A contractor front-loads mobilization and early activities in the schedule of values. What should the owner/CM review?
Correct Answer
A) Whether values reasonably allocate contract price to actual work and avoid overpayment risk.
Front-loaded values can create overpayment risk before work is in place.
Why This Is the Correct Answer
Front-loaded values can create overpayment risk before work is in place.
Why the Other Options Are Wrong
Option B: Whether it increases the bid bond as a bonding paperwork issue that controls schedule of values imbalance
Choice B (Whether it increases the bid bond.) is rejected because it names a financial document or payment mechanism, not the Schedule of values imbalance action/result stated by Whether values reasonably allocate contract price to actual work and avoid overpayment risk.
Option C: Apply whether it deletes the specs to the schedule of values imbalance condition
In procurement and contracting, Whether it deletes the specs. is the wrong selection for Schedule of values imbalance: the option tries to substitute, waive, or delete the Schedule of values imbalance control; the item instead requires Whether values reasonably allocate contract price to actual work and avoid overpayment risk.
Option D: Limit schedule of values imbalance to whether it waives insurance
The trap in D is Whether it waives insurance. That selection is wrong because it removes the controlling Schedule of values imbalance requirement instead of meeting it.
Memory Technique
Tag the scene with schedule of values imbalance: wrong actor or wrong timing means the fix is not Whether values reasonably allocate contract price to actual work and avoid overpayment risk.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Schedule of values review" to confirm that Front-loaded values can create overpayment risk before work is in place.
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