CSLB Estimating, Bidding, and Cost Control 3

Question 1

Which project delivery method involves the owner contracting with a single entity responsible for both design and construction?

Accepted Answer

Design-build

Answer

In design-build, the owner contracts with one entity (the design-builder) who is responsible for both the design and construction of the project, streamlining responsibility.

Question 2

Earned Value Management (EVM) measures project cost performance by comparing:

Accepted Answer

Budgeted cost of work performed vs. actual cost of work performed

Answer

The Cost Performance Index (CPI) in EVM compares the budgeted cost of work actually performed (earned value) to the actual cost incurred, measuring how efficiently money is being spent.

Question 3

A 'cost-plus' contract provides payment to the contractor for:

Accepted Answer

All allowable direct costs plus a fee for overhead and profit

Answer

A cost-plus contract reimburses the contractor for all allowable project costs and adds a fee (fixed, percentage, or incentive-based) to cover overhead and profit.

Question 4

In California, a contractor who submits a false claim for payment on a public works project may be liable under:

Accepted Answer

California False Claims Act (Government Code §12650 et seq.)

Answer

The California False Claims Act imposes treble damages and civil penalties on contractors who knowingly submit false payment claims to California government entities.

Question 5

What is 'front-loading' a schedule of values, and why is it a concern?

Accepted Answer

Assigning inflated values to early work items to receive more payment upfront than work earned

Answer

Front-loading means inflating the value of early completion items in the schedule of values so the contractor receives more payment than the work is actually worth, creating cash flow leverage at the owner's expense.

CSLB - Contractors State License Board Practice Test

CSLB - Contractors State License Board Practice Test

CSLB Estimating, Bidding, and Cost Control 3