CRC Cost Estimation & Budgeting 3

Question 1

Which document type provides the MOST detailed cost breakdown for residential construction bidding?

Accepted Answer

Detailed quantity takeoff estimate

Answer

A detailed quantity takeoff estimate itemizes every material and labor component based on completed construction documents.

Question 2

A contractor estimates lumber costs at $8,500 but the actual cost comes in at $9,775. What is the cost variance percentage?

Accepted Answer

15%

Answer

Variance = ($9,775 - $8,500) ÷ $8,500 = $1,275 ÷ $8,500 = 15%.

Question 3

When estimating exterior painting costs, which factor most significantly affects labor productivity calculations?

Accepted Answer

Surface texture and condition

Answer

Surface texture and condition directly impact how quickly painters can work and how much material is needed per square foot.

Question 4

A subcontractor's quote expires in 30 days, but project start is 90 days away. What is the BEST way to handle this in the bid?

Accepted Answer

Include an escalation clause in the contract

Answer

An escalation clause protects the contractor by allowing price adjustments if material or labor costs rise before project start.

Question 5

In residential cost estimating, 'burden rate' refers to:

Accepted Answer

Employer-paid taxes and benefits added to base labor wages

Answer

Burden rate includes FICA, workers' compensation, unemployment insurance, and benefits that the employer pays on top of base wages.

(CRC) Certified Residential Contractor Practice Test