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CMIT Exam (200 multiple choice) Question swith Correct Solved
Solutions
1. A CM's role and responsibilities are governed solely by the Owner/CM Agreement.
True False: True
2. There are two basic forms of CM, agency and at-risk. Each form provides for the basic services of
construction management practice. However, there are some key differences. Which of the following do not apply to both CM forms?
A) Both forms provide advice to the owner on constructibility, budget and the schedule.
B) Both require that the liabilities and risks assumed by the parties be clearly understood,
coordinated, and stated in the respective contracts.
C) Both forms allow the CM to function in an advisory role for the entire engagement of the
CM.
D) Services can vary based on the contractual relationships of the parties and the risks that are
assumed.: C) Both forms allow the CM to function in an advisory role for the entire engagement of the CM.
3. Construction management had its beginnings in the early to mid-1960's. Which of the following
factors contributed to the initial use of this delivery system?
A) The need to reduce the overall time and cost associated with project delivery.
B) The increasing cost of money and the unpredictability of project funding streams.
C) The changing role of the general contractor and the increasing numbers of specialty trade
contractors.
D) All of the above.: D) All of the above.
4. The General Services Administration was the first federal agency to use construction
management.: True
5. The General Services Administration, the Department of Health, Education and Welfare (now HHS),
and the Veterans Administration ran into similar difficulties in the use of construction management. Which of the following was/were common problems for all three agencies?
A) Funding restrictions
B) Claims
C) Change conditions
D) All of the above: D) All of the above
6. CMAA was formed and incorporated 1982 with its primary focus being the growth and
development of the construction management profession.: True
7. The CMAA Construction Management Standards of Practice is intended as a guide to the range of
services that constitute professional construction management. They seek to meet the documented need for definitions of what construction management services are, without unduly structuring the methodologies by which those services are provided by the CM.: True
8. The goals of the Construction Management Association of America (CMAA) include:
A) Setting standards and developing contract documents for construction management practice.
variations is:
A) The different roles that can be assumed by project participants.
B) Different forms of contracts and methods of compensation that can be used.
C) The different levels of care, responsibility, and risks assumed by the parties
involved.
D) All of the above.: D) All of the above
17. The traditional delivery system is characterized by executing the major phases of a project in:
A) An overlapping concept
B) A linear sequence
C) A fast track method
D) All of the above: B) A linear sequence
18. A key advantage of the traditional delivery approach is:
A) With the traditional delivery system, the cost of the construction phase is known before
construction starts.
B) Facility features are fully determined & specified.
C) When the construction contract is signed, the major risk belongs to the contractor.
D) All of the above: B) Facility features are fully determined & specified.
19. Design-build and at-risk construction management delivery systems allow the option to fast-track
or phase a project. True False: True
20. Most definitions of construction management are similar. However, a con- tractual definition is
not known until:
A) The legal form of the CM contract is chosen.
B) The specific scope of services to be provided is identified.
C) The relationship of the CM to others and the risks and authority assumed by the parties are
clearly defined.
D) All of the above: D) All of the above
In a CM-at-Risk arrangement once construction begins and the CM converts from the professional advisory role of a CM to the contractual role of a general contractor, the CM has no implied duties of loyalty and care to the owner. True False: True
22. The agency CM does not perform design or actual construction work. True False: True
23. Under the CM-at-Risk delivery method, the owner usually must deal with the hybrid of a
construction manager and a general contractor. True False: True
24. Under a CM-at-risk contract, which of the following statements are true?
A) The CM, in most cases, holds the trade and/or specialty contracts.
B) The CM has the right to enforce the schedule, pay the trade or subcontrac- tors, and terminate
them if such action becomes necessary.
C) On some CM-at-Risk contracts, the CM has the option of performing por- tions of the work with its
B) The type of project being implemented and the completion status of the plans and
specifications at the time of contracting.
C) The consideration of any performance requirements, the level of sophisti- cation of the owner,
and the role of the architect/engineers involved.
