CCM Contract Administration and Management Questions and Answers

Question 1

A general contractor on a public works project defaults and is terminated by the owner.
Which of the following contract security instruments is specifically designed to ensure that subcontractors and material suppliers who have not been paid by the defaulting contractor receive payment?

Accepted Answer

Payment Bond

Answer

Performance Bond

Answer

Bid Bond

Answer

Builder's Risk Insurance

Question 2

During contract closeout, which of the following milestones officially establishes the date that the owner can occupy or use the project for its intended purpose and typically marks the commencement of warranty periods?

Accepted Answer

Certificate of Substantial Completion

Answer

Final Payment

Answer

Issuance of the Final Punch List

Answer

Final Completion

Question 3

A CCM is reviewing a contractor's application for payment, which includes a request for payment for custom-fabricated materials stored in an off-site warehouse. The contract allows for such payments. To protect the owner's interests before approving this payment, the CCM must FIRST verify that:

Accepted Answer

the materials are insured, properly stored, and titled to the owner.

Answer

the materials have been delivered to the project site.

Answer

the contractor has submitted a lien waiver for the materials.

Answer

the lead time for the materials justifies early procurement.

Question 4

A contractor submits a shop drawing for a specified piece of equipment that deviates from the contract specifications. The design engineer reviews and rejects the submittal as non-conforming. What is the Construction Manager's most appropriate immediate action?

Accepted Answer

Direct the contractor to procure and install the equipment as specified in the contract documents.

Answer

Approve the submittal if it offers a cost saving to the owner.

Answer

Issue a Construction Change Directive to incorporate the proposed deviation.

Answer

Request the contractor submit a formal value engineering proposal for the owner's consideration.

Question 5

In construction contract administration, what is the primary characteristic that distinguishes mediation from arbitration as a method of dispute resolution?

Accepted Answer

A mediator facilitates a voluntary settlement between parties, while an arbitrator acts as a private judge and renders a decision.

Answer

Mediation results in a non-binding recommendation, while an arbitrator's decision is legally binding.

Answer

Mediation is required by most contracts before litigation, whereas arbitration is a voluntary alternative to litigation.

Answer

A mediator must be a licensed attorney, while an arbitrator is typically an industry expert.

Question 6

A CCM discovers a conflict where the drawings show a specific model of light fixture, but the technical specifications call for a fixture with a higher lumen output that the drawn model does not meet. The contract's order of precedence clause states that specifications govern over drawings. The CCM should:

Accepted Answer

direct the contractor to provide a fixture that meets the performance requirements of the specifications.

Answer

issue a Request for Information (RFI) to the architect for clarification.

Answer

instruct the contractor to price both options and submit a change order request.

Answer

allow the contractor to choose the less expensive option to create a cost-saving credit.

A general contractor on a public works project defaults and is terminated by the owner.Which of the following contract security instruments is specifically designed to ensure that subcontractors and material suppliers who have not been paid by the defaulting contractor receive payment?

A general contractor on a public works project defaults and is terminated by the owner.
Which of the following contract security instruments is specifically designed to ensure that subcontractors and material suppliers who have not been paid by the defaulting contractor receive payment?