TCM 226- EXAM 2 QUESTIONS & ANSWERS
What can violation of the ethical provisions of a profession lead to? - Answer -Loss of
your license
What is a progress payment? - Answer -Payment for a job as it goes along, most
projects pay monthly
The intervals at which payments are made are established in the contract, what are
three different time periods they can be made in? - Answer -1. At the end of the job
2. Weekly or Bi-weekly (on bigger jobs where more money is spent)
3. Provisional Payment (pre-determined amounts when certain milestones are
achieved)
For Lump sum work, what are progress payments based off of? - Answer -the schedule
of values
For Unit Price Contracts, what are progress payments based off of? - Answer -Actual
quantities of work done multiplied by your unit prices from bid
For Cos-Plus Fee Contracts(T&M), what are progress payments based off of? - Answer
-Actual Labor, Equipment, and Material Cost Plus a pre-arranged fixed or percentage
fee
Who is typically responsible for certifying the amount of work done? - Answer -The A/E
What are the 3 methods for measuring/quantifying work?(per contract type) - Answer -
Lump Sum- Based on % complete values in schedule of values
Unit Price- Quantities are surveyed in the fields
Cost-Plus fee- based upon receipts for material and equipment and on payroll records
What are the three ways to incorporate GCs and Fee into the schedule of values? -
Answer -1. As a separate line item
2. As a percentage of each line item's portion of the project cost
3. as a "random" percentage to enable some front end loading
Who typically pays for materials stored on site? - Answer -Owners, they rarely pay for
materials off site
What are progress payments and schedule of values used to monitor? - Answer -Cash
Flow
What is retainage? - Answer -portion of the agreed upon contract price that is withheld
until the work is substantially complete
, What is a joint check agreement? - Answer -It is typically requested by vendors and 3rd
tier subs to ensure that they are paid directly by the GC
What is the normal % Retention? - Answer -1. 5% for the entire job
2. 10% for the first 50% then nothing until the end of the job
What are the four lien management terms/concepts? - Answer -Materialman's notice-
usually required by law to preserve lien rights
Unconditional Lien Release- may be required for previous months payment
Conditional lien release- each lien is conditional upon receipt of payment
Final lien release- usually required at end of the job for owner to release retention
When is retainage usually released? - Answer -With final payment
What is one way to limit disputes between union and non union labor on the same
jobsite? - Answer -the use of Dual Gates
Who is the contractor's key representative on site? - Answer -the superintendent
Who is the critical link to the craftspeople? - Answer -The foreman
What is it meant to be a "working" foreman? - Answer -he/she still uses their tools
What is the formula for production? Human Productivity? Equipment Productivity? -
Answer -Production=output/input
Human productivity= units produced/input
Equipment Productivity=output/equipment hours
What are the four common areas affecting labor productivity? - Answer -Location
Factors
Project and contract factors
Human factors
Field organization factors
What are location factors that affect productivity? - Answer -Easy to control:
Trafficability, drainage
Medium difficulty to control: weather patterns, access, attitude of nearby communities,
availability of logistical support
Hard to control: Altitude, transportation network, local economy
What are project and contract factors which affect productivity? - Answer -Easy to
control: Constructability of design, quality of engineering, form of contract
Medium difficulty to control: degree of congestion or confinement
Hard to control: project size, budget constraints, schedule constraints, heigth or depth of
work
What can violation of the ethical provisions of a profession lead to? - Answer -Loss of
your license
What is a progress payment? - Answer -Payment for a job as it goes along, most
projects pay monthly
The intervals at which payments are made are established in the contract, what are
three different time periods they can be made in? - Answer -1. At the end of the job
2. Weekly or Bi-weekly (on bigger jobs where more money is spent)
3. Provisional Payment (pre-determined amounts when certain milestones are
achieved)
For Lump sum work, what are progress payments based off of? - Answer -the schedule
of values
For Unit Price Contracts, what are progress payments based off of? - Answer -Actual
quantities of work done multiplied by your unit prices from bid
For Cos-Plus Fee Contracts(T&M), what are progress payments based off of? - Answer
-Actual Labor, Equipment, and Material Cost Plus a pre-arranged fixed or percentage
fee
Who is typically responsible for certifying the amount of work done? - Answer -The A/E
What are the 3 methods for measuring/quantifying work?(per contract type) - Answer -
Lump Sum- Based on % complete values in schedule of values
Unit Price- Quantities are surveyed in the fields
Cost-Plus fee- based upon receipts for material and equipment and on payroll records
What are the three ways to incorporate GCs and Fee into the schedule of values? -
Answer -1. As a separate line item
2. As a percentage of each line item's portion of the project cost
3. as a "random" percentage to enable some front end loading
Who typically pays for materials stored on site? - Answer -Owners, they rarely pay for
materials off site
What are progress payments and schedule of values used to monitor? - Answer -Cash
Flow
What is retainage? - Answer -portion of the agreed upon contract price that is withheld
until the work is substantially complete
, What is a joint check agreement? - Answer -It is typically requested by vendors and 3rd
tier subs to ensure that they are paid directly by the GC
What is the normal % Retention? - Answer -1. 5% for the entire job
2. 10% for the first 50% then nothing until the end of the job
What are the four lien management terms/concepts? - Answer -Materialman's notice-
usually required by law to preserve lien rights
Unconditional Lien Release- may be required for previous months payment
Conditional lien release- each lien is conditional upon receipt of payment
Final lien release- usually required at end of the job for owner to release retention
When is retainage usually released? - Answer -With final payment
What is one way to limit disputes between union and non union labor on the same
jobsite? - Answer -the use of Dual Gates
Who is the contractor's key representative on site? - Answer -the superintendent
Who is the critical link to the craftspeople? - Answer -The foreman
What is it meant to be a "working" foreman? - Answer -he/she still uses their tools
What is the formula for production? Human Productivity? Equipment Productivity? -
Answer -Production=output/input
Human productivity= units produced/input
Equipment Productivity=output/equipment hours
What are the four common areas affecting labor productivity? - Answer -Location
Factors
Project and contract factors
Human factors
Field organization factors
What are location factors that affect productivity? - Answer -Easy to control:
Trafficability, drainage
Medium difficulty to control: weather patterns, access, attitude of nearby communities,
availability of logistical support
Hard to control: Altitude, transportation network, local economy
What are project and contract factors which affect productivity? - Answer -Easy to
control: Constructability of design, quality of engineering, form of contract
Medium difficulty to control: degree of congestion or confinement
Hard to control: project size, budget constraints, schedule constraints, heigth or depth of
work
