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The owner wants to direct-purchase major equipment to save tax, but the contractor is still responsible for coordination and installation. What must be clarified before release?

Correct Answer

C) Responsibility for ordering, delivery risk, warranties, storage, installation, and schedule impacts

Owner direct-purchase arrangements should clarify procurement, risk, warranty, storage, installation, and schedule responsibilities. Other choices ignore the issues that cause scope and payment disputes.

Answer Options
A
Clarify only the owner's preferred supplier name on the release form
B
Clarify only the supplier's ship date, not risk or warranty terms
C
Responsibility for ordering, delivery risk, warranties, storage, installation, and schedule impacts
D
Clarify only the purchase-order number, not delivery or storage responsibility

Why This Is the Correct Answer

Owner direct-purchase arrangements should clarify procurement, risk, warranty, storage, installation, and schedule responsibilities. Other choices ignore the issues that cause scope and payment disputes.

Why the Other Options Are Wrong

Option A: Clarify only the owner's preferred supplier name on the release form

The trap in A is Only the owner's preferred color. That selection is wrong because it leaves the work at an informal or incomplete stage, while Owner direct purchase requires Responsibility for ordering, delivery risk, warranties, storage, installation, and schedule impacts; Owner-purchased items require clear responsibility for procurement, delivery.

Option B: Clarify only the supplier's ship date, not risk or warranty terms

Choice B gives Only the supplier's holiday schedule. Its specific error: the option delays or omits the controlling step.

Option D: Clarify only the purchase-order number, not delivery or storage responsibility

In procurement and contracting, The final punch-list font size is the wrong selection for Owner direct purchase: the choice would not get the project to Responsibility for ordering, delivery risk, warranties, storage, installation, and schedule impacts, which is the Owner direct purchase result verified by the source.

Memory Technique

Remember owner direct purchase by its jobsite consequence: the correct move points to Responsibility for ordering, delivery risk, warranties, storage, installation, and schedule impacts.

Reference Hint

Open NASCLA Contractors Guide to Business, Law and Project Management - Basic, 14th Ed.; use by topic index - procurement and contracting fallback to confirm that Owner direct-purchase arrangements should clarify procurement, risk, warranty, storage, installation, and schedule responsibilities.

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