A subcontractor's work is 30 days behind schedule due to their own delays. The general contractor faces liquidated damages of $2,500 per day from the owner. What is the subcontractor's likely liability under a typical flow-down clause?
Correct Answer
A) $75,000 in liquidated damages caused by their delay
Flow-down clauses typically make subcontractors liable for liquidated damages caused by their delays: 30 days × $2,500 = $75,000.
Why This Is the Correct Answer
Flow-down clauses typically make subcontractors liable for liquidated damages caused by their delays: 30 days × $2,500 = $75,000.
More NASCLA Questions
How long should daily reports and project correspondence typically be retained after project completion?
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
On an electrical plan, a rectangle with three parallel lines inside typically represents:
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A foundation plan shows a footing detail with dimensions 3'-0" x 3'-0" x 1'-6" supporting a 12" x 12" column. What is the bearing pressure if the total load is 45,000 pounds?
Next Question
Which document is typically required to be submitted with a formal bid to demonstrate the contractor's qualifications?