AC Exam: Management Concepts

At which point in time must the Agreement be provided to each prospective bidder?

During the bidding phase of the project

At which point in time must the owner-contractor agreement be provided to each prospective subcontractor bidder?

During the bidding phase of the project

What makes TQM and TSM successful?

Eliminating the isolation problem and making quality and safety everybody's role

What is the name of the clause that is sometimes used if the contract has the potential of an uncertainty in either labor or material prices?

Escalation

What graphical measurement tool displays the causes and effects on a diagram for analyzing problems?

Fishbone Chart

What are two FEE methods that an Agency CM firm may offer an Owner?

Fixed Price or Guaranteed Maximum Price

What graphical measurement tool is a pictorial representation of a process?

Flow Chart

Which graphical measurement tool is a bar chart that displays a frequency distribution?

Histogram

What are the quality standards used internationally called?

ISO 9000

The owner wants to fast-track a construction project. Which project delivery system best supports this process?

Design-build

What is the name of the criteria utilized to improve an organization and evaluate their progress toward becoming the best in their field?

Baldrige Criteria for Performance Excellence

Which of the following Safety criteria that has the greatest potential for reducing the costs of accidents?

Behavior-based Safety Process

A contract is entered into in which the owner holds a contract with the architect and each trade contractor. In addition, the owner holds a contract with a management service company to perform the trade coordination, cost control, and scheduling services. What is this project delivery method called?

Construction Management

Which legal entity affords an individual the most protection of individual assets from creditors of the business?

Corporation

Which legal entity is considered perpetual?

Corporation

Which legal entity is taxed twice?

Corporation

Which type of legal entity requires a charter?

Corporation

A contract is entered into in which the design and scope are undefined and the owner agrees to pay for all direct labor, materials, and equipment, plus an agreed upon fee to the contractor for their services. What is this type of contract called?

Cost Plus

A contract is entered into whereby two Contractors agree to combine their resources to bid and build a specific project. What is this type of contract called?

Joint Venture

Which of the following contract formation principles are needed to form a valid contract?

Offer, Acceptance, Meeting of the Minds, and Consideration

What graphical measurement tool is a bar graph of identified causes shown in descending order of magnitude?

Pareto Chart

What management concept has as its primary goal to get commitment from the top management of all project participants and stakeholders to develop open communications and cooperation on a project?

Partnering

Which legal entity exposes the personal assets of a person to pay for actions of other people involved in the business?

Partnership

Which of the following principles of law states that if the prime contractor reasonably relies on the promise or price of the subcontractor to its detriment, then the subcontractor must be held to its promise to avoid harm to the prime contractor even though a signed contract between the contractor and subcontractor does not exist at the bidding phase of a project?

Promissory Estoppel

What graphical display tool contain line graphs that show a trend over time such as the workhours per square yard of asphalt over a period of time?

Run Chart

What graphical measurement tool is a graph displaying the correlation of two characteristics?

Scatter Diagram

Which legal entity makes it extremely difficult to generate new capital to expand the business?

Sole Proprietorship

Under which municipal law are corporations formed?

State law

Which type of legal entity allows the net income or losses of the corporation to flow through to the individual tax returns of the shareholders and avoids federal taxes?

Subchapter S Corporation

What management philosophy tries to maximize the competitiveness of an organization through continuous improvement?

Total Quality Management

What management philosophy is defined as a performance and processed-oriented approach to safety and health that is improved continually and applies proven principles to maximize an organization's long-term competitiveness?

Total Safety Management

A contract has been entered into whereby the Contractor agrees to design, build, purchase the land and finance the project. What is the type of contract called?

Turn Key

Which law establishes basic rules governing the sale of goods used to establish a purchase order?

Uniform Commercial Code

A clause in the contract states that "if the Quantities of an item of work varies from the estimated quantities by more than 20 percent, then the price will be adjusted." Which type of contract will this clause be primarily used in?

Unit Price

A contract is entered into whereby the bid quantities are stated and payment for the work is based upon the actual quantities placed. What is this type of contract called?

Unit Price