CPE Cost Databases & Resources 3 — Questions and Answers
Question 1: Which of the following best describes a 'square foot cost' method using published cost data?
- An order-of-magnitude estimate based on cost per square foot of a building type (Correct answer)
- A detailed line-item estimate for every material and labor operation
- A bid submitted by a subcontractor based on drawings
- A cost-plus contract pricing method
Correct answer: An order-of-magnitude estimate based on cost per square foot of a building type
Square foot cost estimating uses published costs per SF for similar building types to quickly develop order-of-magnitude budgets.
Question 2: When a cost database lists a crew composition of '1 Carpenter Foreman and 3 Carpenters,' what is the primary purpose of this information?
- To calculate the crew's daily cost and output for labor pricing (Correct answer)
- To determine the number of employees a contractor must hire permanently
- To satisfy union minimum crew size requirements only
- To estimate the number of supervisors needed on the whole project
Correct answer: To calculate the crew's daily cost and output for labor pricing
Crew composition in databases allows estimators to calculate daily crew cost and verify assumed productivity rates.
Question 3: Dodge Data & Analytics (formerly F.W. Dodge) is most commonly used by estimators for which purpose?
- Tracking construction project starts, bids, and market forecasting data (Correct answer)
- Providing unit cost breakdowns for specific work items
- Publishing standard crew compositions for trades
- Listing equipment rental rates by region
Correct answer: Tracking construction project starts, bids, and market forecasting data
Dodge Data & Analytics provides construction project pipeline data, bid leads, and market intelligence rather than unit costs.
Question 4: In RSMeans data, 'O&P' added to bare costs typically represents what percentage range for general contractors?
- 10% overhead and 10% profit (approximately) (Correct answer)
- 5% overhead and 2% profit
- 25% overhead and 25% profit
- 1% overhead and 1% profit
Correct answer: 10% overhead and 10% profit (approximately)
RSMeans typically applies approximately 10% for overhead and 10% for profit when listing total installed costs including O&P.
Question 5: An estimator using a cost database finds that local material prices are 15% higher than database values. The correct adjustment is to:
- Apply a location adjustment factor or manually adjust material unit costs upward (Correct answer)
- Use the database cost as-is since it represents national averages
- Reduce labor costs by 15% to compensate
- Request a new edition of the cost database
Correct answer: Apply a location adjustment factor or manually adjust material unit costs upward
When local prices deviate from database averages, estimators apply location factors or manually adjust specific cost components.
Question 6: Which type of cost index is most useful for adjusting costs between two different geographic locations at the same point in time?
- City Cost Index (CCI) (Correct answer)
- Time-based cost trend index
- Consumer Price Index (CPI)
- Producer Price Index (PPI)
Correct answer: City Cost Index (CCI)
City Cost Indexes allow estimators to translate national average costs to specific local market conditions.
Question 7: A CPE estimator is preparing a preliminary budget and uses cost-per-bed data from a hospital cost database. This approach is an example of which estimating method?
- Parametric estimating using functional unit costs (Correct answer)
- Detailed quantity take-off estimating
- Bid-based estimating from subcontractors
- Life-cycle cost estimating
Correct answer: Parametric estimating using functional unit costs
Parametric estimating uses functional units (beds, seats, parking spaces) multiplied by historical cost-per-unit to develop budgets.
CPE Cost Databases & Resources 3
Which of the following best describes a 'square foot cost' method using published cost data?