BCM Bachelor of Construction Management MCQ 4 — Questions and Answers
Question 1: What is the function of a retainage provision in a construction contract?
- To compensate subcontractors for early completion
- To withhold a percentage of payment as security for project completion (Correct answer)
- To pay for materials stored off-site
- To cover the cost of insurance premiums
Correct answer: To withhold a percentage of payment as security for project completion
Retainage (typically 5-10%) is withheld from each payment to ensure the contractor completes all work and corrects deficiencies before receiving full payment.
Question 2: Which construction scheduling technique identifies the longest sequence of dependent tasks that determines project duration?
- Gantt chart analysis
- Critical Path Method (CPM) (Correct answer)
- Monte Carlo simulation
- Resource leveling
Correct answer: Critical Path Method (CPM)
CPM calculates the longest path of dependent activities from project start to finish, identifying which tasks are critical and cannot be delayed without extending the project.
Question 3: What is the purpose of a shop drawing in the construction process?
- To provide as-built documentation after construction
- To detail how specific materials and systems will be fabricated and installed (Correct answer)
- To show the overall design intent of the architect
- To document changes to the original contract scope
Correct answer: To detail how specific materials and systems will be fabricated and installed
Shop drawings are prepared by subcontractors and suppliers to show exactly how they plan to fabricate and install specific elements, requiring architect/engineer review and approval.
Question 4: In construction project management, what does a 'change order' accomplish?
- It replaces the original contractor with a new one
- It formally modifies the contract scope, cost, and/or schedule (Correct answer)
- It transfers design responsibility from architect to contractor
- It authorizes the release of retainage funds
Correct answer: It formally modifies the contract scope, cost, and/or schedule
A change order is a written amendment to the construction contract that formally documents changes to scope, price, and time agreed upon by the owner, contractor, and often the architect.
Question 5: Which type of construction insurance protects against claims of bodily injury or property damage caused to third parties during construction?
- Builder's risk insurance
- Workers' compensation insurance
- Commercial general liability (CGL) insurance (Correct answer)
- Professional liability insurance
Correct answer: Commercial general liability (CGL) insurance
CGL insurance covers claims from third parties (not employees) for bodily injury or property damage arising from the contractor's operations.
Question 6: What is lean construction primarily focused on?
- Reducing the number of workers on a project
- Eliminating waste and maximizing value in the construction process (Correct answer)
- Using lightweight structural materials
- Minimizing the use of subcontractors
Correct answer: Eliminating waste and maximizing value in the construction process
Lean construction applies lean manufacturing principles to construction, aiming to eliminate waste (time, materials, effort) and deliver maximum value to the project owner.
Question 7: In construction, what is meant by 'punch list'?
- A daily log of worker attendance
- A list of deficient or incomplete items identified near project completion (Correct answer)
- A schedule of milestone payment dates
- A list of pre-approved subcontractors
Correct answer: A list of deficient or incomplete items identified near project completion
A punch list (or snag list) is a document prepared near substantial completion identifying items that need correction or completion before final payment is released.
BCM Bachelor of Construction Management MCQ 4
What is the function of a retainage provision in a construction contract?