Chapter 17

True/False: A brief payment processing period will increase interim financing costs incurred by the contractor.

False. Interim financing cost are included in the project cost.

True/False: The schedule of values is a timetable upon which progress payments are based.

False. The schedule of values is a written list in tabular form of the value amounts relating to the activities of work, associated with he appropriate monetary amounts for each activity.

________ is the allocation of overhead to items that will be completed early in the project.

Front-loading

The most common method of payment in commercial building construction, in the traditional owner-contractor contract, is by monthly ________, which are partial payments for work completed during a portion, usually a month, of the construction period.

Progress Payments

________ relate the schedule of values to the construction schedule, projecting the progress payments through the duration of the project.

Project cash flow projections

________ is an amount held by the owner until the final completion of the contract.

Retainage

True/False: If an uneven distribution of the costs is anticipated when projecting project cash flow, splitting the work activity into segments might be advisable.

True.

True/False: Many owners will assign a percentage of the contract amount to the punch list, usually from one to five percent.

True.

True/False: The total of the schedule of values is the contract amount.

True.

Payment for the project at the completion of the project may be done in ________ arrangements, as the project is delivered to the owner and payment is made for the project.

Turnkey

Varying amounts of retain age are held by owners, usually ________ percent. a. 2 or 5 b. 5 or 10 c. 10 or 15 d. 15 or 20

b. 5 or 10

The ________ is a written list in tabular form of the value amounts relating to the activities of work, associated with appropriate monetary amounts for each activity. a. Schedule of values b. Estimate summary c. Progress schedule chart d. Project projection

b. Estimate summary

The ________ is a list of items that must be completed or repaired prior to final completion of a project. a. Estimate summary b. Punch list c. Schedule of values d. Project projection

b. Punch list

Most contracts specify that the owner can take a period of ________ to process progress payment after receipt of the certified application, but this may vary depending on specific factors relating to the owner and project financing. a. 7 days b. 14 days c. 20 days d. 30 days

d. 30 days

The crash flow curve is normally a(n) "________" curve. a. Bell b. Erratic-M c. Straight-line d. Lazy-S

d. Lazy-S