CDS Cost Estimation & Budgeting 2 — Questions and Answers
Question 1: Which cost category typically represents the largest portion of a demolition project budget?
- Permit fees
- Labor and equipment costs (Correct answer)
- Disposal and tipping fees
- Insurance premiums
Correct answer: Labor and equipment costs
Labor and equipment costs generally account for the largest share of demolition budgets, often 50–70% of total project costs.
Question 2: A contingency reserve in a demolition budget is primarily intended to cover:
- Planned overtime pay
- Unforeseen conditions and scope changes (Correct answer)
- Profit margin for the contractor
- Equipment depreciation
Correct answer: Unforeseen conditions and scope changes
Contingency reserves are set aside to handle unexpected conditions such as hidden hazardous materials, structural surprises, or scope changes.
Question 3: When estimating disposal costs for a mixed-debris demolition project, the estimator should prioritize:
- Using a flat rate per square foot regardless of material
- Categorizing materials by disposal classification and current tipping fees (Correct answer)
- Estimating based solely on building age
- Applying last year's tipping fees without verification
Correct answer: Categorizing materials by disposal classification and current tipping fees
Disposal costs vary significantly by material type and landfill classification, so accurate categorization and current tipping fees are essential.
Question 4: In demolition estimating, 'mobilization costs' refer to:
- Daily equipment operating costs
- Costs to transport equipment and set up the site for work (Correct answer)
- The cost of hiring subcontractors
- Overhead allocated to office expenses
Correct answer: Costs to transport equipment and set up the site for work
Mobilization costs cover transporting equipment to the site, setting up temporary utilities, fencing, and other site preparation expenses.
Question 5: A demolition contractor receives a scope change order requiring removal of an additional 500 cubic yards of concrete. The FIRST step should be:
- Begin work immediately to avoid delays
- Submit a revised cost estimate and get written approval before proceeding (Correct answer)
- Absorb the cost as part of the original contingency
- Negotiate verbally with the owner and proceed
Correct answer: Submit a revised cost estimate and get written approval before proceeding
A written change order with an approved revised cost estimate protects both parties and ensures proper budget tracking.
Question 6: Which factor most significantly impacts equipment rental costs in a demolition budget?
- The color of the equipment
- Duration of use and equipment size/capacity (Correct answer)
- The brand name of the manufacturer
- The age of the project manager
Correct answer: Duration of use and equipment size/capacity
Equipment rental costs are primarily driven by how long the equipment is needed and its size or capacity relative to the demolition tasks.
Question 7: When preparing a demolition estimate for a building with suspected asbestos-containing materials (ACM), the estimator should:
- Exclude abatement costs since that is a separate contract
- Include a line item for asbestos abatement based on survey results or an allowance if unsurveyed (Correct answer)
- Assume minimal ACM since the building appears modern
- Add a 2% markup to the total bid as a blanket ACM allowance
Correct answer: Include a line item for asbestos abatement based on survey results or an allowance if unsurveyed
Asbestos abatement costs can be substantial and must be explicitly accounted for based on a survey or a clearly stated allowance when survey data is unavailable.
CDS Cost Estimation & Budgeting 2
Which cost category typically represents the largest portion of a demolition project budget?