Top Down Estimates and Risk Assessment in Project Management

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What type of insurance protects the builder in case of loss, theft, or damage to materials, structure, and equipment during construction?

Health Insurance

Builders' Risk Insurance (correct)

Life Insurance

Car Insurance

Who sets the minimum levels of insurance required for a construction project?

Project Sponsor

Project Contractor

Project Owner

Project Lender (correct)

What type of insurance provides coverage to the builder against compensation claims for property damage or physical injury during construction?

Pet Insurance

Travel Insurance

Commercial General Liability Insurance (correct)

Home Insurance

What is a common requirement for lenders in terms of insurance when funding a construction project?

Additional Insured Named on Policies Signup and view all the answers

If a project owner acts as a general contractor, what additional coverage may be required?

Professional Liability Insurance Signup and view all the answers

What is the purpose of Commercial General Liability Insurance in construction projects?

To provide protection against compensation claims during construction Signup and view all the answers

What is one disadvantage of top-down estimates?

They tend to be overly optimistic due to lumping tasks together. Signup and view all the answers

How should work package estimates be treated in terms of contingencies?

Contingencies should be added separately by management for unforeseen events. Signup and view all the answers

What does adding Risk Assessment to an estimate help to avoid?

Avoiding surprises in terms of unforeseen events affecting the project. Signup and view all the answers

In the context of Risk Assessment, what can help decide task risk assessment?

Optimistic, Pessimistic, and Realistic categorizations. Signup and view all the answers

Which approach involves breaking a project into distinct items or tasks?

Bottom-up approach Signup and view all the answers

What is an example of a top-down estimate?

$50,000 and 3 weeks for a project duration. Signup and view all the answers

What is the purpose of a hold or hold back in construction projects?

To ensure that the project sponsor has enough funds to cover costs Signup and view all the answers

What action is taken if a lien has been placed against the property?

The contractor pays an amount to remove the lien and clear the title Signup and view all the answers

Who receives the payment request approval before funds are forwarded for distribution in construction projects?

Project sponsor's lender Signup and view all the answers

When is the holdback released to the contractor in construction projects?

According to provincial/territorial legislation, usually 45 days after completion Signup and view all the answers

What happens if a construction project's progress draw application is incomplete?

The project sponsor's lender will not receive the application Signup and view all the answers

Who confirms that there are no liens against the property before advancing funds in construction projects?

Lender's solicitor Signup and view all the answers

What should be included when discussing equipment your company has at their disposal?

Hourly rate of the operator Signup and view all the answers

Why is it recommended to leave the specific selection of components for a Specification document?

To avoid revealing too many details Signup and view all the answers

What is the purpose of a kick-off meeting after a bid has been awarded?

Coordinating site processes Signup and view all the answers

Why is it important to mention that the Owner will provide certain equipment in the bid?

To avoid coordination issues Signup and view all the answers

What should be covered in the CV mentioned in the text?

Specific job experiences of the operator Signup and view all the answers

Why does discussing scope of work help in conveying responsibilities effectively?

To establish what you are responsible for and what others are responsible for Signup and view all the answers

What is a key responsibility of a project manager?

Assembling a project management team Signup and view all the answers

Which team member is responsible for the physical installation of a project?

Construction PM Signup and view all the answers

Who typically makes final decisions on outstanding design issues in a project?

Consulting/Engineering PM Signup and view all the answers

What is a responsibility of the Services PM?

Training and encouraging safety in the workplace Signup and view all the answers

What does the Project Management Institute (PMI) specialize in?

Project management certification and resources Signup and view all the answers

Which team member is responsible for communication issues arising at the construction site?