AGA Exam CGFM Topic 4 Question 43 Discussion

Actual exam question for AGA's CGFM exam

Question #: 43
Topic #: 4

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 Dominque at Apr 10, 2024, 02:30 AM

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Irene

5 months ago

Some engineers prefer a percentage of construction costs, to align their interests with the project's success.

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Garry

5 months ago

I think it makes sense to pay them on a cost-plus-fixed-fee basis when the project scope is unclear.

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Rachael

5 months ago

I believe consulting engineers should be paid a lump-sum when the project is well-defined.

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Nohemi

6 months ago

I agree. The way consulting engineers are compensated is also important.

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Eric

6 months ago

I think the feasibility study is crucial for investors and rating agencies.

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Lisbeth

6 months ago

Some engineers prefer a percentage of construction costs, to align their interests with the project's success.

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Benedict

6 months ago

I think it makes sense to pay them on a cost-plus-fixed-fee basis when the project scope is unclear.

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Bette

7 months ago

I believe consulting engineers should be paid a lump-sum when the project is well-defined.

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Lottie

7 months ago

I agree. The way consulting engineers are compensated is also important.

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Shawna

7 months ago

I think the feasibility study is crucial for investors and rating agencies.

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Cassi

8 months ago

Ah, I see what you mean. Option C is too narrowly focused on the percentage-based compensation, whereas the question is asking for a more complete answer that covers the various compensation models.

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Well, I was initially thinking option C might be the answer, since it specifically mentions the percentage of construction costs. But then again, that's just one scenario, and the question is asking about the 'following ways' of compensation, implying multiple possibilities.

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Mitsue

8 months ago

Yeah, that's a good point. Option D does seem to be the most comprehensive answer. But I'm curious to hear what the others think. Any other perspectives on this?

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Jerlene

8 months ago

Hmm, I'm leaning towards option D. It seems to encompass all the scenarios described in the question, from a clearly defined project to one that is not well-defined.

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Johnna

7 months ago

Yes, it's important to have flexibility in compensation.

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Olive

7 months ago

I agree, covering all scenarios is important.

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Ronnie

7 months ago

Option D seems like the best choice.

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Rashad

8 months ago

I agree. The question is trying to assess our knowledge of the common compensation models used in the industry. We need to carefully analyze each option and determine which one covers the various situations mentioned.

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Glory

8 months ago

This question is definitely testing our understanding of how consulting engineers are typically compensated. I think the key here is to identify which of the options best captures the different scenarios that can arise.

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AGA Exam CGFM Topic 4 Question 43 Discussion

Contribute your Thoughts:

Irene

Garry

Rachael

Nohemi

Eric

Lisbeth

Benedict

Bette

Lottie

Shawna

Cassi

Lino

Mitsue

Jerlene

Johnna

Olive

Ronnie

Rashad

Glory