Estimating, Bidding, and Cost Control Flashcards
6 cards from real CSLB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Estimating, Bidding, and Cost Control flashcards as text
Which project delivery method involves the owner contracting with a single entity responsible for both design and construction?
Answer: Design-build
In design-build, the owner contracts with one entity (the design-builder) who is responsible for both the design and construction of the project, streamlining responsibility.
Earned Value Management (EVM) measures project cost performance by comparing:
Answer: Budgeted cost of work performed vs. actual cost of work performed
The Cost Performance Index (CPI) in EVM compares the budgeted cost of work actually performed (earned value) to the actual cost incurred, measuring how efficiently money is being spent.
A 'cost-plus' contract provides payment to the contractor for:
Answer: All allowable direct costs plus a fee for overhead and profit
A cost-plus contract reimburses the contractor for all allowable project costs and adds a fee (fixed, percentage, or incentive-based) to cover overhead and profit.
In California, a contractor who submits a false claim for payment on a public works project may be liable under:
Answer: California False Claims Act (Government Code §12650 et seq.)
The California False Claims Act imposes treble damages and civil penalties on contractors who knowingly submit false payment claims to California government entities.
What is 'front-loading' a schedule of values, and why is it a concern?
Answer: Assigning inflated values to early work items to receive more payment upfront than work earned
Front-loading means inflating the value of early completion items in the schedule of values so the contractor receives more payment than the work is actually worth, creating cash flow leverage at the owner's expense.
A 'Guaranteed Maximum Price' (GMP) contract benefits the owner by:
Answer: Capping the owner's exposure to cost overruns at the GMP amount
A GMP contract sets a maximum price the owner will pay — cost overruns above the GMP are borne by the contractor, while cost savings may be shared per the contract terms.