CMIT EXAM NEWEST ACTUAL EXAM 200

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CMIT EXAM NEWEST ACTUAL EXAM 200

QUESTIONS AND CORRECT DETAILED

ANSWERS (VERIFIED ANSWERS) |ALREADY

GRADED A+

Under a fixed fee approach to agency CM compensation, which of the following statements is NOT true?

• The fixed fee approach can have an adverse effect on both

the CM and the owner.

• Unexpected problems could require a CM to expend more

costs than budgeted for staff to perform tasks.

• The CM is not expected to perform a greater level of effort

than originally anticipated.

• Some believe that a temptation always exists for the CM to

put forth less effort than anticipated or actually required. - ANSWER- C) The CM is not expected to perform a greater level of effort than originally anticipated.

The cost plus fixed fee method of CM compensation can be divided into two separate phases—pre-construction and construction.True False - ANSWER- True

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Under a cost plus fixed fee arrangement for CM compensation,

the reimbursable expenses usually include:

• The costs of all job-site personnel, staff relocation costs,

travel and living expenses of jobsite staff.

• The costs of all job-site material, equipment,

communications, vehicles, fees paid, reproduction, postage, computer, and any other reasonable field office-related expenses.

• The use of home office personnel who may be involved in

purchasing, expediting, scheduling, estimating, or other direct project-related tasks.

• All of the above - ANSWER- D) All of the above

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 - ANSWER- True

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:

• How changes in scope and additional services will be

handled.

• Extended CM services. 2 / 4

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• The cost of additional services.
• All of the above - ANSWER- D) All of the above

The cost reimbursement method of compensation is one of the most commonly used forms of CM compensation associated with agency CM.True False - ANSWER- True

Under a GMP contract, with services provided by a CM-at-Risk, which of the following statements is NOT true?

• The GMP is usually established on less than 100% complete

drawings and specifications.

• It is important that the phrase Guaranteed Maximum Price be

clearly defined in the contract regarding what it includes and excludes.

• With a GMP type CM agreement, the CM is responsible for

all costs associated with the project.

• Once a GMP for construction costs is established, the CM

takes on the risk for completing the project. - ANSWER- C) With a GMP type CM agreement, the CM is responsible for all costs associated with the project.

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Once the Guaranteed Maximum Price is established, the owner does not have to be concerned with managing costs or schedules.True False - ANSWER- False

Liquidated damages on a contract are included to compensate the owner for a delay in completing the work.

True False - ANSWER- True

The owner can transfer risk to the CM and maintain a full agency relationship with the CM.True False - ANSWER- False

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 - ANSWER- True

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 - ANSWER- False

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