Construction Management Cost Estimating & Financial Management

Question 1

Which level of cost estimate is typically used at the conceptual design phase and carries an accuracy range of -30% to +50%?

Accepted Answer

Order-of-magnitude estimate

Answer

Schematic design estimate

Answer

Design development estimate

Answer

Definitive estimate

Question 2

The difference between a contractor's direct costs and the project bid price is commonly referred to as:

Accepted Answer

Markup

Answer

Overhead allocation

Answer

Profit margin

Answer

Contingency

Question 3

General overhead (sometimes called home office overhead) typically includes costs such as:

Accepted Answer

Office rent, executive salaries, and accounting staff

Answer

Concrete formwork labor on site

Answer

Crane rental for the specific project

Answer

Subcontractor invoices

Question 4

A quantity takeoff in construction estimating refers to:

Accepted Answer

Measuring and counting all materials and work items from drawings and specs

Answer

Evaluating subcontractor bids for accuracy

Answer

Tracking actual costs against the budget during construction

Answer

Calculating overtime costs for the labor force

Question 5

Which cost estimating method calculates costs by multiplying measured quantities by unit prices?

Accepted Answer

Unit price estimating

Answer

Parametric estimating

Answer

Assembly estimating

Answer

Analogous estimating

Question 6

Bid bonds on public construction projects are typically set at what percentage of the bid amount?

Accepted Answer

5–10%

Answer

1–2%

Answer

25–30%

Answer

50%