A project manager wants to charge rework caused by a subcontractor's installation error to the owner's contingency. What should happen first?
Correct Answer
B) Review the GMP and contingency terms to determine whether that use is allowed
Contingency use depends on the GMP and contract terms; subcontractor-caused rework may not be an allowable owner contingency use. Other choices misclassify the cost.
Why This Is the Correct Answer
Contingency use depends on the GMP and contract terms; subcontractor-caused rework may not be an allowable owner contingency use. Other choices misclassify the cost.
Why the Other Options Are Wrong
Option A: Charge it immediately because every rework item is an owner contingency cost
The trap in A is Charge it immediately because every rework item is an owner contingency cost. That selection is wrong because it leaves out the controlling Contingency use dispute result: Review the GMP and contingency terms to determine whether that use is allowed.
Option C: The contractor should hide the cost in stored materials
Choice C (Hide the cost in stored materials) is rejected because the action skips the timing, documentation, or field-control step needed for Contingency use dispute.
Option D: Convert the error into a weather delay, leaving contingency use dispute unverified
In procurement and contracting, Convert the error into a weather delay is the wrong selection for Contingency use dispute: it points to Convert the error into a weather delay, but.
Memory Technique
Remember contingency use dispute by its jobsite consequence: the correct move points to Review the GMP and contingency terms to determine whether that use is allowed.
Reference Hint
Open Construction Project Management, 5th Ed. (2022); use the index entry or section for "GMP contingency use review" to confirm that Contingency use depends on the GMP and contract terms; subcontractor-caused rework may not be an allowable owner contingency use.
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