CCP CCP Change Management and Claims

Question 1

A constructive change in construction cost management refers to:

Accepted Answer

An owner action or inaction that changes the scope without a formal change order

Answer

A written directive issued by the owner to modify the contract

Answer

A contractor-initiated value engineering proposal

Answer

A formal claim filed after project completion

Question 2

Which of the following is the correct sequence for processing a formal change order in project cost management?

Accepted Answer

Identify change → Estimate cost impact → Negotiate → Execute change order

Answer

Execute change order → Identify change → Estimate cost → Negotiate

Answer

Negotiate → Identify change → Execute change order → Estimate cost

Answer

Estimate cost → Execute change order → Identify change → Negotiate

Question 3

What is the primary purpose of a Rough Order of Magnitude (ROM) estimate in the change management process?

Accepted Answer

To provide early high-level cost impact information for decision-making before detailed pricing

Answer

To serve as the final negotiated price for a change order

Answer

To calculate liquidated damages for late changes

Answer

To document actual costs incurred due to an owner-directed change

Question 4

'Cardinal change' in contract law refers to a change that is so significant it:

Accepted Answer

Effectively abandons the original contract and may excuse the contractor from performance

Answer

Requires a new subcontract to be issued

Answer

Must be approved by the project owner's board of directors

Answer

Triggers automatic escalation clauses in the contract

Question 5

A contractor submits a Request for Equitable Adjustment (REA) primarily to:

Accepted Answer

Recover additional cost and/or time caused by government-directed changes or actions

Answer

Propose a voluntary value-engineering cost saving to the owner

Answer

Request an extension of the bid submission deadline

Answer

Notify the owner of a potential schedule delay by a subcontractor

Question 6

In project cost management, 'scope creep' is best controlled by:

Accepted Answer

A rigorous change control process that formally evaluates and prices all scope additions

Answer

Allowing minor additions without change orders to maintain owner relations

Answer

Absorbing small changes into contingency reserves

Answer

Accelerating the schedule to finish before additional requests arrive