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

Analogous estimating relies on actual costs from previous similar projects as the basis for estimating the current project.

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

CPI = EV / AC = $800,000 / $1,000,000 = 0.80, indicating the project is getting $0.80 of value for every dollar spent.

Question 3

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

Accepted Answer

A fund set aside for unknown but anticipated costs

Answer

An allowance is a sum included in the estimate to cover costs for items that cannot be fully defined at the time of estimating.

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

In a unit price contract, the contractor is paid per unit of work completed, so the owner bears the risk if actual quantities exceed estimated quantities.

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

The Scope of Work defines what is included and excluded from the project, forming the fundamental basis for accurate cost estimation.

(CPC) Certified Professional Constructor Practice Test

(CPC) Certified Professional Constructor Practice Test

CPC Construction Estimating & Cost Control 2