CPE Project Baseline & Change Management 3

Question 1

On a large EPC project, the owner directs the contractor to accelerate the completion date by three months. What is the FIRST step the contractor's planning engineer should take?

Accepted Answer

Evaluate the cost and resource impact of acceleration and submit a change request

Answer

Immediately update the project schedule to reflect the new completion date

Answer

Advise the owner that acceleration is not possible

Answer

Reduce float on all activities and update the baseline

Question 2

Which metric BEST indicates that a project's change management process is performing effectively?

Accepted Answer

Changes are processed and incorporated into the baseline in a timely, controlled manner

Answer

A low number of total change requests submitted

Answer

A high ratio of approved changes to total changes requested

Answer

No changes have been made to the original project scope

Question 3

What is the relationship between 'management reserve' and the 'performance measurement baseline' (PMB)?

Accepted Answer

Management reserve is held outside the PMB and requires formal authorization to transfer into it

Answer

Management reserve is included within the PMB as contingency

Answer

The PMB equals the total budget minus management reserve

Answer

Management reserve and PMB are equivalent terms used interchangeably

Question 4

A contractor receives a verbal instruction from the owner's representative to perform additional work. Under standard project controls practice, the contractor should:

Accepted Answer

Issue a Request for Change or Potential Change Notice and await formal authorization before proceeding

Answer

Perform the work immediately to maintain good client relations and document it afterward

Answer

Refuse all work until a written change order is received

Answer

Include the extra work in the monthly cost report without notifying management

Question 5

In project schedule management, what is the purpose of a 'schedule baseline'?

Accepted Answer

To serve as the approved, original project schedule against which progress is measured

Answer

To record the most recent schedule update approved by the project team

Answer

To document only the critical path activities for performance tracking

Answer

To replace the project charter once construction begins

Question 6

What is 'baseline creep' in project controls, and why is it problematic?

Accepted Answer

Frequent, incremental revisions to the baseline that obscure true project performance

Answer

The tendency for baselines to become more detailed over time, which improves accuracy

Answer

A planned phased release of baseline information to project team members

Answer

The addition of management reserve to the baseline at project start

Question 7

Which of the following actions is REQUIRED to maintain the integrity of an Earned Value Management baseline after an approved scope change?

Accepted Answer

The time-phased budget for the approved change must be formally incorporated into the PMB

Answer

Only the cost baseline needs to be updated; the schedule remains unchanged

Answer

The EVM baseline must be retroactively adjusted to make past variances disappear

Answer

The project must be closed out and a new project opened for the additional scope