CCP CCP Change Management and Claims 2 — Questions and Answers
Question 1: The 'global impact' or 'total cost' method of pricing a claim calculates damages as:
- Actual total costs minus the original contract price, without segregating individual impacts (Correct answer)
- The sum of each individually priced change item
- Estimated future costs divided by the number of remaining changes
- Unit price overruns multiplied by total units completed
Correct answer: Actual total costs minus the original contract price, without segregating individual impacts
The total cost method calculates a claim by subtracting the original bid from total actual costs, asserting the entire overrun was caused by the owner's actions.
Question 2: Which type of claim seeks compensation for work performed that falls outside the original contract terms but was directed by the owner without a formal change order?
- Constructive change claim (Correct answer)
- Delay claim
- Differing site conditions claim
- Termination for convenience claim
Correct answer: Constructive change claim
A constructive change claim seeks compensation for extra work informally directed by the owner that constitutes a de facto contract change.
Question 3: A 'Type I differing site condition' claim arises when:
- Actual site conditions differ materially from conditions indicated in the contract documents (Correct answer)
- Site conditions differ from conditions typically found on similar projects
- The contractor discovers an unforeseen utility that was not in any public records
- Weather conditions exceed the contract's defined excusable delay thresholds
Correct answer: Actual site conditions differ materially from conditions indicated in the contract documents
Type I differing site conditions occur when actual physical conditions at the site differ materially from those described in the contract documents or specifications.
Question 4: In delay claims, 'concurrent delay' typically means:
- Both owner-caused and contractor-caused delays occur during the same time period (Correct answer)
- Multiple subcontractors are delayed simultaneously
- The critical path shifts during the project
- Delays on separate projects overlap in the contractor's portfolio
Correct answer: Both owner-caused and contractor-caused delays occur during the same time period
Concurrent delay occurs when owner-responsible and contractor-responsible delay events overlap, which generally limits or eliminates the contractor's entitlement to additional compensation.
Question 5: The 'measured mile' method for calculating loss of productivity in a claim involves:
- Comparing productivity in an unimpacted period to productivity in the impacted period (Correct answer)
- Measuring total labor hours against planned labor hours
- Using industry standard productivity benchmarks as the baseline
- Dividing total project cost by total installed units
Correct answer: Comparing productivity in an unimpacted period to productivity in the impacted period
The measured mile method compares actual productivity in an undisturbed (baseline) period on the same project to productivity during the disrupted period to isolate owner-caused losses.
Question 6: Liquidated damages (LDs) in a construction contract are best described as:
- Pre-agreed damages per day of delay that substitute for actual damages proof (Correct answer)
- Punitive penalties imposed for contractor misconduct
- Actual costs incurred by the owner due to late project completion
- Insurance premiums paid by the contractor for delay risk
Correct answer: Pre-agreed damages per day of delay that substitute for actual damages proof
Liquidated damages are a contractually stipulated daily rate for delay damages, enforceable when they represent a reasonable pre-estimate of actual harm rather than a penalty.
CCP CCP Change Management and Claims 2
The 'global impact' or 'total cost' method of pricing a claim calculates damages as: