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Construction Cost and Time Management Flashcards

7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Construction Cost and Time Management flashcards as text

  1. A project has a contract value of $10M, with $6M of work complete but only $5M earned. The actual cost to date is $5.5M. What is the project's current status?

    Answer: Over budget and behind schedule

    SV = EV−PV = $5M−$6M = −$1M (behind schedule); CV = EV−AC = $5M−$5.5M = −$0.5M (over budget), confirming both negative variances.

  2. Which contract type places the MOST financial risk on the owner for cost overruns?

    Answer: Cost-plus-fixed-fee

    A cost-plus-fixed-fee contract reimburses all allowable costs incurred plus a fixed fee, placing essentially all cost risk on the owner with no contractor incentive to control costs.

  3. What is the primary purpose of a project cost baseline?

    Answer: To serve as the time-phased budget used to measure and monitor cost performance

    The cost baseline is the approved, time-phased budget (excluding management reserves) used as a benchmark to measure, monitor, and control project cost performance.

  4. In precedence diagramming, which relationship type requires a predecessor activity to finish before the successor can start?

    Answer: Finish-to-Start (FS)

    A Finish-to-Start (FS) relationship is the most common dependency, requiring the predecessor to be completely finished before the successor activity can begin.

  5. A CM discovers that the critical path has changed mid-project due to a delay in a previously non-critical activity. This is an example of:

    Answer: Float consumption leading to a new critical path

    When float on a non-critical activity is fully consumed due to delays, that activity becomes critical and may establish a new critical path through the network.

  6. Which quantity takeoff method calculates excavation volume using average end areas between cross-sections?

    Answer: Average end area method

    The average end area method calculates earthwork volume by averaging the cross-sectional areas at two stations and multiplying by the distance between them.

  7. A project's Estimate at Completion (EAC) using the formula EAC = BAC/CPI indicates the project will finish significantly over budget. Which action is MOST appropriate for the CM?

    Answer: Issue a formal variance report and develop a recovery plan

    A significant EAC overrun requires the CM to formally report the variance and develop a corrective action/recovery plan to bring the project back under control.