CPC Construction Project Management & Planning 3 — Questions and Answers
Question 1: In Earned Value Management (EVM), what does the Schedule Performance Index (SPI) measure?
- The ratio of actual cost to planned value
- The ratio of earned value to planned value (Correct answer)
- The ratio of earned value to actual cost
- The ratio of budget at completion to estimate at completion
Correct answer: The ratio of earned value to planned value
SPI = EV/PV; it measures schedule efficiency by comparing the value of work completed against the value of work that was planned to be completed.
Question 2: What is the primary purpose of a preconstruction conference before work begins on a project?
- To finalize the project budget and eliminate contingency
- To align all stakeholders on project procedures, schedules, and communication protocols (Correct answer)
- To award subcontracts to the lowest bidders
- To obtain the building permit from the local authority
Correct answer: To align all stakeholders on project procedures, schedules, and communication protocols
The preconstruction conference establishes mutual understanding of project requirements, administrative procedures, quality expectations, and lines of communication before mobilization.
Question 3: Which document formally authorizes the project manager to apply organizational resources to project activities?
- Project Management Plan
- Project Charter (Correct answer)
- Statement of Work (SOW)
- Resource Breakdown Structure (RBS)
Correct answer: Project Charter
The Project Charter is the document issued by the project sponsor or initiating entity that formally authorizes the project and grants the project manager authority to use resources.
Question 4: A contractor submits a claim for additional compensation due to unusually severe weather causing delays. Under a standard AIA contract, this type of claim is typically classified as:
- A compensable delay entitling both time and money
- An excusable, non-compensable delay entitling only a time extension (Correct answer)
- A concurrent delay for which no relief is granted
- A force majeure event automatically terminating the contract
Correct answer: An excusable, non-compensable delay entitling only a time extension
Unusually severe weather is typically classified as an excusable, non-compensable delay under standard contracts, granting a time extension but no additional payment.
Question 5: Resource leveling is applied to a project schedule primarily to:
- Shorten the critical path by adding resources to critical activities
- Eliminate peaks and valleys in resource demand, even if it extends the schedule (Correct answer)
- Identify which resources are over-allocated on the critical path
- Reduce total project cost by minimizing overtime usage
Correct answer: Eliminate peaks and valleys in resource demand, even if it extends the schedule
Resource leveling smooths resource usage by shifting non-critical activities within their float, often extending the project duration to avoid resource demand spikes.
Question 6: During the planning phase, a project manager uses a Responsibility Assignment Matrix (RAM). The most common format used is a RACI chart. What does the 'C' in RACI stand for?
- Contributes
- Consulted (Correct answer)
- Controls
- Confirms
Correct answer: Consulted
In a RACI chart, 'C' stands for Consulted — those who provide input and feedback before a decision or deliverable is finalized, in a two-way communication role.
Question 7: A general contractor's project schedule shows activities A→B→C→D on the critical path. Activity B is delayed by 3 days due to a design change. The Project Manager should FIRST:
- Immediately notify the surety bonding company
- Issue a Request for Information (RFI) to the design team
- Analyze the impact on the critical path and identify recovery options (Correct answer)
- Submit a change order for the full cost of the 3-day delay
Correct answer: Analyze the impact on the critical path and identify recovery options
The first step is to analyze how the delay propagates through the schedule and identify options for recovery through fast-tracking or crashing before initiating formal claims.
CPC Construction Project Management & Planning 3
In Earned Value Management (EVM), what does the Schedule Performance Index (SPI) measure?