AFE Project Management & Capital Planning Flashcards

Which project delivery method gives the owner the most control over design decisions during a facilities construction project?

Answer: Design-Bid-Build

Design-Bid-Build separates design and construction phases, giving the owner maximum control over the design before awarding a construction contract.

What is the primary purpose of a facilities capital needs assessment (CNA)?

Answer: To document existing conditions and project future repair or replacement costs

A CNA identifies existing deficiencies and forecasts the funding needed over a planning horizon to maintain facilities in acceptable condition.

In facilities project management, what does the term 'scope creep' refer to?

Answer: Uncontrolled expansion of project requirements beyond the original scope

Scope creep is the gradual, uncontrolled expansion of a project's scope without corresponding adjustments to schedule or budget.

Which cost estimation method is typically used in the earliest stages of a facilities capital project when design details are not yet available?

Answer: Parametric estimate

Parametric estimating uses statistical relationships between historical data and project variables to produce early-stage cost estimates without detailed design.

What is the primary function of a project charter in facilities project management?

Answer: To formally authorize the project and define its objectives and stakeholders

A project charter formally authorizes a project, establishes its objectives, scope, and key stakeholders, giving the project manager authority to proceed.

When evaluating capital projects, Facilities Engineers often use a 'payback period' calculation. What does this metric measure?

Answer: The time required for project savings or revenues to recover the initial investment

The payback period measures how long it takes for cumulative savings or revenues from an investment to equal the initial capital outlay.