APPA CEFP SECTION 2 QUESTIONS WITH CORRECT
ANSWERS LATEST 2026/2027 UPDATE | RATED A+
Capital Renewal/Replacement - CORRECT ANSWER -"A systematic management process of
planning and budgeting for known future cyclical repair and replacement requirements that
extend the life retain the usable condition of facilities and systems, not normally contained in
the annual operating budget. Includes major activities that have a maintenance cycle in excess
of one year (e.g., replace roofs, paint buildings, resurface roads)."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Condition Index (FCI Index) - CORRECT ANSWER -'A comparative industry
indicator/benchmark used to indicate the relative physical condition of a facility, group of
buildings, or entire portfolio "independent " of building type, construction type, type location,
or cost."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Deferred Maintenance (DM) Backlog - CORRECT ANSWER -"Total dollar amount of existing
maintenance repairs and required replacements (capital renewal) that were not accomplished
when they should have been, not funded in the current fiscal year, or otherwise deferred."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Strategic Capital Development Model - CORRECT ANSWER -"Instead of periodic and stand-alone
studies of elements of the capital needs of an institution, this model defines six phases of an
integrated and comprehensive (" soup-to Nuts") planning process."
,[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Condition Assessment - CORRECT ANSWER -"Continuous systematic approach to
identifying assessing, prioritizing, and maintaining the specific maintenance, repair, renewal,
and replacement requirements for all facility assets."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Audit - CORRECT ANSWER -"Method of assessing existing buildings and infrastructure
to measure the extent of maintenance backlogs."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Recapitalization - CORRECT ANSWER -"Periodic recurring costs for replacement/renewal
projects and one-time funding for improvements and programmatic projects."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Trade Based/ Central Shop Organization - CORRECT ANSWER -"The plumbers report to one
supervisor. the electricians to another, and the HVAC mechanics to another. The trade staff is
then dispatched to jobs in any facility from the central pool of resources."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
, Zone based Organization - CORRECT ANSWER -"Assigns a mixture of trade expertise to care for a
specific set of buildings"
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Function Based Organization - CORRECT ANSWER -"Structured around the type of work. One
work group performs the preventive maintenance, while another group responds to service
calls."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Time and Material Agreement - CORRECT ANSWER -"A customer is charged a predetermined
hourly rate for labor plus the cost of materials and equipment needed for a job."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Fixed Price Agreement - CORRECT ANSWER -"Useful when there is a hard limit on the funds
available."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Guaranteed Maximum Price Agreement - CORRECT ANSWER -"Sets an upper limit on the cost to
the fund provider but allows for a lower cost when a project goes well."
ANSWERS LATEST 2026/2027 UPDATE | RATED A+
Capital Renewal/Replacement - CORRECT ANSWER -"A systematic management process of
planning and budgeting for known future cyclical repair and replacement requirements that
extend the life retain the usable condition of facilities and systems, not normally contained in
the annual operating budget. Includes major activities that have a maintenance cycle in excess
of one year (e.g., replace roofs, paint buildings, resurface roads)."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Condition Index (FCI Index) - CORRECT ANSWER -'A comparative industry
indicator/benchmark used to indicate the relative physical condition of a facility, group of
buildings, or entire portfolio "independent " of building type, construction type, type location,
or cost."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Deferred Maintenance (DM) Backlog - CORRECT ANSWER -"Total dollar amount of existing
maintenance repairs and required replacements (capital renewal) that were not accomplished
when they should have been, not funded in the current fiscal year, or otherwise deferred."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Strategic Capital Development Model - CORRECT ANSWER -"Instead of periodic and stand-alone
studies of elements of the capital needs of an institution, this model defines six phases of an
integrated and comprehensive (" soup-to Nuts") planning process."
,[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Condition Assessment - CORRECT ANSWER -"Continuous systematic approach to
identifying assessing, prioritizing, and maintaining the specific maintenance, repair, renewal,
and replacement requirements for all facility assets."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Facilities Audit - CORRECT ANSWER -"Method of assessing existing buildings and infrastructure
to measure the extent of maintenance backlogs."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Recapitalization - CORRECT ANSWER -"Periodic recurring costs for replacement/renewal
projects and one-time funding for improvements and programmatic projects."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Trade Based/ Central Shop Organization - CORRECT ANSWER -"The plumbers report to one
supervisor. the electricians to another, and the HVAC mechanics to another. The trade staff is
then dispatched to jobs in any facility from the central pool of resources."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
, Zone based Organization - CORRECT ANSWER -"Assigns a mixture of trade expertise to care for a
specific set of buildings"
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Function Based Organization - CORRECT ANSWER -"Structured around the type of work. One
work group performs the preventive maintenance, while another group responds to service
calls."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Time and Material Agreement - CORRECT ANSWER -"A customer is charged a predetermined
hourly rate for labor plus the cost of materials and equipment needed for a job."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Fixed Price Agreement - CORRECT ANSWER -"Useful when there is a hard limit on the funds
available."
[BOK - Operations and Maintenance, Plant Management, Capital Renewal and Deferred
Maintenance]
Guaranteed Maximum Price Agreement - CORRECT ANSWER -"Sets an upper limit on the cost to
the fund provider but allows for a lower cost when a project goes well."
