QUESTION AND ANSWER: RISK, CONTRACT MANAGEMENT; PROCUREMENT, EHS

1. What is the other term for negative risk?

a. Threats

b. Bad

c. Poor

d. Deficient

2. What is the other term for positive risk?

a. Good

b. Opportunity

c. Acceptable

d. Fine

3. the act or practice of dealing with project risk. It includes planning for risk, assessing risk

(identification and analyzing), developing risk response strategies, and monitoring risks to

determine how risk changes during the project life.

a. Project Management

b. Risk Management

c. Construction Management

d. Threat

4. An uncertain event or condition that, if it occurs, has a positive or negative effect on at least one

of the project objectives (scope, schedule, budget, quality)

a. Threat

b. Opportunity

c. Risk
 d. All of the above

5. Who is involve in the contract?

a. Project Manager

b. Project Engineer

c. Site architect

d. None of the above

6. Also called fixed price contracts, establish a fixed price for all of the materials and labor

required to complete a job.

a. Lump sum

b. Cost-plus

c. Unit price

d. Time and materials

7. set a fixed price for a distinct, repeatable aspect of a project, which is defined as a

“unit.”

a. Lump sum

b. Cost-plus

c. Unit price

d. Time and materials

8. sets a maximum project cost for the property owner. Any costs that exceed the maximum

price are the responsibility of the general contractor, who will see their profit margin cut

as a result.

a. Lump sum

b. Cost-plus

c. Guaranteed Maximum Price

d. Time and materials

9. reimburses contractors for construction costs — labor, materials, and equipment — along

with a predetermined markup rate or fixed fee.

a. Lump sum

b. Cost-plus

c. Guaranteed Maximum Price

d. Time and materials

10. Refers to the process of acquiring materials, equipment or services needed to complete a

project.

a. Purchasing

b. Procurement

c. Contract

d. Risk

11. Refers to the process of acquiring materials, equipment or services needed to complete a

project.

a. Purchasing

b. Procurement

c. Contract

d. Risk

12. Any form of mutual commitment between two parties or two organizations.

a. Agreement

b. Procurement

c. Contract
d. Risk

13. A legally binding form of commitment between two parties.

a. Agreement

b. Procurement

c. Contract

d. Risk Management

14. Process of ensuring that the seller’s performance meets contractual requirements.

a. Agreement

b. Risk management

c. Contract Management

d. Contract

15. Contractors bill for all material costs and labor at an hourly rate.

a. Lump sum

b. Cost-plus

c. Guaranteed Maximum Price

d. Time and materials

16. Collection of activities, policies and procedures that deliver your organization’s playbook

for Environment, Health and Safety programs.

a. Risk management

b. Safety Management

c. Contract management

d. EHS management

17. Below are the strategies considered with dealing threats, except:
 a. Avoid

b. Mitigate

c. Transfer

d. Enhance

18. Below are the strategies considered with dealing opportunities, except:

a. Share

b. Mitigate

c. Transfer

d. Escalate

19. action is taken to reduce the probability of occurrence and/or impact of a threat. Early

mitigation action is often more effective than trying to repair the damage after the threat

has occurred.

a. Share

b. Mitigate

c. Transfer

d. Escalate

20. the project team acts to increase the probability of occurrence or impact of an

opportunity. Early enhancement action is often more effective than trying to improve

the opportunity after it has occurred.

a. Share

b. Enhance

c. Transfer

d. Escalate