AACE International Exam CCP Topic 2 Question 15 Discussion

Actual exam question for AACE International's CCP exam

Question #: 15
Topic #: 2

[All CCP Questions]

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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Tu

20 days 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

21 days 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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Brent

29 days 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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Kathrine

8 days ago

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

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2 months ago

I think the contractor's progress is incorrect.

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