Cost Estimation Flashcards

Parametric estimating is best described as a method that:

Answer: Uses statistical relationships between historical costs and project parameters such as cost per bed or per student

Parametric estimates scale historical cost data by key project variables to produce early-stage costs.

An estimate that prices complete building components, such as an exterior wall per SF including studs, sheathing, insulation, and finish, is called a(n):

Answer: Assemblies (systems) estimate

Assemblies estimates group related items into systems and are commonly used during design development.

In a life-cycle cost analysis, what is the present value of a $10,000 replacement cost occurring in 5 years at a 6% discount rate?

Answer: $7,473

PV = $10,000 / 1.06^5 = $10,000 / 1.3382 = $7,473.

In CSI MasterFormat (2004 and later editions), Division 31 covers:

Answer: Earthwork

Division 31 is Earthwork, while Electrical is 26, Plumbing is 22, and Finishes is 09.

A unit-price contract is most appropriate when:

Answer: Quantities of work, such as excavation or rock removal, can't be accurately determined at bid time

Unit-price contracts pay for actual measured quantities, which suits work with uncertain quantities.

The primary goal of value engineering during estimating is to:

Answer: Get the required functions at the lowest life-cycle cost without sacrificing quality or performance

Value engineering analyzes function to reduce total life-cycle cost while maintaining required performance.

A project has an earned value (EV) of $400,000 and an actual cost (AC) of $500,000. What is the Cost Performance Index and what does it show?

Answer: 0.80; over budget

CPI = EV / AC = 400,000 / 500,000 = 0.80, and a CPI below 1.0 means the project is over budget.