CLC CLC Estimating & Cost Control 2

Question 1

What is the purpose of a contingency allowance in a project estimate?

Accepted Answer

To cover unforeseen conditions or scope items discovered during construction

Answer

A contingency (typically 5–15% of total cost) is a financial reserve for unknown or unforeseen conditions that could not be priced during the estimate phase.

Question 2

Which document formally authorizes additional work beyond the original contract scope?

Accepted Answer

Change order

Answer

A change order is a signed written agreement between the contractor and client that authorizes changes in scope, cost, or schedule before the additional work begins.

Question 3

To calculate a selling price that includes overhead and profit, a contractor should:

Accepted Answer

Divide direct costs by (1 minus the desired margin percentage)

Answer

Using markup on cost versus margin on price are different calculations — to hit a target gross margin, divide cost by (1 − margin%) rather than simply adding the percentage to cost.

Question 4

What is a Schedule of Values (SOV) used for on a construction project?

Accepted Answer

Breaking the contract sum into line items tied to measurable work for progress billing

Answer

A Schedule of Values assigns a dollar amount to each phase or work item so that progress payments can be calculated based on the percentage of each item completed.

Question 5

Job costing involves comparing:

Accepted Answer

Actual job costs to estimated job costs to measure profitability

Answer

Job costing tracks actual labor, material, and overhead costs incurred on a specific project and compares them to the original estimate to determine job profitability.

(CLC) Certified Lead Carpenter Practice Test

(CLC) Certified Lead Carpenter Practice Test

CLC CLC Estimating & Cost Control 2