CCS Cost Estimation 5

Question 1

The AACE International classification system for cost estimates defines a Class 1 estimate as having an expected accuracy range of approximately:

Accepted Answer

-3% to +5%

Answer

AACE Class 1 estimates, prepared from complete bid documents, carry the highest accuracy at approximately -3% to +5% of final cost.

Question 2

Which procurement method typically produces the lowest initial bid prices by maximizing competitive bidding?

Accepted Answer

Competitive sealed bidding (design-bid-build)

Answer

Competitive sealed bidding with multiple qualified bidders creates the most competitive pricing environment because contractors know they must submit the lowest compliant price to win.

Question 3

A 'bid bond' in construction procurement serves to:

Accepted Answer

Guarantee the bidder will enter into the contract and provide required performance and payment bonds if awarded

Answer

A bid bond protects the owner from financial loss if the low bidder refuses to execute the contract or fails to provide required bonds after award.

Question 4

When comparing two building system alternatives using life-cycle cost analysis, which cost elements should be included beyond initial construction cost?

Accepted Answer

Energy consumption, maintenance, repair, replacement, and disposal/salvage costs over the analysis period

Answer

A complete life-cycle cost analysis captures all ownership costs — operations, energy, maintenance, replacement cycles, and end-of-life salvage — to enable true total-cost comparison.

Question 5

A specifier reviewing a trade contractor's schedule of values notices that the first pay application item 'mobilization' is priced at 25% of the contract value. This is MOST likely an example of:

Accepted Answer

Front-loading (unbalanced schedule of values), which distorts cash flow in the contractor's favor

Answer

Front-loading inflates early line items so the contractor receives more cash early relative to work in place, creating owner cash-flow risk.

(CCS) Certified Construction Specifier Practice Test

(CCS) Certified Construction Specifier Practice Test

CCS Cost Estimation 5