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 hospital project uses a unit-price contract for excavation. The actual quantity excavated is 40% greater than the estimated quantity. What contractual mechanism typically addresses this situation?
Answer: A quantity variation clause allowing renegotiation of unit prices beyond a threshold
Unit-price contracts typically include quantity variation clauses that allow for renegotiation of unit prices when actual quantities deviate significantly from estimates.
Which cost component is typically included in a contractor's general conditions budget for a healthcare project?
Answer: Project superintendent salary, temporary facilities, and jobsite office expenses
General conditions cover the contractor's direct project management costs such as superintendent salaries, temporary facilities, safety equipment, and jobsite offices.
A healthcare contractor submits a pay application that the owner's representative believes overstates work completed. What is the appropriate contractual response?
Answer: Certify only the amount representing actual work in place and document the basis for the reduction
The owner's representative should certify only the amount substantiated by actual work in place and provide written documentation of any reductions.
In healthcare construction, a 'stored materials' payment request requires the contractor to provide which of the following?
Answer: Proof of insurance, bill of lading, and evidence that materials are properly stored and allocated to the project
Payment for stored materials requires documentation including insurance coverage, delivery records, and proof that materials are securely stored and designated for the specific project.
What is the purpose of a 'no damages for delay' clause in a healthcare construction contract?
Answer: It limits or eliminates the contractor's ability to recover monetary damages caused by owner-caused delays
A 'no damages for delay' clause restricts the contractor's remedy for owner-caused delays to a time extension rather than monetary compensation.
A healthcare GC discovers a subcontractor has filed a preliminary lien notice on the project. What is the most important immediate action for the owner?
Answer: Verify whether the GC has paid the subcontractor and consider joint checks or conditional lien waivers for future payments
A preliminary lien notice signals potential non-payment; the owner should verify payment status and use joint checks or conditional waivers to protect against future lien claims.
During final closeout of a healthcare project, the contractor submits an application for final payment. Which document is typically required to release retainage?
Answer: A final lien waiver and release from the contractor and all major subcontractors
Final retainage release requires unconditional lien waivers from the general contractor and major subcontractors confirming all parties have been paid in full.