HW#9  

1.   Laws  by  legislatures,  regulations  by  unelected  government  staff,  codes  by  national  code-­‐related  organizations,  and  standards  by  trade  organizations  all  establish  the  regulatory  framework  for  construction  projects.    

True;  the  construction  manager  must  understand  the  impact  of  this  regulatory  environment  to  effectively  manage.  

 2.   Corporations  are  established  and  regulated  by  the  federal  government  and  permit  continuity  of  

ownership  and  a  reduction  in  the  liability  of  the  company  owners.      True;  corporate  law  establishes  company  structures  and  regulations.    

3.   Most  construction  firms  are  either  “C”  or  “S”  corporations.  The  profits  of  a  “C”  corporation  are  taxed  at  the  corporate  level  and  again  at  the  personal  level  when  dividends  are  distributed.  “S”  corporations  are  taxed  only  at  the  personal  level.      True;  the  purpose,  type,  and  size  of  company  influence  the  optimal  structure.    

4.   A  joint  venture  is  a  temporary  combination  of  companies  for  a  project  that  pools  technical  knowledge,  knowledge  of  local  customs,  people,  and  businesses,  bonding  capacity,  and  capital  to  gain  a  competitive  advantage.      True;  this  eliminates  the  largest  competitor.    

5.   Construction  converts  personal  property  that  is  movable  to  real  property  that  is  permanently  attached  to  the  land.  Sworn  statements  for  payment  document  this  conversion.  

True;  a  contractor  uses  these  statements  as  an  equitable  remedy.  

6.   In  the  United  States,  unions  started  developing  in  the  late  1800s  to  more  effectively  bargain  with  management  about  compensation  and  working  conditions.      True;  guaranteed  continuous  employment,  regardless  of  available  work,  is  sometimes  also  sought.    

7.   The  Sherman  Antitrust,  Clayton,  Norris-­‐La  Guardia,  Wagner,  and  Smith-­‐Connelly  acts  all  increased  the  management's  bargaining  power  with  the  unions.      False;  the  Norris-­‐La  Guardia  Act  (1932)  enabled  the  beginning  of  open,  effective,  and  widespread  union  organization.        

8.   The  Fair  Labor  Standards  Act  of  1938,  OSHA,  and  ERISA  sought  to  improve  employees'  working  hour  regulation,  safety,  and  pensions.    True;  these  were  all  a  part  of  labor  regulation  development.    

9.   The  closed  shop  that  requires  all  workers  to  be  union  members  at  the  time  of  hire  is  illegal,  but  the  union  shop,  which  does  not  require  workers  to  be  union  at  time  of  hire  but  does  require  them  to  join  the  union  promptly,  is  legal.      False;  the  union  shop  is  also  illegal.    

10.  A  merit  shop  promotes  differential  wage  rates  and  promotion  opportunities  based  on  the  employees’  merit,  and  right  to  work  states  ban  requirements  for  union  membership  and  union  shop  agreements.      True;  these  are  present  labor  practices.    

11.  Construction  unions  are  legally  authorized  to  establish  apprenticeship  program  with  a  lower  wage  rates  for  apprentices.  Both  union  and  non-­‐union  contractors  may  legally  pay  these  lower  wage  rates  on  prevailing  wage  (Davis-­‐Bacon)  projects.      False;  these  rates  are  permitted  for  union  contractors  only.    

12.   If  some  but  not  all  contractors  on  a  project  are  engaged  in  a  labor  dispute,  one  gate  (that  may  be  picketed)  may  be  established  for  the  contractors  in  the  dispute,  and  a  second  gate  (that  may  not  be  picketed)  is  established  for  the  parties  not  in  dispute.      True;  only  by  knowing  the  history  of  labor  law  can  this  pointless  and  ineffective  measure  be  understood.    

13.  Zoning  ordinances  that  restrict  the  types  of  business  uses  and  control  noise,  fumes,  and  traffic  are  fully  integrated  with  building  codes.      False;  these  two  are  separate  regulations.    

14.   International  Building  Codes  cover  buildings,  mechanical,  plumbing,  and  fire  protection,  and  are  developed  in  a  highly  structured  proposal  review  and  revision  process  involving  code  officials,  design  professionals,  installing  contractors,  and  manufacturing  vendors.      False;  installing  contractors  and  manufacturing  vendors  are  specifically  prohibited  from  serving  or  contributing  to  this  review  process.    

15.  The  building  code  analysis  is  sequential-­‐-­‐first  determining  occupancy  types  and  then  determining  permitted  building  size,  height,  fire  resistance,  structural  capacity,  and  mechanical  electrical  system  characteristics.    True;  project  code  analysis  is  sequential  and  no  step  can  be  skipped.    

16.  Additional  regulations  may  be  added  for  specific  project  type  by  Departments  of  Public  Health,  environmental  agencies,  and  fire  marshals.    True;  these  modifications  can  affect  original  design  and  construction  and  maintenance  of  the  facility.    

17.  Projects  seeking  accreditation  such  as  JCAHC  or  LEED  may  voluntarily  adopt  additional  standards.    True;  certification  is  sought  by  some  project  owners.