A construction contract was executed that establishes the contract sum based on the actual construction cost with the contractor's markup for overhead and profit. The total construction cost has a ceiling limit of $10,000,000. Also, for every day beyond the contract completion date that the contractor has not finished the project, the contractor must pay $3,200 for owner's loss of income. On the other hand, for every day the contractor completes the project before the contract completion date, the owner will pay the contractor $2,000.
A construction contract was executed that establishes the contract sum based on the actual construction cost with the contractor's markup for overhead and profit. The total construction cost has a ceiling limit of $10,000,000. Also, for every day beyond the contract completion date that the contractor has not finished the project, the contractor must pay $3,200 for owner's loss of income. On the other hand, for every day the contractor completes the project before the contract completion date, the owner will pay the contractor $2,000.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
Related questions
Question
Please give correct answer. The answers presented are incorrect.
Subject is construction engineering
Transcribed Image Text:A construction contract was executed that establishes the contract sum based on the actual construction cost with the contractor's markup for overhead and profit. The total construction cost has a ceiling limit of $10,000,000.
Also, for every day beyond the contract completion date that the contractor has not finished the project, the contractor must pay $3,200 for owner's loss of income. On the other hand, for every day the contractor completes the project before the contract completion date, the owner will pay the contractor $2,000.
### Answer the following questions based on the Case Study.
1. **Which of the following basis of payments is this project using?**
- A. Stipulated sum
- B. Cost-plus without a guaranteed maximum price
- C. Cost-plus with a guaranteed maximum price
- **D. Guaranteed maximum price**
2. **The $3,200 the contractor must pay is called which of the following?**
- **A. Penalty**
- B. Bonus
- C. Liquidated damage
- D. Shared savings
3. **The $2,000 the owner must pay is called which of the following?**
- A. Penalty
- **B. Bonus**
- C. Liquidated damage
- D. Shared savings
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Recommended textbooks for you
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
Structural Analysis (10th Edition)
Civil Engineering
ISBN:
9780134610672
Author:
Russell C. Hibbeler
Publisher:
PEARSON
Principles of Foundation Engineering (MindTap Cou…
Civil Engineering
ISBN:
9781337705028
Author:
Braja M. Das, Nagaratnam Sivakugan
Publisher:
Cengage Learning
Fundamentals of Structural Analysis
Civil Engineering
ISBN:
9780073398006
Author:
Kenneth M. Leet Emeritus, Chia-Ming Uang, Joel Lanning
Publisher:
McGraw-Hill Education
Traffic and Highway Engineering
Civil Engineering
ISBN:
9781305156241
Author:
Garber, Nicholas J.
Publisher:
Cengage Learning