CCA Change Orders and Claims Management Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCA Change Orders and Claims Management flashcards as text
Under FAR construction contracts, which cost element is generally unallowable in a change order claim?
Answer: Interest on borrowings
FAR 31.205-20 expressly disallows interest and financing costs, making them unallowable charges in federal construction change order claims regardless of actual cost incurrence.
A CCA auditor reviewing a contractor's extended general conditions claim should verify that claimed costs are:
Answer: Time-related costs that continued only during the owner-caused delay period and were not duplicated in the base contract
Only time-related general conditions costs such as superintendent salary, temporary facilities, and equipment rental that continued specifically during the delay period and are not already in the base contract are allowable.
What is the significance of a Notice of Claim provision in a construction contract from an audit perspective?
Answer: It is a contractual prerequisite that, if not met by the contractor, may bar recovery of an otherwise valid claim
Notice provisions are conditions precedent to recovery; failure to provide timely written notice as required by the contract can legally bar the contractor from recovering on an otherwise meritorious claim.
When auditing a change order for additional work performed on a time-and-materials basis, the most important control to verify is:
Answer: Daily T&M tickets signed by the owner's authorized field representative contemporaneously with the work
Contemporaneously owner-signed T&M tickets are the only real-time evidence that the owner's representative verified the labor hours, materials, and equipment used on T&M work each day.
An auditor reviewing a final settlement of a large construction claim should be alert to which practice that could indicate an improper payment?
Answer: Settlement amount significantly exceeds the auditor's independent estimate with no documented negotiation rationale
When a settlement amount far exceeds an independent estimate without documented justification, it suggests the owner's negotiators may have overpaid, accepted unsupported costs, or acted without adequate due diligence.
What is the auditor's role when a construction project reaches formal dispute resolution such as arbitration or litigation?
Answer: Provide objective, documented findings on cost and schedule facts that support the owner's position with evidence
In dispute resolution, the auditor's role is to compile and present objective, fact-based findings on cost allowability, schedule impacts, and contract compliance — not to advocate but to inform.