BCM Construction Cost Estimating and Control

Question 1

A conceptual (order-of-magnitude) estimate in construction typically has an accuracy range of:

Accepted Answer

-30% to +50%

Answer

-5% to +10%

Answer

-15% to +15%

Answer

-10% to +25%

Question 2

Direct costs in construction estimating include:

Accepted Answer

Labor, materials, and equipment used directly in the construction work

Answer

Home office overhead and profit

Answer

Permit fees and insurance premiums

Answer

Project management salaries and site office costs

Question 3

The quantity takeoff process in construction estimating involves:

Accepted Answer

Measuring and calculating the quantities of materials and work from project drawings

Answer

Soliciting subcontractor bids for specialty trades

Answer

Reviewing historical cost data from similar projects

Answer

Calculating overhead and profit markup on direct costs

Question 4

General overhead (general and administrative costs) in construction estimating refers to:

Accepted Answer

Costs of running the contractor's main office not attributable to a specific project

Answer

On-site supervision and temporary facilities costs

Answer

Subcontractor markup on their own scope

Answer

Equipment depreciation charged to a project

Question 5

Value engineering in construction is best defined as:

Accepted Answer

A systematic process to achieve required functions at the lowest life-cycle cost without reducing quality

Answer

Reducing project scope to cut costs below the original budget

Answer

Substituting cheaper materials regardless of performance

Answer

Fast-tracking the design phase to save time

Question 6

A cost-plus-fee contract places the primary financial risk of cost overruns on the:

Accepted Answer

Owner

Answer

General contractor

Answer

Surety company

Answer

Subcontractors