Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
1)
1)
When does a project manager need to approve a bill for materials?
A)
When the cost of the bill exceeds the cost of the purchase order
B)
When the purchase order lacks costs
C)
When the quantities on the bill are less that the quantities on the purchase order
D)
A and B
Answer:
D
A)
B)
C)
D)
2)
2)
Which of the following are important baselines for monitoring and controlling construction
project?
A)
Project’s schedule
B)
Project’s punch list
C)
Project’s budget
D)
A and C
Answer:
D
A)
B)
C)
D)
3)
3)
Which of the following monitoring and controlling process is not tracked on the committed cost
worksheet from Chapter 4?
A)
Collect the data
B)
Establish a baseline
C)
Assess the data
D)
Corrective action
Answer:
D
A)
B)
C)
D)
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4)
4)
Which of the following are data that can be used to measure a project’s performance?
A)
Time cards
B)
Supplier invoices
C)
Field reports
D)
All of the above
Answer:
D
A)
B)
C)
D)
5)
5)
Which of the following costs are difficult to control?
A)
B)
C)
D)
Answer:
B
A)
B)
C)
D)
6)
6)
When possible, other costs should be handled the same as which of the following costs?
A)
B)
C)
D)
Answer:
C
A)
B)
C)
D)
7)
7)
What is the ideal target for the scheduled performance index?
A)
Less than 1
B)
Equal to 1
C)
Greater than 1
D)
Within one standard deviation of the expected values
Answer:
D
A)
B)
C)
D)
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8)
8)
Which of the following would indicate that a project is over budget?
A)
The scheduled performance index is less than 1.
B)
The cost performance index is less than 1.
C)
The cost performance index is equal to 1.
D)
The cost performance index is greater than 1.
Answer:
B
A)
B)
C)
D)
9)
9)
Which of the following would indicate that a project is ahead of schedule?
A)
The scheduled performance index is less than 1.
B)
The scheduled performance index is greater than 1.
C)
The scheduled performance index is equal to 1.
D)
The scheduled performance index is equal to 100.
Answer:
B
A)
B)
C)
D)
10)
10)
When should costs estimates be prepared on a design–build project?
A)
After conceptual design
B)
When the construction documents are almost complete
C)
After design development
D)
All of the above
Answer:
D
A)
B)
C)
D)
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
11)
What should happen when budgeting and estimating errors are found to maintain a realistic budget?
Answer:
When budgeting and estimating errors are found, an internal change order should be issued to move
money from the contingency to the category in which the error occurred, to maintain a realistic budget
for the project.
12)
Instead of using the company’s cost codes, how may costs be grouped during the design process?
Answer:
During the design process, rather than using the company’s costs codes,(such as those in Figures 2–6
and 2–7 in the text) the budget is often grouped by building systems, as is done in the UNIFORMAT
classification system.
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13)
What does a persistent pattern of stopgap purchase orders indicate?
Answer:
A persistent pattern of stopgap purchase orders is a sign of inadequate planning, which is a major
enemy to good cost controls.
14)
What are the steps in a project closeout audit?
Answer:
First, the project costing data must be validated. This validation includes looking at the cost data in
detail and verifying that the costs were charged to the appropriate project and category and that all
costs are included. Second, management must look at those areas of the project where they performed
better than expected and determine what factors led to their success. Third, management must look at
those areas of the project where they encountered problems. When identifying the problems,
management should identify the source of the problem.
15)
What is a cost–loaded schedule?
Answer:
A cost–loaded schedule is a schedule that shows not only the time frame when a task is to be
completed but also the cost of the task so that the cost of the work completed each week or month can
be estimated.
16)
How is data assessed in the monitoring and controlling process?
Answer:
Assessing the data includes comparing the data against the baseline, identifying any variances (e.g.,
costs that are higher or lower than expected), and then identifying the underlying causes of the
variances.
17)
What basis may be used to bill equipment to a construction job?
Answer:
Equipment may be billed to a job based on the number of hours spent working on the job or the
number of days that the equipment is present at the job.
18)
What is a good way to minimize the impact of unexpected conditions?
Answer:
Unexpected conditions do arise, but with a careful review of the bid documents and careful planning,
their impact can be minimized.
19)
What should be done before ordering materials?
Answer:
Prior to making any material purchases, employees should obtain a purchase order for the purchase.
20)
Why must subcontractor bills be reviewed by the project manager before processing payment?
Answer:
Bills from subcontractors must be reviewed by the project manager prior to processing the payment
because most subcontracts require progress payments, which are based on the amount of work that is
complete. The project manager must make the final decision as to whether the bill from the
subcontractor is fair.
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Answer Key
Testname: C7
1)
D
2)
D
3)
D
4)
D
5)
B
6)
C
7)
D
8)
B
9)
B
10)
D
11)
When budgeting and estimating errors are found, an internal change order should be issued to move money from the
contingency to the category in which the error occurred, to maintain a realistic budget for the project.
12)
During the design process, rather than using the company’s costs codes,(such as those in Figures 2–6 and 2–7 in the
text) the budget is often grouped by building systems, as is done in the UNIFORMAT classification system.
13)
A persistent pattern of stopgap purchase orders is a sign of inadequate planning, which is a major enemy to good cost
controls.
14)
First, the project costing data must be validated. This validation includes looking at the cost data in detail and
verifying that the costs were charged to the appropriate project and category and that all costs are included. Second,
management must look at those areas of the project where they performed better than expected and determine what
factors led to their success. Third, management must look at those areas of the project where they encountered
problems. When identifying the problems, management should identify the source of the problem.
15)
A cost–loaded schedule is a schedule that shows not only the time frame when a task is to be completed but also the
cost of the task so that the cost of the work completed each week or month can be estimated.
16)
Assessing the data includes comparing the data against the baseline, identifying any variances (e.g., costs that are
higher or lower than expected), and then identifying the underlying causes of the variances.
17)
Equipment may be billed to a job based on the number of hours spent working on the job or the number of days that
the equipment is present at the job.
18)
Unexpected conditions do arise, but with a careful review of the bid documents and careful planning, their impact
can be minimized.
19)
Prior to making any material purchases, employees should obtain a purchase order for the purchase.
20)
Bills from subcontractors must be reviewed by the project manager prior to processing the payment because most
subcontracts require progress payments, which are based on the amount of work that is complete. The project
manager must make the final decision as to whether the bill from the subcontractor is fair.
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