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Author Question: Is an incentive clause beneficial to contractors and why or why not? What will be an ideal ... (Read 49 times)

naturalchemist

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on: Jul 26, 2018
Is an incentive clause beneficial to contractors and why or why not?
 
  What will be an ideal response?

Question 2

Which of the following statements is true if a sub-contractor works one of its crews forty-four hours in one week and does not pay the workers overtime?
 
  A. This is allowed if the sub-contractor does not have a contract with the owner.
   B. Only the sub-contractor can be held accountable.
   C. This situation is covered by union contracts but not by the Contract Documents.
   D. Both the contractor and sub-contractor may be held accountable according to the contractor documents and the labor laws.
   E. The Resident engineer may withhold the contractor's progress payment.


manuelcastillo

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Reply #1 on: Jul 26, 2018
Answer to Question 1

An incentive clause states the amount per day that an owner would pay a contractor for each day that the contractor is able to complete a project ahead of schedule and this type of a clause would be highly beneficial to contractors if they were able to complete a project ahead of schedule.

Answer to Question 2

D


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