CCM Exam Study Guide – HPM 327 Questions with Verified Answers
What Is a pre-solicitation notice? - CORRECT ANSWER The pre-solicitation notice helps
... [Show More] government agencies determine if there are qualified vendors to perform the work scope. It provides a "heads up" that the solicitation will be released and solicits capability responses from responsible vendors. The pre-solicitation notice also helps the government determine if the requirement can be set-aside for a small business if capable small businesses respond. The pre-solicitation notice is valuable to a contractor for the same reason and it also provides the contracting office with information on the company if they have never done business with them before.
The pre-solicitation notice serves its purpose. However, it would help first-time contract bidders if information regarding the purpose of the solicitation such as; is there an existing requirement, if so, who is the incumbent, what are the differences in work scope (if any), and overall budget for the project term.
The proposal process includes three very important elements:
1. Technical/Management Approach - companies must be able to perform the requirements in the Statement of Work, as well as describe how they plan to do so. Sales brochures or cookie cutter company descriptions will not work. A business owner should be prepared to write to the requirements and respond with a strong technical volume. Offer what they want, not want you think they want or need.
2. Past Performance - companies should include strong references of relevant past performance.
3. Price - Competitive pricing is expected, as long as it's not so low or high that it is determined that the contractor does not understand the requirements.
What is the least preferred contract type? - CORRECT ANSWER Time-and-materials and labor-hour (T&M/LH) contracts. Typically used w/ Government work.
ADR - CORRECT ANSWER Alternative Dispute Resolution - the process to resolve disputes.
Relation to the Owner/ CM agreement
Out of court typ.
Project Cost Report
(CA) - CORRECT ANSWER At-Risk CM produces project cost report tracking true subs amount compared to guaranteed max. price.
Bid Opening/ Evals - CORRECT ANSWER - At Risk CM opens/ evaluates/ summarizes all subcontractor & vendor bids.
- Recommendations in writing to owner w/ bid docs.
Pre-Design Phase
(3 Goals in CA) - CORRECT ANSWER 1. Develop/ Processes & Procedures, Admin Contracts - All phases.
2. Develop process design consultant selection
3. Develop communication Procedures
(Owner > Design Team . GC)
Beneficial Occupancy - CORRECT ANSWER - Stage building can be occupied prior to substantial completion.
- TCO typ.
Design-Bid-Build (DBB)
(Traditional Approach) - CORRECT ANSWER - Most Common Project Delivery Method.
- Delivery Method: Single or Multi-Prime
- CM Type: Agency
- Applicability: All chapters/ sections
- Comment: If single prime contract used some coordination w/ not be applicable
- GC Selection through low bid process. Not earlier phases in project design
- Gov. Agencies/ Public use
Multi-Prime Contracting
(Multi-Prime) - CORRECT ANSWER - Variation of design-bid-build
- Utilized multiple contractors to construct project
- general prime contractor & procure specialty trades GC
(Struct/ MEP/ etc.)
Construction Management - At- Risk
(CM- at- Risk) - CORRECT ANSWER - Other references - CM/ Independent Contractor
CM/ GC or CM guarantee Max Price
(GMP)
- Delivery Method: CM-at-Risk
- CM Type: at-Risk
- Applicability: All chapters/ sections
- Comment: CM additional responsibilities admin bond, mng safety, direct oversight work, other typ. GC responsibilities.
- Cost control/ final approvals - May req. owner or by CM /Designer/ Owner's staff
Design-Build
(D-B) - CORRECT ANSWER - Desirable owners - single point contact
- Less disputes/ reduce risk
- Draw back - Req. Owner upfront/ can slow process/ incure additional cost.
- Delivery Method: Design Build
- CM Type: Agency
- Applicability: All chapters/ MOST sections
- Comment: Many sections not applicable (D-B) will hold primary responsibility for performance.
- Recently gaining popularity in method.
Integrated Project Delivery (IPD) - CORRECT ANSWER - Newest Method - USA
- Delivery Method: Integrated Project Delivery
- CM Type: Agency or at-Risk
- Applicability: All chapters/ sections
- Comment: Collaborative team structure for a project's optimization
- Shared Risk/ responsibility/ liability
Guarantee Max Price
(GMP) - CORRECT ANSWER - also known as GMP, not-to-exceed price, NTE, or NTX)
- contract is a cost-type contract - also known as an open-book contract
- GC is compensated for actual costs incurred plus a fixed fee subject to a ceiling price.
