CERTIFICATION EXAM REVIEW 300 REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS WITH RATIONALES |CONSTRUCTION MANAGER-IN-
TRAINING GRADED A+ (MOST RECENT!!)
1. Which of the following methods of compensation for CM services is
inconsistent with the CM's agency relationship to its owner?
A) Fixed fee
B) Percentage of construction costs
C) Multiple of direct personnel expenses
D) Professional fee plus expenses
Correct Answer: B
Rationale: An agency CM acts as the owner's representative and fiduciary. A
percentage of construction costs creates a conflict of interest because the CM's
compensation increases with higher construction costs, which is inconsistent with
the agency relationship where the CM should minimize costs for the owner.
2. The most common basis of CM liability to a trade contractor with whom the CM
has no contractual relationship is negligent performance of the CM's:
A) Cost estimating
B) Inspection of work
C) Project coordination and scheduling
D) All of the above
Correct Answer: C
Rationale: When a CM has no direct contract with a trade contractor, liability
typically arises from negligent coordination and scheduling that causes delays or
impacts the trade contractor's work. The CM's coordination role affects all
contractors on the project.
3. Most publicly funded projects require which of the following inclusions as part
of their contract obligations?
A) BIM model
B) Performance bond
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,C) Mock-up model
D) LEED Gold
Correct Answer: B
Rationale: Public projects almost always require a performance bond (and
payment bond) to protect taxpayer funds. Performance bonds guarantee that the
contractor will complete the work according to the contract.
4. A Public-Private Partnership (P3) project is usually considered by a public entity
for which of the following primary reasons:
A) Better design
B) Incorporate environmental requirements
C) Lack of funding
D) Meet sustainability goals
Correct Answer: C
Rationale: P3 projects are primarily used when the public entity lacks the upfront
capital to fund a large infrastructure project. Private partners provide financing in
exchange for long-term revenue or operational rights.
5. What is the main advantage of private sector firms in managing their
procurement process?
A) Price
B) Contract terms
C) Bonding
D) Flexibility
Correct Answer: D
Rationale: Private firms have greater flexibility in procurement because they are
not bound by the same public bidding laws (e.g., competitive sealed bidding
requirements). They can negotiate terms, select based on qualifications, and
adapt to project needs more quickly.
6. What is one of the primary owner benefits of program management?
A) Contractor selection
B) Reduced project duration
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,C) Integrated oversight of multiple projects
D) Lower material costs
Correct Answer: C
Rationale: Program management provides coordinated planning, budgeting, and
execution across a portfolio of related projects. This integrated oversight ensures
alignment with the owner's strategic goals, better resource allocation, and
consistent quality across all projects.
7. Which contract type places the greatest risk on the contractor?
A) Cost-plus-fixed-fee
B) Guaranteed maximum price (GMP)
C) Firm fixed-price (lump sum)
D) Time-and-materials
Correct Answer: C
Rationale: In a firm fixed-price contract, the contractor bears all cost overrun risk.
The contractor must absorb any additional costs beyond the agreed price.
8. A "changed condition" clause in a construction contract allows the contractor
to:
A) Terminate the contract at will
B) Seek equitable adjustment for unforeseen site conditions
C) Change the project scope without owner approval
D) Increase the profit margin unilaterally
Correct Answer: B
Rationale: Changed conditions (differing site conditions) clauses allow the
contractor to seek additional time or compensation if subsurface or hidden
conditions differ materially from those indicated in the contract documents.
9. The doctrine of "substantial performance" means:
A) The contractor has fully performed all contract obligations
B) The contractor has completed all work except for minor defects
C) The owner must accept the project and pay the contract price minus damages
for defects
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, D) Both B and C
Correct Answer: D
Rationale: Substantial performance allows the contractor to recover the contract
price (minus the cost to remedy minor defects) even if work is not 100% perfect,
provided the project is fit for its intended use.
10. Which of the following is NOT a standard component of a construction
contract?
A) Scope of work
B) Schedule of values
C) Stock market performance projections
D) Payment terms
Correct Answer: C
Rationale: Stock market performance has no relevance to construction contracts.
The scope, schedule of values, and payment terms are essential components.
11. A construction lien (mechanic's lien) is a legal claim against:
A) The contractor's equipment
B) The property where the work was performed
C) The architect's professional license
D) The surety bond
Correct Answer: B
Rationale: A mechanic's lien is a security interest in the real property to ensure
payment for labor or materials provided for improvements to that property.
12. The "Spearin Doctrine" holds that:
A) The contractor is responsible for all means and methods
B) The owner impliedly warrants the adequacy of the contract plans and
specifications
C) The architect is liable for design errors
D) Subcontractors are liable to the owner directly
Correct Answer: B
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