Project Management Flashcards

Which contract delivery model transfers the greatest design and construction risk to a single entity?

Answer: Design-build

In a design-build contract, a single entity is responsible for both design and construction, absorbing the interface risk between the two phases. The owner deals with one point of accountability.

A project manager identifies that the critical path has slipped by two weeks due to a subcontractor delay. Which schedule recovery technique adds resources to critical-path activities?

Answer: Crashing

Crashing adds resources (labour, equipment) to critical-path activities to shorten their duration, at additional cost. Fast-tracking overlaps activities that were originally sequential.

Under the CCDC 2 Stipulated Price Contract, which party bears the risk of unforeseen subsurface conditions that materially differ from the contract documents?

Answer: The owner, with the contractor entitled to a change order for extra costs and time

CCDC 2 GC 6.4 allocates differing site conditions risk to the owner. If subsurface conditions differ materially from the contract documents, the contractor is entitled to a change order for additional cost and time.

Which element of a project charter formally authorises the project manager to apply organisational resources?

Answer: The sponsor's signature authorising the project

A project charter is a document issued by the project sponsor that formally authorises the existence of a project and grants the project manager authority to apply resources to project activities.

An engineer acting as contract administrator on a CCDC 2 project receives conflicting directions from the owner and a government authority. Under CCDC 2, how should the engineer proceed?

Answer: Exercise professional judgment and choose the safer course

CCDC 2 requires the consultant to act impartially between owner and contractor. When external regulatory requirements conflict with the contract, the consultant must advise both parties and the engineer must exercise professional judgment prioritising public safety and regulatory compliance.

Earned value management (EVM) uses which formula to calculate cost variance?

Answer: CV = Earned Value − Actual Cost

Cost Variance (CV) = Earned Value (EV) − Actual Cost (AC). A negative CV indicates the project is over budget for the work completed.