CBP CBP Estimating & Cost Control 3

Question 1

Which cost control technique involves comparing actual expenditures to the budget at regular intervals throughout the project?

Accepted Answer

Cost forecasting

Answer

Cost forecasting uses current performance data to project total costs at completion, enabling proactive budget management throughout the project.

Question 2

A subcontractor's bid is $120,000. The general contractor applies a 10% markup. What is the total cost to the owner for this line item?

Accepted Answer

$132,000

Answer

$120,000 × 1.10 = $132,000, which covers both the subcontractor cost and the GC's 10% markup.

Question 3

In the context of the CBP exam, 'value engineering' is primarily used to:

Accepted Answer

Find lower-cost alternatives that maintain required function and quality

Answer

Value engineering analyzes project components to identify cost-saving alternatives that maintain the required function, quality, and performance.

Question 4

Which factor most directly influences the labor burden rate applied to worker wages in a construction estimate?

Accepted Answer

Payroll taxes, insurance, and fringe benefits

Answer

The labor burden includes payroll taxes (FICA, FUTA), workers' compensation insurance, health benefits, and other employee costs added on top of base wages.

Question 5

A 'schedule of values' submitted with a pay application is used by the owner to:

Accepted Answer

Verify that work billed matches actual construction progress

Answer

The schedule of values breaks down the contract sum into line items so the owner can verify that each pay application reflects actual work completed in the field.

(CBP) Certified Building Professional Practice Test

(CBP) Certified Building Professional Practice Test

CBP CBP Estimating & Cost Control 3