CRD CRD Economic Analysis & Project Management 2 — Questions and Answers
Question 1: What project management document outlines the scope of work, timeline, and deliverables for a residential geothermal installation project?
- A project specification or scope of work document (Correct answer)
- The heat pump manufacturer's product brochure
- The homeowner's mortgage statement
- A well drilling log from a previous property
Correct answer: A project specification or scope of work document
A formal scope of work document defines what will be installed, when, and to what standards, protecting both the contractor and homeowner.
Question 2: Which stakeholder typically issues drilling permits for vertical borehole geothermal loops in US residential projects?
- The state or local well drilling regulatory authority, often the department of natural resources or environmental quality (Correct answer)
- The homeowner's HOA only
- The heat pump manufacturer's warranty department
- The US Department of Energy directly
Correct answer: The state or local well drilling regulatory authority, often the department of natural resources or environmental quality
Vertical boreholes are regulated similarly to water wells, so state or local well drilling authorities issue required permits before drilling begins.
Question 3: What is the purpose of a pre-construction site assessment in residential geothermal project management?
- To identify site constraints such as setbacks, utility conflicts, soil conditions, and access for drilling equipment (Correct answer)
- To determine the homeowner's credit score for financing
- To select interior paint colors for the mechanical room
- To size the electrical panel for the home's appliances
Correct answer: To identify site constraints such as setbacks, utility conflicts, soil conditions, and access for drilling equipment
A pre-construction site assessment identifies physical constraints that affect loop placement, equipment access, and overall project feasibility before signing contracts.
Question 4: When managing a residential geothermal project with multiple subcontractors (driller, plumber, electrician), what scheduling dependency is critical to sequence correctly?
- Drilling and loop installation must be complete before the plumber connects the loop to the heat pump, which must be set before the electrician wires it (Correct answer)
- The electrician must complete all wiring before any drilling begins
- All trades must work simultaneously on the first day only
- The plumber must complete all work before drilling begins
Correct answer: Drilling and loop installation must be complete before the plumber connects the loop to the heat pump, which must be set before the electrician wires it
The geothermal loop must be in the ground and connected before the heat pump can be powered and tested, establishing a strict sequential dependency.
Question 5: Which financial instrument specifically designed for energy efficiency upgrades allows homeowners to finance geothermal installations through their property tax assessment?
- Property Assessed Clean Energy (PACE) financing (Correct answer)
- A standard home equity line of credit (HELOC)
- A manufacturer's deferred payment plan
- A USDA farm operating loan
Correct answer: Property Assessed Clean Energy (PACE) financing
PACE financing attaches repayment to the property tax bill rather than the individual, making it accessible to homeowners who lack equity for a HELOC.
Question 6: What risk management practice protects a geothermal contractor if unexpected hard rock is encountered during vertical borehole drilling?
- Including a change order clause in the contract that allows additional billing for unforeseen subsurface conditions (Correct answer)
- Refusing to drill in any area without a known geology report
- Charging a flat fixed price regardless of actual conditions encountered
- Requiring the homeowner to pre-purchase all drilling consumables
Correct answer: Including a change order clause in the contract that allows additional billing for unforeseen subsurface conditions
A change order clause allows the contractor to bill for additional drilling time and materials when subsurface conditions exceed those anticipated in the original bid.
CRD CRD Economic Analysis & Project Management 2
What project management document outlines the scope of work, timeline, and deliverables for a residential geothermal installation project?