Practice Test Geeks(CRC) Certified Residential Contractor Practice Test
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Cost Estimation & Budgeting Flashcards

7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Cost Estimation & Budgeting flashcards as text

  1. A contractor receives three subcontractor bids for HVAC: $18,000, $21,500, and $31,000. What is the BEST practice when selecting a bid to include in the prime estimate?

    Answer: Evaluate all bids for scope completeness before selecting

    The lowest bid may exclude scope items; all bids must be evaluated for completeness and accuracy before selection.

  2. When calculating material costs for a tile installation, a contractor measures 420 sq ft of floor area. Using a 12% waste factor, how many sq ft of tile should be ordered?

    Answer: 470 sq ft

    420 sq ft × 1.12 = 470.4 sq ft, rounded to 470 sq ft.

  3. A remodel project is 60% complete and has spent $84,000 of a $120,000 budget. What does this indicate about the project's cost performance?

    Answer: The project is over budget — 70% of budget used for 60% completion

    At 60% completion, expected spend should be $72,000 (60% of $120,000); spending $84,000 means the project is 16.7% over budget at this stage.

  4. Which of the following BEST describes 'life cycle cost analysis' in residential construction?

    Answer: Estimating the cost of a project from design through demolition

    Life cycle cost analysis evaluates total costs of ownership including initial construction, operating, maintenance, and eventual demolition costs.

  5. A contractor builds 10 identical spec homes per year. Which estimating approach would be MOST efficient for recurring projects of this type?

    Answer: Parametric estimating using cost-per-unit models from historical data

    Parametric estimating using historical data from previous identical homes allows fast, accurate estimates for repeated project types.

  6. A residential contractor must decide whether to rent or buy a concrete mixer for a $45,000 project. Rental is $600/month; purchase price is $9,000 with 5-year useful life. For a 3-month project, what is the cost-effective choice?

    Answer: Rent — $1,800 vs. $9,000 purchase price for short-term use

    For a 3-month job, rental costs $1,800 vs. $9,000 to purchase, making rental far more cost-effective for this short-duration project.

  7. An estimate includes $5,000 for 'general conditions.' Which of the following items would typically be included in this cost category?

    Answer: Temporary utilities, job site trailer, and site signage

    General conditions cover project support costs like temporary power, sanitation, site office, security, and similar field overhead items.