- GC is responsible for cost overruns, unless the GMP has been increased via formal change order (only as a result of additional scope from the client, not price overruns, errors, or omissions).
- Savings resulting from cost underruns are returned to the owner.
- Different from a fixed-price contract (also known as stipulated price contract or lump-sum contract) where cost savings are typically retained by the contractor and essentially become additional profits.[
Project Management Plan
(PMP) - CORRECT ANSWER - CM responsible (Cost/ Time)
- CM leads defining project req.
- Outlines strategies for project
- Updates throughout project cycle
- Need owners approval (PMP) before proceed
- Typ. Est. scope, budget, schedule, environmental conditions, basic system used.
- Scope defined typ. - CD's/ Narrative/ Performance Parameters/ Budget
Design Phase - CORRECT ANSWER - Design professional has total responsibility for design implementation execution
- Owner/ CM decision - making responsibilities
Design Phase
5 C's of Design Doc' Review - CORRECT ANSWER 1. Clarity
2. Completeness
3. Constructability
4. Compliance (w/ owner's program)
5. Coordination (Among Trades/ GC)
Constructability Review
(CM Responsibility Typ.) - CORRECT ANSWER Focus
- Phasing
- Logistics
- Avoidance cnstr. conflicts
CM Meetings - CORRECT ANSWER - Min. Conducted End Design Phase
- Team Review prior to Bid Package Release
- Review Budget
- Master schedule/ milestones
- Resolutions any discussions review process
What are recommended subjects for each project meeting? - CORRECT ANSWER 1. Review of the project budget & current estimate of what construction cost the dwgs & specs currently represent, making allowances & assumptions for detail not shown or know.
2. Review of the Master Schedule, Milestone Schedule, & any additional detailed sub schedules for the project
3. Discussion and resolution of any issues which have become evident through previous review of docs/ team discussion & have not been addressed
What stages does the CM prepare estimate during the Design Process? - CORRECT ANSWER - Completion of (SD) Schematic Design.
- Completion of Preliminary design
- In progress final design (60-90%) complete
- Completion of Bid docs (issued Addenda's)
Basis-of-estimate - CORRECT ANSWER - Narrative doc that accompanies the budget
- Specific docs used estimates
- Dates
- Assumptions/ Clarifications/ Exclusions
- Documents Risk & Opportunities
(CM- at-Risk GC)
Common Phase to become part of project team - CORRECT ANSWER - Final design doc. estimates phase
Certified Value Specialist
(CVS) - CORRECT ANSWER - Brought in typ. value eng/ analysis stage
- If conducted before design data developed typ. reports too conceptual to be of value
- If delayed, re-design typ.
Schedule of Values
(SOV) - CORRECT ANSWER - (2) Major methods
1. % of completion of scheduled activities method determines GC progress Payment
- CM/ GC determines SOV each activity
2. % of completion by division determines GC progress Payment SOV w/ each work element
Independent Cost Estimate (ICE) - CORRECT ANSWER - Used w/ CO
- Often required by legislation of company policies
(2) Types of pricing
(CO) Change Orders - CORRECT ANSWER 1. Forward Pricing
- Done Prior to the start of/ or during the work
- estimate itemizes prod. rates/ crews/ hours/ equip.
- Materials -listed/ quotes/ prices list. (Backups)
2. Post pricing
- Pricing done during or after complete
- Represents actual cost/ labor/ materials/ equip.
What is forward pricing? - CORRECT ANSWER - estimate itemizes prod. rates/ crews/ hours/ equip.
- Done Prior to the start of/ or during the work
- Materials -listed/ quotes/ prices list. (Backups)
What is the measured mile approach? - CORRECT ANSWER - Relates to CO
- Actual cost of identical work performed.
Triple Constraints of Project Management - CORRECT ANSWER - Known as the Iron Triangle.
- Increase or decrease one side/ alters the legth of the others.
