CCM - Certified Construction Manager Contract Administration and Management Questions and Answers

Question 1

During the execution of a construction project, the owner requests a significant change to the flooring material in a large section of the building, which was not part of the original contract.
What is the most appropriate first step for the Construction Manager to take?

Accepted Answer

Document the owner's request and prepare a formal Change Order detailing the scope, cost, and schedule impacts for all parties to review and approve.

Answer

Issue a Construction Change Directive (CCD) to the contractor to proceed with the work immediately to avoid delays.

Answer

Verbally agree to the change with the contractor and owner to maintain a good working relationship and sort out the details later.

Answer

Reject the request as it deviates from the signed contract documents and could lead to disputes.

Question 2

A contractor on a project falls significantly behind schedule due to poor management of their subcontractors. The contract includes a liquidated damages clause. Which of the following best describes the purpose of liquidated damages in this scenario?

Accepted Answer

To provide a pre-agreed, reasonable estimate of the owner's financial losses resulting from the delay.

Answer

To punish the contractor for failing to meet the project deadline.

Answer

To cover the cost of hiring a new contractor to finish the project.

Answer

To create a bonus fund for the project team if the project is finished early.

Question 3

Which of the following dispute resolution methods involves a neutral third party who facilitates discussion but does not render a binding decision, allowing the disputing parties to retain control over the outcome?

Accepted Answer

Mediation

Answer

Litigation

Answer

Arbitration

Answer

Negotiation

Question 4

A Construction Manager is overseeing the project closeout phase. Which of the following documents is critical for formally transferring responsibility of the completed facility to the owner and is often required before the owner can legally occupy the space?

Accepted Answer

Certificate of Occupancy

Answer

Final Lien Waiver

Answer

Certificate of Substantial Completion

Answer

As-Built Drawings

Question 5

When reviewing a contractor's monthly payment application, the Construction Manager notices that the value of stored materials claimed seems disproportionately high. What is the CM's most appropriate action?

Accepted Answer

Verify the existence, location, security, and insurance of the stored materials before approving that portion of the payment.

Answer

Reject the entire payment application until the contractor provides a new one.

Answer

Approve the payment application to avoid delaying payment and straining the relationship.

Answer

Pay for the work completed but withhold all payment for stored materials indefinitely.

Question 6

According to the CMAA (Construction Management Association of America), effective contract administration involves several key functions throughout the project lifecycle. Which of the following is a primary objective during the construction phase?

Accepted Answer

Monitoring compliance with the contract and resolving claims.

Answer

Developing the initial project budget and master schedule.

Answer

Prequalifying and selecting the project design team.

Answer

Finalizing the contract agreement and issuing the notice to proceed.