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AACE International Exam CCP Topic 5 Question 1 Discussion

Actual exam question for AACE International's CCP exam
Question #: 1
Topic #: 5
[All CCP Questions]

When using a fixed-price./lump-sum contract, which of the following; situations can a payment be made for the adjustment of fluctuations in the cost of of construction resources?

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Suggested Answer: C

In a fixed-price/lump-sum contract, the agreed price is fixed and generally not subject to adjustment based on fluctuations in costs, unless explicitly stated in the contract terms. Payment for adjustments in construction costs due to fluctuations in resource prices or delays is typically not allowed unless there is a specific provision for such adjustments, which is rare in fixed-price contracts. Therefore, the correct answer is C. In no situation.

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by Eun at Aug 27, 2024, 01:52 PM

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Veronica
1 months ago
I'll take 'Unexpected Cost Overruns' for $500, Alex. Option D is the clear winner here.
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Dortha
1 months ago
Ha! Good luck trying to predict construction costs these days. Option D is the only way to go if you don't want to end up broke.
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Brinda
9 days ago
D) For changes in The cost of resources beyond the control of either party
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Verona
9 days ago
B) For changes in construction cost 'or varied works carried out beyond the original dale of completion
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Annice
24 days ago
A) For changes in prices calculated in accordance with a methodology proposed by the contractor at tender stage.
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Aleisha
1 months ago
I agree with Mindy. Fluctuations in the cost of construction resources are often unpredictable, and the contract should have a provision to adjust for those changes.
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Na
7 days ago
D) For changes in The cost of resources beyond the control of either party
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Annelle
13 days ago
B) For changes in construction cost 'or varied works carried out beyond the original dale of completion
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Rasheeda
23 days ago
A) For changes in prices calculated in accordance with a methodology proposed by the contractor at tender stage.
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Mindy
1 months ago
Option D seems like the most reasonable choice. Changes in resource costs beyond the control of either party should be accounted for in a fixed-price contract.
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Nakita
6 days ago
Option D seems like the most reasonable choice. Changes in resource costs beyond the control of either party should be accounted for in a fixed-price contract.
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Laticia
16 days ago
D) For changes in The cost of resources beyond the control of either party
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Timothy
17 days ago
B) For changes in construction cost 'or varied works carried out beyond the original dale of completion
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Kati
28 days ago
A) For changes in prices calculated in accordance with a methodology proposed by the contractor at tender stage.
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Andrew
1 months ago
Hmm, that's a good point. But what about option D? Changes in cost of resources beyond anyone's control could also be a valid reason for adjustment.
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Chau
2 months ago
I disagree, I believe the answer is B. It makes sense to adjust for varied works carried out beyond the original date of completion.
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Andrew
2 months ago
I think the answer is A, because the contractor proposed the methodology at tender stage.
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