CBP Estimating and Cost Control 2

Question 1

At which stage of a project is a square-foot (cost-per-square-foot) estimate most appropriate?

Accepted Answer

Early conceptual budgeting before plans are complete

Answer

Square-foot estimates use historical averages and are best for quick early budgets, not detailed bids.

Question 2

A builder's total project cost is $200,000 and the company wants a 20% gross margin on the selling price. What should the selling price be?

Accepted Answer

$250,000

Answer

Selling price = cost / (1 - margin) = $200,000 / 0.80 = $250,000.

Question 3

A 25% markup on cost is equivalent to what gross margin on the selling price?

Accepted Answer

20%

Answer

Margin = markup / (1 + markup) = 0.25 / 1.25 = 20%.

Question 4

An estimator measures 1,000 square feet of floor tile and applies a 10% waste factor. How many square feet should be ordered?

Accepted Answer

1,100 sq ft

Answer

1,000 sq ft x 1.10 = 1,100 sq ft to cover cuts, breakage, and waste.

Question 5

Which item is typically classified as a job-site indirect cost (general conditions) rather than a direct construction cost?

Accepted Answer

Portable toilet rental for the site

Answer

General conditions such as temporary facilities support the job but are not built into the finished structure.

CBP - Certified Builder Professional Practice Test