CCC CCC Contract Management & Procurement 1

Question 1

In cost control, which contract type places the greatest financial risk on the contractor?

Accepted Answer

Firm Fixed-Price (FFP)

Answer

Cost-Plus-Fixed-Fee (CPFF)

Answer

Time and Materials (T&M)

Answer

Cost-Plus-Award-Fee (CPAF)

Question 2

What is the primary purpose of a contract baseline in cost control?

Accepted Answer

To define the initial agreed scope, schedule, and cost against which performance is measured

Answer

To establish contractor profit margins

Answer

To outline dispute resolution procedures

Answer

To list all approved change orders

Question 3

Which procurement method is most appropriate when the scope of work is well-defined and price competition is desired?

Accepted Answer

Competitive sealed bidding (Invitation for Bid)

Answer

Sole-source negotiation

Answer

Request for Proposal (RFP) with best-value selection

Answer

Cost-reimbursable ordering

Question 4

A cost controller reviewing a subcontract notices the subcontractor is billing for materials not yet delivered. This is an example of:

Accepted Answer

Front-loading or overbilling

Answer

Retainage recovery

Answer

Liquidated damages

Answer

Contract novation

Question 5

What is retainage in construction contracts?

Accepted Answer

A percentage of each progress payment withheld until project completion to ensure contract fulfillment

Answer

A daily penalty for schedule delays

Answer

A fee paid to the owner for late submittals

Answer

A bonus paid for early completion

Question 6

When evaluating a change order claim, a cost controller should first verify:

Accepted Answer

That the claimed work is outside the original contract scope

Answer

The subcontractor's profit margin

Answer

The owner's available contingency balance

Answer

The contractor's bonding capacity