Economics of Appraisal of Construction Projects (Part 3) Quiz

What are Critical Success Factors?

• The expected value of a loss function in construction projects

• The potential risks involved in construction projects

• The key areas of activity in which favorable results are absolutely necessary for a particular manager to reach goals

• The tools and techniques for risk identification in construction projects

Which of the following is not a Project Management Factor?

• Decision making effectiveness

• Adequate communication

• Coordination effectiveness

• Technology and skill availability

What does the scope of procurement in construction projects refer to?

• The influence of client and client’s representative on construction time performance

• The type of contract used for the project

• The procedures adopted for the selection of the project team and in particular the main contractor

• The framework within which construction is brought about, acquired or obtained

What are the Client-related Factors in construction projects concerned with?

• The influence of client and client’s representative on construction time performance

• The design team experience and project design complexity

• The economic, social, political, and physical environment

• The project manager's skills and characteristics

What is the significance of the design team in construction projects?

• They play a vital role from the inception to completion of a project

• They are responsible for project management and coordination

• They are involved in the procurement process

• They are responsible for risk management in the project

What is a key Contractor-related Factor in construction projects?

• The project manager's skills and characteristics

• The scope of procurement

• The economic, social, political, and physical environment

• The contractor's experience

What is the role of the Project Manager in a construction project?

• To plan and execute the construction project to maximize the project’s chances of success

• To identify and manage the sources and effects of risk events

• To ensure sufficient funding for the project

• To manage the financial risks of the project

What is Risk Management in construction projects?

• The process of identifying and managing the sources and effects of risk events in construction projects

• The expected value of a loss function in construction projects

• The uncertainty of outcome within a range of potential exposures in construction projects

• The discipline for living with the possibility that future events may cause adverse effects in construction projects

Why is it essential to manage risk in construction projects?

• To ensure that the project is perceived as successful after it is finished

• To increase the profitability of the project

• To eliminate all uncertainties and risks in the project

• To speed up the construction process

What is the concept of Risk and its Characteristic in construction projects?

• Risk is a combination of the chance of an adverse event occurring and the consequences it will have if it occurs

• Risk is the expected value of a loss function in construction projects

• Risk is the uncertainty of outcome within a range of potential exposures in construction projects

• Risk is the process of identifying and managing the sources and effects of risk events in construction projects