D) All of the above: D) All of the above
31. There are two basic categories of construction phase contracts, cost reimbursement and
fixed price. True False: True
32. Under a fixed price or lump sum contract, the contractors can be asked to bid on work based
on partially completed documents (scope bid), or a complete set of drawings and specifications. True False: True
33. The primary advantage of the fixed price or lump sum contract is that bids should be taken on
contract documents that are only 50% complete. True False: False
34. A general contractor working under a fixed price contract will always put its interests ahead of
the owner. True False: True
35. Under a cost plus fixed fee arrangement, fixed fee is usually established at the time of contract
award; however, it may vary with the actual cost expended as the scope of work changes. True False: True
36. Under a Guaranteed Maximum Price arrangement, the contractor is usually selected and a GMP is
established with the understanding by the parties that the actual cost of the work could be greater
than the GMP. True False: False
37. On some GMP projects, the owner may reserve the right to approve all trade and purchase
contracts. Normally the owner pays the difference be- tween the estimated trade contract costs and the trade contract award value when the award value approved by the owner is greater than the estimated bid element included in the contractor's GMP. True False: True
38. Once a GMP for construction costs is established, the contractor takes on the risk of completing
the project. True False: True
39. A guaranteed maximum price can never change. True False:
False
40. Under a GMP contract, the intent of an incentive clause is to challenge the contractor to
construct the project for less than the established GMP. True False: True
41. Under a unit price-type contract, the total cost to the owner will vary with the actual units put in
place. In addition, the owner assumes the risk of cost and the amount of work required. True False: True
42. In cases where standard construction contract forms are proposed to be used, it is imperative
that legal counsel be utilized to review and assess the contract as to form, the scope of services to be provided, risks assumed by the parties, terms and conditions included, compliance with applicable laws,
48. The CM does not have the responsibility to generate and track the project budget.
True False: False
49. The CM is responsible to ensure that the contracts used on the project are legally enforceable.
True False: True
50. The project record includes:
A) Letters
B) Shop drawing submittals
C) CADD files
D) All of the above: D) All of the above
51. The owner's selection of a project delivery system should be made before a decision by the
owner to select a CM and designer. True False: True
52. A/E services are required to be competitively bid under the "Brooks Act." True False: False
53. CM services, like A/E services, can be accurately defined to provide a basis for a bid.
True False: False
54. A CM response/proposal to an owner's request for proposal can be con- sidered an offer to
enter into a contract. True False: True
55. CMAA defines construction management as a professional management practice applied to
construction projects from project inception to completion for the purpose of controlling time, cost,
scope, and quality. True False: True
56. What regulations define and differentiate public and private sector con- tracting?
A) OSHA
B) CMAA Standard Contract form A- 1
C) FAR
D) ADR: FAR
57. What is a principal differentiator between public and private sector con- tracting?
A) Advantage in contract language
B) Innovative designs
C) Sustainability goals
D) All of the above: A) Advantage in contract language
58. In the selection of a CM as an agent, the owner should include price as a primary consideration.
True False: False
59. A CM, acting as an agent of the owner, will bond a multi-prime job. True False: False
60. There is more than one type of legal relationship that may exist between an owner and the CM.
True False: True
61. The standard of care to which a CM is likely to be held is:
A) That of a licensed architect performing construction administration ser- vices
A) The point in time when the CM is brought on board and the duration of the engagement.
B) The scope of services to be provided.
C) The relationship of the CM to others, and the risk and authority assumed by the CM.
D) All of the above: D) All of the above
66. Under a fixed fee approach to agency CM compensation, which of the following statements
is NOT true?
A) The fixed fee approach can have an adverse effect on both the CM and the owner.
B) Unexpected problems could require a CM to expend more costs than budgeted for staff to
perform tasks.
C) The CM is not expected to perform a greater level of effort than originally anticipated.
D) Some believe that a temptation always exists for the CM to put forth
less effort than anticipated or actually required.: C) The CM is not expected to perform a greater level of effort than originally anticipated.
67. The cost plus fixed fee method of CM compensation can be divided into two separate phases—
pre-construction and construction. True False: True
68. Under a cost plus fixed fee arrangement for CM compensation, the reim- bursable expenses
usually include:
A) The costs of all job-site personnel, staff relocation costs, travel and living expenses of jobsite
staff.
B) The costs of all job-site material, equipment, communications, vehicles, fees paid,
reproduction, postage, computer, and any other reasonable field office-related expenses.
