CCM Cost and Time Management 3

Question 1

Which type of cost is directly attributable to a specific construction project and varies with the volume of work?

Accepted Answer

Direct cost

Answer

Direct costs are expenses that can be traced directly to a project, such as labor, materials, and equipment used on site.

Question 2

A construction manager identifies a critical path activity with 10 days of free float. What does this mean?

Accepted Answer

The activity can be delayed 10 days without delaying any successor activity's early start

Answer

Free float is the amount of time an activity can be delayed without affecting the early start of any immediate successor.

Question 3

Which contract type places the greatest financial risk on the owner?

Accepted Answer

Cost-plus-fixed-fee contract

Answer

Cost-plus contracts reimburse all allowable costs plus a fee, giving the owner maximum cost risk since there is no price ceiling without a GMP clause.

Question 4

What is the formula for calculating the Variance at Completion (VAC)?

Accepted Answer

BAC - EAC

Answer

VAC = BAC - EAC, representing the expected budget surplus or deficit at project completion.

Question 5

A construction schedule shows lag on a Finish-to-Start relationship. What does this represent?

Accepted Answer

A required waiting period between the predecessor finishing and successor starting

Answer

Lag in a Finish-to-Start relationship means the successor cannot start until a specified time after the predecessor finishes.

(CCM) Certified Construction Manager Practice Test

(CCM) Certified Construction Manager Practice Test

CCM Cost and Time Management 3