CCM Cost and Time Management Questions and Answers

Question 1

A construction project's performance is being tracked using Earned Value Management (EVM). At the end of a reporting period, the following data is available: Budget at Completion (BAC) = $1,500,000, Planned Value (PV) = $700,000, Earned Value (EV) = $650,000, and Actual Cost (AC) = $680,000. Based on this data, what is the status of the project?

Accepted Answer

Behind schedule and over budget

Answer

To determine the project's status, we calculate the Schedule Performance Index (SPI) and the Cost Performance Index (CPI). The formulas are SPI = EV / PV and CPI = EV / AC. In this case, SPI = $650,000 / $700,000 = 0.93, and CPI = $650,000 / $680,000 = 0.96. Since both the SPI and CPI are less than 1, the project is behind schedule and over budget.

Question 2

A CCM is managing a complex high-rise project where the delivery of a custom curtain wall system is a critical activity. The project schedule is extremely tight, and the owner has emphasized that the completion date cannot be extended. To manage the workforce for the interior fit-out, which of the following schedule optimization techniques would be most appropriate if resource conflicts arise?

Accepted Answer

Resource smoothing

Answer

Resource smoothing is the ideal technique when the project completion date is a fixed constraint. It adjusts activities within their available float to optimize resource usage and avoid peaks and troughs, without affecting the critical path or the project's end date. Resource leveling, conversely, resolves resource over-allocations by delaying tasks, which can extend the project duration. Crashing and fast-tracking are techniques to shorten the schedule, not primarily for managing resource allocation within a fixed timeline.

Question 3

During the pre-construction phase, a Construction Manager is preparing a budget for a new elementary school. The design is approximately 30% complete, providing a good basis for a detailed estimate. According to the AACE International Recommended Practice, which class of cost estimate is most appropriate to develop at this stage for budget authorization?

Accepted Answer

Class 3 (Budgetary/Control)

Answer

A Class 3 estimate is developed when the project design is between 10% and 40% complete. It is used for budget authorization and establishing a baseline for control. Class 5 and 4 estimates are prepared earlier with less design detail, while a Class 1 estimate is prepared with fully developed construction documents.

Question 4

In Critical Path Method (CPM) scheduling, what does 'total float' (or 'total slack') for an activity represent?

Accepted Answer

The amount of time an activity can be delayed without delaying the entire project's completion date.

Answer

Total float is the maximum amount of time that an activity can be delayed from its early start date without delaying the entire project's finish date. Activities on the critical path have zero total float. Free float, on the other hand, is the time an activity can be delayed without impacting the early start of the next activity.

Question 5

A Construction Manager has included a line item in the project budget for potential price increases in structural steel, a risk that has been identified in the project's risk register. This budgeted amount falls under the control of the project manager to address this specific, foreseeable risk. This amount is best described as:

Accepted Answer

Contingency Reserve

Answer

A contingency reserve is a budget allocation for identified risks, or 'known unknowns,' that may or may not occur. Since the potential for steel price increases is an identified risk, the funds set aside for it are a contingency reserve, which is typically managed by the project manager. A management reserve is for 'unknown unknowns' and is controlled by senior management, not the project manager.

(CCM) Certified Construction Manager Practice Test

(CCM) Certified Construction Manager Practice Test

CCM Cost and Time Management Questions and Answers