CCP practice question 21 of 25

After collecting the control information on a light rail project within an original budget of 200.0OO work hours, the construction contractor is…

After collecting the control information on a light rail project within an original budget of 200.0OO work hours, the construction contractor is ready for their monthly progress meeting with the client. A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor is 60%. After collecting the control information on a light rail project within an original budget of 200.000work hours, the construction contractor is ready for their monthly progress meeting with the client. A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%. Is the percent complete stated by the contractor correct?

Answer options

A: No, it should be 55.0%

B: No, it should be 50.0%

C: No, it should be 52.5% Correct answer

D: Yes, it is 60%

Correct Answer:

C. No, it should be 52.5%

Explanation

The project's percent complete is a core metric in Earned Value Management (EVM) and is calculated by dividing the Earned Value (EV) by the Budget at Completion (BAC). Based on the data provided, the EV is 105,000 work hours, and the BAC is 200,000 work hours. The correct calculation is: Percent Complete = (EV / BAC) 100 Percent Complete = (105,000 / 200,000) 100 = 52.5% Therefore, the contractor's stated progress of 60% is incorrect. The actual, earned progress is 52.5%.

Why Incorrect

A. No, it should be 55.0% This value is derived from Actual Cost / Budget at Completion (110,000 / 200,000), which represents the percentage of the budget spent, not the physical work completed.
B. No, it should be 50.0% This value is derived from Planned Value / Budget at Completion (100,000 / 200,000), which represents the planned progress, not the actual progress achieved to date.
D. Yes, it is 60% This is the contractor's incorrect statement. The calculation based on official EVM formulas demonstrates that the actual progress is 52.5%, making the 60% claim verifiably false. ---

References

1. AACE International, Skills & Knowledge of Cost Engineering, 6th Edition. Morgantown, WV: AACE International, 2015.

Section 7.4.4, "Earned Value Analysis." This section explicitly defines the formula for Percent Complete (PC) as PC = EV / BAC. Applying this formula to the question's data (EV=105,000, BAC=200,000) yields 52.5%.

2. AACE International, Recommended Practice No. 10S-90, Cost Engineering Terminology. Morgantown, WV: AACE International, June 29, 2018.

Page 43, Definition of "Earned Value (EV)". Defines EV as "The value of the work completed to date. EV = % complete x BAC." This formula can be algebraically rearranged to % Complete = EV / BAC, confirming the calculation method.

Page 83, Definition of "Percent Complete". Defines it as "An estimate, expressed as a percent, of the amount of work that has been completed..." The EVM framework provides the objective method for this estimation.

3. Fleming, Q. W., & Koppelman, J. M. (2010). Earned Value Project Management (4th ed.). Project Management Institute.

Chapter 4, "The Five Core Data Elements," Page 29. This chapter details the fundamental EVM metrics. It explicitly states the formula for Performance Percent Complete as BAC% Complete = EV / BAC, which directly supports the correct answer.

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