Cost and Time Management Flashcards

What does a Schedule Performance Index (SPI) of 1.15 indicate about a construction project?

Answer: The project is completing 15% more work than planned per time period

SPI = EV / PV; an SPI greater than 1.0 means the project is ahead of schedule, earning more value than planned.

A construction manager applies resource leveling to the project schedule. What is the most likely outcome?

Answer: Extended project duration or shifted activity dates

Resource leveling resolves resource over-allocations by adjusting activity start dates, which often extends the project duration.

Which document establishes the approved cost baseline for a construction project?

Answer: Cost performance baseline

The cost performance baseline is the approved, time-phased budget used to measure, monitor, and control project cost performance.

What is the primary purpose of an S-curve in construction project management?

Answer: To compare planned versus actual cumulative cost or progress over time

An S-curve plots cumulative planned value and actual cost over time, providing a visual comparison of budget versus expenditure.

A construction activity has an optimistic duration of 4 days, most likely of 7 days, and pessimistic of 16 days. What is the PERT expected duration?

Answer: 8.0 days

PERT expected duration = (O + 4M + P) / 6 = (4 + 28 + 16) / 6 = 48 / 6 = 8.0 days.

Which construction cost component typically includes site supervision, temporary utilities, and project insurance?

Answer: General conditions costs

General conditions costs cover project-wide support items such as supervision, temporary facilities, utilities, and insurance that support all work.

What is the To-Complete Performance Index (TCPI) used for in construction EVM?

Answer: To calculate the required future cost efficiency to meet the budget goal

TCPI = (BAC - EV) / (BAC - AC) and shows the cost performance efficiency required to complete remaining work within the original budget.