GCC Cost Estimation & Budgeting 2

Question 1

Which estimating method uses historical cost data from similar completed projects to forecast costs for a new project?

Accepted Answer

Analogous estimating

Answer

Analogous estimating relies on actual costs from past similar projects as a basis for estimating the current project.

Question 2

A contractor estimates a project using the formula: Cost = Unit Rate × Quantity. This is an example of:

Accepted Answer

Parametric estimating

Answer

Parametric estimating applies a statistical relationship between variables (unit rate and quantity) to calculate cost.

Question 3

What does a Schedule of Values (SOV) primarily serve in a construction contract?

Accepted Answer

Allocates contract sum across work items for progress billing

Answer

An SOV breaks the contract sum into line items tied to work activities, forming the basis for progress payment applications.

Question 4

When calculating the cost per square foot for a commercial building, which cost category is LEAST likely included in the direct cost?

Accepted Answer

Home office overhead allocation

Answer

Home office overhead is an indirect cost applied as a percentage markup, not a direct field cost tied to specific work.

Question 5

In a unit price contract, the owner bears the primary risk when:

Accepted Answer

Final quantities differ significantly from bid quantities

Answer

Under unit price contracts the owner pays for actual quantities; quantity overruns increase the owner's total cost.

(GCC) General Contracting Certification Practice Test