Manage the Claims Process PMI-CP Practice Questions (Page 5)

Questions 21–25

1. 21expert · hard

   A dispute has arisen over the interpretation of a force majeure clause in a construction contract. The parties have tried negotiation and mediation, but both have failed. The contract requires arbitration for unresolved disputes. The parties want a binding decision but are concerned about the cost and time of arbitration. Which alternative would provide a binding decision while potentially being faster and less costly than arbitration?

   • AA dispute review board with a binding recommendation.
   • BLitigation in a court of law.
   • CExpert determination, where a neutral expert issues a binding decision on the clause interpretation.
   • DContinued negotiation without a deadline.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   What is the primary benefit of early resolution of claims in the claims process?

   • AIt eliminates the need for documentation
   • BIt reduces the cost and time associated with prolonged disputes
   • CIt guarantees that the claim is resolved in favor of the contractor
   • DIt automatically leads to litigation
   Reveal Solution Discussion Select an answer first
4. 23expert · hard

   During a project, the owner directs the contractor to perform additional work that is not within the original scope. The contractor performs the work but does not submit a change order. Later, the contractor submits a claim for payment. The owner argues that the work was a change order, not a claim, because the owner directed it. The contractor argues it is a claim because no change order was signed. Which factor is most important in determining whether this is a change order or a claim?

   • AWhether the additional work was within the original contract scope.
   • BWhether the contractor performed the work before or after the owner's direction.
   • CWhether the contractor provided notice of the claim within the contractually required timeframe.
   • DWhether the owner's project manager had the authority to direct the additional work.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   What is the primary purpose of analyzing lessons learned from previous projects in the context of claims management?

   • ATo compare the performance of different project managers
   • BTo identify areas that historically lead to claims so they can be addressed proactively
   • CTo document all claims for legal purposes
   • DTo assign blame to the parties responsible for past disputes
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   In the context of claims reduction, what is the primary purpose of a risk register?

   • ATo list all potential claims that might arise
   • BTo assign blame for project failures
   • CTo record all change orders issued on the project
   • DTo track identified risks and the actions taken to mitigate them
   Reveal Solution Discussion Select an answer first