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CCP Change Management and Claims Flashcards

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

Read the first 6 CCP Change Management and Claims flashcards as text

  1. A constructive change in construction cost management refers to:

    Answer: An owner action or inaction that changes the scope without a formal change order

    A constructive change occurs when the owner's conduct — such as defective specifications or interference — effectively changes the work without issuing a formal change order.

  2. Which of the following is the correct sequence for processing a formal change order in project cost management?

    Answer: Identify change → Estimate cost impact → Negotiate → Execute change order

    The standard process is to identify the change, estimate its cost and schedule impact, negotiate with the owner, and then execute the written change order.

  3. What is the primary purpose of a Rough Order of Magnitude (ROM) estimate in the change management process?

    Answer: To provide early high-level cost impact information for decision-making before detailed pricing

    A ROM estimate gives stakeholders a preliminary cost range (typically ±25-50%) to decide whether to proceed with a potential change before investing in detailed pricing.

  4. 'Cardinal change' in contract law refers to a change that is so significant it:

    Answer: Effectively abandons the original contract and may excuse the contractor from performance

    A cardinal change alters the fundamental nature of the contract to such a degree that the contractor may treat it as a breach and seek damages beyond the change order mechanism.

  5. A contractor submits a Request for Equitable Adjustment (REA) primarily to:

    Answer: Recover additional cost and/or time caused by government-directed changes or actions

    An REA is a request submitted by a contractor to adjust the contract price or schedule when a government or owner action causes additional cost or delay.

  6. In project cost management, 'scope creep' is best controlled by:

    Answer: A rigorous change control process that formally evaluates and prices all scope additions

    Scope creep is controlled by requiring all changes to go through a formal change control process so impacts on cost and schedule are captured and compensated.