CM 4221 FINAL STUDY GUIDE
organizing - Answer -Which management activity is where the project manager is
tasked with coordinating subcontractors, planning sequences of construction, and
developing effective communication?
False - Answer -T/F: Based on laws and regulations, privately financed projects must
utilize competitive bidding to procure a construction firm.
commissioning - Answer -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.
False - Answer -T/F: A feasibility study is used early in the construction phase of a
project to help determine the means and methods of construction
50 Divisions - Answer -How many CSI divisions does the post-2004 master format
have?
True - Answer -T/F: Low bid is a procurement procedure used to select a contractor
based solely on total construction cost.
Best value - Answer -This procurement procedure utilizes cost and technical factors to
select a construction firm for a project.
False - Answer -T/F: An agency construction manager firm is contracted with the
Owner, lead designer, and construction firm on a project.
Design-Bid-Build - Answer -Which delivery method is the most used method in
construction today?
True - Answer -T/F: one major advantage of multi-prime contracting is the ease in
phasing a project.
percent of completion - Answer -The only revenue recognition method acceptable for
financial statement use for construction companies is:
True - Answer -T/F: The quick ratio is calculated by adding all cash and receivables
and dividing that value by the total current liabilities for a company.
True - Answer -T/F: For a company's annual balance sheet, the total amount of assets
must always equal the total amount of liabilities plus the total amount of equity
Construction Loan - Answer -What is an example of a long term debt?
, False - Answer -T/F: 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
Borrow Money - Answer -What item is considered a cash inflow for a construction
company?
False - Answer -T/F: Overbilling occurs when a contractor bills an Owner for
unapproved change orders
The contractor allocates more profit and fees to those work items that are completed
early in the project, which increases the amount of billing at the beginning of the project
- Answer -What is meant by "front-loaded costs" on a project?
True - Answer -T/F: A cash flow schematic diagram is used to forecast the maximum
amount of working capital a contractor will need to have to finance the construction work
True - Answer -T/F: The G702 payment application and G703 continuation sheet are
common documents used in construction for requesting payment from an Owner for
completed work by a contractor
False - Answer -T/F: Increasing the size of a sample increases the reliability of the
testing and also decreases the cost of testing
True - Answer -T/F: An example of quality control is the use of submittals to review
specific materials and aspects of the project prior to installation.
The information necessary to confidently verify that all the materials and steps in a
procedure have been used correctly and completed satisfactorily - Answer -What is
quality acceptance?
False - Answer -T/F: Using quality management helps to establish true quality control
for a project by making quality "inspected-in" rather than "built-in."
False - Answer -T/F: A project is always considered to be 50% complete once it has
reached the "dried-in" stage.
4% ahead of schedule - Answer -If a project has a BCWS of $45,500,000 and a BCWP
of $47,500,000 at the end of the 14th month of the project, what is the status of this
project?
True - Answer -T/F: If the cost performance index for an earned value analysis is
greater than one, then the project is under budget at that point in time.
Poor Productivity - Answer -Which factor associated with the contractor can impact cost
and schedule performance?
organizing - Answer -Which management activity is where the project manager is
tasked with coordinating subcontractors, planning sequences of construction, and
developing effective communication?
False - Answer -T/F: Based on laws and regulations, privately financed projects must
utilize competitive bidding to procure a construction firm.
commissioning - Answer -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.
False - Answer -T/F: A feasibility study is used early in the construction phase of a
project to help determine the means and methods of construction
50 Divisions - Answer -How many CSI divisions does the post-2004 master format
have?
True - Answer -T/F: Low bid is a procurement procedure used to select a contractor
based solely on total construction cost.
Best value - Answer -This procurement procedure utilizes cost and technical factors to
select a construction firm for a project.
False - Answer -T/F: An agency construction manager firm is contracted with the
Owner, lead designer, and construction firm on a project.
Design-Bid-Build - Answer -Which delivery method is the most used method in
construction today?
True - Answer -T/F: one major advantage of multi-prime contracting is the ease in
phasing a project.
percent of completion - Answer -The only revenue recognition method acceptable for
financial statement use for construction companies is:
True - Answer -T/F: The quick ratio is calculated by adding all cash and receivables
and dividing that value by the total current liabilities for a company.
True - Answer -T/F: For a company's annual balance sheet, the total amount of assets
must always equal the total amount of liabilities plus the total amount of equity
Construction Loan - Answer -What is an example of a long term debt?
, False - Answer -T/F: 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
Borrow Money - Answer -What item is considered a cash inflow for a construction
company?
False - Answer -T/F: Overbilling occurs when a contractor bills an Owner for
unapproved change orders
The contractor allocates more profit and fees to those work items that are completed
early in the project, which increases the amount of billing at the beginning of the project
- Answer -What is meant by "front-loaded costs" on a project?
True - Answer -T/F: A cash flow schematic diagram is used to forecast the maximum
amount of working capital a contractor will need to have to finance the construction work
True - Answer -T/F: The G702 payment application and G703 continuation sheet are
common documents used in construction for requesting payment from an Owner for
completed work by a contractor
False - Answer -T/F: Increasing the size of a sample increases the reliability of the
testing and also decreases the cost of testing
True - Answer -T/F: An example of quality control is the use of submittals to review
specific materials and aspects of the project prior to installation.
The information necessary to confidently verify that all the materials and steps in a
procedure have been used correctly and completed satisfactorily - Answer -What is
quality acceptance?
False - Answer -T/F: Using quality management helps to establish true quality control
for a project by making quality "inspected-in" rather than "built-in."
False - Answer -T/F: A project is always considered to be 50% complete once it has
reached the "dried-in" stage.
4% ahead of schedule - Answer -If a project has a BCWS of $45,500,000 and a BCWP
of $47,500,000 at the end of the 14th month of the project, what is the status of this
project?
True - Answer -T/F: If the cost performance index for an earned value analysis is
greater than one, then the project is under budget at that point in time.
Poor Productivity - Answer -Which factor associated with the contractor can impact cost
and schedule performance?
