ARE 5.0 PJM Test with all Correct & 100% Verified
Answers |Latest Update |Already Graded A+
Partnering ✔Correct Answer-A method of managing a project where various stakeholders in
the project all participate in the decision making process
What should a PM consider when selecting its internal team? ✔Correct Answer-The type and
complexity of the project, the size of the project, staff availability, experience levels, billing
rates, personalities
What are the 2 methods of scheduling a project? ✔Correct Answer-Bar char or Gantt chart &
critical path
Most common methods of compensation ✔Correct Answer-Stipulated sum, cost plus fee,
percentage of construction cost, unit cost
Total working fee ✔Correct Answer-The fee available to pay people to do the job after
subtracting fees for profit, consultants, and other expenses
stipulated sum/fixed price ✔Correct Answer-The owner pays the architect a fixed sum for a
specific set of services, these do not include reimbursable expenses
Cost plus fee ✔Correct Answer-The architect is compensated for the actual expenses of doing
the job plus a reasonable fee for profit
Multiple of direct personnel expense approach ✔Correct Answer-Direct salaries of employees
is determined and multiplied by a factor to account for normal and required personnel
expenses, that amount is increased by a multiplier that includes provisions for overhead and
profit
Hourly billing rate method ✔Correct Answer-The multiplier is built into the hourly rate
Percentage of construction cost ✔Correct Answer-The professional fee is a fixed p centaur of
the cost of construction
Unit cost method ✔Correct Answer-Fees are based on a definable unit, such as square
footage, for such work as tenant planning in a leasing building, or on a per-house basis in a large
residential projectq
Four basic types of schedules ✔Correct Answer-Critical path method schedule, milestone
charts, bar charts or Gantt charts, wall schedule
, When is the milestone chart used? ✔Correct Answer-Short duration projects with relatively
few tasks to track and fees under $35,000
What are general obligation bonds? ✔Correct Answer-Bonds issued by a city or state and
backed by general tax revenue and the issuer's credit
Addendum ✔Correct Answer-A modification to the procurement documents issued for bid of
negotiation. Addenda can be issued any time before the owner-contractor agreement is
executed, but are typically issued until some predetermined time before the bid opening.
Allowance ✔Correct Answer-An amount of money or quantity of materials identified by
bidders for work that is not completely defined in the procurement documents
Bid alternate ✔Correct Answer-A portion of the work defined in the procurement documents
for which separate pricing is to be identified in bidders' approach
Payment bond ✔Correct Answer-Labor and materials payment bond, is an amount of money
guaranteeing that the contractor will pay subcontractors, vendors, and suppliers for their work.
What does a payment bond protect the owner from? ✔Correct Answer-Potential mechanic's
liens and construction delays
Performance bond ✔Correct Answer-A guarantee by an entity which ensures that, should the
contractor default during construction, there are sufficient funds to complete the project.
Qualifications-based selection (QBS) ✔Correct Answer-The owner selects a contractor solely
in the basis of the contractors qualifications
Value-based selection (VBS) ✔Correct Answer-The owner selects a contractor based on the
weighted values of multiple criteria, including construction cost or fee and proposed schedule,
as well as qualifications-based criteria such as past experience on similar projects and proposed
personnel.
Stipulated sum ✔Correct Answer-Lump sum or fixed sum bid. The bid price is offered as a
single-number value that represents all the costs required to build the project.
Guaranteed maximum price (GMP) ✔Correct Answer-The cost of construction that the
contractor assures the client that the project will be built for
What is a type 1 RFI? ✔Correct Answer-Graphic/ confirming RFI. The most straightforward
type of RFI would take approximately 1-2 labor hours or rework for a full-time equivalent
employee. This type of RFI receives a 2-hour point
Answers |Latest Update |Already Graded A+
Partnering ✔Correct Answer-A method of managing a project where various stakeholders in
the project all participate in the decision making process
What should a PM consider when selecting its internal team? ✔Correct Answer-The type and
complexity of the project, the size of the project, staff availability, experience levels, billing
rates, personalities
What are the 2 methods of scheduling a project? ✔Correct Answer-Bar char or Gantt chart &
critical path
Most common methods of compensation ✔Correct Answer-Stipulated sum, cost plus fee,
percentage of construction cost, unit cost
Total working fee ✔Correct Answer-The fee available to pay people to do the job after
subtracting fees for profit, consultants, and other expenses
stipulated sum/fixed price ✔Correct Answer-The owner pays the architect a fixed sum for a
specific set of services, these do not include reimbursable expenses
Cost plus fee ✔Correct Answer-The architect is compensated for the actual expenses of doing
the job plus a reasonable fee for profit
Multiple of direct personnel expense approach ✔Correct Answer-Direct salaries of employees
is determined and multiplied by a factor to account for normal and required personnel
expenses, that amount is increased by a multiplier that includes provisions for overhead and
profit
Hourly billing rate method ✔Correct Answer-The multiplier is built into the hourly rate
Percentage of construction cost ✔Correct Answer-The professional fee is a fixed p centaur of
the cost of construction
Unit cost method ✔Correct Answer-Fees are based on a definable unit, such as square
footage, for such work as tenant planning in a leasing building, or on a per-house basis in a large
residential projectq
Four basic types of schedules ✔Correct Answer-Critical path method schedule, milestone
charts, bar charts or Gantt charts, wall schedule
, When is the milestone chart used? ✔Correct Answer-Short duration projects with relatively
few tasks to track and fees under $35,000
What are general obligation bonds? ✔Correct Answer-Bonds issued by a city or state and
backed by general tax revenue and the issuer's credit
Addendum ✔Correct Answer-A modification to the procurement documents issued for bid of
negotiation. Addenda can be issued any time before the owner-contractor agreement is
executed, but are typically issued until some predetermined time before the bid opening.
Allowance ✔Correct Answer-An amount of money or quantity of materials identified by
bidders for work that is not completely defined in the procurement documents
Bid alternate ✔Correct Answer-A portion of the work defined in the procurement documents
for which separate pricing is to be identified in bidders' approach
Payment bond ✔Correct Answer-Labor and materials payment bond, is an amount of money
guaranteeing that the contractor will pay subcontractors, vendors, and suppliers for their work.
What does a payment bond protect the owner from? ✔Correct Answer-Potential mechanic's
liens and construction delays
Performance bond ✔Correct Answer-A guarantee by an entity which ensures that, should the
contractor default during construction, there are sufficient funds to complete the project.
Qualifications-based selection (QBS) ✔Correct Answer-The owner selects a contractor solely
in the basis of the contractors qualifications
Value-based selection (VBS) ✔Correct Answer-The owner selects a contractor based on the
weighted values of multiple criteria, including construction cost or fee and proposed schedule,
as well as qualifications-based criteria such as past experience on similar projects and proposed
personnel.
Stipulated sum ✔Correct Answer-Lump sum or fixed sum bid. The bid price is offered as a
single-number value that represents all the costs required to build the project.
Guaranteed maximum price (GMP) ✔Correct Answer-The cost of construction that the
contractor assures the client that the project will be built for
What is a type 1 RFI? ✔Correct Answer-Graphic/ confirming RFI. The most straightforward
type of RFI would take approximately 1-2 labor hours or rework for a full-time equivalent
employee. This type of RFI receives a 2-hour point
