CPE CPE Value Engineering & Cost Optimization 2

Question 1

Life cycle costing (LCC) in estimating considers which of the following beyond initial construction cost?

Accepted Answer

First cost plus maintenance, operations, and disposal costs

Answer

LCC captures total ownership cost including initial construction, ongoing operations and maintenance, and eventual disposal or replacement costs.

Question 2

A VE proposal saves $50,000 in material cost but adds $15,000 in engineering review fees. What is the net VE savings?

Accepted Answer

$35,000

Answer

Net VE savings = gross savings minus implementation costs: $50,000 - $15,000 = $35,000.

Question 3

Which design element is most commonly targeted by value engineering in concrete construction?

Accepted Answer

Formwork system selection

Answer

Formwork can represent 40–60% of concrete structure cost, making it the highest-impact VE target for concrete work.

Question 4

What is 'constructability review' in the context of cost optimization?

Accepted Answer

An analysis of how design decisions affect ease and cost of construction

Answer

Constructability review evaluates designs from a field-construction perspective to identify sequencing, access, or method issues that would increase cost.

Question 5

When a CPE estimator identifies a 'cost driver,' what have they found?

Accepted Answer

A single element that contributes disproportionately to total project cost

Answer

A cost driver is a work item or design feature that significantly controls overall project cost and therefore deserves priority attention in VE efforts.

(CPE) Certified Professional Estimator Practice Test

(CPE) Certified Professional Estimator Practice Test

CPE CPE Value Engineering & Cost Optimization 2