CME Project Management and Legal 3 — Questions and Answers
Question 1: Under the Davis-Bacon Act, what wage requirement applies to federally funded construction projects exceeding $2,000?
- Workers must be paid the locally prevailing wage rate (Correct answer)
- Workers must earn at least $15 per hour federal minimum
- Workers must receive double time for all overtime
- Workers must be paid union scale regardless of location
Correct answer: Workers must be paid the locally prevailing wage rate
The Davis-Bacon Act requires contractors on federal construction projects to pay workers the locally prevailing wages as determined by the Department of Labor.
Question 2: A project owner requests a 'change order' that significantly increases the project scope. What should the master electrician do FIRST?
- Assess the cost and time impact, then negotiate and execute a written change order before proceeding (Correct answer)
- Begin the additional work immediately to maintain goodwill
- Refuse the change and refer to the original contract scope
- Contact the project's surety company for approval
Correct answer: Assess the cost and time impact, then negotiate and execute a written change order before proceeding
Before performing any scope changes, the electrician should evaluate impacts and get a written, signed change order to protect against unpaid work disputes.
Question 3: What does the term 'float' (or 'slack') refer to in project scheduling?
- The amount of time a task can be delayed without delaying the project completion (Correct answer)
- Extra budget allocated for unforeseen costs
- Overtime hours available to the crew
- The buffer between permit submission and approval
Correct answer: The amount of time a task can be delayed without delaying the project completion
Float (or slack) is the amount of delay a non-critical task can absorb without pushing back the project's final completion date.
Question 4: Which federal law prohibits employment discrimination based on race, color, religion, sex, or national origin?
- Title VII of the Civil Rights Act of 1964 (Correct answer)
- The Fair Labor Standards Act
- The Americans with Disabilities Act
- The Equal Pay Act of 1963
Correct answer: Title VII of the Civil Rights Act of 1964
Title VII of the Civil Rights Act of 1964 is the foundational federal law prohibiting workplace discrimination based on those five protected characteristics.
Question 5: A master electrician uses the 'percentage of completion' method for revenue recognition. When is revenue recorded?
- Proportionally as project work progresses based on costs incurred or milestones reached (Correct answer)
- Only when the project is fully complete and accepted
- When the client signs the contract
- When the final invoice is submitted
Correct answer: Proportionally as project work progresses based on costs incurred or milestones reached
The percentage-of-completion method recognizes revenue incrementally as work is performed, matching income to project progress rather than waiting for full completion.
Question 6: Under OSHA's Lockout/Tagout standard (29 CFR 1910.147), who is authorized to remove a lockout device?
- Only the authorized employee who installed it, or their designated supervisor under specific procedures (Correct answer)
- Any qualified electrician on the project
- The project foreman at any time
- Any licensed master electrician present on site
Correct answer: Only the authorized employee who installed it, or their designated supervisor under specific procedures
OSHA's LOTO standard requires that only the employee who applied the lockout device—or a designated supervisor following documented procedures—may remove it.
Question 7: What is the primary purpose of a 'punch list' at the end of a construction project?
- To document incomplete or deficient items that must be corrected before final payment (Correct answer)
- To list outstanding permit applications
- To record all overtime hours worked by the crew
- To itemize materials left over after project completion
Correct answer: To document incomplete or deficient items that must be corrected before final payment
A punch list is a final inspection document identifying remaining deficiencies or incomplete work items the contractor must address before receiving final payment.
CME Project Management and Legal 3
Under the Davis-Bacon Act, what wage requirement applies to federally funded construction projects exceeding $2,000?