CCS Cost Estimation 2 — Questions and Answers
Question 1: Which estimating method applies historical cost-per-unit data (e.g., cost per hospital bed) to quickly project total project cost?
- Parametric estimating (Correct answer)
- Unit-price estimating
- Assembly estimating
- Detailed quantity takeoff
Correct answer: Parametric estimating
Parametric estimating uses statistical relationships between historical data and project parameters such as capacity or size to produce rapid early-stage cost forecasts.
Question 2: A construction specifier is preparing a cost plan at the schematic design phase. Which CSI MasterFormat level is most appropriate for organizing cost data at this stage?
- Level 1 — Divisions only (Correct answer)
- Level 2 — Sections
- Level 3 — Subsections
- Level 4 — Individual line items
Correct answer: Level 1 — Divisions only
At schematic design, broad Division-level (Level 1) cost groupings align with the limited design definition available and provide appropriate cost framework.
Question 3: The term 'allowance' in a construction cost estimate refers to:
- A sum set aside for work not fully defined at the time of bidding (Correct answer)
- The contractor's markup for overhead and profit
- A discount negotiated after bid award
- Escalation costs built into a multi-year contract
Correct answer: A sum set aside for work not fully defined at the time of bidding
An allowance is a specified amount included in the contract sum to cover the cost of prescribed items whose scope has not yet been fully determined.
Question 4: Which factor MOST directly causes a 'basis of estimate' document to be prepared alongside a cost estimate?
- To document assumptions, exclusions, and accuracy range so reviewers can interpret the estimate (Correct answer)
- To satisfy IRS reporting requirements for capital projects
- To satisfy OSHA documentation mandates on large public projects
- To replace the project schedule on fast-track projects
Correct answer: To document assumptions, exclusions, and accuracy range so reviewers can interpret the estimate
A basis of estimate captures the assumptions, inclusions, exclusions, and expected accuracy range, enabling informed review and future updates.
Question 5: In life-cycle cost analysis, 'present value' discounting is used to:
- Convert future costs to equivalent today's dollars for apples-to-apples comparison (Correct answer)
- Inflate current bid prices to account for future material shortages
- Calculate the contractor's bid bond amount
- Determine the depreciation schedule for tax purposes
Correct answer: Convert future costs to equivalent today's dollars for apples-to-apples comparison
Discounting future costs to present value allows decision-makers to compare options with different cash-flow timing on a consistent economic basis.
Question 6: When estimating masonry work, a specifier must account for 'waste factor.' For standard brick coursing, an industry-typical waste allowance is approximately:
- 5–10% (Correct answer)
- 20–25%
- 30–35%
- 1–2%
Correct answer: 5–10%
A 5–10% waste factor is commonly applied to brick quantities to account for breakage, cuts, and handling losses on standard masonry installations.
Question 7: Which document type published by CSI provides standardized cost data formats that align with MasterFormat to support consistent cost reporting?
- UniFormat (Correct answer)
- SectionFormat
- PageFormat
- ManufacturerFormat
Correct answer: UniFormat
UniFormat organizes construction costs by functional building elements (systems) rather than products, enabling early-stage cost estimating before specifications are written.
CCS Cost Estimation 2
Which estimating method applies historical cost-per-unit data (e.g., cost per hospital bed) to quickly project total project cost?