HCC Healthcare Construction Cost Estimating & Budget Management

Question 1

During the design development phase of a healthcare facility project, what is the typical range for owner's contingency as a percentage of total construction cost?

Accepted Answer

10–15%

Answer

2–5%

Answer

5–8%

Answer

20–25%

Question 2

In healthcare construction budgeting, which of the following is classified as a 'soft cost'?

Accepted Answer

Architectural and engineering fees

Answer

Structural steel fabrication

Answer

Mechanical system installation

Answer

Exterior cladding materials

Question 3

What is 'value engineering' in the context of healthcare construction?

Accepted Answer

A systematic approach to achieve required functions at the lowest cost

Answer

Reducing project scope without evaluating function

Answer

Adding premium materials to increase resale value

Answer

Appraising the completed facility for insurance purposes

Question 4

Which type of cost estimate is typically prepared when only basic program information such as square footage and building type is available?

Accepted Answer

Conceptual (order-of-magnitude) estimate

Answer

Definitive estimate

Answer

Design development estimate

Answer

Bid estimate

Question 5

In a Guaranteed Maximum Price (GMP) contract for healthcare construction, if actual costs come in below the GMP, the savings typically:

Accepted Answer

Are shared between owner and contractor per contract terms

Answer

Are retained entirely by the owner

Answer

Are retained entirely by the contractor

Answer

Are placed into a reserve fund for future facility maintenance

Question 6

What does 'escalation' refer to in healthcare construction cost estimating?

Accepted Answer

The adjustment of costs to account for inflation over the project timeline

Answer

The process of adding complexity to a design

Answer

The increase in regulatory requirements during a project

Answer

The accumulation of change orders to the contract sum

Question 7

Life cycle cost analysis in healthcare facility planning considers which of the following?

Accepted Answer

Total costs of ownership including construction, operations, and end-of-life

Answer

Only initial construction costs

Answer

Annual operating and maintenance costs only

Answer

Cost per patient served over the facility's useful life