CHC Cost Management & Contract Administration Flashcards
7 cards from real CHC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 CHC Cost Management & Contract Administration flashcards as text
A healthcare construction project experiences a scope change requiring additional infection control measures. Which contract document typically governs the process for pricing and approving this change?
Answer: The general conditions of the contract
The general conditions of the contract establish the procedures for submitting, pricing, and approving changes in scope, including change orders.
When preparing a cost estimate for a hospital NICU renovation, which factor most significantly differentiates it from a standard commercial renovation estimate?
Answer: Infection control and interim life safety measure (ILSM) costs
NICU renovations in occupied hospitals require extensive infection control and ILSM measures that add significant cost not present in standard commercial work.
A GMP contract includes an owner's contingency of 5% and a contractor's contingency of 3%. Who controls each contingency?
Answer: The owner controls owner's contingency; contractor controls contractor's contingency
In a GMP contract, the owner's contingency is used at the owner's discretion for scope changes, while the contractor's contingency covers unforeseen construction costs.
Which method of subcontractor procurement is most appropriate for a highly specialized healthcare MEP scope with limited qualified bidders?
Answer: Negotiated contract with prequalified subcontractors
Negotiated contracts with prequalified subcontractors are preferred when the pool of qualified firms is limited and specialized expertise is critical.
A healthcare contractor receives a Request for Information (RFI) that reveals a design conflict adding cost. What is the correct immediate action?
Answer: Submit the RFI and follow with a change order request if cost is confirmed
The contractor should submit the RFI to document the conflict, then follow the contractual change order process if additional cost or time is required.
Under the AIA A133 contract (CMAR), what is the primary purpose of the preconstruction phase fee?
Answer: To compensate the construction manager for estimating, scheduling, and constructability review services before construction begins
The preconstruction phase fee compensates the CMAR for early involvement services such as cost estimating, scheduling, and design review before the construction phase begins.
A healthcare project's schedule of values shows front-loaded early payment allocations. What risk does this create for the owner?
Answer: Overpayment relative to work in place, reducing leverage if the contractor defaults
Front-loading creates a situation where the owner has paid more than the actual value of work completed, leaving less leverage if the contractor fails to perform.