CCS Cost Estimation 3

Question 1

A specifier notices that a bid price for structural steel is 18% below the average of other bids. The BEST immediate action is to:

Accepted Answer

Investigate whether the bidder omitted scope or used incorrect material grades before recommending award

Answer

An unusually low bid may signal omitted scope, arithmetic error, or use of non-compliant materials, all of which require investigation before award recommendation.

Question 2

In cost estimating, 'indirect costs' typically include:

Accepted Answer

Supervision, temporary facilities, insurance, bonds, and general conditions

Answer

Indirect costs (general conditions) cover project overhead items like supervision, site trailers, temporary utilities, and insurance rather than installed work.

Question 3

Which estimating technique involves breaking a project into individual components, quantifying each, and pricing each line item separately?

Accepted Answer

Detailed quantity takeoff (bottom-up estimate)

Answer

A bottom-up estimate developed from a detailed quantity takeoff provides the highest accuracy by pricing every measured component individually.

Question 4

The RS Means cost data 'city cost index' is used to:

Accepted Answer

Adjust national average unit costs to reflect local labor and material conditions

Answer

City cost indexes factor local wage rates, material pricing, and market conditions into RS Means national averages to produce location-specific cost estimates.

Question 5

A 'guaranteed maximum price' (GMP) contract shifts which risk compared to a lump-sum contract?

Accepted Answer

The owner retains savings if actual costs fall below the GMP, and the contractor bears cost overruns above the GMP

Answer

Under a GMP, the contractor is at risk for costs exceeding the ceiling while any savings below it are typically shared or returned to the owner per contract terms.

(CCS) Certified Construction Specifier Practice Test

(CCS) Certified Construction Specifier Practice Test

CCS Cost Estimation 3