Healthcare Construction Cost Estimating & Budget Management Flashcards
7 cards from real HCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Healthcare Construction Cost Estimating & Budget Management flashcards as text
Which document formally authorizes a change to the contract sum or schedule in a healthcare construction project?
Answer: Change Order
A Change Order is the formal written agreement between the owner and contractor that modifies the contract amount, schedule, or scope of work and requires signatures from all parties.
In construction cost accounting, 'cost codes' are primarily used to:
Answer: Categorize and track costs according to specific work activities or phases
Cost codes provide a standardized categorization system that allows project teams to allocate, track, compare, and analyze costs by specific work activities, phases, or CSI divisions.
What distinguishes a 'contingency' from an 'allowance' in a healthcare construction budget?
Answer: Contingency covers unforeseen events; allowance is for known but undefined scope items
An allowance is set aside for a known scope item whose cost isn't fully defined yet, while a contingency covers unforeseen events or unanticipated scope changes that may arise during construction.
Earned Value Management (EVM) primarily helps a healthcare construction project manager:
Answer: Measure project performance by comparing planned versus actual cost and schedule
EVM integrates scope, cost, and schedule metrics to assess current project performance and forecast final cost and completion date.
When preparing a healthcare construction budget, which CSI MasterFormat division primarily covers HVAC systems?
Answer: Division 23 – HVAC
Division 23 of the CSI MasterFormat covers Heating, Ventilating, and Air-Conditioning (HVAC) systems, which are critical in healthcare environments for infection control and patient comfort.
The primary purpose of a 'schedule of values' in a healthcare construction contract is to:
Answer: List the monetary value assigned to each line item for progress payment purposes
A schedule of values breaks down the total contract sum into individual cost components, serving as the basis for evaluating and approving contractor progress payment applications.
In healthcare construction, 'cost segregation' is most commonly used for:
Answer: Identifying building components that qualify for accelerated tax depreciation
Cost segregation is an IRS-recognized strategy that identifies and reclassifies personal property assets to shorter depreciation schedules, generating tax savings for the facility owner.