A healthcare system is planning a new hospital and wants to reduce the adversarial relationships that often plague construction. They want all parties to share risk and reward, and to collaborate from early design through closeout. Which contract approach best achieves this?

Design-build with a guaranteed maximum price

Construction Manager at Risk with a lump sum

Integrated Form of Agreement (IFOA) with Lean IPD principles

Design-bid-build with a lump sum contract

A contract includes a dispute resolution clause that requires mediation before arbitration. A dispute arises, and the contractor wants to proceed directly to arbitration to save time. The owner's contract manager knows the clause is binding. What is the most appropriate action?

Insist on mediation as a condition precedent to arbitration

Ignore the clause and let the contractor decide

Terminate the contract immediately

Agree to skip mediation and proceed to arbitration

A contract manager is developing a checklist for the closeout phase of a construction project. Which activity is essential to include?

Conducting the pre-bid conference

Obtaining a certificate of substantial completion

Approving the contractor's safety plan

During construction, the owner requests a change that will delay the project by three weeks. The contractor submits a change order that includes additional costs and an extension of time. The contract has a clause that requires the owner to approve changes in writing before the work proceeds. What is the most appropriate action for the contract manager?

Reject the change order and direct the contractor to proceed without additional compensation

Verbally approve the change and ask the contractor to start

Issue a written change order approval before the contractor proceeds with the work

Approve the change order and allow the contractor to proceed immediately

A project uses a design-build contract, but the owner's team still experiences communication gaps with the designer, who is now a subcontractor to the contractor. What is the most effective strategy to mitigate this gap?

Establish regular joint meetings between the owner, contractor, and designer

Require the owner to communicate only through the contractor

Add more change order approvals

Eliminate the designer from the project team

PMIConstruction Professional (PMI-CP)

Domain 1Objective 4

Mange the Contract Lifecycle Effectively PMI-CP Practice Questions (Page 5)

Part of the Contracts Management domain, which accounts for 50% of the PMI-CP exam.

34questions here

7free pages

8concepts

50%of the exam

8 Concepts in This Objective

Contract lifecycle stages
Lean Integrated Project Delivery (IPD) and IFOA principles
Key contract clauses in built environment contracts
Delivery method and contract structure selection
Delivery methods and contract structures comparison
Innovation and technology in tendering
Communication gaps from contractual arrangements
Supporting senior leadership in contract management

Questions 21–25

21application · medium
A healthcare system is planning a new hospital and wants to reduce the adversarial relationships that often plague construction. They want all parties to share risk and reward, and to collaborate from early design through closeout. Which contract approach best achieves this?
Select an answer first
22expert · medium
A contract includes a dispute resolution clause that requires mediation before arbitration. A dispute arises, and the contractor wants to proceed directly to arbitration to save time. The owner's contract manager knows the clause is binding. What is the most appropriate action?
Select an answer first
23application · medium
A contract manager is developing a checklist for the closeout phase of a construction project. Which activity is essential to include?
Select an answer first
24application · medium
During construction, the owner requests a change that will delay the project by three weeks. The contractor submits a change order that includes additional costs and an extension of time. The contract has a clause that requires the owner to approve changes in writing before the work proceeds. What is the most appropriate action for the contract manager?
Select an answer first
25application · medium
A project uses a design-build contract, but the owner's team still experiences communication gaps with the designer, who is now a subcontractor to the contractor. What is the most effective strategy to mitigate this gap?
Select an answer first

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