Project Management and Supervision Flashcards
7 cards from real General Contractor License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Project Management and Supervision flashcards as text
What is 'substantial completion' in a construction contract?
Answer: The stage when the work is sufficiently complete for the owner to use it for its intended purpose
Substantial completion triggers the start of warranty periods, shifts insurance responsibilities, and is typically when liquidated damages stop accruing.
A cost-plus contract with a Guaranteed Maximum Price (GMP) means the contractor:
Answer: Is reimbursed actual costs plus a fee, but cannot bill the owner above the GMP without a change order
In a GMP contract, the contractor is reimbursed for actual costs plus a fee up to the agreed maximum; costs above the GMP are the contractor's responsibility unless changed by owner-approved change orders.
Which method is used to measure project performance by comparing earned value to planned value and actual cost?
Answer: Earned Value Management (EVM)
EVM integrates scope, schedule, and cost to objectively measure project performance using metrics like Schedule Performance Index (SPI) and Cost Performance Index (CPI).
If a project's Cost Performance Index (CPI) is 0.85, this means the project is:
Answer: Getting $0.85 of work done for every $1.00 spent — over budget
A CPI below 1.0 indicates cost overrun; the project is spending more than the value of work accomplished.
When issuing a Notice to Proceed (NTP) to a subcontractor, the general contractor should ensure:
Answer: The subcontract is fully executed, insurance certificates received, and any required bonds are in place
Issuing an NTP before the subcontract is executed or insurance/bonds are confirmed exposes the general contractor to unprotected liability and contract disputes.
A construction manager is best described as differing from a general contractor in that the construction manager typically:
Answer: Provides management services as the owner's agent or at-risk entity rather than holding all trade contracts
A construction manager may act as the owner's agent (CM-Agency) or hold trade contracts at risk (CM-at-Risk), emphasizing management services rather than self-performance.
What is the purpose of a schedule of values in a construction project?
Answer: To allocate the contract sum across work items, enabling proportional payment requisitions
The schedule of values breaks the contract price into line items for each portion of work, forming the basis for calculating earned value on each pay application.