Practice Test Geeks(CEC) Construction Estimator Certification Practice Test
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CEC Risk Management & Contingencies Flashcards

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

Read the first 6 CEC Risk Management & Contingencies flashcards as text

  1. Differing site conditions (DSC) clauses in US government construction contracts protect the contractor by:

    Answer: Providing a contractual basis for additional compensation when actual site conditions materially differ from those indicated

    DSC clauses allow contractors to claim additional time and money when subsurface or latent conditions differ materially from those described in the contract documents.

  2. Force majeure events in a construction contract typically:

    Answer: Excuse both parties from performance obligations caused by extraordinary, unforeseeable events beyond their control

    Force majeure provisions excuse non-performance caused by events such as natural disasters, pandemics, or wars that are beyond either party's reasonable control.

  3. When estimating contingency for a project in the schematic design phase (early drawings), industry guidance typically suggests a contingency percentage of:

    Answer: 10–20%

    At the schematic design phase, significant design uncertainty remains, so industry standards (e.g., AACE) recommend 10–20% contingency to cover incomplete scope.

  4. A 'bid bond' primarily protects the project owner against which risk?

    Answer: A low bidder's failure to enter into the contract after winning the bid

    A bid bond guarantees that if selected, the bidder will sign the contract and provide required performance and payment bonds; otherwise the owner can claim the bond amount for re-bid costs.

  5. In sensitivity analysis for a construction estimate, the estimator changes one variable at a time to determine:

    Answer: Which cost inputs have the greatest influence on total project cost

    Sensitivity analysis isolates the effect of individual variable changes on the estimate total, identifying which assumptions carry the most financial risk.

  6. Which AACE International recommended practice provides guidance on cost estimate classification (Class 1–5) and associated contingency ranges?

    Answer: RP 18R-97

    AACE RP 18R-97 defines the Cost Estimate Classification System for the process industries, providing a widely referenced framework for maturity levels and corresponding contingency ranges used across construction sectors.