Cost Estimation Flashcards

Which estimating method uses historical cost data from similar completed projects to project costs for a new project?

Answer: Analogous estimating

Analogous estimating relies on actual costs from comparable past projects as a basis for estimating the current project.

A field builder estimates lumber costs at $8,000 with a 10% contingency. What is the total budgeted lumber cost?

Answer: $8,800

$8,000 × 1.10 = $8,800, which includes the 10% contingency added to the base estimate.

What does the term 'allowance' represent in a construction cost estimate?

Answer: A reserved sum for undefined or uncertain scope items

An allowance is a placeholder dollar amount included for scope items whose details are not yet fully defined at the time of estimating.

Which of the following best describes a 'unit price' contract?

Answer: Payment is based on measured quantities of work at agreed prices per unit

In a unit price contract, the owner pays for actual measured quantities multiplied by the agreed unit price for each work item.

When estimating concrete formwork, which factor most directly affects the cost per square foot?

Answer: Complexity of form shape and reuse factor

Complex form shapes require more labor and custom material, while the reuse factor determines how many times forms can be used, reducing per-use cost.

A project has a Cost Performance Index (CPI) of 0.85. What does this indicate?

Answer: The project is over budget — spending $1.18 for every $1.00 of work completed

A CPI below 1.0 means costs exceed the budgeted value of work done; at 0.85 you are spending about $1.18 per dollar of earned value.

Which document typically serves as the primary basis for a detailed quantity takeoff in field construction?

Answer: Construction drawings and specifications

Detailed quantity takeoffs are derived directly from the construction drawings and specifications, which define exact dimensions, materials, and quality standards.