CCA Construction Project Management and Controls 1 — Questions and Answers
Question 1: Which document serves as the primary baseline for measuring construction project performance against cost, schedule, and scope?
- Project charter
- Performance measurement baseline (PMB) (Correct answer)
- Work breakdown structure
- Project execution plan
Correct answer: Performance measurement baseline (PMB)
The performance measurement baseline integrates scope, schedule, and cost baselines and is used to measure and manage project performance.
Question 2: Earned Value Management (EVM) uses which formula to calculate the Cost Variance (CV) on a construction project?
- CV = PV – AC
- CV = EV – AC (Correct answer)
- CV = EV – PV
- CV = BAC – EAC
Correct answer: CV = EV – AC
Cost Variance equals Earned Value minus Actual Cost; a negative result indicates the project is over budget.
Question 3: A construction auditor reviewing project controls should verify that the Schedule Performance Index (SPI) is calculated as:
- SPI = AC / EV
- SPI = PV / AC
- SPI = EV / PV (Correct answer)
- SPI = BAC / EAC
Correct answer: SPI = EV / PV
SPI equals Earned Value divided by Planned Value; an SPI below 1.0 indicates the project is behind schedule.
Question 4: Which internal control best ensures that construction project budget changes are formally authorized before implementation?
- Daily cost reporting
- Segregation of duties
- Integrated change control process (Correct answer)
- Periodic site inspections
Correct answer: Integrated change control process
An integrated change control process requires formal review and approval of all budget modifications before they are executed.
Question 5: A cost-to-complete (CTC) estimate that is consistently lower than actual expenditures indicates which audit risk?
- Schedule compression
- Underreporting of project costs (Correct answer)
- Overbilling by subcontractors
- Inadequate contingency reserves
Correct answer: Underreporting of project costs
Persistently optimistic CTC estimates may signal that costs are being deliberately underreported to conceal budget overruns.
Question 6: Which project management tool provides a visual representation of a construction project's critical path and float for each activity?
- Gantt chart
- Resource histogram
- Network (CPM) diagram (Correct answer)
- Risk register
Correct answer: Network (CPM) diagram
A Critical Path Method (CPM) network diagram shows activity dependencies and calculates total float, identifying the longest path through the project.
CCA Construction Project Management and Controls 1
Which document serves as the primary baseline for measuring construction project performance against cost, schedule, and scope?