CCT Value Engineering & Cost Optimization Flashcards
6 cards from real CCT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCT Value Engineering & Cost Optimization flashcards as text
What is 'constructability review' and how does it relate to cost optimization?
Answer: An evaluation of design documents to identify construction difficulties that could increase cost or schedule
Constructability review examines designs for practical build sequencing, material access, and coordination issues before construction, reducing costly field problems and rework.
In value engineering terminology, what is a 'basic function'?
Answer: The primary purpose that gives an item its value and cannot be eliminated without destroying its usefulness
A basic function is the primary reason an item exists; removing it would render the item useless, making it the non-negotiable minimum requirement in VE analysis.
Which cost optimization strategy involves negotiating bulk purchase agreements for materials used across multiple projects?
Answer: Strategic sourcing / volume purchasing
Strategic sourcing consolidates purchasing power across projects to negotiate lower unit prices and favorable terms, reducing per-project material costs.
What is the difference between 'cost reduction' and 'value engineering' in construction?
Answer: Cost reduction simply cuts spending, while VE maintains function and performance while finding cheaper ways to deliver them
Cost reduction may sacrifice quality or function to save money, while value engineering specifically seeks alternatives that preserve or improve performance at a lower cost.
A cost technician is asked to evaluate two HVAC systems: System A costs $200,000 installed with $15,000/year in operating costs; System B costs $150,000 with $22,000/year. Over a 10-year life cycle, which system is less expensive?
Answer: System A ($350,000) vs System B ($370,000) — System A is less expensive
System A total = $200,000 + (10 × $15,000) = $350,000; System B total = $150,000 + (10 × $22,000) = $370,000, making System A the lower life-cycle cost option.
Which value engineering job plan step comes immediately after the 'creative' (speculation) phase?
Answer: Evaluation and development of ideas
After the creative phase generates ideas without judgment, the evaluation phase analyzes and develops the most promising alternatives for cost and feasibility.