CCIFP EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
What is the legal definition of a contract? What is the IRS definition? - ANS An agreement
between 2 parties that is legally binding & enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and are outside
the contractor control. - ANS 1. Political
2. Regulatory
3. Market Outlook
4. Social
5. Technology
6. Economic
Strategic planning must consider internal factors. These factors the contractor can control. -
ANS 1. Culture, related to financial discipline, risk tolerance, growth, and change
2. Life cycle stage
3. Comprehensive marketing strategy
4. Core competencies
5. Talent acquisition and retention programs
6. Commitment to technology
Major cause of contractor failure is - ANS The failure to plan and set specific objectives
@2026/2027 ALLRIGHTS RESERVED.
,Strategic Planning - ANS A logical and systematic process by which a contractor determines
the strategic direction for the contractor's future
Strategic Planning - ANS Requires knowledge of the risks inherent in the construction
industry and of available new business opportunities
Strategic Planning Process encourages - ANS 1. Assessment of your company's current
condition
2. Examination of current business model and the way you would like to do business in future
3. Development of new future operating methods in estimating, preconstruction, marketing and
sales
4. Commitment to set strategic goals and plans to meet them
5. Creation of momentum necessary to start and carry out the implementation of strategic plan
What are the 2 coverage triggers for CGL? - ANS 1. Occurrence Trigger - Whatever policy in
place a the time of the claim happening is policy used.
2. Claims Trigger - (Not used much) Made trigger policy in place, Policy extended
What is the legal definition of a contract? What is the IRS's definition of a contract? - ANS An
agreement between two parties that is legally binding & enforceable under applicable law
What is RAID? - ANS Redundant array of Independent (or inexpensive) disks.
- Data spread out over several disks, users access simultaneously.
- Normally used by servers in multi-user environments
What is the disclosure on the balance sheet for anticipated losses on contracts? -
ANS Estimated liability to complete contracts
@2026/2027 ALLRIGHTS RESERVED.
, What is the IRS's definition of a "Home Construction Contract"? - ANS Contracts if 80% of the
total contract costs are:
1) Dwelling units, 4 of fewer
2) Improvements directly related to such dwelling units
3) Excluded from IRC 460 - Special rules from long term contracts
What is LAN? - ANS Local Area Network
What is the difference between cloud computing & virtual environments? - ANS - Cloud
computing allows access to data through a browser
- Virtual environment allows remote access to data, but access software require on computer to
access
What is the "look-Back" requirement? - ANS Taxpayer using percentage of completion must
redetermined contract profit in year of completion and difference reported in periods are
subject to interest charge or refund.
What are the 4 types of contracts? - ANS 1) Fixed price or lump sum
2) Time & Material
3) Cost-type contracts
4) Unit Price
What is a fixed price or lump sum contract? - ANS The price is not usually subject to
adjustment
What is a time & material type contract? - ANS The price is based on direct labor hours and
cost of materials
What is a cost-type contract? - ANS Provides for reimbursed of allowable or other defined
costs incurred plus fee. Can also include a gross max (GMP)
@2026/2027 ALLRIGHTS RESERVED.
ANSWERS 2026 VERIFIED.
What is the legal definition of a contract? What is the IRS definition? - ANS An agreement
between 2 parties that is legally binding & enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and are outside
the contractor control. - ANS 1. Political
2. Regulatory
3. Market Outlook
4. Social
5. Technology
6. Economic
Strategic planning must consider internal factors. These factors the contractor can control. -
ANS 1. Culture, related to financial discipline, risk tolerance, growth, and change
2. Life cycle stage
3. Comprehensive marketing strategy
4. Core competencies
5. Talent acquisition and retention programs
6. Commitment to technology
Major cause of contractor failure is - ANS The failure to plan and set specific objectives
@2026/2027 ALLRIGHTS RESERVED.
,Strategic Planning - ANS A logical and systematic process by which a contractor determines
the strategic direction for the contractor's future
Strategic Planning - ANS Requires knowledge of the risks inherent in the construction
industry and of available new business opportunities
Strategic Planning Process encourages - ANS 1. Assessment of your company's current
condition
2. Examination of current business model and the way you would like to do business in future
3. Development of new future operating methods in estimating, preconstruction, marketing and
sales
4. Commitment to set strategic goals and plans to meet them
5. Creation of momentum necessary to start and carry out the implementation of strategic plan
What are the 2 coverage triggers for CGL? - ANS 1. Occurrence Trigger - Whatever policy in
place a the time of the claim happening is policy used.
2. Claims Trigger - (Not used much) Made trigger policy in place, Policy extended
What is the legal definition of a contract? What is the IRS's definition of a contract? - ANS An
agreement between two parties that is legally binding & enforceable under applicable law
What is RAID? - ANS Redundant array of Independent (or inexpensive) disks.
- Data spread out over several disks, users access simultaneously.
- Normally used by servers in multi-user environments
What is the disclosure on the balance sheet for anticipated losses on contracts? -
ANS Estimated liability to complete contracts
@2026/2027 ALLRIGHTS RESERVED.
, What is the IRS's definition of a "Home Construction Contract"? - ANS Contracts if 80% of the
total contract costs are:
1) Dwelling units, 4 of fewer
2) Improvements directly related to such dwelling units
3) Excluded from IRC 460 - Special rules from long term contracts
What is LAN? - ANS Local Area Network
What is the difference between cloud computing & virtual environments? - ANS - Cloud
computing allows access to data through a browser
- Virtual environment allows remote access to data, but access software require on computer to
access
What is the "look-Back" requirement? - ANS Taxpayer using percentage of completion must
redetermined contract profit in year of completion and difference reported in periods are
subject to interest charge or refund.
What are the 4 types of contracts? - ANS 1) Fixed price or lump sum
2) Time & Material
3) Cost-type contracts
4) Unit Price
What is a fixed price or lump sum contract? - ANS The price is not usually subject to
adjustment
What is a time & material type contract? - ANS The price is based on direct labor hours and
cost of materials
What is a cost-type contract? - ANS Provides for reimbursed of allowable or other defined
costs incurred plus fee. Can also include a gross max (GMP)
@2026/2027 ALLRIGHTS RESERVED.
