CDS Cost Estimation & Budgeting 3

Question 1

What is the purpose of a 'unit price' estimate in demolition contracting?

Accepted Answer

To price individual work items per measurable unit, allowing cost adjustment as quantities change

Answer

Unit price estimating assigns a cost per unit (e.g., per linear foot, per ton) so that the final contract value can flex with actual quantities encountered.

Question 2

A demolition supervisor notices that actual concrete removal is taking 30% longer than estimated. The BEST immediate action is to:

Accepted Answer

Analyze the cause, document the variance, and notify the project manager to assess budget impact

Answer

Early identification and documentation of production variances allows management to make informed decisions and potentially adjust the budget or schedule.

Question 3

Which document is most useful for tracking actual expenditures against a demolition project budget in real time?

Accepted Answer

A cost-to-complete report or job cost ledger

Answer

A job cost ledger or cost-to-complete report compares budgeted amounts to actual costs incurred, enabling active budget management.

Question 4

Salvage value credits in a demolition estimate are best described as:

Accepted Answer

Revenue offsets from selling recyclable materials like structural steel or copper

Answer

Salvage credits reduce the net project cost by crediting revenue from selling recyclable materials such as structural steel, copper wiring, or aluminum.

Question 5

A lump-sum demolition contract places the risk of quantity overruns primarily on:

Accepted Answer

The contractor

Answer

In a lump-sum contract, the contractor assumes the risk that actual quantities or conditions may differ from what was estimated.

(CDS) Certified Demolition Supervisor Practice Test

(CDS) Certified Demolition Supervisor Practice Test

CDS Cost Estimation & Budgeting 3