CCA Construction Billing and Payment Verification 2

Question 1

A construction auditor reviewing a contractor's Application for Payment should compare the SOV line items to the:

Accepted Answer

Contract documents and approved change orders

Answer

Each SOV line item must be traceable to the original contract scope or an approved change order to confirm the billed amount is contractually authorized.

Question 2

When auditing a cost-plus contract, which cost is generally NOT allowable as a direct project cost?

Accepted Answer

Contractor's home office general and administrative overhead beyond the agreed rate

Answer

Under cost-plus contracts, home office G&A overhead is typically reimbursed at a fixed or negotiated rate and cannot be billed again as a direct cost.

Question 3

Which lien document does a construction auditor typically require before recommending release of final payment?

Accepted Answer

Unconditional final lien waivers from the contractor and all subcontractors

Answer

Unconditional final lien waivers confirm that the contractor and all subcontractors have been paid in full and waive any future lien rights, protecting the owner.

Question 4

Front-loading a Schedule of Values refers to:

Accepted Answer

Assigning values to early work items in excess of their actual cost to improve early cash flow

Answer

Front-loading inflates the value of early work items so the contractor collects more cash early in the project than costs actually incurred warrant.

Question 5

A construction auditor examining pay application backup should verify that stored material invoices include:

Accepted Answer

Evidence of ownership, insurance coverage, and physical location of the materials

Answer

Proper stored material documentation must confirm the owner has title to the materials, they are insured, and their storage location is identified.

(CCA) Certified Construction Auditor Practice Test

(CCA) Certified Construction Auditor Practice Test

CCA Construction Billing and Payment Verification 2