CEC CEC Value Engineering & Cost Control 2

Question 1

What is the purpose of a cost-loaded schedule in construction project management?

Accepted Answer

Assign budget dollars to schedule activities for cash-flow forecasting

Answer

A cost-loaded schedule ties budget amounts to schedule activities, enabling accurate cash-flow projections and earned value tracking throughout the project.

Question 2

During a VE workshop, the FAST (Function Analysis System Technique) diagram is used to:

Accepted Answer

Map project functions from high-level to basic level to identify cost-reduction targets

Answer

FAST diagrams organize project functions hierarchically, revealing which functions are unnecessary or over-engineered and thus prime VE targets.

Question 3

An earned value analysis shows SPI = 0.85 and CPI = 0.92. What does this indicate?

Accepted Answer

Project is behind schedule and over budget

Answer

An SPI below 1.0 means the project is behind schedule, and a CPI below 1.0 means it is spending more than planned for the work accomplished.

Question 4

Which document formally records an approved VE change and adjusts the contract sum accordingly?

Accepted Answer

Change order

Answer

A change order is the contractual instrument that documents scope changes, including VE substitutions, and adjusts the contract price and schedule.

Question 5

What is the difference between direct cost control and indirect cost control on a construction project?

Accepted Answer

Direct addresses field production costs; indirect addresses overhead and support costs

Answer

Direct cost control targets field labor, materials, and equipment tied to physical work, while indirect cost control manages project overhead such as supervision, temporary facilities, and insurance.

(CEC) Construction Estimator Certification Practice Test

(CEC) Construction Estimator Certification Practice Test

CEC CEC Value Engineering & Cost Control 2