AACE International Updated CCP Exam Questions and Answers by lloyd

In the benefit/cost (B/C) method of analysis, the criterion for determining whether a proposed project is acceptable is if the Benefit/Cost ratio (B/C) is greater than 1.0. This indicates that the benefits of the project outweigh the costs, thus making the project economically viable. A B/C ratio of exactly 1.0 suggests that the benefits are just sufficient to cover the costs, while a ratio greater than 1.0 indicates a profitable investment.

The design phase is in the preliminary stages and involves new ride technology with no historical data available.

Steps:

Determine which class of estimate is used in this context.

A Class 5 estimate, which is an order of magnitude estimate with +50%/-30% accuracy, is typically used for projects in the early design or concept stages where detailed data is unavailable.

Answer:A. Class 5 - order of magnitude estimate with +50% / -30% accuracy

In construction and project management, a three-party contractual relationship typically involves three key participants: theOwner, theEngineer, and theContractor.

Key Points:

Owner:

The entity that funds and owns the project. The owner defines the project scope, objectives, and requirements and is the ultimate decision-maker.

Engineer:

Often referred to as the "Designer" or "Consultant," the engineer is responsible for the technical design and specifications of the project. They ensure the project is constructed according to the owner's requirements and standards.

Contractor:

The party responsible for executing the construction work. The contractor follows the design provided by the engineer and delivers the project within the agreed terms of the contract.

Conclusion:The correct answer isC. Owner, engineer, contractorbecause these three parties are central to the execution and management of construction projects under a three-party contractual arrangement.

Acyclical process modelwas chosen as the basis for Total Cost Management (TCM) becausestrategic assets and projects have inherent life cycles. The cyclical nature of TCM allows for continuous improvement and refinement throughout the project’s life, from conception through completion, enabling better management of costs over time. This approach is particularly effective for managing complex projects with evolving requirements, as it aligns with the natural progression of project phases and ensures that estimates, budgets, and schedules are updated regularly to reflect current conditions.