Been doing some mock exams. See the following 2 questions.
Q1 (from Gang Chen PcM Mock Exam Question 28, the correct answers are b and e.)
Which of the following are true regarding a project alliance? Choose the two that apply.
a. Parties waive liabilities against each other.
b. This practice is often used in IPD.
c. A project alliance is a single-purpose legal entity, similar to a corporation.
d. a project alliance is a form of design-build.
e. Project teams make a consensus-based agreement.
The solution explains why a is wrong because liabilities against each are limited, but not waived.
Q2 (From PPI Practice Questions, Page 3-1, Question 5, the correct answer is a, c, d.)
Which statements are true of a project alliance? (Choose the three that apply)
a. Non-owner parties receive payment of overhead costs, profit, and bonuses only upon successful completion of the work.
b. The agreement among the parties establishes a new legal entity.
c. all decisions are made by consensus.
d. no mechanisms for dispute resolution are included in the agreement.
e. liability of one party to another is limited but not waived.
f. a project alliance closely resembles the traditional design-build agreement.
So my question should be pretty obvious... In project alliance, is liability to each other waived or not?
(p.s. while I enjoy PPI mock exam and Gang Chen Mock exam, I found out their questions are pretty much the same. Some questions are exactly the same, including one of the case studies. So just don't waste money on both, get either one of them is fine).
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