CFP Cost Estimation 2 — Questions and Answers
Question 1: When estimating costs for a fence installation on a sloped lot, which adjustment is most commonly required?
- Reduce post spacing to compensate for grade changes
- Add a racking or stepping allowance to account for panel adjustments (Correct answer)
- Use lighter gauge wire to reduce material weight on slopes
- Apply a flat 10% discount since slopes require less material
Correct 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.
Question 2: 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?
- 450 LF
- 472 LF
- 473 LF (Correct answer)
- 495 LF
Correct answer: 473 LF
450 LF × 1.05 waste factor = 472.5 LF, rounded up to 473 LF to ensure adequate material.
Question 3: Which of the following best describes 'burden rate' as used in fence contracting cost estimates?
- The overhead markup applied to subcontractor invoices
- Payroll taxes and benefits added on top of base labor wages (Correct answer)
- The cost of hauling away old fence materials
- A penalty fee for project delays caused by the contractor
Correct 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.
Question 4: 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?
- $800
- $1,200
- $1,600 (Correct answer)
- $2,400
Correct answer: $1,600
300 feet ÷ 150 feet/day = 2 days × $800/day = $1,600 total labor cost.
Question 5: When preparing a bid for a commercial fence project, 'prevailing wage' requirements most directly affect which cost component?
- Material pricing from suppliers
- Equipment rental rates
- Labor costs for field workers (Correct answer)
- Subcontractor markup percentages
Correct 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.
Question 6: Which document typically serves as the primary source for determining post hole quantities when estimating a fence project?
- The soil test report
- The site plan or survey drawing showing fence layout (Correct answer)
- The material supplier's price list
- The local building permit application
Correct 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.
Question 7: 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?
- $10,200
- $11,000
- $12,000 (Correct answer)
- $12,500
Correct answer: $12,000
Selling price = $10,000 × (1 + 0.20) = $12,000 when applying a 20% markup on cost.
CFP Cost Estimation 2
When estimating costs for a fence installation on a sloped lot, which adjustment is most commonly required?