- CM involves managing all (3) parameters & maintain proper balance
TIME > COST > SCOPE
Float - CORRECT ANSWER - CM Typ. recommends float to the schedule
- Total float = schedule flexibility
- Core to the critical path method
- Subsequent task (Free Float)
- Project Completion Date (Total Float)
Quality Management Plan (QMP) - CORRECT ANSWER - Quality Assurance
- CM Encourages Owner to develop QMP
- CM at-Risk must develop QMP.
Safety Management - Who is typically in control of the site? - CORRECT ANSWER at- Risk CM
Agency CM are not
Typical Agency CM agreement - req. CM to MONITOR GC activities related to CD's
Anything extra would be separate Contract w/ CM and owner for additional safety services
ONIP - Owner Controlled Insurance Programs - CORRECT ANSWER Used on large projects typ.
More stringent safety controls
Typ. project over $100 million of construction value
Safety management - Pre-Design Phase - CORRECT ANSWER Owner has responsibility for taking action on any issues regarding hazard or safety responsibilities between CM/ GC.
If Owner does not have strong safety commitment. CM MAY NOT want to take contractual safety role due to RISK.
Safety Mngmt - CM hired for safety mngmt - CORRECT ANSWER Separate contract w/ owner required
Clearly defined scope/ compensation
CM Liability projection cost must be covered
- Fee for safety mngmt services
- Fee for additional insurance coverage
Safety Mngmt - Project organization - CORRECT ANSWER Early member project team
CM's safety coordinator
Input for safety perspective: cnstr mngmt plan, Project Procedures manuals, Pre-Construction dwgs, constructability reviews and mngmt info system.
Safety mngnt - Staffing Considerations - CORRECT ANSWER Fed, state, county, local safety regs
BOCA & NFPA codes
ANSI standards
OSHA
EPA/ DER (Distributed energy resource) environmental regs
Hazard communication requirements
Construction operations, specs & dwgs
Labor relations
Some project may req - Certified Safety Professional (CSP), Cnst Health & Safety Technician (CHST), Certified Industrial Hygienist (CIH) for SPECIAL COND.
Asbestos, hazardous waste removal.
Safety Mngt - Design Phase - CORRECT ANSWER Typ term during this phase - "Design for construction safety"
CM Safety coordinator - at this phase provide input for CD's/ specs related to safety
Goal is to clearly define safety in this phase and not leave to awarded bidder
All guidelines provided are at a MIN. REQ. to GC
Indemnification clauses/ insurance req. should be reviewed by the owner's legal counsel at this phase to implement into GC CD's. - Intent protect Owner & CM
Construction mngmt - Contract Req. & Drafting Guidelines - CORRECT ANSWER CD's should be structured to ensure GC & Subs are responsible for safety
Submittals
- safety programs
- team info
- site specifics
- high risk plan
Responsibilities & Req.
- CD's should CLEARLY state solely respon.
- Compliance w/ all regulations relating to site
- Safety representative
Safety Representative - CORRECT ANSWER Has STOP WORK authority
Construction Mngmt. organization should provide training to all employees in
a. federal guidelines for the purchase of professional service
b. insurance fraud
c. ethics and standards of practiced.
d. AIA design standards for types of buildings done - CORRECT ANSWER a. federal guidelines for the purchase of professional service
The ethical practice of construction management focuses primarily on the
a. interaction between the GC, CM and owner
b. interaction between the Design, CM and owner
c. relationship between the CM and clients
d. conduct of the CM in the performance of construction work - CORRECT ANSWER d. conduct of the CM in the performance of construction work
The role of the CM changes from Agent for the owner to CM At-Risk when
a. The CM assigns risk to contractors performance the work and accepts the responsibility for managing the construction
b. the CM accepts the performance of construction for a fixed price
c. Upon receipt of an Executed Contract Agreement to perform CM services
d. The Construction Phase begins - CORRECT ANSWER b. the CM accepts the performance of construction for a fixed price
As an agency CM, the CM bears a limited financial responsibility equal to the
a. cost of direct labor assigned to the project
b. financial risk the owner has for the project
c. liability insurance limits provided by the CM firm
d. the scope of services and the fee agreed upon between the owner and the CM - CORRECT ANSWER d. the scope of services and the fee agreed upon between the owner and the CM
Which of the following method of compensation for CM services is inconsistent with the agency CM's fiduciary relationship to its owners?
