lare prep exam b

Question 1

Which of the following answers BEST describes the relationship between project managers and risk?

A.Project managers must minimize risk and manage it whenever it occurs

B. Project managers must take risk as a given in the design and construction industry

C. Risk affects the project manager’s ability to properly allocate resources

D. Project managers can maximize risk through proper planning

Answer 1

A.Project managers must minimize risk and manage it whenever it occurs

Question 2

In instances where an owner requires proof that a contractor has obtained specific forms of insurance, the contractor would furnish:

Answer 2

Certificate of Insurance

Question 3

Which of the following is generally NOT considered to be addressed by the work breakdown structure (WBS) for a project:

A. Work plan
B.Feedback
C. Monitoring information
D. Client experience

Answer 3

D. Client experience

The work breakdown structure (WBS) for a project generally outlines an overall work plan for the project, while including financial/budgetary information, feedback and monitoring information. Client experience would not be considered relevant to the creation of the WBS.

Question 4

To which of the following scenarios would the concept of “tort damages” BEST apply?

A. A breach of contract between owner and contractor

B. Defamation of character through libel and slander

C. Violating local environmental codes by filling in a wetland

D. The exercise of eminent domain

Answer 4

B. Defamation of character through libel and slander

Question 5

A client has set aside a reasonable sum of money for the project administration budget in a large construction project. The purpose of such a budget is to:

Answer 5

Provide funding for the client’s internal costs related to managing the construction project