CPC Construction Estimating & Cost Control 4

Question 1

Which of the following best describes the 'quantity takeoff' process in construction estimating?

Accepted Answer

Measuring and listing all materials and work items from project drawings

Answer

Negotiating final costs with the owner

Answer

Selecting the lowest subcontractor bid

Answer

Reviewing the project schedule for delays

Question 2

A project has a Schedule Performance Index (SPI) of 0.90 and a Cost Performance Index (CPI) of 1.10. Which statement best describes the project status?

Accepted Answer

Behind schedule but under budget

Answer

Behind schedule and over budget

Answer

Ahead of schedule but over budget

Answer

Ahead of schedule and under budget

Question 3

When preparing a bid, a contractor includes an amount for 'escalation.' What does this cover?

Accepted Answer

Anticipated increases in material and labor costs over the project duration

Answer

The cost of installing elevators and escalators

Answer

Penalties for exceeding the project budget

Answer

The cost of adding scope during construction

Question 4

Which risk response strategy is being used when a contractor purchases builder's risk insurance to cover potential losses from fire or storm damage?

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk mitigation

Answer

Risk acceptance

Question 5

The process of comparing bid prices received against the engineer's estimate is primarily done to:

Accepted Answer

Verify bid completeness and identify potential errors or scope gaps

Answer

Determine which bidder has the lowest overhead

Answer

Calculate the owner's contingency fund

Answer

Establish the project schedule baseline

Question 6

In earned value management, if the Estimate at Completion (EAC) is greater than the Budget at Completion (BAC), what does this indicate?

Accepted Answer

The project is projected to exceed its original budget

Answer

The project will finish under budget

Answer

The project is ahead of schedule

Answer

The project scope has been reduced

Question 7

Which of the following is the MOST accurate description of 'value engineering' in the context of cost control?

Accepted Answer

A systematic review to achieve required functions at the lowest total cost without sacrificing performance

Answer

Reducing quality standards to lower project costs

Answer

Adding premium features to increase the building's resale value

Answer

Negotiating lower profit margins with subcontractors