BCM Construction Cost Estimating and Control 2

Question 1

The purpose of a construction contingency budget is to:

Accepted Answer

Cover unforeseen costs and scope uncertainties during project execution

Answer

Fund change orders requested by the owner

Answer

Pay for design errors and omissions

Answer

Compensate subcontractors for bid errors

Question 2

A Schedule of Values (SOV) in construction is used primarily to:

Accepted Answer

Break down the contract sum by work items to support monthly payment applications

Answer

Track labor productivity on the job site

Answer

Document subcontractor change orders

Answer

Allocate project costs across accounting cost codes

Question 3

Which cost estimating method applies historical cost-per-square-foot data from similar completed projects?

Accepted Answer

Parametric estimating

Answer

Detailed unit price estimating

Answer

Assembly estimating

Answer

Bottom-up estimating

Question 4

Cost variance (CV) in Earned Value Management is calculated as:

Accepted Answer

Earned Value minus Actual Cost

Answer

Planned Value minus Actual Cost

Answer

Budgeted Cost minus Earned Value

Answer

Actual Cost minus Planned Value

Question 5

In construction cost control, a 'cost code' system is used to:

Accepted Answer

Organize and track actual expenditures by work category for comparison to the estimate

Answer

Assign unique numbers to construction drawings

Answer

Code subcontractor invoices for tax purposes

Answer

Encrypt confidential bid documents

Question 6

The Estimate at Completion (EAC) in EVM, assuming future performance matches current CPI, is calculated as:

Accepted Answer

Budget at Completion ÷ CPI

Answer

Actual Cost + Remaining Budget

Answer

Earned Value + Planned Value

Answer

Budget at Completion × SPI