a. Fixed fee
b. Professional fee plus expenses
c. Multiple of direct personal expenses
d. percentage of construction costs - CORRECT ANSWER b. Professional fee plus expenses
Which of the following constitutes unethical behavior for a construction management firm during the administration of the project?
a. Assigning unqualified staff
b. Overstating the firm's credentials
c. Offering persons that you don't have
d. Selling services that you do not plan to deliver - CORRECT ANSWER d. Selling services that you do not plan to deliver
Which of the following is a contract stipulation that would have the potential for conflict of interest between the owner and an Agency CM?
a. Shared savings between the owner and designer for estimating project cost and actual cost of construction.
b. The CM provides project accounting services.
c. Payment by the CM to the owner's designer for additional inspection due to deficient work.
d. Offer a low fee and renegotiate with the client once selected as the CM. - CORRECT ANSWER a. Shared savings between the owner and designer for estimating project cost and actual cost of construction.
The standard of care to which a CM is likely to be held is:
a. that of a general contractor working on a similarly priced project
b. that of a licensed architect performing construction administration services
c. that of other CMs similarly situated by experience, profession and trades
d. that of a licensed contractor managing sub-contractors on a similar project - CORRECT ANSWER c. that of other CMs similarly situated by experience, profession and trades
A CM's response to an owner's request for qualifications and/or proposal can be incorporated into the agreement between the owner and CM to ________________________.
a. establish performance of the design services
b. assign owner staff to fulfill project requirements for service
c. establish the ability of CM's firm to cooperate with the designer
d. identify the scope and quality of service the CM is to provide - CORRECT ANSWER d. identify the scope and quality of service the CM is to provide
The Code of Professional Ethics of the Construction Manager states that the CM shall:
a. Continue project when conflicts of interest arise upon incorporation of the issue in the PMP.
b. accept assignments for which I am qualified by my education training professional experience and technical competence
c. Furnish services in a manner consistent with the established and accepted standards of my company
d. Seek to avoid completion with my professional colleagues - CORRECT ANSWER b. accept assignments for which I am qualified by my education training professional experience and technical competence
Which of the following is the identification of all requirement of a project or contract?
a. Basic Services
b. Scope
c. Record Drawings
d. Budget - CORRECT ANSWER b. Scope
A contractor's proposed schedule of values that provides for inequitably excessive payments at the beginning of the project is typically known as_________________.
a. front-end loading
b. front end apportionment
c. front-ended work breakdown structure
d. front-end distribution - CORRECT ANSWER a. front-end loading
What is front-end loading? - CORRECT ANSWER A bid is "front-loaded" if the total price is allocated in a manner where elements of the work to be performed, and paid for, early in a project bear a disproportionate amount of cost, overhead and profit.
A front-loaded contract poses financial dangers for a project owner
Front End Loading (FEL) is the process by which an organization develops a detailed definition of a capital project to meet business objectives.
Included during this front end loading are other best practices such as contracting strategies, value improvement practices, constructability, planning for start-up and other.
What is breakdown structure? - CORRECT ANSWER A work breakdown structure (WBS) is a key project deliverable that organizes the team's work into manageable sections.
The main purpose of a WBS is to reduce complicated activities to a collection of tasks. This is important for the project manager because she can oversee the tasks more effectively than the complex activities. Tasks must be measurable and independent, with clearly defined limits.
What is the most important thing the PM can do for GC to make the project successful?
a. Provide contract language that motivates the contractor to stay on schedule
b. Provide a highly effective safety program
c. Suggest value engineering solutions to lower contractor costs
d. Create an environment were the contractors can be productive - CORRECT ANSWER d. Create an environment were the contractors can be productive.
