CCT Construction Materials & Labor Costs 4 — Questions and Answers
Question 1: Which of the following is an example of a 'bare cost' in construction estimating?
- Material + labor + equipment without overhead or profit (Correct answer)
- Total project cost including contingency
- Labor cost after applying union fringes only
- Material cost after applying waste factor and markup
Correct answer: Material + labor + equipment without overhead or profit
Bare cost represents direct field cost of material, labor, and equipment before adding overhead, profit, or other markups.
Question 2: When escalating a material cost estimate from a base year to a future bid date, which formula is correct?
- Future Cost = Base Cost ÷ (Future Index / Base Index)
- Future Cost = Base Cost × (Future Index / Base Index) (Correct answer)
- Future Cost = Base Cost + (Future Index − Base Index)
- Future Cost = Base Cost × (Base Index / Future Index)
Correct answer: Future Cost = Base Cost × (Future Index / Base Index)
Cost escalation is calculated by multiplying the base cost by the ratio of the future index to the base index.
Question 3: A subcontractor's bid includes a 'material markup' of 15%. If the net material cost is $80,000, what is the total material cost charged to the owner?
- $12,000
- $92,000 (Correct answer)
- $95,000
- $80,000
Correct answer: $92,000
$80,000 × 1.15 = $92,000 total material cost including the 15% markup.
Question 4: In construction estimating, 'crew hours' differ from 'worker hours' in that crew hours represent:
- The total hours worked by all individual workers combined
- The elapsed calendar time a crew spends on a task regardless of crew size (Correct answer)
- The overtime premium hours only
- The hours charged to a specific cost code
Correct answer: The elapsed calendar time a crew spends on a task regardless of crew size
Crew hours measure the duration of the task (calendar time), while worker hours equal crew hours multiplied by the number of workers.
Question 5: Lumber is commonly priced and quantified using which US unit of measure?
- Cubic feet
- Board feet (MBF) (Correct answer)
- Linear yards
- Square meters
Correct answer: Board feet (MBF)
Lumber is sold by the board foot (volume unit = 1" × 12" × 12") and priced per thousand board feet (MBF) in the US.
Question 6: Which condition would cause a labor productivity factor GREATER than 1.0 (above standard) in a construction estimate?
- Extreme heat or cold weather conditions
- Work performed in confined spaces
- Highly experienced crew performing repetitive tasks on an unobstructed site (Correct answer)
- Multiple trade congestion in a small work area
Correct answer: Highly experienced crew performing repetitive tasks on an unobstructed site
Experienced crews on repetitive, unobstructed work can exceed standard output, warranting a productivity factor above 1.0.
Question 7: What is the primary purpose of a 'unit price analysis sheet' in construction cost estimating?
- To record supplier invoice amounts after purchase
- To build up a composite cost per unit by summing material, labor, and equipment components (Correct answer)
- To track actual costs against the budget during construction
- To document change order pricing only
Correct answer: To build up a composite cost per unit by summing material, labor, and equipment components
A unit price analysis sheet assembles material, labor, and equipment costs for a defined unit of work to establish a defensible bid unit price.
CCT Construction Materials & Labor Costs 4
Which of the following is an example of a 'bare cost' in construction estimating?