CCM Cost and Time Management 4 — Questions and Answers
Question 1: What does a Schedule Performance Index (SPI) of 1.15 indicate about a construction project?
- The project is 15% over budget
- The project is completing 15% more work than planned per time period (Correct answer)
- The project is 15% behind schedule
- The project has 15% contingency remaining
Correct 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.
Question 2: A construction manager applies resource leveling to the project schedule. What is the most likely outcome?
- Shorter project duration
- Reduced project cost
- Extended project duration or shifted activity dates (Correct answer)
- Increased total float on the critical path
Correct 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.
Question 3: Which document establishes the approved cost baseline for a construction project?
- Project charter
- Cost management plan
- Cost performance baseline (Correct answer)
- Budget authorization form
Correct answer: Cost performance baseline
The cost performance baseline is the approved, time-phased budget used to measure, monitor, and control project cost performance.
Question 4: What is the primary purpose of an S-curve in construction project management?
- To show the critical path of the project
- To compare planned versus actual cumulative cost or progress over time (Correct answer)
- To allocate resources across project activities
- To identify schedule float for all activities
Correct 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.
Question 5: 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?
- 7.0 days
- 9.0 days
- 8.0 days (Correct answer)
- 6.5 days
Correct answer: 8.0 days
PERT expected duration = (O + 4M + P) / 6 = (4 + 28 + 16) / 6 = 48 / 6 = 8.0 days.
Question 6: Which construction cost component typically includes site supervision, temporary utilities, and project insurance?
- Direct labor costs
- General conditions costs (Correct answer)
- Equipment operating costs
- Subcontractor markups
Correct answer: General conditions costs
General conditions costs cover project-wide support items such as supervision, temporary facilities, utilities, and insurance that support all work.
Question 7: What is the To-Complete Performance Index (TCPI) used for in construction EVM?
- To measure past cost efficiency on completed work
- To calculate the required future cost efficiency to meet the budget goal (Correct answer)
- To forecast the schedule variance at completion
- To determine the earned value of work in place
Correct 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.
CCM Cost and Time Management 4
What does a Schedule Performance Index (SPI) of 1.15 indicate about a construction project?