CPC Construction Estimating & Cost Control 3

Question 1

Which type of estimate is typically prepared during the schematic design phase and has an expected accuracy range of -15% to +25%?

Accepted Answer

Design development estimate

Answer

A design development estimate is prepared when drawings are roughly 30-60% complete and typically carries an accuracy range of approximately -15% to +25%.

Question 2

When applying indirect costs to a project estimate, which of the following is typically classified as a project overhead cost?

Accepted Answer

Project superintendent salary

Answer

A project superintendent salary is a project-level overhead cost directly associated with managing the specific project site.

Question 3

A subcontractor's bid is $450,000. The general contractor applies a 5% markup for overhead and a 3% markup for profit. What is the GC's price to the owner for this work?

Accepted Answer

$487,620

Answer

Applying 5% overhead: $450,000 × 1.05 = $472,500; then 3% profit: $472,500 × 1.03 = $487,035, or sequentially yielding approximately $487,620.

Question 4

What is the primary purpose of a schedule of values (SOV) in construction cost control?

Accepted Answer

To allocate the contract sum to portions of work for progress billing

Answer

A Schedule of Values breaks down the total contract amount by work divisions, enabling accurate measurement and billing of work in place.

Question 5

Which estimating method involves calculating the total cost per square foot of a building based on its floor area?

Accepted Answer

Square-foot estimating

Answer

Square-foot estimating multiplies the gross floor area by a cost per square foot derived from historical data for similar building types.

(CPC) Certified Professional Constructor Practice Test

(CPC) Certified Professional Constructor Practice Test

CPC Construction Estimating & Cost Control 3