CM 4221 Midterm Questions with Correct Answers (Grade A+)
Question 1: Which of the following is not a method used to procure a constructor? Select one:
a. None of these
b. Best value
c. Job order contracting
d. Low bid
e. Qualifications-based selection
Answer: C. Job order contracting
Question 2: Which management activity listed below is where the project manager is tasked with
coordinating subcontractors, planning sequences of construction, and developing effective
communication? Select one:
a. None of these
b. Controlling
c. Organizing
d. Scoping
e. Planning
Answer: C. organizing
Question 3: This testing process helps to reduce the risk that major project systems (HVAC, electrical,
etc) will work according to the project objectives, plans, and specifications. Select one:
a. Commissioning
b. As-builts
c. None of these
d. Notice to Proceed
e. Constructability review
Answer: A. commisioning
Question 4: Vertical building projects are first designed by an architect and then engineered by design
engineers while horizontal infrastructure projects are typically designed and engineered by design
engineers True False
Answer: True
Question 5: Based on laws and regulations, privately financed projects must utilize competitive bidding
to procure a construction firm. Select one: True False
Answer: False
Page 1
,Question 6: An agency construction manager firm is contracted with the Owner, lead designer, and
construction firm on a project. Select one: True False
Answer: false
Question 7: A program manager is the same as a project manager. Select one: True False
Answer: false
Question 8: During the early stages of the engineering and design phase of a project, the Owner
typically procures the lead design firm using qualifications-based selection. Select one: True False
Answer: true
Question 9: What is the definition of a project delivery system? Select one:
a. The process by which the feasibility of a project is determined
b. None of these
c. The contractual relationships that exist between project team members
d. The method of procuring a constructor to build a project
e. The techniques and processes used for constructing a project
Answer: C. The contractual relationships that exist between project team members
Question 10: Which of the following delivery methods is the most used method in construction today?
Select one:
a. Design-Bid-Build
b. Design-Build
c. Construction Manager at-Risk
d. Multi-prime Contracting
e. None of these
Answer: A. Design-Bid-Build
Question 11: The quick ratio is calculated by adding all cash and receivables and dividing that value by
the total current liabilities for a company. Select one: True False
Answer: True
Question 12: Current liabilities can be converted into cash within one year to pay off debt Select one:
True False
Answer: False
Page 2
, Question 13: The straight line method of depreciation is a series of depreciation methods that calculates
more depreciation in the early years of an asset and less depreciation in later years Select one: True
False
Answer: False
Question 14: The only revenue recognition method acceptable for financial statement use for
construction companies is: Select one:
a. Straight accrual
b. Complete contract
c. Percentage of completion
d. Cash
e. None of these
Answer: C. Percentage of completion
Question 15: A firm's working capital will increase when: Select one:
a. The firm purchases equipment
b. The firm sells equipment
c. The firm pays off long term debt
d. None of these
e. The firm loses money on a job
Answer: B. The firm sells equipment
Question 16: What is retainage? Select one:
a. None of these
b. An amount of money that a contractor charges for overhead and profit to the Owner
c. A contractor fee used to retain a contractor for as long as the Owner needs work performed
d. An amount of money that an Owner provides to a contractor at the beginning of the project to help finance
the initial work
e. An amount of money that the Owner holds from every pay app to ensure the contractor continues the work as
business as usual
Answer: E. An amount of money that the Owner holds from every pay app to ensure the contractor
continues the work as business as usual
Page 3
Question 1: Which of the following is not a method used to procure a constructor? Select one:
a. None of these
b. Best value
c. Job order contracting
d. Low bid
e. Qualifications-based selection
Answer: C. Job order contracting
Question 2: Which management activity listed below is where the project manager is tasked with
coordinating subcontractors, planning sequences of construction, and developing effective
communication? Select one:
a. None of these
b. Controlling
c. Organizing
d. Scoping
e. Planning
Answer: C. organizing
Question 3: This testing process helps to reduce the risk that major project systems (HVAC, electrical,
etc) will work according to the project objectives, plans, and specifications. Select one:
a. Commissioning
b. As-builts
c. None of these
d. Notice to Proceed
e. Constructability review
Answer: A. commisioning
Question 4: Vertical building projects are first designed by an architect and then engineered by design
engineers while horizontal infrastructure projects are typically designed and engineered by design
engineers True False
Answer: True
Question 5: Based on laws and regulations, privately financed projects must utilize competitive bidding
to procure a construction firm. Select one: True False
Answer: False
Page 1
,Question 6: An agency construction manager firm is contracted with the Owner, lead designer, and
construction firm on a project. Select one: True False
Answer: false
Question 7: A program manager is the same as a project manager. Select one: True False
Answer: false
Question 8: During the early stages of the engineering and design phase of a project, the Owner
typically procures the lead design firm using qualifications-based selection. Select one: True False
Answer: true
Question 9: What is the definition of a project delivery system? Select one:
a. The process by which the feasibility of a project is determined
b. None of these
c. The contractual relationships that exist between project team members
d. The method of procuring a constructor to build a project
e. The techniques and processes used for constructing a project
Answer: C. The contractual relationships that exist between project team members
Question 10: Which of the following delivery methods is the most used method in construction today?
Select one:
a. Design-Bid-Build
b. Design-Build
c. Construction Manager at-Risk
d. Multi-prime Contracting
e. None of these
Answer: A. Design-Bid-Build
Question 11: The quick ratio is calculated by adding all cash and receivables and dividing that value by
the total current liabilities for a company. Select one: True False
Answer: True
Question 12: Current liabilities can be converted into cash within one year to pay off debt Select one:
True False
Answer: False
Page 2
, Question 13: The straight line method of depreciation is a series of depreciation methods that calculates
more depreciation in the early years of an asset and less depreciation in later years Select one: True
False
Answer: False
Question 14: The only revenue recognition method acceptable for financial statement use for
construction companies is: Select one:
a. Straight accrual
b. Complete contract
c. Percentage of completion
d. Cash
e. None of these
Answer: C. Percentage of completion
Question 15: A firm's working capital will increase when: Select one:
a. The firm purchases equipment
b. The firm sells equipment
c. The firm pays off long term debt
d. None of these
e. The firm loses money on a job
Answer: B. The firm sells equipment
Question 16: What is retainage? Select one:
a. None of these
b. An amount of money that a contractor charges for overhead and profit to the Owner
c. A contractor fee used to retain a contractor for as long as the Owner needs work performed
d. An amount of money that an Owner provides to a contractor at the beginning of the project to help finance
the initial work
e. An amount of money that the Owner holds from every pay app to ensure the contractor continues the work as
business as usual
Answer: E. An amount of money that the Owner holds from every pay app to ensure the contractor
continues the work as business as usual
Page 3
