Cost Estimation Flashcards
7 cards from real CFP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Cost Estimation flashcards as text
When estimating costs for a fence installation on a sloped lot, which adjustment is most commonly required?
Answer: Add a racking or stepping allowance to account for panel adjustments
Sloped lots require either racking (angling panels to follow the grade) or stepping (tiered horizontal panels), both of which affect material quantities and labor costs.
A contractor estimates 450 linear feet of 6-foot privacy fence. If the standard waste factor for wood pickets is 5%, how many linear feet of picket material should be ordered?
Answer: 473 LF
450 LF × 1.05 waste factor = 472.5 LF, rounded up to 473 LF to ensure adequate material.
Which of the following best describes 'burden rate' as used in fence contracting cost estimates?
Answer: Payroll taxes and benefits added on top of base labor wages
Burden rate includes employer-paid payroll taxes (FICA, FUTA, SUTA), workers' compensation, and benefits added to base wages when calculating true labor costs.
A 300-foot chain-link fence project has a crew productivity rate of 150 feet per day. If the crew rate is $800/day, what is the estimated labor cost?
Answer: $1,600
300 feet ÷ 150 feet/day = 2 days × $800/day = $1,600 total labor cost.
When preparing a bid for a commercial fence project, 'prevailing wage' requirements most directly affect which cost component?
Answer: Labor costs for field workers
Prevailing wage laws set minimum hourly pay rates for workers on public projects, directly increasing the labor cost line in the estimate.
Which document typically serves as the primary source for determining post hole quantities when estimating a fence project?
Answer: The site plan or survey drawing showing fence layout
The site plan or survey drawing shows the fence line layout, allowing the estimator to calculate linear footage, corners, ends, and gate locations to determine post counts.
A fence contractor uses a markup of 20% on total job cost to determine the selling price. If total costs are $10,000, what is the selling price?
Answer: $12,000
Selling price = $10,000 × (1 + 0.20) = $12,000 when applying a 20% markup on cost.