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Latest Project-Management Exam Practice Questions

The practice questions for Project-Management exam was last updated on 2025-09-26 .

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Question#1

Which document authorizes the contractor to proceed with work?

A. Notice to Proceed

B. Purchase Order

C. Change Order

D. Certificate of Substantial Completion

Explanation:
The Notice to Proceed is a formal document issued by the owner or architect authorizing the contractor to begin work on the project and establishing the contract start date. Purchase orders are for procurement; change orders modify contracts; certificates of substantial completion recognize project milestones. ARE 5.0 PjM tests knowledge of construction administration documents.

Question#2

What is a critical factor in managing project risk?

A. Ignoring minor delays to avoid panic

B. Identifying risks early and developing mitigation strategies

C. Assigning all risk to the contractor

D. Avoiding communication with the owner about risks

Explanation:
Effective risk management begins with early identification of potential risks and developing strategies to mitigate or respond to them. This includes scheduling, budget, design, and regulatory risks. Assigning all risk to contractors is unrealistic; avoiding communication worsens issues. ARE 5.0 PjM stresses proactive risk identification, communication, and management as key to project success.

Question#3

The architect is on site to evaluate the completed work by the contractor. During the evaluation, the architect notices a structural connection that deviates from the contract documents.
According to AIA B101, to which party should the architect report this observed deviation?

A. Structural engineer

B. Contractor

C. Building inspector

D. Owner

Explanation:
Per AIA B101 § 3.6.2.1, the architect is required to notify the owner of any deviations from the contract documents observed during site visits. While the architect may also discuss it with the contractor and engineer, the formal obligation is to report it to the owner. The contractor is ultimately responsible for conformance with contract documents, and further action (like issuing a notice of nonconformance or requiring correction) may follow.
Reference: AIA B101-2017 § 3.6.2.1
AIA A201-2017 §§ 3.3 and 4.2
NCARB ARE 5.0 Handbook C Construction Administration Task Overview

Question#4

Which scheduling method shows the longest path of dependent activities?

A. Gantt chart

B. Critical Path Method (CPM)

C. Bar chart

D. Flowchart

Explanation:
The Critical Path Method (CPM) identifies the longest sequence of dependent tasks that determine the minimum project duration. It highlights critical activities where delays affect the overall schedule. Gantt charts and bar charts are visual scheduling tools but do not calculate critical paths. Flowcharts map processes. CPM is essential in ARE 5.0 PjM for schedule analysis.

Question#5

When is a change order required?

A. To clarify ambiguous contract documents without affecting cost or schedule

B. To document changes in the scope of work that affect contract sum or time

C. To reject a contractor’s submittal

D. To approve contractor’s payment request

Explanation:
A change order is a formal document modifying the contract scope, cost, or time. It is required when the owner requests changes or unforeseen conditions affect the work. Clarifications without impact do not require change orders but may be handled through interpretations or bulletins. Change orders must be documented and agreed upon by all parties to avoid disputes. This procedure is fundamental in ARE 5.0 PjM contract administration.

Exam Code: Project-ManagementQ & A: 79 Q&AsUpdated: 2025-09-26

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