HCC Healthcare Construction Cost Estimating & Budget Management 3

Question 1

A healthcare facility's total project budget includes a line item for 'Owner's Project Manager fees.' This cost is best categorized as:

Accepted Answer

Soft cost

Answer

Owner's Project Manager fees are professional services costs and are classified as soft costs, along with other design, legal, permitting, and administrative expenses.

Question 2

When total construction costs for a healthcare project significantly exceed the approved budget, the FIRST step the project manager should take is:

Accepted Answer

Perform a thorough cost analysis to identify root causes of the overrun

Answer

Before taking corrective action, the project manager must analyze the causes of the cost overrun to develop informed, targeted solutions that address the underlying issues.

Question 3

Which procurement method is most commonly used for complex healthcare construction projects requiring early contractor involvement and a Guaranteed Maximum Price?

Accepted Answer

Construction Manager at Risk (CMaR)

Answer

CMaR is widely used in healthcare because it allows early contractor involvement during design for phasing and cost input, while the contractor commits to a GMP before construction begins.

Question 4

In preparing a healthcare facility cost estimate, 'parametric estimating' uses:

Accepted Answer

Statistical relationships between historical data and measurable project variables

Answer

Parametric estimating uses statistical models and historical cost data to calculate estimates based on measurable parameters such as cost per square foot or cost per bed, enabling rapid early-phase estimates.

Question 5

A 'bid bond' in healthcare construction procurement serves what primary purpose?

Accepted Answer

Provides financial assurance that the contractor will honor the submitted bid price if selected

Answer

A bid bond is a surety instrument that guarantees the bidder will enter into the contract at the submitted bid price if selected; failure to do so obligates the surety to cover the resulting loss to the owner.

(HCC) Healthcare Construction Certification Practice Test

(HCC) Healthcare Construction Certification Practice Test

HCC Healthcare Construction Cost Estimating & Budget Management 3