AWWA Project Planning and Management 2 — Questions and Answers
Question 1: Which scheduling technique uses probability distributions to account for uncertainty in task durations?
- Critical Path Method (CPM)
- Program Evaluation and Review Technique (PERT) (Correct answer)
- Gantt Chart
- Work Breakdown Structure (WBS)
Correct answer: Program Evaluation and Review Technique (PERT)
PERT uses three-point estimates (optimistic, most likely, pessimistic) to model uncertainty in task durations.
Question 2: In water utility project management, what does a 'lessons learned' document primarily serve to accomplish?
- Assign blame for project delays
- Improve processes on future projects by capturing knowledge (Correct answer)
- Satisfy regulatory audit requirements only
- Document contractor performance for litigation
Correct answer: Improve processes on future projects by capturing knowledge
Lessons learned documents capture successes and failures to improve planning and execution of future projects.
Question 3: A water treatment plant expansion is 60% complete but has spent 75% of its budget. What does this indicate?
- The project is on schedule and under budget
- The project is over budget relative to work completed (Correct answer)
- The project scope has been reduced
- The contractor is performing efficiently
Correct answer: The project is over budget relative to work completed
Spending 75% of budget for only 60% completion means the cost performance index (CPI) is less than 1, indicating a cost overrun.
Question 4: Which document formally authorizes a water utility project and identifies the project manager's authority?
- Project scope statement
- Project charter (Correct answer)
- Statement of work
- Procurement plan
Correct answer: Project charter
The project charter formally authorizes the project and grants the project manager authority to apply resources.
Question 5: When managing a pipeline replacement project, what is the primary purpose of a risk register?
- Track contractor invoices
- Document identified risks, their probability, impact, and response strategies (Correct answer)
- List all project stakeholders
- Record daily construction progress
Correct answer: Document identified risks, their probability, impact, and response strategies
A risk register is a living document that catalogs project risks along with their likelihood, potential impact, and planned responses.
Question 6: In earned value management (EVM), what does the Schedule Performance Index (SPI) greater than 1.0 indicate?
- The project is over budget
- The project is ahead of schedule (Correct answer)
- The project is behind schedule
- The project scope has increased
Correct answer: The project is ahead of schedule
An SPI greater than 1.0 means the project is earning more value than planned, indicating it is ahead of schedule.
Question 7: Which type of contract places the greatest financial risk on the contractor for a water infrastructure project?
- Cost-plus-fixed-fee
- Time and materials
- Firm fixed price (lump sum) (Correct answer)
- Cost-plus-incentive-fee
Correct answer: Firm fixed price (lump sum)
In a firm fixed price contract, the contractor bears all cost risk since the price does not change regardless of actual costs incurred.
AWWA Project Planning and Management 2
Which scheduling technique uses probability distributions to account for uncertainty in task durations?