Management Concepts AIC Test

Which legal entity is considered perpetual?

Corporation

Which legal entity is taxed twice?

Corporation

Which type of legal entity requires a charter?

Corporation

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

Flow Chart

What graphical measurement tool is a bar graph displaying a frequency distribution?

Histogram

What are the quality standards used internationally called?

ISO 9000

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

In the construction industry, which legal entity is often a temporary arrangement?

Joint ventures

Which management system was developed based on Toyota's production system?

Lean

Which of the following contract types has the most risk for the contractor?

Lump sum

Which of the following is a fundamental element of a contract?

Mutual acceptance

Which document establishes the reference date from which the beginning of the project is calculated and that the contractor can occupy the site?

Notice to Proceed

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

Offer, Acceptance, Meeting of the Minds and Consideration

Which of the following is a major difference between a CM agency and a CM at risk?

One caps the construction costs the owner is required to pay

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

Pareto Chart

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 are management systems used to improve customer satisfaction?

TQM, Six Sigma, and Lean

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

Turn Key

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

Which of the following contract types is best used if the scope is defined but not the quantities of material?

Unit price

Which law establishes basic rules governing the sale of goods, used to establish a Purchase Order?

Uniform Commercial Code

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

Fixed Price or Guaranteed Maximum Price

What chart would be the most appropriate to show the percentage of fall protection safety violations compared to all safety violations?

Pie chart

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

Which delivery method is the construction administrator most like a consultant?

CM Agency

A contract is entered into whereby the Design and Scope are partially undefined, the Owner holds a contract with the A/E, the Owner holds the contracts with each trade and the Owner also holds a contract with a management service company to perform the trade coordination, cost control and scheduling services. What is this project delivery called?

Construction Management

Under which legal entity are the most amount of total taxes paid?

Corporation

The Owner wants to Fast-Track a construction project., Which project delivery system best supports this process?

Design-Build

Which delivery method has the most risk for the contractor?

Design-Build

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

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 in order 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

Which is an advantage of forming a corporation?

Reduced personal liability of shareholders

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

Which law are corporations formed under?

State

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

The owner requests that you submit a proposal supplement titled "Statement of Contractors' Qualifications - All Contracts" and under the officers/principals section it requests the names and titles of the vice president and the president. A proposal is submitted to the Owner with a bid bond, signed addenda, and the proposal form is attached and signed by the chief estimator. Have all of the contract formation principles been satisfied and would the proposal be considered responsive?

The principle of Legal Capacity has not been met, therefore, a non-responsive bid

Which statement is true about the Design-Build delivery method?

There is a sole source for fault for building system failures

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

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

Corporation

A contract is entered into whereby the design and scope are undefined and the Owner agrees to pay for all Direct Labor, Materials, Equipment, plus some agreed upon allowance to the Contractor for their services. What is this type of contract called?

Cost Plus

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

Partnering