Do you know Contractors, Contracts and Construction?

84 Replies

Can anyone refer me to a Chicago based GC that specializes in fix and hold properties? Margins will be thin but investor looking to do 3-5/month over the next 12-18 months. 

Fun quiz. Got 8/10. Project Manager for a Heavy Civil contractor. Large company with lawyers on staff so I missed a couple of he legal questions.

The lien question is a little confusing.  "A construction lien does all of the following, except."  Anyone know why this would have anything to do with increasing the contractors labor cost?  

90% but I am a CPA who specializes in construction and real estate so I deal with issues and terms like the ones in the quiz pretty regularly. I also just passed the real estate exam and recently sat for the CCIFP exam (Certified Construction Industry Professional. Not to mention I also worked in construction growing up as my dad worked construction and had a masonry business he did on the side.

The only question I missed was the same as the one Ryan Kinsella mentioned above. I would think a lien would increase costs to the owner, not increase the contractors labor cost but I could see the argument that since there are liens the contractors build that in with increased labor costs.

CM for Multifamily developer. I got 8/10 but it should have been 9/10.

Question 8 should be rewritten. Liquated damages are intended to compensate the owner in the event that the contractor delays completion. The LD “rate” needs to be an accurate and thoughtful consideration of the damages incurred to the owner by the contractor’s delay. Such as construction loan interest and rental income opportunity costs. Most courts have ruled that LDs written with the intent to ‘penalize’ the contractor are not enforceable. Avoid using the P-word when discussing LDs.

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