CHC CHC Cost Management & Contract Administration

Question 1

A preliminary cost estimate prepared during schematic design is known as:

Accepted Answer

An order-of-magnitude estimate

Answer

A bid

Answer

A guaranteed maximum price

Answer

A final budget

Question 2

The CSI MasterFormat divides construction costs into:

Accepted Answer

Numbered divisions organized by work type

Answer

Five project phases

Answer

Alphabetical trade categories

Answer

Geographic regional categories

Question 3

What percentage contingency is typically applied to healthcare construction cost estimates at the schematic design phase?

Accepted Answer

15–25%

Answer

1–2%

Answer

5%

Answer

50%

Question 4

In healthcare construction budgeting, 'hard costs' refer to:

Accepted Answer

Physical construction labor, materials, and installed equipment

Answer

The cost of land acquisition

Answer

Architectural and engineering professional fees

Answer

Permitting and legal fees

Question 5

Soft costs in a healthcare construction project budget include:

Accepted Answer

Design fees, permitting, and owner's project management costs

Answer

Concrete and structural steel

Answer

Mechanical and electrical equipment

Answer

Subcontractor labor and materials

Question 6

In a Guaranteed Maximum Price (GMP) contract, cost savings below the GMP typically:

Accepted Answer

Are shared between the owner and contractor per the contract terms

Answer

Are kept entirely by the contractor

Answer

Must be returned to a government agency

Answer

Are applied automatically to future project phases