CM 4221 MIDTERM QUESTIONS & ANSWERS
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
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
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
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
Based on laws and regulations, privately financed projects must utilize competitive
bidding to procure a construction firm.
Select one:
True
False - Answer -False
,An agency construction manager firm is contracted with the Owner, lead designer, and
construction firm on a project.
Select one:
True
False - Answer -false
A program manager is the same as a project manager.
Select one:
True
False - Answer -false
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
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
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
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
, Current liabilities can be converted into cash within one year to pay off debt
Select one:
True
False - Answer -False
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
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
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
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
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
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
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
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
Based on laws and regulations, privately financed projects must utilize competitive
bidding to procure a construction firm.
Select one:
True
False - Answer -False
,An agency construction manager firm is contracted with the Owner, lead designer, and
construction firm on a project.
Select one:
True
False - Answer -false
A program manager is the same as a project manager.
Select one:
True
False - Answer -false
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
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
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
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
, Current liabilities can be converted into cash within one year to pay off debt
Select one:
True
False - Answer -False
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
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
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
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
