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Solutions Manual for 101 Case Studies in Construction
Management 2026-2027 BANK QUESTIONS WITH DETAILED
VERIFIED ANSWERS EXAM QUESTIONS WILL COME
FROM HERE (100% CORRECT ANSWERS A+ GRADED
Question 1
A contractor is evaluating a construction site where the geotechnical
report indicates the presence of expansive clay soils. Which foundation
strategy is the MOST appropriate to mitigate differential heave?
A. Standard spread footings placed at a 3-foot depth
B. A post-tensioned slab-on-grade designed to float
C. A shallow continuous footing reinforced only at the bottom
D. Isolated pier foundations with no void forms
Answer: B
Explanation: Expansive clays shrink and swell significantly with moisture
content changes. Standard shallow foundations (Option A) are highly
susceptible to distress. A post-tensioned slab-on-grade designed as a
"floating" raft foundation can move monolithically with the soil without
cracking the superstructure, making it the most effective method listed.
Deep piers (Option D) will work only if equipped with belled rebar and
substantial void forms to prevent uplift.
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Question 2
During a delay analysis on a critical path method (CPM) schedule, an
electrical subcontractor finishes rough-in two days late, but the general
contractor’s subsequent drywall start date was already delayed by a
week due to a late steel delivery. What is the owner’s liability for the
electrical subcontractor’s delay?
A. The owner must compensate the electrical subcontractor for two
days of unabsorbed home office overhead
B. The delay is non-compensable because it consumed available project
float
C. The delay is considered concurrent, so neither time nor money is
granted to the General Contractor
D. The owner is liable because the electrical work was on the critical
path before the steel delay
Answer: B
Explanation: The late steel delivery from a prime or general contractor’s
supplier independently pushed the drywall start. The electrical rough-in
delay did not delay the project’s ultimate completion date because it
occurred during a period of float created by the steel delay. An owner is
not typically liable for subcontractor delays that do not impact the
critical path and are absorbed by available float.
Question 3
In a Guaranteed Maximum Price (GMP) contract, savings below the
GMP are typically handled through a pre-negotiated share ratio. The
primary administrative benefit of a GMP over a pure Cost-Plus-Fee
contract is:
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A. The contractor absorbs all cost overruns unconditionally
B. The elimination of the owner’s obligation to audit contractor cost
records
C. The transfer of pricing risk to the contractor up to a defined ceiling
D. The elimination of change orders for scope gaps
Answer: C
Explanation: A GMP sets a cap on the owner’s cost exposure. While the
owner reimburses actual costs up to the cap, the contractor is
responsible for any costs exceeding the GMP, thus transferring the risk
of cost overruns from the owner to the contractor for work within the
defined scope. Audits (Option B) are still necessary to verify
reimbursable costs, and change orders (Option D) still exist if the owner
alters the scope.
Question 4
When utilizing the Earned Value Management (EVM) method, a Cost
Performance Index (CPI) of 0.85 indicates that:
A. The project is ahead of schedule
B. For every $1.00 spent, only $0.85 of work has been earned
C. The cost variance is exactly $0.85
D. The project is 85% complete
Answer: B
Explanation: The CPI is the ratio of Earned Value (EV) to Actual Cost
(AC). A CPI less than 1.0 indicates a cost overrun. Specifically, a CPI of
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0.85 means the project is earning $0.85 of value for every $1.00 of
actual expenditure, representing a cost inefficiency.
Question 5
A project manager is reviewing the contract for a high-rise public
project. The owner is a state agency. Which clause is LEAST likely to be
negotiable by the contractor?
A. The safety plan submission schedule
B. The daily liquidated damages rate
C. The requirement for a 100% Performance and Payment Bond
D. The markup percentage on self-performed change order work
Answer: C
Explanation: Public procurement laws (often modeled on the Miller Act
at the federal level or "Little Miller Acts" at the state level) mandate
100% Performance and Payment Bonds on public works projects
exceeding a certain threshold. This requirement is statutory and cannot
be waived or negotiated by the agency’s contracting officer. LDs and
markups (Options B and D) are often negotiable, and administrative
schedules (Option A) are frequently adjusted.
Question 6
A construction firm is evaluating a piece of equipment with a purchase
price of $600,000, a salvage value of $100,000, and a useful life of 5
years. Using the straight-line depreciation method, what is the annual
depreciation expense?
