AACE International CCP Exam - Topic 3 Question 11 Discussion

Actual exam question for AACE International's CCP exam

Question #: 11
Topic #: 3

[All CCP Questions]

Which of the following is NOT an advantage specific to a cost reimbursable contract?

AEvaluation of proposals are much simpler

BProvides flexibility in dealing with changes

CAn early start can be made

DOwner controls all aspects of the work

Show Suggested Answer

Suggested Answer: D

In a cost reimbursable contract, the contractor is reimbursed for all allowable costs incurred during the project, plus an additional fee (which could be a fixed fee or a percentage of costs). This contract type provides several advantages but also has its limitations.

Key Points:

Advantages of Cost Reimbursable Contracts:

Simpler Proposal Evaluation: The focus is on selecting the best contractor rather than the lowest bid, making the evaluation process simpler.

Flexibility in Dealing with Changes: This contract type allows for adjustments and changes as the project progresses.

Early Start: Work can begin quickly without needing a fully defined scope since costs are reimbursed.

Owner Control:

While cost reimbursable contracts offer flexibility, they do not inherently mean that the owner controls all aspects of the work. The contractor typically manages the execution of the project, while the owner retains control over the budget and major decisions.

Conclusion: The correct answer is D. Owner controls all aspects of the work because, in cost reimbursable contracts, the contractor has significant control over how the work is performed, while the owner mainly controls costs and high-level decisions.

by Raymon at Sep 14, 2024, 12:29 PM

Limited Time Offer

25%

Off

Get Premium CCP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Eva

5 months ago

I think owner control is a big advantage, though.

upvoted 0 times

...

Shawnna

6 months ago

Early starts can definitely happen with these contracts.

upvoted 0 times

...

Heike

6 months ago

Wait, how is "evaluation of proposals" simpler? That sounds off.

upvoted 0 times

...

Dortha

6 months ago

Totally agree, flexibility is key!

upvoted 0 times

...

Nohemi

6 months ago

Cost reimbursable contracts are usually more flexible.

upvoted 0 times

...

Samira

7 months ago

I practiced a similar question, and I think the early start mentioned in option C is often a benefit, so maybe that's not the answer either.

upvoted 0 times

...

Rolande

7 months ago

I feel like option D could be the one that doesn't fit, as the owner doesn't control everything in a cost reimbursable contract.

upvoted 0 times

...

Mabel

7 months ago

I'm not entirely sure, but I remember that flexibility in dealing with changes is a key advantage, so it can't be the answer.

upvoted 0 times

...

Reyes

7 months ago

I think option A might be the right answer since cost reimbursable contracts usually have more complex evaluations.

upvoted 0 times

...

Vicente

7 months ago

I've got this! The owner controlling all aspects of the work is a disadvantage, not an advantage, of a cost reimbursable contract.

upvoted 0 times

...

Valentine

7 months ago

I'm a bit confused on the differences between the options. I'll have to read them over again and think it through step-by-step.

upvoted 0 times

...

Myra

7 months ago

Okay, I know the key advantages are flexibility and an early start. I just need to identify which one is not an advantage.

upvoted 0 times

...

Ernestine

7 months ago

Hmm, I'm a bit unsure about the advantages of cost reimbursable contracts. Let me think this through carefully.

upvoted 0 times

...

Leatha

7 months ago

This question seems straightforward, I think I can handle it.

upvoted 0 times

...

Terrilyn

7 months ago

This question seems straightforward, but I want to make sure I understand the key details before answering.

upvoted 0 times

...

Wilda

2 years ago

Owner controls all aspects of the work? Sounds like a recipe for a micromanager's dream. No thanks!

upvoted 0 times

Marion

1 year ago

C) An early start can be made

upvoted 0 times

...

Penney

1 year ago

B) Provides flexibility in dealing with changes

upvoted 0 times

...

Vi

1 year ago

A) Evaluation of proposals are much simpler

upvoted 0 times

...

Arlie

2 years ago

Cost reimbursable contracts? More like 'cost reimbursable headaches', am I right? *chuckles*

upvoted 0 times

Annamaria

2 years ago

C) An early start can be made

upvoted 0 times

...

Noel

2 years ago

B) Provides flexibility in dealing with changes

upvoted 0 times

...

Kiley

2 years ago

A) Evaluation of proposals are much simpler

upvoted 0 times

...

Rozella

2 years ago

This question is as clear as mud. I guess I'll just throw a dart and hope for the best.

upvoted 0 times

...

Lazaro

2 years ago

An early start can be made? That's a good one, but I'm not falling for it. Gotta go with A on this one.

upvoted 0 times

Nadine

2 years ago

Definitely not C, An early start can be made.

upvoted 0 times

...

Jennie

2 years ago

I agree, A) Evaluation of proposals are much simpler.

upvoted 0 times

...

Raylene

2 years ago

I think A is the correct answer.

upvoted 0 times

...

Arthur

2 years ago

But with a cost reimbursable contract, the owner doesn't control all aspects of the work, so D) doesn't make sense.

upvoted 0 times

...

Alfred

2 years ago

I disagree, I believe the correct answer is A) Evaluation of proposals are much simpler.

upvoted 0 times

...

Malcolm

2 years ago

Evaluation of proposals being simpler? Sounds like a trap to me. I'll go with D - owner controls all aspects of the work.

upvoted 0 times

Alisha

2 years ago

So, the correct answer is D - owner controls all aspects of the work.

upvoted 0 times

...

Ettie

2 years ago

I don't think that's it, C is actually an advantage of a cost reimbursable contract.

upvoted 0 times

...

Sarina

2 years ago

But what about C - an early start can be made?

upvoted 0 times

...

Karon

2 years ago

I think you're right, D does seem like the best choice.

upvoted 0 times

...

Tiera

2 years ago

I agree, the owner controlling all aspects of the work is not an advantage.

upvoted 0 times

...

Nobuko

2 years ago

Definitely not an advantage, it limits the contractor's flexibility.

upvoted 0 times

...

Galen

2 years ago

I think D is the correct answer too.

upvoted 0 times

...

Arthur

2 years ago

I think the answer is D) Owner controls all aspects of the work.

upvoted 0 times

...

Alison

2 years ago

Hmm, I thought cost reimbursable contracts were all about flexibility, but I guess the owner has a lot of control too. Interesting...

upvoted 0 times

Nenita

2 years ago

D) Owner controls all aspects of the work

upvoted 0 times

...

Lisha

2 years ago

C) An early start can be made

upvoted 0 times

...

Richelle

2 years ago

B) Provides flexibility in dealing with changes

upvoted 0 times

...

Julie

2 years ago

A) Evaluation of proposals are much simpler

upvoted 0 times

...