C) The use of home office personnel who may be involved in purchasing, expediting,
scheduling, estimating, or other direct project-related tasks.
D) All of the above: D) All of the above
69. The fee as a percentage of construction cost method of compensating an agency CM has a
tendency to discourage effective time and cost control and is in conflict with the objectives and benefits of an agency construction management. True False: True
70. In cases where a project is extended in duration for reasons beyond the control of the CM, it is
imperative that the CM agreement address:
A) How changes in scope and additional services will be handled.
B) Extended CM services.
True False: False
76. A CM under an agency relationship, with the owner managing multi-prime contractors, must
consider its own risk first in managing those contractors. True False: True
77. A method of compensation that creates a potential for conflict of interest between the owner's
interests and the CM's interests is indicative of an agency CM relationship. True False: False
78. Which of the following methods of compensation for CM services is incon- sistent with the CM's
agency relationship to its owner?
A) Fixed fee
B) Percentage of construction costs
C) Multiple of direct personnel expenses
D) Professional fee plus expenses: C) Multiple of direct personnel expenses
79. An agency CM with a fixed fee compensation arrangement shares in the savings generated by a
lower than planned construction cost of the project.- : False
80. Requiring a Guaranteed Maximum Price for the ultimate cost of the project does not create any
potential for conflict between the CM and the owner's interests during the "front end," pre- construction phase services.: False
81. The method of compensation of the CM is one of the elements that defines the nature of the
relationship between the owner and the CM. True False: True
82. Deficient contract documents is a common cause of disputes. True False: True
83. The contract documents for a project should be written primarily to protect the interest of the CM.
True False: False
84. The owner, CM, and designer are less likely to be involved in disputes with the contractor if a
contract is awarded to the lowest bidder. True False: False
85. Owners should always use standard forms of agreement without modifi- cation for each project.
True False: False
86. As the numbers of prime contractors on a project increase, the need to carefully coordinate
contract documents increases. True False: True
87. The roles of the CM as specified by the AIA and CMAA standard forms of agreement are
significantly different. True False: True
88. In the CMAA CM-at-Risk series contract documents, the CM may perform part of the
construction work if the CM so chooses. True False: False
89. Under the CMAA CM-at-Risk contract documents, the owner may, without penalty, direct the CM
to provide services as an agent of the owner. True False: True
to cooperate for the benefit of the owner. True False: True
98. When providing services specified in CMAA document A-1, the CM may have a fiscal liability
for negligent preparation of cost estimates. True False: True
99. The designer, while working under CMAA document A-4, is entitled to rely upon the cost estimate
data prepared by the CM. True False: True
100. In the CMAA CM-at-Risk series documents, the CM is the owner's princi- pal agent until a GMP
is accepted by the owner. True False: False
101. The CMAA agency series documents limit the services of the designer during the construction
phase, thus the designer's fees may be lower than if the AIA documents are used. True False: True
102. If an owner uses CMAA document A-4, the owner may be obligated to compensate the designer
as an additional service for site visits requested by the CM. True False: True
103. The CMAA A-4 document requires the designer to periodically visit the site to become
generally familiar with the progress and quality of the work. True False: False
104. If a designer uses the CMAA A-4 contract document instead of the AIA B132-2009 document,
the designer's exposure to professional liability during the construction phase is reduced. True False: True
105. The CMAA contract documents require both the CM and designer to perform to a
professional standard of care. True False: False
106. The CMAA agency and CM-at-Risk series documents assign liability to the CM if it fails to
meet its contractual obligations True False: True
107. The contractor is obligated to notify the CM of conflicts, errors and/or discrepancies in the
contract documents. True False: True
108. It is NOT the purpose of the General Conditions to:
A) Clearly define the owner and contractor rights and responsibilities.
B) Provide a procedure for executing changes in the work scope in a fair and equitable manner.
C) Provide a detailed scope of work.
D) Clearly define the roles and responsibilities of the CM: C) Provide a detailed scope of work.
109. The CM has the authority on behalf of the owner to disapprove or reject work and to revoke,
alter, enlarge or relax any requirements of the contract documents. True False: False
110. The owner at any time and without cause may suspend the work for a period of 180 days by
a notice in writing to the contractor. True False: True
111. The owner has an obligation to exercise its right to stop work when it would be to the
