Florida General Contractor Construction Project Management 3 — Questions and Answers
Question 1: A liquidated damages clause in a construction contract is intended to:
- Set a predetermined daily amount owed by the contractor for late completion (Correct answer)
- Reward the owner for early payment
- Cover the cost of liquidated assets
- Pay bonuses to subcontractors
Correct answer: Set a predetermined daily amount owed by the contractor for late completion
Liquidated damages fix a daily sum the contractor pays if the project finishes late.
Question 2: The primary function of a project's contingency budget is to:
- Cover unforeseen costs and unexpected conditions during construction (Correct answer)
- Pay the general contractor's overhead
- Fund marketing for the completed building
- Reimburse the owner's attorney fees
Correct answer: Cover unforeseen costs and unexpected conditions during construction
Contingency funds absorb unanticipated costs such as hidden conditions or errors.
Question 3: Which delivery method places design and construction under a single contract with the owner?
- Design-build (Correct answer)
- Design-bid-build
- Construction management at-risk with separate designer
- Multiple prime contracts
Correct answer: Design-build
Design-build gives the owner one entity responsible for both design and construction.
Question 4: A resource-leveled schedule is created primarily to:
- Reduce peaks and valleys in resource demand over the project duration (Correct answer)
- Shorten the critical path regardless of cost
- Eliminate all float from the schedule
- Increase the number of activities
Correct answer: Reduce peaks and valleys in resource demand over the project duration
Resource leveling smooths labor and equipment demand to avoid overloads and idle time.
Question 5: In earned value management, a Cost Performance Index (CPI) less than 1.0 indicates:
- The project is over budget for the work performed (Correct answer)
- The project is ahead of schedule
- The project is under budget
- The schedule float is increasing
Correct answer: The project is over budget for the work performed
A CPI below 1.0 means actual costs exceed the earned value, signaling a cost overrun.
Question 6: A pre-construction meeting is typically held to:
- Review responsibilities, schedule, safety, and procedures before work begins (Correct answer)
- Close out the punch list
- Release final retainage
- Approve the certificate of occupancy
Correct answer: Review responsibilities, schedule, safety, and procedures before work begins
The pre-construction meeting aligns the team on procedures, schedule, and safety before mobilization.
Question 7: The purpose of a lookahead schedule (e.g., three-week lookahead) is to:
- Coordinate near-term activities and identify upcoming constraints (Correct answer)
- Replace the master CPM schedule permanently
- Calculate final project profit
- Document as-built conditions
Correct answer: Coordinate near-term activities and identify upcoming constraints
A lookahead schedule focuses the team on short-term work and removes upcoming roadblocks.
Florida General Contractor Construction Project Management 3
A liquidated damages clause in a construction contract is intended to: