provided, risks assumed by the parties, terms and conditions included, compliance with applicable laws, and the compatibility with other related contracts.

In cases where standard construction contract forms are proposed to be used, it is imperative that legal counsel be utilized to review and assess the contract as to form, the scope of services to be provided, risks assumed by the parties, terms and conditions included, compliance with applicable laws, and the compatibility with other related contracts.

True or False

Answer: True

Under a unit price-type contract, the total cost to the owner will vary with the actual units put in place. In addition, the owner assumes the risk of cost and the amount of work required.

Under a unit price-type contract, the total cost to the owner will vary with the actual units put in place. In addition, the owner assumes the risk of cost and the amount of work required.

True or False

Answer: True

Under a GMP contract, the intent of an incentive clause is to challenge the contractor to construct the project for less than the established GMP.

Under a GMP contract, the intent of an incentive clause is to challenge the contractor to construct the project for less than the established GMP.

True or False

Answer: True

A guaranteed maximum price can never change.

A guaranteed maximum price can never change.

True or False

Answer: False

Once a GMP for construction costs is established, the contractor takes on the risk of completing the project. True or False

Once a GMP for construction costs is established, the contractor takes on the risk of completing the project.
True or False

Answer: True

On some GMP projects, the owner may reserve the right to approve all trade and purchase contracts. Normally the owner pays the difference between the estimated trade contract costs and the trade contract award value when the award value approved by the owner is greater than the estimated bid element included in the contractor's GMP.

On some GMP projects, the owner may reserve the right to approve all trade and purchase contracts. Normally the owner pays the difference between the estimated trade contract costs and the trade contract award value when the award value approved by the owner is greater than the estimated bid element included in the contractor's GMP.

True or False

Answer: True

Under a Guaranteed Maximum Price arrangement, the contractor is usually selected and a GMP is established with the understanding by the parties that the actual cost of the work could be greater than the GMP.

Under a Guaranteed Maximum Price arrangement, the contractor is usually selected and a GMP is established with the understanding by the parties that the actual cost of the work could be greater than the GMP.

True or False

Answer: False