AFE AFE Project Management & Capital Planning 1 — Questions and Answers
Question 1: Which project delivery method gives the owner the most control over design decisions during a facilities construction project?
- Design-Build
- Design-Bid-Build (Correct answer)
- Construction Management at Risk
- Integrated Project Delivery
Correct answer: Design-Bid-Build
Design-Bid-Build separates design and construction phases, giving the owner maximum control over the design before awarding a construction contract.
Question 2: What is the primary purpose of a facilities capital needs assessment (CNA)?
- To approve annual operating budgets
- To document existing conditions and project future repair or replacement costs (Correct answer)
- To hire new facilities staff
- To evaluate energy consumption rates
Correct answer: To document existing conditions and project future repair or replacement costs
A CNA identifies existing deficiencies and forecasts the funding needed over a planning horizon to maintain facilities in acceptable condition.
Question 3: In facilities project management, what does the term 'scope creep' refer to?
- Uncontrolled expansion of project requirements beyond the original scope (Correct answer)
- A formal change order process
- A reduction in project budget
- A delay in project schedule caused by weather
Correct answer: Uncontrolled expansion of project requirements beyond the original scope
Scope creep is the gradual, uncontrolled expansion of a project's scope without corresponding adjustments to schedule or budget.
Question 4: Which cost estimation method is typically used in the earliest stages of a facilities capital project when design details are not yet available?
- Unit price estimate
- Parametric estimate (Correct answer)
- Detailed quantity takeoff
- Bid-based estimate
Correct answer: Parametric estimate
Parametric estimating uses statistical relationships between historical data and project variables to produce early-stage cost estimates without detailed design.
Question 5: What is the primary function of a project charter in facilities project management?
- To document final project costs
- To formally authorize the project and define its objectives and stakeholders (Correct answer)
- To list all subcontractors
- To track daily construction progress
Correct answer: To formally authorize the project and define its objectives and stakeholders
A project charter formally authorizes a project, establishes its objectives, scope, and key stakeholders, giving the project manager authority to proceed.
Question 6: When evaluating capital projects, Facilities Engineers often use a 'payback period' calculation. What does this metric measure?
- The total lifetime cost of owning an asset
- The time required for project savings or revenues to recover the initial investment (Correct answer)
- The net present value of future cash flows
- The internal rate of return on the investment
Correct answer: The time required for project savings or revenues to recover the initial investment
The payback period measures how long it takes for cumulative savings or revenues from an investment to equal the initial capital outlay.
AFE AFE Project Management & Capital Planning 1
Which project delivery method gives the owner the most control over design decisions during a facilities construction project?