EN-M7 : General Contractor ( Exam 4 )

4.1 Among the following statements, which ones correspond to the general registration conditions to guarantee plans approved by the RBQ?

1. Respect the conditions and financial criteria established by the regulation.
2. Hold a 20 000$-bond against fraud, misconduct and embezzlement.
3. Submit complete verified financial reports or include a review engagement report written by an accountant. These reports should be signed and dated by a person in authority. Moreover, the reports have to be dated, going back less than four months, following the end of the fiscal year of the company.
4. Issue a comprehensive personal balance sheet, dated and signed by each director, shareholder, guarantor and associate

4.2 According to the Régie du Bâtiment du Québec, who manages the guarantee plan for new residential buildings?

1. APCHQ new homes Guarantee
2. Residential construction guarantee (GCR)
3. New homes guarantee from Maitres bâtisseurs
4. New buildings guarantee from the RBQ

4.3 According to the regulation for the guarantee plan for new residential buildings, link each situation related to buildings not held in divided co-ownership with the proper definition.

• A) End of the work
• B) Completion of works
• C) Acceptance of the building
  

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• 1. The act whereby the beneficiary declares that he accepts the building which is ready to be used for its intended purpose and which indicates any work to be completed or corrected.
• 2. The date on which all the contractor’s work agreed upon in writing with the beneficiary and related to the building is completed and the building is ready to be used for its intended purpose.
• 3. Completion of the work related to the building and provided for in the original contract entered into between the beneficiary and the contractor, and completion of the additional work agreed to in writing between the parties.

4.4  According to the regulation on the guarantee plan for new residential buildings not held in divided co-ownership, which of the following elements are covered by the guarantee?

1. The down payment paid by the beneficiary.
2. The obligation of a public service to supply electricity to the building.
3. Degradations resulting from a normal usage of the building.
4. Repairs made necessary by a normal behavior of the materials such as cracks.
5. The relocation, moving and storage of the beneficiary’s property if the building is not delivered at the contractual agreed date.

4.5   According to the regulation related to the guarantee for new residential buildings not held in divided co-ownership, which of the following statements is true regarding the limitations of the guarantee?

1. The down payments given for the purchase of a single dwelling unit are covered up to 75 000$.
2. A couple without kids will receive a reimbursement of a maximum of 1000$ if he/she must be relocated within 10 days.
3. For a triplex, the maximum amount allowed for the completion and repairs of defects will be 600 000$.
4. For the protection of the obligation to ensure water supply to a four-dwelling building, the maximum amount will be 300 000$.

4.6  According to the regulation related to the guarantee for new residential buildings held in divided co-ownership, which of the following statements is true regarding the limitations of the guarantee?

1. For the protection of the obligation to ensure water supply to a 20-unit building, the maximum amount will be 2 000 000$.
2. A family of four members will receive a reimbursement of 2500$ if a two-week relocation is required.
3. For a multiple 8-dwelling building, the maximum amount allowed for the completion and repairs of faulty works will be 3 000 000$.
4. A down payment of 40 000$ paid for the purchase of a condo will be covered by the guarantee.

4.7   According to the regulation related to the guarantee for new residential buildings, link each situation related to buildings held in divided co-ownership with the proper definition.

A) End of the work on the private portions

B) Acceptance of the private portion

C) Common portions

1. Those that are part of the building and that are listed in the constituting act of co-ownership or, in the absence of specific provisions in that act, those listed in article 1044 of the Civil Code.
2. Act whereby the beneficiary declares that he accepts the private portion which is ready to be used for its intended purpose and on which some work is to be completed or corrected, where applicable.
3. Date on which all the contractor’s work agreed upon in writing with the beneficiary and pertaining to his private portion is completed or, at the latest, the date of the end of the work on the common portions.

4.8   According to the regulation related to the guarantee for new residential buildings, regarding the implementation mechanisms for a building not held in divided co-ownership, which statements are valid?

1. The building must be inspected before its reception by the contractor and the beneficiary.
2. For the repairs of hidden defects or apparent defects, the beneficiary must give a written notice to the contractor to that effect and give a copy to the GCR.
3. The beneficiary has up to 1 year to forward a written notice to the contractor for a reimbursement of moving fees.

4.9  According to the regulation related to the guarantee for new residential buildings, what are the criteria to respect for a contractor to adhere to a guarantee plan?

1. Comply to the financial criteria enforced by the regulation.
2. Hold a 20 000$-bond against fraud, misconduct and misappropriation of funds.
3. Submit complete financial statements.
4. Issue a personal balance sheet for at least one of the directors or shareholders.
5. Hold a 70 000$-bond minimum if the company works in the construction field for 3 years and that it builds co-ownership units.

4.10  According to the regulation related to the guarantee plan for new residential buildings, which of the following statements are valid regarding the adherence to a guarantee plan for a contractor working for 5 years in the residential construction field?

1. A bond of at least 55 000$ is required to build a single-family home.
2. The bond can be a bank guarantee.
3. A maintained working capital of at least 1,15 is required.
4. A maintained 18% net benefit is required.
5. If complaints were made against the contractor, a detailed estimate of the construction costs is required.