CCM Construction Cost and Time Management 3

Question 1

A project has a contract value of $10M, with $6M of work complete but only $5M earned. The actual cost to date is $5.5M. What is the project's current status?

Accepted Answer

Over budget and behind schedule

Answer

SV = EV−PV = $5M−$6M = −$1M (behind schedule); CV = EV−AC = $5M−$5.5M = −$0.5M (over budget), confirming both negative variances.

Question 2

Which contract type places the MOST financial risk on the owner for cost overruns?

Accepted Answer

Cost-plus-fixed-fee

Answer

A cost-plus-fixed-fee contract reimburses all allowable costs incurred plus a fixed fee, placing essentially all cost risk on the owner with no contractor incentive to control costs.

Question 3

What is the primary purpose of a project cost baseline?

Accepted Answer

To serve as the time-phased budget used to measure and monitor cost performance

Answer

The cost baseline is the approved, time-phased budget (excluding management reserves) used as a benchmark to measure, monitor, and control project cost performance.

Question 4

In precedence diagramming, which relationship type requires a predecessor activity to finish before the successor can start?

Accepted Answer

Finish-to-Start (FS)

Answer

A Finish-to-Start (FS) relationship is the most common dependency, requiring the predecessor to be completely finished before the successor activity can begin.

Question 5

A CM discovers that the critical path has changed mid-project due to a delay in a previously non-critical activity. This is an example of:

Accepted Answer

Float consumption leading to a new critical path

Answer

When float on a non-critical activity is fully consumed due to delays, that activity becomes critical and may establish a new critical path through the network.

(CCM) Certified Construction Manager Practice Test

(CCM) Certified Construction Manager Practice Test

CCM Construction Cost and Time Management 3