Scenario (same as Question 16):
What type of power does the CFO have at Fin Inc?
Answer : C
The CFO is well-liked and uses personal influence (charisma) rather than authority based solely on position.
What is the purpose of a Project Audit?
Answer Options:
Answer : D
A Project Audit (p.141) occurs post-completion to assess:
Financial health
Performance evaluation
Lessons learned
It is not a planning tool (Option B), nor is it for active budget management (A) or solely for senior leadership (C). [P.141]
Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
Answer Options:
Answer : B
Professional bodies do NOT control pricing in the industry, as this would be market interference. Governance, productivity improvements, and networking are valid functions. [P.31]
When is the best time to define acceptance criteria for a project?
Answer Options:
Answer : C
Acceptance Criteria should be set before the project starts in the Project Initiation Document (PID) (p.137).
Option A is too late, as the project is already completed.
Option B is iterative, but criteria should be predefined.
Option D is for evaluation, not definition. [P.137]
Joey is preparing an NEC contract for the construction of a new school.
He includes a lump-sum price of 5 million.
The contractor receives payment upon completion of specific milestones.
Q: In which section of the contract should this be detailed?
Answer Options:
Answer : A
In NEC contracts, pricing mechanisms are detailed in Options A-F (p.36). W clauses handle dispute resolution, X clauses cover secondary options, and Z clauses are additional conditions. [P.36]
Which of the following is an advantage to the contractor in an EPC contract arrangement?
EPC contracts provide several benefits to contractors, such as clear project scope, reduced risks, and better project management.
Answer Options:
Answer : A
The correct answer is 1 (p.13). The scope is clearly defined by the client, making it easier for the contractor to plan and execute the project efficiently. Option 2 is incorrect because not all EPC contracts offer an early completion bonus. Option 3 is incorrect because EPC contracts can include subcontractors. Option 4 is incorrect because risks are shared between the client and contractor. [P.13]
Which of the following characteristics form part of the Iron Triangle?
Answer : A, B, C
The Iron Triangle consists of scope, cost, and time.