A _______________ contract allows the contractor to freely employ whatever methods and resources it chooses in order to complete the work.
Answer(s): D
A lump-sum (fixed price) contract places responsibility for means, methods, and resource selection on the contractor, allowing them full discretion in how the work is executed as long as the agreed scope is completed for the fixed price.
Cost performance index (CPI) is defined by AACE International as: (assume no change in budgeted quantities)
Cost Performance Index measures cost efficiency by comparing the budgeted value of work performed to the actual cost of that work, indicating how much value is earned for each dollar spent.
_______________ is defined as the budget for the cost (work) account times the percent complete for that account.
Answer(s): B
Earned value represents the portion of the budgeted cost that corresponds to the work actually completed, calculated by multiplying the cost account budget by the percent of work complete.
If a project is said to be on a “fast track program,” the fast track method is:
Answer(s): C
Fast-tracking accelerates project delivery by overlapping engineering, procurement, and construction activities so work proceeds in parallel where feasible, reducing overall project duration while maintaining a coordinated sequence and logic.
An effort by a prime contractor to reduce the price quoted by a vendor, by providing the bid price to other vendors in an attempt to get the other vendors to underbid the original price quoted is referred to as:
Bid shopping occurs when a contractor discloses one vendor’s quoted price to other vendors to induce lower competing bids, with the intent of reducing the originally quoted price.
A contract clause that provides the owner with the right to terminate the contract irrespective of the general contractor’s liability is:
Termination for convenience allows the owner to end the contract at its discretion, without requiring fault or liability on the part of the general contractor.
The measure of number of units completed divided by work-hours consumed is referred to as:
Productivity measures output efficiency by comparing the number of units produced to the work-hours required, indicating how effectively labor is being utilized.
When the project plan is implemented:
Answer(s): A
When a project plan is implemented, execution focuses on monitoring and controlling activities against the approved baseline to ensure performance, schedule, and cost objectives are being met.
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