CBC CBC Financial Management & Estimating

Question 1

Which estimating method applies unit costs to each component of work based on material and labor quantities?

Accepted Answer

Unit price estimating

Answer

Lump sum estimating

Answer

Parametric estimating

Answer

Assembly estimating

Question 2

What does the term 'contingency' refer to in a construction budget?

Accepted Answer

Reserved funds for unforeseen costs

Answer

Profit margin added to the bid

Answer

The contractor's overhead allocation

Answer

A penalty clause for delays

Question 3

A contractor's overhead includes which of the following?

Accepted Answer

Office rent and administrative salaries

Answer

Direct material costs

Answer

Subcontractor invoices

Answer

Owner-supplied equipment

Question 4

What is a Schedule of Values (SOV) used for on a construction project?

Accepted Answer

Breaking the contract sum into line items for progress billing

Answer

Tracking employee vacation schedules

Answer

Listing subcontractor license numbers

Answer

Documenting material delivery dates

Question 5

Which type of bond guarantees that a contractor will complete a project according to the contract terms?

Accepted Answer

Performance bond

Answer

Bid bond

Answer

Payment bond

Answer

License bond

Question 6

Cash flow management in construction primarily involves:

Accepted Answer

Timing receipts and disbursements to maintain sufficient liquidity

Answer

Maximizing the number of change orders

Answer

Hiring only salaried subcontractors

Answer

Avoiding retention clauses in contracts