CCM Construction Cost and Time Management 4

Question 1

What does 'total float' represent in a CPM network schedule?

Accepted Answer

The time an activity can be delayed without delaying the project completion

Answer

Total float is the amount of time an activity can be delayed beyond its early start date without delaying the overall project completion date.

Question 2

Which cost estimating technique uses a statistical relationship between historical data and project variables to calculate cost?

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses statistical models (e.g., cost per square foot, cost per unit) derived from historical data to calculate estimated costs for a project.

Question 3

A subcontractor's invoice includes $50,000 for stored materials not yet incorporated into the work. Per standard AIA payment application practices, the CM should:

Accepted Answer

Approve payment only if materials are stored on-site and properly insured

Answer

AIA documents allow payment for stored materials if they are stored on-site (or in an approved location), properly insured, and supported by a bill of sale or other documentation.

Question 4

In construction scheduling, 'resource leveling' is used primarily to:

Accepted Answer

Eliminate resource over-allocations by adjusting activity start times within float

Answer

Resource leveling adjusts activity start and finish dates within their available float to resolve resource over-allocations and create a smoother resource utilization profile.

Question 5

What is 'management reserve' in project cost management?

Accepted Answer

An amount set aside for unknown unknowns outside the project baseline

Answer

Management reserve is budget held outside the cost baseline for unknown-unknown risks; it requires formal authorization to access and is not part of the earned value baseline.

(CCM) Certified Construction Manager Practice Test

(CCM) Certified Construction Manager Practice Test

CCM Construction Cost and Time Management 4