AGA Exam CGFM Topic 3 Question 49 Discussion

Actual exam question for AGA's CGFM exam

Question #: 49
Topic #: 3

The feasibility study assures investors and rating agencies necessary and fiscally sound. Consulting engineers are compensated in following ways:

AA lump-sum payment when a project is clearly defined

BCost-plus-fixed-fee basis when a project is not

CA percentage of construction costs, the percentage being based on a scale of civil engineers

DAll of these

Show Suggested Answer

Suggested Answer: D

by Matthew at Jun 23, 2024, 03:19 PM

Limited Time Offer

25%

Off

Get Premium CGFM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lashawna

4 months ago

Wait, there's more than one way to compensate consulting engineers? I thought they just got paid in hugs and high-fives.

upvoted 0 times

Hannah

3 months ago

D) All of these

upvoted 0 times

...

Margurite

3 months ago

C) A percentage of construction costs, the percentage being based on a scale of civil engineers

upvoted 0 times

...

Essie

3 months ago

B) Cost-plus-fixed-fee basis when a project is not

upvoted 0 times

...

Hobert: A) A lump-sum payment when a project is clearly defined, B) Cost-plus-fixed-fee basis when a project is not, C) A percentage of construction costs, the percentage being based on a scale of civil engineers, D) All of these

upvoted 0 times

...

Camellia

3 months ago

A) A lump-sum payment when a project is clearly defined

upvoted 0 times

...

Hobert

4 months ago

Really? I had no idea. What are some of the ways?

upvoted 0 times

...

Sonia

4 months ago

Yes, consulting engineers can be compensated in different ways.

upvoted 0 times

...

Shalon

4 months ago

Actually, they can also be paid based on a percentage of construction costs.

upvoted 0 times

...

Phuong

4 months ago

I didn't know that, I thought they only got paid a lump sum.

upvoted 0 times

...

Willodean

4 months ago

Yes, consulting engineers can be compensated in different ways.

upvoted 0 times

...

Erick

5 months ago

Yes, that's one way they can be compensated, but they can also receive a lump-sum payment or a percentage of construction costs.

upvoted 0 times

...

Isidra

5 months ago

A lump-sum payment? That's like paying the plumber before he's even fixed the leak. D all the way!

upvoted 0 times

...

Jacqueline

5 months ago

I believe consulting engineers are usually compensated on a cost-plus-fixed-fee basis.

upvoted 0 times

...

Hester

5 months ago

Hmm, I'm not sure about this one. Maybe I'll just guess and hope for the best.

upvoted 0 times

...

Stephaine

5 months ago

I agree, it helps ensure the project is financially viable.

upvoted 0 times

...

Ben

5 months ago

Consulting engineers should be paid a percentage of construction costs. That's the most fair way to do it.

upvoted 0 times

...

Shawnda

5 months ago

The cost-plus-fixed-fee basis seems like the most reasonable approach when a project is not clearly defined. That's my pick.

upvoted 0 times

Glory

4 months ago

I think a percentage of construction costs could also be a good option to align the interests of the consulting engineers with the success of the project.

upvoted 0 times

...

Elfriede

4 months ago

I agree, the cost-plus-fixed-fee basis provides more flexibility in uncertain projects.

upvoted 0 times

...

Levi

5 months ago

I think the feasibility study is important for investors.

upvoted 0 times

...

Chauncey

5 months ago

I think the correct answer is D. All of these are valid ways for consulting engineers to be compensated.

upvoted 0 times

Gregoria

4 months ago

Yes, having multiple compensation options can help ensure a fiscally sound project.

upvoted 0 times

...

Abraham

4 months ago

I think it makes sense to have different payment options based on project complexity.

upvoted 0 times

...

Berry

5 months ago

It's important for investors and rating agencies to know the compensation structure.

upvoted 0 times

...

Darrin

5 months ago

I agree, consulting engineers can be compensated in multiple ways.

upvoted 0 times

...

AGA Exam CGFM Topic 3 Question 49 Discussion

Contribute your Thoughts:

Lashawna

Hannah

Margurite

Essie

Bong

Camellia

Hobert

Sonia

Shalon

Phuong

Willodean

Erick

Isidra

Jacqueline

Hester

Stephaine

Ben

Shawnda

Glory

Elfriede

Levi

Chauncey

Gregoria

Abraham

Berry

Darrin