CCM TEST STUDY
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
What does commercial general liability cover? - ANS-Bodily injury, property damage
and false advertsing
What is a FORMAL DEMAND for compensation by the contractor? - ANS-Claim. The
phrase formal demand is what separates this from a change order.
If a structure is being built on a former brown field site. What type of insurance
coverage should the CM recommend? - ANS-Pollution Legal Liability Coverage
What is a cost plus contract? - ANS-A contract that covers project costs and contractor
markup. Aka time and materials.
Why do owners like cost plus GMP agreements? - ANS-The time of performance is
reduced.
T/F, One purpose of the general conditions is to provide a procedure for executing
changes in the work scope in a fair and equitable manner? - ANS-True
What project delivery method puts the most risk on the owner? - ANS-Multi Prime
What does substantial completion Mean? - ANS-The project is ready for occupancy in
accordance with its intended purpose.
, What is the term used to describe work that is not conforming to contract specs that
the contractor must complete prior to final payments? - ANS-Punchlist
A CM is protected from a contractor's recovery in tort due to what? - ANS-The
economic loss rule
A contractor submits a payment requisition for certification by the CM. The schedule
of values contains a new item for a change order that was submitted but has not been
approved by the owner. What should the CM do? - ANS-Reject the entire payment
requisition and require resubmission
What are the 5 key principals of sustainability? - ANS-1. Integrated design principles
2. Optimize energy performance
3.Protect and conserve water
4. Enhance indoor environmental quality
5. Reduce environmental impacts of materials
Name two pros of design-bud-build (hard bid) - ANS-1. Typically lower costs
2. Most straightforward
Name three cons of design bud build - ANS-1. May reduce quality due to lowest cost
subs and materials
2. Longer due to completing design before construction can begin
3. No architect/contractor collaboration. Design needs to be very well done.
What is the term for sum of money the contractor agrees to pay for project delays? -
ANS-Liquidated damages
What is the term used to determine how best to meet the necessary function,
performance and reliability of a project at minimum life cycle cost? - ANS-Value
Engineering
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
What does commercial general liability cover? - ANS-Bodily injury, property damage
and false advertsing
What is a FORMAL DEMAND for compensation by the contractor? - ANS-Claim. The
phrase formal demand is what separates this from a change order.
If a structure is being built on a former brown field site. What type of insurance
coverage should the CM recommend? - ANS-Pollution Legal Liability Coverage
What is a cost plus contract? - ANS-A contract that covers project costs and contractor
markup. Aka time and materials.
Why do owners like cost plus GMP agreements? - ANS-The time of performance is
reduced.
T/F, One purpose of the general conditions is to provide a procedure for executing
changes in the work scope in a fair and equitable manner? - ANS-True
What project delivery method puts the most risk on the owner? - ANS-Multi Prime
What does substantial completion Mean? - ANS-The project is ready for occupancy in
accordance with its intended purpose.
, What is the term used to describe work that is not conforming to contract specs that
the contractor must complete prior to final payments? - ANS-Punchlist
A CM is protected from a contractor's recovery in tort due to what? - ANS-The
economic loss rule
A contractor submits a payment requisition for certification by the CM. The schedule
of values contains a new item for a change order that was submitted but has not been
approved by the owner. What should the CM do? - ANS-Reject the entire payment
requisition and require resubmission
What are the 5 key principals of sustainability? - ANS-1. Integrated design principles
2. Optimize energy performance
3.Protect and conserve water
4. Enhance indoor environmental quality
5. Reduce environmental impacts of materials
Name two pros of design-bud-build (hard bid) - ANS-1. Typically lower costs
2. Most straightforward
Name three cons of design bud build - ANS-1. May reduce quality due to lowest cost
subs and materials
2. Longer due to completing design before construction can begin
3. No architect/contractor collaboration. Design needs to be very well done.
What is the term for sum of money the contractor agrees to pay for project delays? -
ANS-Liquidated damages
What is the term used to determine how best to meet the necessary function,
performance and reliability of a project at minimum life cycle cost? - ANS-Value
Engineering
