CCP Change Management and Claims Flashcards
6 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCP Change Management and Claims flashcards as text
Which document is typically used to formally notify the owner that a change event may result in additional cost or time, preserving the contractor's claim rights?
Answer: Notice of Potential Claim (NPC)
A Notice of Potential Claim is a formal written notification that preserves the contractor's rights to seek additional compensation before detailed pricing is available.
Acceleration of a construction project becomes a compensable claim when:
Answer: The owner directs faster completion without granting an entitled time extension
Constructive acceleration occurs when the owner denies a valid excusable delay extension and effectively requires faster performance, entitling the contractor to recover acceleration costs.
In the context of contract disputes, the 'Eichleay formula' is used to calculate:
Answer: Extended home office overhead during an owner-caused delay
The Eichleay formula allocates home office overhead to a delayed project based on the ratio of contract billings to total company billings during the project period.
A 'no-damages-for-delay' clause in a contract:
Answer: Limits the contractor to time extensions only, without monetary compensation for owner-caused delays
No-damages-for-delay clauses bar monetary recovery for owner-caused delays but courts recognize exceptions such as bad faith, active interference, or delays not contemplated by the parties.
The 'actual cost method' of pricing a change order differs from the 'estimated cost method' in that it:
Answer: Uses documented costs actually incurred after the change is performed rather than pre-change estimates
The actual cost method prices a change using verified labor, material, equipment, and overhead costs recorded after the changed work is complete.
What is the primary function of a 'cost-loaded schedule' in claim preparation and change management?
Answer: To demonstrate the time-phased cost impact of changes and delays on the project budget
A cost-loaded schedule integrates budget with the project timeline, allowing analysts to quantify how changes or delays shift costs across reporting periods.