Project Management, Costing, and Contract Administration
What this domain tests
This domain tests project delivery from programming through closeout: schedules, estimates, procurement, contracts, submittals, requests for information, change orders, and payment.
Core rules and concepts
- Design phases are schematic design, design development, construction documents, and construction administration. Each phase has a different deliverable and accuracy of cost estimate.
- Scheduling tools include bar charts and the critical path method. The critical path is the longest sequence of dependent tasks; delaying it delays completion.
- Estimate types include order-of-magnitude, conceptual, and detailed. Contingency covers unknown conditions; markup covers overhead and profit. Do not confuse them.
- Contract types include lump sum, guaranteed maximum price, and time and materials. AIA documents are common but must be coordinated with the owner-consultant agreement.
- Administration uses submittals, RFIs, change orders, pay applications, and lien waivers. Every change should be documented in writing.
Worked example
A project has a $500,000 construction budget and 10 percent contingency, or $50,000. A $40,000 change order is proposed. The remaining contingency is $10,000, so approval leaves little room for unknown conditions. The project manager should require a detailed cost breakdown and schedule impact before recommending approval.
Traps
Treating contingency as profit; approving verbal changes; issuing an RFI without a response deadline; and assuming the lowest bid is the lowest final cost.