CPC Construction Estimating & Cost Control 5

Question 1

What is the primary function of a 'contingency fund' in a construction project budget?

Accepted Answer

To provide a financial reserve for unforeseen costs within the defined project scope

Answer

To cover the contractor's expected profit

Answer

To fund changes in project scope requested by the owner

Answer

To reimburse the designer for additional services

Question 2

A plastering subcontractor prices work at $4.50 per square yard. If a wall area is 2,400 square feet, what is the estimated cost? (1 square yard = 9 square feet)

Accepted Answer

$1,200

Answer

$900

Answer

$1,600

Answer

$10,800

Question 3

Which contract type places the GREATEST cost risk on the owner?

Accepted Answer

Cost-plus percentage of cost contract

Answer

Lump sum (fixed price) contract

Answer

Unit price contract

Answer

Cost-plus with a guaranteed maximum price (GMP)

Question 4

During the bidding process, a 'bid bond' protects the owner by:

Accepted Answer

Ensuring the low bidder will enter into the contract at the bid price or forfeit the bond amount

Answer

Guaranteeing the quality of the contractor's workmanship

Answer

Covering material cost increases after the bid date

Answer

Providing insurance against construction defects

Question 5

Which of the following is the BEST definition of 'planholder' in the bid process?

Accepted Answer

A company or individual that has obtained bidding documents and may submit a bid

Answer

The owner's designated project manager

Answer

The surety company providing the bid bond

Answer

A subcontractor pre-qualified by the general contractor

Question 6

In construction scheduling and cost control, the 'critical path' is most directly relevant to cost because:

Accepted Answer

Delays on the critical path extend project duration and increase time-related overhead costs

Answer

All activities on the critical path are the most expensive

Answer

The critical path determines which subcontractors are paid first

Answer

Activities on the critical path require the highest-paid craft workers

Question 7

A contractor uses the 'column line method' when performing a structural steel takeoff. What does this method primarily help organize?

Accepted Answer

The systematic counting and measurement of steel members by their grid location

Answer

The sequencing of steel erection for scheduling

Answer

The calculation of sales tax on fabricated steel

Answer

The comparison of multiple steel fabricator quotes