CPE Labor Productivity & Rates 3

Question 1

Which of the following best describes 'all-in' labor rate as used in construction estimating?

Accepted Answer

Base wage plus fringe benefits, payroll taxes, and insurance

Answer

The all-in rate includes base wages plus fringes, FICA, FUTA, SUTA, workers' comp, and liability insurance.

Question 2

Weather delays on an outdoor project are best addressed in the estimate by:

Accepted Answer

Applying a weather day allowance to the schedule and escalating labor costs accordingly

Answer

Estimators should include weather day allowances based on historical climate data, which extends duration and increases labor costs.

Question 3

A productivity loss factor due to overtime is most pronounced when workers operate at:

Accepted Answer

60+ hours per week for multiple weeks

Answer

Research shows cumulative fatigue causes significant productivity decline when sustained overtime exceeds 50–60 hours per week over multiple weeks.

Question 4

In the context of labor productivity, 'measured mile' analysis is used to:

Accepted Answer

Compare productivity in an unimpacted period versus an impacted period

Answer

The measured mile technique compares unit labor rates from undisturbed work periods against those from disrupted periods to quantify impact.

Question 5

FICA taxes payable by the employer on each worker's wages represent approximately:

Accepted Answer

6.2% Social Security plus 1.45% Medicare = 7.65% of gross wages

Answer

Employers match the employee's 7.65% FICA contribution (6.2% SS + 1.45% Medicare), making the employer burden 7.65%.

(CPE) Certified Professional Estimator Practice Test