Management Concepts

Which management system was developed by Motorola in the late 80's? Answers: ISO 9000 Six Sigma TQM Lean

Six Sigma

A clause in the contract states that "if the Quantities of an item of work vary 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? Answers: Fixed Price. Cost Plus. Unit Price. Design-Build.

Unit Price

A contract is entered into whereby the Design, Scope and Bid quantities are established and payment for the work is to be made upon the basis of the actual quantity placed. What is this type of contract called'? Answers: Cost Plus. Fixed Price. Lump Sum. Unit Price.

Unit Price.

At which point in time must the Agreement be provided to each prospective bidder? Answers: At the bid opening. Just before the signing of the Owner- Contractor Agreement. During the bidding phase of the project. At the signing of the Owner- Contractor Agreement

During the bidding phase of the project.

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? Answers: Equitable Adjustment. Incentive. Escalation. Contingency.

Escalation.

What graphical measurement tool displays the causes and effects on a diagram for analyzing problems? Answers: Pareto Chart. Histogram. Control Chart. Fishbone Chart.

Fishbone Chart.

What graphical measurement tool is a pictorial representation of a process? Answers: Run Chart. Flow Chart. Scatter Diagram. Control Chart.

Flow Chart.

What graphical measurement tool is a bar graph displaying a frequency distribution? Answers: Fishbone Chart. Control Chart. Histogram. Pareto Chart.

Histogram

Which international management system provides management concepts and guidelines for the manufacturing and service industries? Answers: Six Sigma Lean TQM ISO 9000

ISO 9000

What are the internationally quality standards called? Answers: Baldrige Award of Excellence. ISO 9000. Total Quality Management. Statistical Process Control.

ISO 9000.

What graphical measurement tool would be best used to show the percentage of a data compared to a whole set of data? Answers: Histogram. Line Chart. Pie Chart. Bar Chart.

Pie Chart.

Which legal entity makes it extremely difficult to generate new capital to expand the business? Answers: Sole Proprietorship. Partnership. Corporation. Joint Venture.

Sole Proprietorship.

Which law are corporations formed under? Answers: Municipal. Federal. City. State.

State

What graphical measurement tool is best used to compare the differences between grouped data in terms of magnitude or frequency? Answers: Pie Chart. Histogram. Bar Chart. Fishbone Chart.

Bar Chart

This situation was adapted from the Column Mr. Ethics presented in previous issues of the American Institute of Constructors (AIC) Newsletter. Read the situations below and circle the best response to the situation.Contractor "A" was low bidder on a general-contacted project which has an extensive number of alternatives during bidding and negotiations. Contractor "A" received a standard contract from Mary, the lead Architect, a source of business for several years, Ed the Estimator at Contractor "A", discovers the contract value was erroneously issued at $365,000 instead of the $355,000. How should Ed handle this situation? Answers: Ignore the error and sign the contract. Inform Mary, the lead, architect of the error and tell them to leave the amount in the contract to cover the potential errors in the numerous alternatives. Call Mary, the lead architect, and inform her of your discovery. Inform Mary, the lead architect, of the error but encourage them to leave the difference in the contract as a contingency.

Call Mary, the lead architect, and inform her of your discovery.

The Owner wants to Fast-Track a construction project. Which type of contract best supports this process? Answers: Fixed Price. Unit Price. Design-Build. Cost Plus.

Design-Build.

According to the Constructor's Code of Ethics, The Constructor shall insure that when providing a service or advice such advice shall be to treat all parties in a fair and unbiased way. What is the best way for a Constructor to achieve this? Answers: Fire someone for being considered unethical. Follow the guidelines provided in your employment contract. Don't engage in any practice which creates an unfair advantage for one party. Review your mission and goal statement on ethical behavior.

Don't engage in any practice which creates an unfair advantage for one party.

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 business entity called? Answers: Construction Management. Partnership. Design-Build. Joint Venture.

Joint Venture

Which management system was developed based on Toyota's Production System? Answers: TQM Six Sigma Lean ISO 9000

Lean

According to the Constructor's Code of Ethics, The Constructor shall not maliciously or recklessly injure or attempt to injure the professional reputation of others. You have just been notified in writing that you have not met the minimum score required to pass the Level 2 Advanced Construction Applications Examinations even though you have over twenty years of experience. What is the Best way to proceed? Answers: Call the Commission office and ask for hints on how close you were to passing and what questions should be appealed. Then provide solid grounds for appeal. Submit a written request to the Commission, postmarked no later than thirty days after the notice of failure according to the Appeals Process procedures. Obtain the e-mail addresses of all members and send a letter criticizing the quality of the test questions and that certain portions of the examination were wrong. Call the Commission office and criticize the poor quality of the examination.

Submit a written request to the Commission, postmarked no later than thirty days after the notice of failure according to the Appeals Process procedures.

What management philosophy tries to maximize the competitiveness of an organization through continuous improvement? Answers: Partnering. Six Sigma. Statistical Process Control. Total Quality Management

Total Quality Management

A contract is entered into whereby the Owner holds a contract with the designers, the Owner holds the contracts with the general and/or subcontractors 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 type of contract called? Answers: Cost Plus. Construction Management. Design-Build. Joint Venture.

