South Carolina Contractor License Exam — All Questions

Additional work beyond the original South Carolina contract scope should be documented by:

• a.A verbal understanding reached on the jobsite
• b.A signed written change order describing the added scope, price, and time✓
• c.A recorded lien affidavit
• d.The certificate of occupancy at closeout

Changes to the scope should be authorized by a written change order, signed by both parties, that states the added work, its price, and any schedule effect. Relying on verbal approvals is a leading cause of unpaid extras and disputes.Construction contract administration (change orders)

In a standard AIA contract set, which document contains the general conditions - the rules for notices, claims, changes, and payment?

• a.G702 - Application and Certificate for Payment
• b.A701 - Instructions to Bidders
• c.B101 - Owner-Architect Agreement
• d.A201 - General Conditions of the Contract for Construction✓

A201 (current edition A201-2017) is the general conditions - the rulebook governing notices, claims, changes, payments, and disputes, and it is referenced by the owner-contractor agreement. G702 is a pay application, A701 governs bidding, and B101 is the owner-architect contract.AIA A201-2017 General Conditions

A contract clause setting a fixed dollar amount per day of delay, agreed in advance as a reasonable estimate of the owner's loss, is called:

• a.Liquidated damages✓
• b.A mechanic's lien
• c.Retainage
• d.A change order

Liquidated damages are a pre-agreed, fixed sum (often per day of delay) that represents a reasonable estimate of hard-to-measure losses. To be enforceable the amount must be a genuine estimate, not a penalty; retainage and change orders address different issues.Contract law (liquidated damages)

Which of the following is required for a construction contract to be legally enforceable?

• a.Notarization by a sitting judge
• b.Prior approval by the Contractor's Licensing Board
• c.Offer, acceptance, and consideration between competent parties for a lawful purpose✓
• d.A minimum contract price of $10,000

An enforceable contract needs an offer, acceptance, and consideration (something of value exchanged), between parties competent to contract, for a lawful purpose. Notarization and board pre-approval are not general requirements for a valid construction contract.Contract law (essential elements of a contract)