CFB Cost Estimation 2 — Questions and Answers
Question 1: Which estimating method uses historical cost data from similar completed projects to project costs for a new project?
- Analogous estimating (Correct answer)
- Parametric estimating
- Bottom-up estimating
- Three-point estimating
Correct answer: Analogous estimating
Analogous estimating relies on actual costs from comparable past projects as a basis for estimating the current project.
Question 2: A field builder estimates lumber costs at $8,000 with a 10% contingency. What is the total budgeted lumber cost?
- $8,800 (Correct answer)
- $8,080
- $8,100
- $8,400
Correct answer: $8,800
$8,000 × 1.10 = $8,800, which includes the 10% contingency added to the base estimate.
Question 3: What does the term 'allowance' represent in a construction cost estimate?
- A reserved sum for undefined or uncertain scope items (Correct answer)
- The contractor's profit margin
- The cost of permits and inspections
- A discount offered to the owner
Correct 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.
Question 4: Which of the following best describes a 'unit price' contract?
- Payment is based on measured quantities of work at agreed prices per unit (Correct answer)
- A fixed total price regardless of actual quantities
- Cost of work plus a fixed fee
- Payment based on time and materials used
Correct 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.
Question 5: When estimating concrete formwork, which factor most directly affects the cost per square foot?
- Complexity of form shape and reuse factor (Correct answer)
- Concrete compressive strength
- Type of reinforcing steel
- Curing method selected
Correct 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.
Question 6: A project has a Cost Performance Index (CPI) of 0.85. What does this indicate?
- The project is over budget — spending $1.18 for every $1.00 of work completed (Correct answer)
- The project is under budget — spending $0.85 for every $1.00 of work completed
- The project is 15% ahead of schedule
- The project is 15% behind schedule
Correct 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.
Question 7: Which document typically serves as the primary basis for a detailed quantity takeoff in field construction?
- Construction drawings and specifications (Correct answer)
- Bid tabulation sheet
- Subcontractor proposals
- Owner's project budget
Correct 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.
CFB Cost Estimation 2
Which estimating method uses historical cost data from similar completed projects to project costs for a new project?