CCM Construction Cost and Time Management 2 — Questions and Answers
Question 1: Which scheduling technique is BEST suited for projects with uncertain activity durations that require probability analysis?
- Critical Path Method (CPM)
- Program Evaluation and Review Technique (PERT) (Correct answer)
- Gantt Chart
- Line of Balance
Correct answer: Program Evaluation and Review Technique (PERT)
PERT uses three-point estimates (optimistic, most likely, pessimistic) to calculate expected durations and quantify schedule uncertainty through probability analysis.
Question 2: A contractor submits a claim for additional costs due to an owner-directed change. The Construction Manager should evaluate the claim using which primary method?
- Total cost method
- Modified total cost method
- Measured mile analysis (Correct answer)
- Jury of executive opinion
Correct answer: Measured mile analysis
Measured mile analysis compares productivity on unimpacted work periods to impacted periods, providing a direct, defensible measure of disruption costs.
Question 3: In a cost-loaded schedule, what does the S-curve represent?
- The critical path through the network
- Cumulative planned versus actual cost expenditure over time (Correct answer)
- The resource histogram for labor
- The float available on non-critical activities
Correct answer: Cumulative planned versus actual cost expenditure over time
An S-curve plots cumulative planned and actual costs over the project timeline, creating an S-shape that reflects slow spending at start and finish with peak spending in the middle.
Question 4: What is the Schedule Variance (SV) when Earned Value (EV) = $400,000 and Planned Value (PV) = $500,000?
- +$100,000 (ahead of schedule)
- -$100,000 (behind schedule) (Correct answer)
- $0 (on schedule)
- Cannot be determined without Actual Cost
Correct answer: -$100,000 (behind schedule)
SV = EV − PV = $400,000 − $500,000 = −$100,000, indicating the project has earned less value than planned and is behind schedule.
Question 5: A Construction Manager needs to compress the project schedule without changing the project scope. Which technique involves adding resources to critical path activities?
- Fast-tracking
- Crashing (Correct answer)
- Resource leveling
- Schedule compression by resequencing
Correct answer: Crashing
Crashing adds resources (labor, equipment) to critical path activities to shorten their duration, typically increasing cost in exchange for time savings.
Question 6: Which type of cost estimate is typically prepared during the conceptual design phase with an accuracy range of -30% to +50%?
- Definitive estimate
- Design development estimate
- Order-of-magnitude estimate (Correct answer)
- Control estimate
Correct answer: Order-of-magnitude estimate
An order-of-magnitude estimate, prepared during conceptual design using minimal project information, typically has an accuracy range of −30% to +50%.
Question 7: Under the Earned Value Management system, what does a Cost Performance Index (CPI) of 0.85 indicate?
- The project is 85% complete
- For every dollar spent, only $0.85 of value is being earned (Correct answer)
- The project will finish 15% under budget
- The schedule is 15% ahead of plan
Correct answer: For every dollar spent, only $0.85 of value is being earned
CPI = EV/AC; a CPI of 0.85 means the project is getting only $0.85 of earned value for every $1.00 actually spent, indicating a cost overrun.
CCM Construction Cost and Time Management 2
Which scheduling technique is BEST suited for projects with uncertain activity durations that require probability analysis?