CCIFP Exam Latest Update -

CCIFP Exam Latest Update - Exam 320 Questions and 100% Verified Correct Answers Guaranteed A+ Verified by Professor

According to SOP 81-1 what is a profit center? - CORRECT ANSWER: Profit centers: 1) remediation 2) operation, maintenance and monitoring. Earn revenue from fixed-price, time-and- materials and cost-plus contracts as described below.

Define exculpatory and indemnification provisions of a contract - CORRECT ANSWER: Exculpatory - absolves a party from responsibility of their own actions Indemnification - to hold harmless a party (I.e. Property or person injury on job) Risk insurance generally resolves this

Define the current asset and liability accounts for percentage of completion? -

CORRECT ANSWER: Costs in excess of billings (asset) under billings

Billings in excess of costs (liabilities) over billings

IRS definition of a small contractor and what is the exception - CORRECT ANSWER: 1) Contracts completed within 2 years 2) Average annual gross receipts for preceding 3 years do not exceed 10 million

• Exempted from percentage of completion method

List 6 external users of finacials - CORRECT ANSWER: 1) Owners

2) Sureties 3) Banks 4) Vendors 5) Customers 6) Licening 1 / 4

Major cause of contractor failure is - CORRECT ANSWER: The failure to plan and set specific objectives

Name the 6 main types of claims and describe - CORRECT ANSWER: 1) Delay - delay

on site - compensatory and concurrent delay - non compensatory 2 or more delays 2) Disruption - acts that prevent completion by contractor 3) Acceleration - owner orders contractor to complete sooner than contract stipulates 4) Changed conditions - differing site condition from original contract, could be known or unknown 5) Scope changes - 80 to 90%of claims result of this, contractor believes it's additional work, owner disagrees 6) Termination - government contract Default - one side breach Convenience - either side can terminate

Strategic Planning - CORRECT ANSWER: A logical and systematic process by which a contractor determines the strategic direction for the contractor's future

Strategic Planning - CORRECT ANSWER: Requires knowledge of the risks inherent in the construction industry and of available new business opportunities

Strategic planning must consider external factors. These factors change rapidly and are

outside the contractor control. - CORRECT ANSWER: 1. Political

• Regulatory
• Market Outlook
• Social
• Technology
• Economic
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Strategic planning must consider internal factors. These factors the contractor can control. - CORRECT ANSWER: 1. Culture, related to financial discipline, risk tolerance, growth, and change

• Life cycle stage
• Comprehensive marketing strategy
• Core competencies
• Talent acquisition and retention programs
• Commitment to technology

Strategic Planning Process encourages - CORRECT ANSWER: 1. Assessment of your

company's current condition

• Examination of current business model and the way you would like to do business in

future

• Development of new future operating methods in estimating, preconstruction,

marketing and sales

• Commitment to set strategic goals and plans to meet them
• Creation of momentum necessary to start and carry out the implementation of

strategic plan

That is the zero gross profit option for the completed contract method? - CORRECT ANSWER: Recognize revenue and cost for period, but zero gross profit allow company to show costs for the period

Using the percentage of completion method - what are the subtopics under reliable

estimates? - CORRECT ANSWER: 1) Personnel - must have experience necessary

2) Accounting systems & access to information - those estimating must have reliable information and access to that information

What are 2 accepted methods of accounting - reporting? - CORRECT ANSWER: 1)

POC - Percentage of Completion Method 2) CCM - Completed Contract Method

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What are 2 major methods of determining percentage of completion of a project? Other

methods? - CORRECT ANSWER: 1) Cost to cost

2) Physical completion method (should not deviate significantly from cost to cost)

• Other

1) Efforts - expended 2) Units of delivery 3) Units of work performed

What are 2 methods used as measurement of completion for percentage of completion

method? - CORRECT ANSWER: 1) Input - measures costs

2) Output - measures results

What are 2 types of remedy clauses in contracts? - CORRECT ANSWER: 1) Increase

the scope of work 2) Offering site conditions

What are 2 types of warranties? - CORRECT ANSWER: 1) Express - Can be written or oral(such as a course of dealing) Arises from negotiations 2) Implied - Not part of contract terms "caveat emptor" let the buyer beware - implied by law

What are 2 types of wrap-up plans? - CORRECT ANSWER: 1) Owner controlled

insurance program (OCIP) 2) Contractor controlled insurance program (CCIP)

• Procurement by one party of policies protecting owner and contractors involved

What are 3 types of contract revenue issues of reporting? - CORRECT ANSWER: 1)

Management contracts - contractors only manages and doesn't have risk or reward of own project 2) Owner - furnished materials 3) Incentive and penalty provisions - contracts contingent on performance

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