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605-655 (Medium)|   Grammatical/Rhetorical Construction|   Parallelism|   Subject Verb Agreement|                                 
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I'll copy my response to the same question from the MPrep forums:

There aren't a lot of rules about what we can't omit, partly because that would imply that we always use a certain word, such as "that," to create modifiers. It's true that if we said "The first trenches were cut," then "were" would be the main verb. Since we want that part to be a modifier, we'd need to say "The first trenches THAT were cut."

However, it is quite common to use participles (past tense forms of verbs) to create modifiers. In this case, we don't need THAT to introduce them:

The plan proposed by the mayor was surprising.
Artifacts found at the site include arrow heads and carvings.

Notice that in both the cases above, the first "verb" we see is really just a modifier. "Proposed by the mayor" modifies "plan" and "found at the site" modifies "artifacts. Similarly, in the original sentence, "cut into a site" modifies "trenches." We COULD choose to introduce any of these modifiers with "that were/was," but we don't have to, and normally the GMAT won't.
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