Solutions Manual for 101 Case Studies in Construction
Management 2026-2027 BANK QUESTIONS WITH DETAILED
VERIFIED ANSWERS EXAM QUESTIONS WILL COME
FROM HERE (100% CORRECT ANSWERS A+ GRADED
Question 1
A contractor is evaluating a construction site where the geotechnical
report indicates the presence of expansive clay soils. Which foundation
strategy is the MOST appropriate to mitigate differential heave?
A. Standard spread footings placed at a 3-foot depth
B. A post-tensioned slab-on-grade designed to float
C. A shallow continuous footing reinforced only at the bottom
D. Isolated pier foundations with no void forms
Answer: B
Explanation: Expansive clays shrink and swell significantly with moisture
content changes. Standard shallow foundations (Option A) are highly
susceptible to distress. A post-tensioned slab-on-grade designed as a
"floating" raft foundation can move monolithically with the soil without
cracking the superstructure, making it the most effective method listed.
Deep piers (Option D) will work only if equipped with belled rebar and
substantial void forms to prevent uplift.
,2|Page
Question 2
During a delay analysis on a critical path method (CPM) schedule, an
electrical subcontractor finishes rough-in two days late, but the general
contractor’s subsequent drywall start date was already delayed by a
week due to a late steel delivery. What is the owner’s liability for the
electrical subcontractor’s delay?
A. The owner must compensate the electrical subcontractor for two
days of unabsorbed home office overhead
B. The delay is non-compensable because it consumed available project
float
C. The delay is considered concurrent, so neither time nor money is
granted to the General Contractor
D. The owner is liable because the electrical work was on the critical
path before the steel delay
Answer: B
Explanation: The late steel delivery from a prime or general contractor’s
supplier independently pushed the drywall start. The electrical rough-in
delay did not delay the project’s ultimate completion date because it
occurred during a period of float created by the steel delay. An owner is
not typically liable for subcontractor delays that do not impact the
critical path and are absorbed by available float.
Question 3
In a Guaranteed Maximum Price (GMP) contract, savings below the
GMP are typically handled through a pre-negotiated share ratio. The
primary administrative benefit of a GMP over a pure Cost-Plus-Fee
contract is:
,3|Page
A. The contractor absorbs all cost overruns unconditionally
B. The elimination of the owner’s obligation to audit contractor cost
records
C. The transfer of pricing risk to the contractor up to a defined ceiling
D. The elimination of change orders for scope gaps
Answer: C
Explanation: A GMP sets a cap on the owner’s cost exposure. While the
owner reimburses actual costs up to the cap, the contractor is
responsible for any costs exceeding the GMP, thus transferring the risk
of cost overruns from the owner to the contractor for work within the
defined scope. Audits (Option B) are still necessary to verify
reimbursable costs, and change orders (Option D) still exist if the owner
alters the scope.
Question 4
When utilizing the Earned Value Management (EVM) method, a Cost
Performance Index (CPI) of 0.85 indicates that:
A. The project is ahead of schedule
B. For every $1.00 spent, only $0.85 of work has been earned
C. The cost variance is exactly $0.85
D. The project is 85% complete
Answer: B
Explanation: The CPI is the ratio of Earned Value (EV) to Actual Cost
(AC). A CPI less than 1.0 indicates a cost overrun. Specifically, a CPI of
, 4|Page
0.85 means the project is earning $0.85 of value for every $1.00 of
actual expenditure, representing a cost inefficiency.
Question 5
A project manager is reviewing the contract for a high-rise public
project. The owner is a state agency. Which clause is LEAST likely to be
negotiable by the contractor?
A. The safety plan submission schedule
B. The daily liquidated damages rate
C. The requirement for a 100% Performance and Payment Bond
D. The markup percentage on self-performed change order work
Answer: C
Explanation: Public procurement laws (often modeled on the Miller Act
at the federal level or "Little Miller Acts" at the state level) mandate
100% Performance and Payment Bonds on public works projects
exceeding a certain threshold. This requirement is statutory and cannot
be waived or negotiated by the agency’s contracting officer. LDs and
markups (Options B and D) are often negotiable, and administrative
schedules (Option A) are frequently adjusted.
Question 6
A construction firm is evaluating a piece of equipment with a purchase
price of $600,000, a salvage value of $100,000, and a useful life of 5
years. Using the straight-line depreciation method, what is the annual
depreciation expense?
