CPC Construction Estimating & Cost Control 2

Question 1

Which cost estimating technique uses historical data from similar completed projects to predict the cost of a new project?

Accepted Answer

Analogous estimating

Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Three-point estimating

Question 2

A construction project has a Budget at Completion (BAC) of $2,000,000. The Earned Value (EV) is $800,000 and the Actual Cost (AC) is $1,000,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.80

Answer

0.75

Answer

1.00

Answer

1.25

Question 3

What does the term 'allowance' represent in a construction estimate?

Accepted Answer

A fund set aside for unknown but anticipated costs

Answer

A penalty clause for schedule delays

Answer

The contractor's profit margin

Answer

A discount offered to the owner for early payment

Question 4

In a unit price contract, the owner bears the risk associated with which of the following?

Accepted Answer

Quantity overruns beyond the estimated amounts

Answer

Unit price errors by the contractor

Answer

Contractor labor inefficiency

Answer

Material price increases after bid

Question 5

Which document formally defines the detailed scope of work and is a primary basis for the cost estimate?

Accepted Answer

Scope of Work (SOW)

Answer

Request for Information (RFI)

Answer

Notice to Proceed (NTP)

Answer

Certificate of Substantial Completion

Question 6

What is a 'learning curve' effect in construction cost estimating?

Accepted Answer

The reduction in labor cost per unit as workers repeat similar tasks

Answer

The time it takes a new estimator to learn software

Answer

An increase in material costs as the project progresses

Answer

The cost of training new workers on a project

Question 7

The Estimate to Complete (ETC) using the typical EVM formula assuming future work is performed at the budgeted rate is calculated as:

Accepted Answer

BAC - EV

Answer

BAC / CPI

Answer

(BAC - EV) / CPI

Answer

AC + (BAC - EV)