Practice Test Geeks(CCT) Certified Cost Technician Practice Test
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CCT Contract Management & Procurement Flashcards

6 cards from real CCT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCT Contract Management & Procurement flashcards as text

  1. What is the 'contract price' in cost management terminology?

    Answer: The agreed total amount the owner will pay the contractor for the defined scope

    The contract price is the total compensation the owner has agreed to pay the contractor in exchange for completing all contracted work.

  2. Which term describes a contractor's right to retain funds owed until the owner fulfills payment obligations?

    Answer: Mechanic's Lien

    A mechanic's lien is a legal claim filed against a property by an unpaid contractor or supplier, encumbering the property until the debt is settled.

  3. In a Guaranteed Maximum Price (GMP) contract, who benefits if actual costs come in below the GMP?

    Answer: Savings are typically shared between owner and contractor per the contract terms

    GMP contracts commonly include a shared savings clause where any amount spent below the GMP is split between owner and contractor according to an agreed percentage.

  4. What is 'retainage' in construction contract payments?

    Answer: A percentage of each progress payment withheld until project completion

    Retainage is a contractually specified percentage (typically 5–10%) held back from each progress payment to ensure contractor performance through final completion.

  5. Which clause protects a contractor from costs resulting from unforeseeable site conditions not shown in contract documents?

    Answer: Differing Site Conditions clause

    A Differing Site Conditions clause entitles the contractor to additional compensation when subsurface or physical conditions differ materially from what was represented.

  6. What is the primary purpose of a subcontractor's certified payroll submission?

    Answer: To verify that workers are paid at least the prevailing wage required by law

    Certified payroll documents are required on prevailing wage projects to confirm workers receive the government-mandated wage rates for their trade classification.