What is the legal definition of a contract? What is the IRS definition? - An agreement between 2
parties that is legally binding & enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and are outside the
contractor control. -
1. Poli...
CCIFP Exam Questions & Answers |
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What is the legal definition of a contract? What is the IRS definition? - ✔✔An agreement between 2
parties that is legally binding & enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and are outside the
contractor control. - ✔✔
1. Political
2. Regulatory
3. Market Outlook
4. Social
5. Technology
6. Economic
Strategic planning must consider internal factors. These factors the contractor can control. - ✔✔
1. Culture, related to financial discipline, risk tolerance, growth, and change
2. Life cycle stage
3. Comprehensive marketing strategy
4. Core competencies
5. Talent acquisition and retention programs
6. Commitment to technology
Major cause of contractor failure is - ✔✔The failure to plan and set specific objectives
Strategic Planning - ✔✔A logical and systematic process by which a contractor determines the strategic
direction for the contractor's future
,Strategic Planning - ✔✔Requires knowledge of the risks inherent in the construction industry and of
available new business opportunities
Strategic Planning Process encourages - ✔✔
1. Assessment of your company's current condition
2. Examination of current business model and the way you would like to do business in future
3. Development of new future operating methods in estimating, preconstruction, marketing and sales
4. Commitment to set strategic goals and plans to meet them
5. Creation of momentum necessary to start and carry out the implementation of strategic plan
What are the 2 coverage triggers for CGL? - ✔✔1. Occurrence Trigger - Whatever policy in place a the
time of the claim happening is policy used.
2. Claims Trigger - (Not used much) Made trigger policy in place, Policy extended
What is the legal definition of a contract? What is the IRS's definition of a contract? - ✔✔An agreement
between two parties that is legally binding & enforceable under applicable law
What is RAID? - ✔✔Redundant array of Independent (or inexpensive) disks.
- Data spread out over several disks, users access simultaneously.
- Normally used by servers in multi-user environments
What is the disclosure on the balance sheet for anticipated losses on contracts? - ✔✔Estimated liability
to complete contracts
What is the IRS's definition of a "Home Construction Contract"? - ✔✔Contracts if 80% of the total
contract costs are:
1) Dwelling units, 4 of fewer
2) Improvements directly related to such dwelling units
3) Excluded from IRC 460 - Special rules from long term contracts
, What is LAN? - ✔✔Local Area Network
What is the difference between cloud computing & virtual environments? - ✔✔- Cloud computing allows
access to data through a browser
- Virtual environment allows remote access to data, but access software require on computer to access
What is the "look-Back" requirement? - ✔✔Taxpayer using percentage of completion must redetermined
contract profit in year of completion and difference reported in periods are subject to interest charge or
refund.
What are the 4 types of contracts? - ✔✔1) Fixed price or lump sum
2) Time & Material
3) Cost-type contracts
4) Unit Price
What is a fixed price or lump sum contract? - ✔✔The price is not usually subject to adjustment
What is a time & material type contract? - ✔✔The price is based on direct labor hours and cost of
materials
What is a cost-type contract? - ✔✔Provides for reimbursed of allowable or other defined costs incurred
plus fee. Can also include a gross max (GMP)
What is a unit price type contract? - ✔✔Contractor pays a specific amount per unit, variable is the
number of units
What are 2 accepted methods of accounting - reporting? - ✔✔1) POC - Percentage of Completion
Method
2) CCM - Completed Contract Method
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