Construction Project Management and Controls 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 Construction Project Management and Controls flashcards as text
The Estimate at Completion (EAC) formula that assumes future work will proceed at the current cost performance rate is:
Answer: EAC = BAC / CPI
EAC = BAC / CPI assumes the cost performance index to date will continue for the remaining work, yielding a realistic forecast.
During a construction audit, an auditor verifies that project financial reports reconcile to the general ledger. This procedure addresses which assertion?
Answer: Accuracy and existence
Reconciling project reports to the general ledger confirms that reported figures are accurate and represent actual recorded transactions.
Which document should a construction auditor request to verify that subcontractors were competitively selected?
Answer: Bid tabulation sheets
Bid tabulation sheets record all bids received and the basis for selection, providing evidence of competitive procurement.
In earned value analysis, a To-Complete Performance Index (TCPI) greater than 1.0 indicates:
Answer: Future work must be performed more efficiently than past work
A TCPI above 1.0 means remaining work must be completed more cost-efficiently than the project has achieved so far to meet the budget.
Which condition would most concern a construction auditor reviewing project closeout controls?
Answer: Retention is released before final lien waivers are collected
Releasing retention before receiving final lien waivers exposes the owner to unpaid subcontractor claims and liens.
A construction project auditor uses the 50/50 rule for measuring earned value. This means:
Answer: 50% credit when work starts, 50% credit at completion
The 50/50 rule awards 50% earned value when a work package starts and the remaining 50% when it is completed, balancing simplicity and accuracy.