CMIT Exam (200 Multiple Choice Questions) Latest
Update 2026 | Exam Prep | 100% Accurate Answers
1. If a contractor is selected under a Guaranteed Maximum Price arrangement
and the actual costs of the project are projected to exceed the GMP, what
should the contractor do?
The contractor should inform the owner that they will exceed the GMP.
The contractor should request an increase in the GMP from the owner.
The contractor should manage the project to stay within the GMP to
avoid financial loss.
The contractor should stop all work until costs are reduced.
2. What is the correct answer regarding the existence of multiple types of legal
relationships between an owner and the CM?
False
True
3. What are the two phases involved in the cost plus fixed fee method of CM
compensation?
Evaluation and completion
Design and implementation
Planning and execution
Pre-construction and construction
4. Describe the implications of a Guaranteed Maximum Price arrangement for
contractors and project owners.
In a GMP arrangement, contractors assume the risk of cost
overruns, ensuring that the project will not exceed the agreed
, maximum price.
In a GMP arrangement, project owners are responsible for all cost
overruns.
In a GMP arrangement, the contractor is guaranteed a profit
regardless of costs.
In a GMP arrangement, the contractor has no financial responsibility
for the project.
5. Describe the significance of the CMAA Construction Management Standards
of Practice in the construction industry.
The CMAA Construction Management Standards of Practice are
optional for construction managers.
The CMAA Construction Management Standards of Practice are only
relevant for large-scale projects.
The CMAA Construction Management Standards of Practice focus
solely on financial management.
The CMAA Construction Management Standards of Practice provide
guidelines to ensure effective and efficient project management.
6. What is the primary reason for utilizing legal counsel when reviewing
standard construction contract forms?
To negotiate the price of the contract.
To assess the contract regarding form, scope of services, risks,
terms, compliance, and compatibility.
To ensure the contract is signed by all parties.
To draft the contract from scratch.
,7. Describe how the fixed fee in a cost plus fixed fee arrangement is affected by
changes in the scope of work.
The fixed fee is only adjusted at the end of the project.
The fixed fee is reduced if costs exceed the budget.
The fixed fee may vary with the actual cost expended as the scope
of work changes.
The fixed fee remains constant regardless of changes in the scope of
work.
8. In a scenario where a construction project is expected to have fluctuating
costs due to market conditions, which type of contract would be more
suitable and why?
Unit price contract, because it simplifies billing.
Cost reimbursement contract, because it allows for flexibility in
covering actual costs.
Fixed price contract, because it provides a clear budget.
Time and materials contract, because it is the most common.
9. If a CM is hired as an agent of the owner for a multi-prime job, what should
the CM focus on instead of bonding?
Securing bonding for the project.
Coordinating between multiple contractors.
Performing construction tasks.
Managing the financial aspects of bonding.
, 10. If a construction project experiences cost overruns due to contractor
delays, how does the agency role of the CM affect the risk allocation?
The CM is responsible for the cost overruns.
The risk is shared equally between the CM and the contractor.
The contractor bears the risk for cost overruns due to delays.
The owner must absorb the cost overruns.
11. Can contractors submit bids based on incomplete documents under a fixed
price contract?
True
False
Only if specified
Only for minor changes
12. Why is it important for the owner to choose a project delivery system prior
to selecting a CM and designer?
The owner should prioritize cost over the project delivery system.
Choosing a project delivery system first ensures that the selected
CM and designer align with the project's management and
execution strategy.
Selecting a CM first allows for better project delivery system choices.
The project delivery system is irrelevant to the selection of CM and
designer.
13. What is the primary responsibility of the CM as outlined in the proposed
agreements?
Update 2026 | Exam Prep | 100% Accurate Answers
1. If a contractor is selected under a Guaranteed Maximum Price arrangement
and the actual costs of the project are projected to exceed the GMP, what
should the contractor do?
The contractor should inform the owner that they will exceed the GMP.
The contractor should request an increase in the GMP from the owner.
The contractor should manage the project to stay within the GMP to
avoid financial loss.
The contractor should stop all work until costs are reduced.
2. What is the correct answer regarding the existence of multiple types of legal
relationships between an owner and the CM?
False
True
3. What are the two phases involved in the cost plus fixed fee method of CM
compensation?
Evaluation and completion
Design and implementation
Planning and execution
Pre-construction and construction
4. Describe the implications of a Guaranteed Maximum Price arrangement for
contractors and project owners.
In a GMP arrangement, contractors assume the risk of cost
overruns, ensuring that the project will not exceed the agreed
, maximum price.
In a GMP arrangement, project owners are responsible for all cost
overruns.
In a GMP arrangement, the contractor is guaranteed a profit
regardless of costs.
In a GMP arrangement, the contractor has no financial responsibility
for the project.
5. Describe the significance of the CMAA Construction Management Standards
of Practice in the construction industry.
The CMAA Construction Management Standards of Practice are
optional for construction managers.
The CMAA Construction Management Standards of Practice are only
relevant for large-scale projects.
The CMAA Construction Management Standards of Practice focus
solely on financial management.
The CMAA Construction Management Standards of Practice provide
guidelines to ensure effective and efficient project management.
6. What is the primary reason for utilizing legal counsel when reviewing
standard construction contract forms?
To negotiate the price of the contract.
To assess the contract regarding form, scope of services, risks,
terms, compliance, and compatibility.
To ensure the contract is signed by all parties.
To draft the contract from scratch.
,7. Describe how the fixed fee in a cost plus fixed fee arrangement is affected by
changes in the scope of work.
The fixed fee is only adjusted at the end of the project.
The fixed fee is reduced if costs exceed the budget.
The fixed fee may vary with the actual cost expended as the scope
of work changes.
The fixed fee remains constant regardless of changes in the scope of
work.
8. In a scenario where a construction project is expected to have fluctuating
costs due to market conditions, which type of contract would be more
suitable and why?
Unit price contract, because it simplifies billing.
Cost reimbursement contract, because it allows for flexibility in
covering actual costs.
Fixed price contract, because it provides a clear budget.
Time and materials contract, because it is the most common.
9. If a CM is hired as an agent of the owner for a multi-prime job, what should
the CM focus on instead of bonding?
Securing bonding for the project.
Coordinating between multiple contractors.
Performing construction tasks.
Managing the financial aspects of bonding.
, 10. If a construction project experiences cost overruns due to contractor
delays, how does the agency role of the CM affect the risk allocation?
The CM is responsible for the cost overruns.
The risk is shared equally between the CM and the contractor.
The contractor bears the risk for cost overruns due to delays.
The owner must absorb the cost overruns.
11. Can contractors submit bids based on incomplete documents under a fixed
price contract?
True
False
Only if specified
Only for minor changes
12. Why is it important for the owner to choose a project delivery system prior
to selecting a CM and designer?
The owner should prioritize cost over the project delivery system.
Choosing a project delivery system first ensures that the selected
CM and designer align with the project's management and
execution strategy.
Selecting a CM first allows for better project delivery system choices.
The project delivery system is irrelevant to the selection of CM and
designer.
13. What is the primary responsibility of the CM as outlined in the proposed
agreements?
