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

An order-of-magnitude estimate is a rough preliminary estimate prepared early in design when project scope is not yet fully defined, typically within +50%/-30% accuracy.

Question 2

The CSI MasterFormat divides construction costs into:

Accepted Answer

Numbered divisions organized by work type

Answer

CSI MasterFormat organizes construction specifications and cost data into numbered divisions based on work type, providing a universal standard framework for estimating.

Question 3

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

Accepted Answer

15–25%

Answer

A contingency of 15–25% is typical at schematic design for healthcare projects due to the complexity of the work and undefined scope at early stages.

Question 4

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

Accepted Answer

Physical construction labor, materials, and installed equipment

Answer

Hard costs are direct construction costs including labor, materials, and equipment physically incorporated into the completed project.

Question 5

Soft costs in a healthcare construction project budget include:

Accepted Answer

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

Answer

Soft costs are indirect project costs such as professional design fees, permits, owner's representative fees, and financing costs.

(CHC) Certified Health Care Constructor Practice Test

(CHC) Certified Health Care Constructor Practice Test

CHC CHC Cost Management & Contract Administration