A CM that has a Program Management (PM) agency contract generally acts in who's interest?
a. CM
b. Surety's
c. GC's
d. Owner's - CORRECT ANSWER d. Owner's
A firm provides design, design-build, and a full range of construction management services. On an Agency CM project that was completed 24 months ago, the connection details between the curtain wall and structural frame fails on 60% of the glazing system. After assessing responsibility, the mostly likely outcome by the court will find that the _______________________.
a. owner and designer are responsible for the cost of repairs
b. design experience of the firm relevant in determining issues of professional negligence and financial responsibility for damages
c. steel erection contractor is responsible for the failure
d. failure is the responsibility of the designer and the responsibility of the designer's errors and omissions insurance provider to pay - CORRECT ANSWER d. failure is the responsibility of the designer and the responsibility of the designer's errors and omissions insurance provider to pay
A constructability review focuses on ________________.
a. the sequence, means and methods of construction
b. the cost effectiveness of the construction documents
c. the clarity, completeness and consistency of the construction documents.
d. the ability to construct the project with the budget and schedule - CORRECT ANSWER c. the clarity, completeness and consistency of the construction documents.
The project communication matrix is developed to ________.
a. ensure confidentiality of project communications
b. document all project communications
c. identify how communications should be routed
d. establish specific response times to issue raised - CORRECT ANSWER c. identify how communications should be routed
In deriving a GC's experience modification rate (EMR), which one of the following is most important.
a. Severity of past accidents
b. Type of past accidents
c. Frequency of past accidents
d. Cost of past accidents - CORRECT ANSWER d. Cost of past accidents
Who prepares the PMP?
a. Architect
b. Owner
c. Contractor
d. CM - CORRECT ANSWER d. CM construction manager prepares the initial narrative plan at Pre-Design phase.
What does PMP Project Mngmt Plan typically establish? - CORRECT ANSWER Project scope, budget, schedule, environmental conditions and basic systems used, methods and procedures.
In the pre-design phase the CM is primarily responsible for what documentation? - CORRECT ANSWER Overall cost and time
The major advantage to the owner of using multiple prime contracts is savings on the______________________.
a. escalation cost due to late procurement
b. markup on the work that otherwise would be subcontracted
c. time to complete the project
d. direct material, equipment and labor cost. - CORRECT ANSWER c. time to complete the project
The total dollar amount allocated by the owner for a project/ program is known as the ___________.
a. Budget
b. Estimate
c. Schedule of values
d. Budget estimate - CORRECT ANSWER a. Budget
The standard of care governing CM professional practice is based on _________________
a. laws that may differ from state to state
b. laws that are uniform nationwide
c. what other reasonably competent CM's would do under similar circumstances
d. specific performance outlined in the CMAA Standards of Practice - CORRECT ANSWER d. specific performance outlined in the CMAA Standards of Practice
When doing force account work, the work performed by the contractor should be verified daily by the ____.
a. contractors and the architect/ engineer
b. CM and the owner
c. CM and the architect/ engineer
d. CM and the contractor(s) - CORRECT ANSWER d. CM and the contractor(s)
Which of the following are activities of the Project
Pre-Design Phase?
a. The project team collaborates on developing the design
b. The owner assembles and organizes a project team of design and construction management professionals
c. The construction manager develops a detailed cost estimate
d. The architect develops the program and specifications of each building system - CORRECT ANSWER b. The owner assembles and organizes a project team of design and construction management professionals
With this project delivery system, the CM assists the advises the owner prior to construction, guarantees a maximum price for construction, and manages subcontracts during construction.
a. CM at-risk
b. Design-build
c. Multiple prime
d. Design-bid-build - CORRECT ANSWER a. CM at-risk
What is the most important trait of a successful Project Manger?
a. A good contract administrator
b. A forgiving attitude
c. A strong communicator
d. A strong safety background - CORRECT ANSWER c. A strong communicator
The construction management plan outlines:
a. scope of the project and budget
b. project scope, milestone schedule, budget, environmental conditions, strategy for contracting and procurement
c. overall status and forecast of the project
d. the responsibility of the project team, levels of authority, and methods and procedures for project execution - CORRECT ANSWER b. project scope, milestone schedule, budget, environmental conditions, strategy for contracting and procurement
What is an important action you can take to limit your project liability?
a. Make a note of safety violations, notify contractor/ owner in writing and ask for it to be corrected
b. Dictate procedures to the contractor to ensure safety
c. Order work stopped and determine a solution when safety violations are identified
d.Report incidents to OSHA - CORRECT ANSWER a. Make a note of safety violations, notify contractor/ owner in writing and ask for it to be corrected
Value engineering studies are used for the purpose of __________ in project designs.
