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

Construction contingency is a reserved amount to address unknown risks and uncertainties without requiring formal contract changes.

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

The SOV allocates the total contract price across individual work items, enabling fair monthly progress billing based on percentage complete.

Question 3

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

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses statistical relationships between historical data and project parameters (like square footage) to quickly estimate costs.

Question 4

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

Accepted Answer

Earned Value minus Actual Cost

Answer

CV = EV - AC; a positive value means the project is under budget, while a negative value indicates a cost overrun.

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

Cost codes categorize job costs by work type, enabling real-time comparison of actual versus budgeted costs for each scope item.

BCM - Bachelor of Construction Management Practice Test