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NASCLAContractsmedium27% of exam part

The owner wants to occupy the first floor while upper floors remain under construction. What contract issue should be addressed before occupancy?

Correct Answer

B) The effect on responsibility, insurance, security, warranties, and substantial completion for the occupied portion

Partial occupancy should address risk allocation, insurance, safety, security, warranty, and completion status for the occupied area. Other choices ignore the contract effects of shared use.

Answer Options
A
Address only the final bid tab for the occupied floor and leave partial occupancy unchecked
B
The effect on responsibility, insurance, security, warranties, and substantial completion for the occupied portion
C
Address only a tenant move-in memo without insurance or warranty terms
D
Hold a new bid opening for already completed work

Why This Is the Correct Answer

Partial occupancy should address risk allocation, insurance, safety, security, warranty, and completion status for the occupied area. Other choices ignore the contract effects of shared use.

Why the Other Options Are Wrong

Option A: Address only the final bid tab for the occupied floor and leave partial occupancy unchecked

Choice A (Only the final bid tab) is rejected because it tries to bypass the Partial occupancy checkpoint.

Option C: Address only a tenant move-in memo without insurance or warranty terms

The trap in C is Only the subcontractor's logo placement. That selection is wrong because the option delays or omits the controlling step.

Option D: Hold a new bid opening for already completed work

Choice D gives A new bid opening for completed work. Its specific error: the option answers a paperwork, payment, or bonding issue.

Memory Technique

Use the phrase "problem, control, result" for partial occupancy; the result side is The effect on responsibility, insurance, security, warranties, and substantial completion for the occupied portion.

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 Partial occupancy should address risk allocation, insurance, safety, security, warranty, and completion status for the occupied area.

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