Before the first progress payment, the owner requests a schedule of values. What is its main contract-payment function?
Correct Answer
A) Allocate the contract sum among work items as the basis for reviewing progress payments
The schedule of values allocates the contract amount across work items and supports review of pay applications. Other choices confuse it with schedule management, contacts, or product review.
Why This Is the Correct Answer
The schedule of values allocates the contract amount across work items and supports review of pay applications. Other choices confuse it with schedule management, contacts, or product review.
Why the Other Options Are Wrong
Option B: The owner should replace the construction schedule as though it satisfied the specific schedule of values requirement
In procurement and contracting, Replace the construction schedule is the wrong selection for Schedule of values: it removes the controlling Schedule of values requirement instead of meeting it.
Option C: Use a later change request to handle schedule of values after award
The trap in C is List only subcontractor phone numbers. That selection is wrong because the option delays or omits the controlling step.
Option D: The owner should approve substitutions without architect review
Choice D gives Approve substitutions without architect review. Its specific error: the action skips the timing, documentation, or field-control step needed for Schedule of values.
Memory Technique
File schedule of values under a anchor: condition first, number or duty second, answer Allocate the contract sum among work items as the basis for reviewing progress payments.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Schedule of values and progress payments" to confirm that The schedule of values allocates the contract amount across work items and supports review of pay applications.
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