a. optimizing value
b. determining value
c. checking efficiency
d. checking value - CORRECT ANSWER a. optimizing value
The goal during the design phase is to complete a set of documents defining a project that can be bid in the local marketplace within the owners requirements for_____.
a. cost of occupancy, and scope
b. scope, quality and functionality
c. budget, scope and schedule
d. time, cost and design standards - CORRECT ANSWER c. budget, scope and schedule
When a CM is acting as the owner's agent, the CM has a responsibility to _______________.
a. work under a special consultant agreement
b. act as a fiduciary to the owner
c. act as an independent contractor
d. take care of CM's interest, prior to owner's interests - CORRECT ANSWER b. act as a fiduciary to the owner
Which of the following contract terms attempts to shift the risk, or burden of risk, from one party to another, in a contract?
a. Exculpatory clauses
b. Liquidated damages
c. General conditions
d. Changed conditions - CORRECT ANSWER a. Exculpatory clauses
What is Exculpatory clauses? - CORRECT ANSWER Part of an agreement which relieves one party from liability. It is a provision in a contract which is intended to protect one party from being sued for their wrongdoing or negligence
What is Liquidated damages? - CORRECT ANSWER Liquidated damages are an amount of money that contracting parties agree on as the amount of damages one of them can recover if the party breaches the contract. Usually they apply to some specific type of breach of the contract, not any breach of any promise anywhere in the contract.
What is Changed Conditions? - CORRECT ANSWER Part of the Initial Design Meeting. Typically w/ designer for additional compensation associated w/ performance of services.
The project delivery system that allows the option to fast-track a project is _______________?
a. Construction Management
b. Design-Bid-Build
c. Traditional
d. Design-Build - CORRECT ANSWER b. Design-Bid-Build
What is it called when an owner occupies a project before it is 100% complete?
a. Beneficial occupancy
b. Substantial completion
c. Substantial occupancy
d. Early move-in - CORRECT ANSWER b. Beneficial occupancy
What is Beneficial occupancy? - CORRECT ANSWER Stage of construction of a building or facility, before final completion, at which its owner can occupy it for the purpose it was constructed.
You are representing a regional water wholesaler on a tunnel/ pipeline project under a CM-for-fee arrangement. The owner intends to perform the project by holding separate contracts with a design firm and a contractor to be selected from a list of pre-qualified bidders. As the owner's agent, in order to provide competent plans and specifications and avoid (or at the least) minimize the owner's exposure to preventable claims, one should recommend to the owner that they _________________________.
a. involve construction
b. implement a project labor agreement
c. incorporate an alternative dispute resolution (ADR) clause into the contract documents
d. hire a local GC to perform a pre-bid constructibility review - CORRECT ANSWER c. incorporate an alternative dispute resolution (ADR) clause into the contract documents
A contingency amount of +15% would be most appropriate at which phase of a project?
a. Pre-design
b. Procurement
c. Construction
d. Design - CORRECT ANSWER d. Design
Which of the following tools is used to manage all or partial cost of the planning, design, and construction associated with the project budget?
a. Cost management plan
b. Schedule of values
c. Forward pricing
d. Cost estimate - CORRECT ANSWER d. Cost estimate
What type of estimate is performed regularly during the construction phase?
a. detailed
b. progress
c. forecast
d. parametric - CORRECT ANSWER c. forecast
What is forward pricing? - CORRECT ANSWER Pricing done PRIOR to the Start of or during WORK.
The ESTIMATE of costs should itemize PRODUCTION RATES, CREW compositions, HOURS and EQUIPMENT. MATERIAL cost should be listed and substantiated with quotes and price list.
Which of the following would be considered an impact cost when estimating change order?
a. Increased material quantities
b. changes in the sequence of work
c. additional laborers for added work
d. addition of a new subcontractor - CORRECT ANSWER b. changes in the sequence of work
A derived performance model that can be generated from a cost loaded schedule is a __________________.
a. conductibility curve
b. profitability curve
c. cash flow curve
d. earned value curve - CORRECT ANSWER c. cash flow curve (Verify)
Which of the following project cost can be considered as a direct project cost?
a. structural steel
b. insurance
c. payroll clerk
d. job trailer - CORRECT ANSWER d. job trailer [Show Less]