Construction Management.

Which legal entity affords an individual the most protection of individual assets from creditors of the business? Answers: Sole Proprietorship. Joint Venture. Partnership. Corporation.

Corporation

Which legal entity is considered perpetual? Answers: Partnership. Joint Venture. Sole Proprietorship. Corporation.

Corporation

Which legal entity is taxed twice? Answers: Corporation. Sole Proprietorship. Limited Liability Company. Partnership.

Corporation

Which type of legal entity requires a charter? Answers: Corporation. Sole Proprietorship. Joint Venture. Partnership.

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? Answers: Construction Management. Cost Plus. Design-Build. Partnering.

Cost Plus

This situation was adapted from the Column Mr. Ethics presented in previous issues of the American Institute of Constructors (AIC) Newsletter. Read the situations below and circle the best response to the situation.Constructor "Z" is building an addition to an existing pharmaceutical plant of approximately 20,000 square feet. There is space on the site for one more future addition. After installing foundations, Ed, the Constructors Superintendent, is verifying the dimensions with Jim the Bricklayer crew leader and they discover that the addition has been laid out 1' - 0" out of square. All work can still be performed with very minor field adjustments. The error will compound itself if the future addition ever takes place. Ed has worked with Mary the Architect on projects for over twenty years but never for this owner. What should Ed do? Answers: Ignore the error and tell no one. Inform Mary, the architect only. Inform the Owner and Mary the Architect. Have Ed, the superintendent, and Jim, the Bricklayer adjust as required.

Inform the Owner and Mary the Architect.

What graphical measurement tool is commonly used to track trends in data? Answers: Histogram. Pie Chart. Bar Chart. Line Chart.

Line Chart.

This situation was adapted from the Column Mr. Ethics presented in previous issues of the American Institute of Constructors (AIC) Newsletter. Read the situations below and circle the best response to the situation.You, as a Masonry Subcontractor, recently submitted a bid of $450,000 to a General Contractor for the masonry portion of a new office building. You are invited to the General Contractor's office to discuss the project. In the midst of negotiations, the General Contractors representative is called out of the room. In his absence, you notice the spread sheet listing all the bids received including yours. It is apparent from the spreadsheet that you are $22,000 higher than the low bidder. The next highest bidder is $8,000 above you. What action should you take? Answers: Maintain your original price quotation, praise the virtues of your company to be able to meet the schedule, the high quality of your work and your relationship. Continue negotiating with the General Contractor over price upon the General Contractor's return to the meeting. Always knowing you have the upper hand. Lower your price by $25,000 upon the General Contractor's return, giving the reason that you had a chance to re-examine your numbers. Be concerned that the spreadsheet may be a decoy with the intention of getting you to lower your price enough to become the lowest bidder.

Maintain your original price quotation, praise the virtues of your company to be able to meet the schedule, the high quality of your work and your relationship.

This situation was adapted from the Column Mr. Ethics presented in previous issues of the American Institute of Constructors (AIC) Newsletter. Read the situations below and circle the best response to the situation.After a $15,000,000 bid on a new pump house, you are publicly regarded as the apparent second low bidder. The following day, one of the subcontractors for a $4,500,000 portion of the project calls and asks how he compared with his competitors. He is the low bidder with you. What do you tell the subcontractor'? Answers: Tell him that it is none of his business and hang up on him for bothering you. Provide the subcontractor a ball park idea where they stood, but don't be specific. Maintain your silence in respect for the other subcontractors who provided quotes. Divulge all and hope to put your competitor at a negotiating disadvantage.

Maintain your silence in respect for the other subcontractors who provided quotes.

Which document establishes the reference date from which the beginning of the project is calculated and that the contractor can occupy the site? Answers: Advertisement to Bidders. Notice to Proceed. Notice of Award. Instructions to Bidders.

Notice to Proceed.

Which of the following contract formation principles are needed to form a valid contract? Answers: Performance, Technical Specifications and Consideration. Plans, Technical Specifications, General and Supplementary Conditions. General Conditions, Supplementary Conditions and a Proposal. Offer, Acceptance, Capacity, Consideration, and Lawful obje

Offer, Acceptance, Capacity, Consideration, and Lawful object.

Which of the following is a major difference between a CM Agency and a CM at risk? Answers: One has a contract with the designers One manages the project on the owner's behalf One is a lump sum type contract for construction services One has contracts with subcontractors to perform the work

One has contracts with subcontractors to perform the work

Which of the following is a major difference between a CM Agency and a CM at risk? Answers: One provides a GMP and is "at risk" if the actual construction cost exceed it One manages the project on the owner's behalf One has a contract with the designers One is a lump sum type contract for construction services

One provides a GMP and is "at risk" if the actual construction cost exceed it

Which legal entity exposes the personal assets of a person to pay for actions of other people involved in the business? Answers: Joint Venture. Corporation. Sole Proprietorship. Partnership.

Partnership.

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 your proposal would be considered responsive? Answers: The principle of the Consideration has been met, therefore, responsive bid. The principle of Capacity has been met, therefore, responsive bid. The principle of Consideration has been met, therefore, responsive bid. The principle of Capacity has not been met, therefore, a non-responsive bid. Response Feedback:

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