AACE International CCP Exam - Topic 2 Question 15 Discussion

Actual exam question for AACE International's CCP exam

Question #: 15
Topic #: 2

After collecting the control information on a light rail project within an original budget of 200.0OO work hours, the construction contractor is ready for their monthly progress meeting with the client.

A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor is 60%.

After collecting the control information on a light rail project within an original budget of 200.000work hours, the construction contractor is ready for their monthly progress meeting with the client.

A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%.

Is the percent complete stated by the contractor correct?

ANo, it should be 55.0%

BNo, it should be 50.0%

CNo, it should be 52.5%

DYes, it is 60%

Show Suggested Answer

Suggested Answer: C

The problem provides key metrics used in Earned Value Management (EVM):

Earned Value (EV): $1,500,000

Actual Cost (AC): $1,000,000

Planned Value (PV): $2,000,000

Key Points:

Schedule Performance Index (SPI):

SPI = EV / PV = $1,500,000 / $2,000,000 = 0.75

An SPI less than 1 indicates the project is behind schedule.

Cost Performance Index (CPI):

CPI = EV / AC = $1,500,000 / $1,000,000 = 1.5

A CPI greater than 1 indicates the project is under budget.

Conclusion: The correct answer is C. Project is behind schedule, but under budget because the SPI indicates a delay in schedule, and the CPI shows that the project is currently spending less than planned.

by Marguerita at Dec 06, 2024, 03:38 PM

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Arletta

9 months ago

They’ve paid more hours than earned, that’s a red flag.

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Fannie

9 months ago

Wait, how did they get to 60%? Sounds off.

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Ardella

9 months ago

No way, it should be lower than that!

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Hoa

10 months ago

I thought it was 60% too, seems right.

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Tamekia

10 months ago

The contractor's progress is actually 52.5%.

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Desire

10 months ago

If I remember correctly, we should use the earned hours divided by the scheduled hours to find the percent complete. That makes me think it's not 60%.

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Christiane

10 months ago

I feel like the contractor's 60% might be too high, but I can't recall the exact formula to confirm it.

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Linwood

10 months ago

I remember a similar question where we had to calculate percent complete using earned value. I think it might be around 52.5% here.

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Aleta

11 months ago

I think the percent complete is based on earned hours, but I'm not sure how to calculate it exactly.

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Heike

11 months ago

Alright, time to put my problem-solving skills to the test. I'm confident I can figure out the right answer here, I just need to take it slow and make sure I don't miss anything.

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Whitley

11 months ago

This seems straightforward enough. I'll just plug the numbers into the formula for percent complete and see if I get the same 60% the contractor is reporting.

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Vicky

11 months ago

I'm a bit confused by all the different numbers here. I'll need to make sure I understand what each one represents before I can decide if the 60% is correct or not.

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Jennifer

11 months ago

Okay, let me think this through step-by-step. The original budget was 200,000 work hours, and 100,000 have been scheduled so far. With 105,000 work hours earned and 110,000 paid, I think the contractor's 60% claim might be off.

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Ashton

11 months ago

Hmm, this looks like a tricky one. I'll need to carefully review the information provided and do the calculations to determine the correct percent complete.

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Tu

1 year ago

Hmm, the contractor's statement of 60% progress doesn't add up. Let me crunch the numbers... Ah, I see it now - the correct percent complete is 55%. Looks like the contractor is trying to pull a fast one on the client. Better double-check those figures, my friend!

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Ciara

1 year ago

Haha, the contractor must be living in a different reality to claim 60% progress. According to the numbers, it's clearly 52.5% complete. Someone needs to give this contractor a reality check before the client catches on!

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Isaiah

1 year ago

They better fix their numbers before the progress meeting.

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Francis

1 year ago

The client won't be happy when they find out the truth.

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France

1 year ago

Contractor needs to get their math right, it's definitely 52.5% complete.

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Brent

1 year ago

The contractor's progress statement of 60% seems off. Given the information, the correct percent complete should be 50%. The scheduled work hours are 100,000, but the actual work hours earned are only 105,000, which is less than the 110,000 work hours paid. This suggests the project is behind schedule.

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Ben

1 year ago

C: So, the project is actually behind schedule then.

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Carli

1 year ago

B: I agree, it should be 50% based on the information provided.

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Kathrine

1 year ago

A: The contractor's progress statement of 60% is incorrect.

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Terrilyn

1 year ago

I think the contractor's stated progress of 60% is incorrect. Based on the information provided, the percent complete should be 52.5%. The work hours scheduled to date are 100,000, while the work hours earned are 105,000. This means the project is only 52.5% complete, not 60%.

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