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 constructive change occurs when the owner's conduct — such as defective specifications or interference — effectively changes the work without issuing a formal change order.

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

The standard process is to identify the change, estimate its cost and schedule impact, negotiate with the owner, and then execute the written change order.

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

A ROM estimate gives stakeholders a preliminary cost range (typically ±25-50%) to decide whether to proceed with a potential change before investing in detailed pricing.

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

A cardinal change alters the fundamental nature of the contract to such a degree that the contractor may treat it as a breach and seek damages beyond the change order mechanism.

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

An REA is a request submitted by a contractor to adjust the contract price or schedule when a government or owner action causes additional cost or delay.

CCP - Certified Cost Professional Practice Test

CCP - Certified Cost Professional Practice Test

CCP CCP Change Management and Claims