CAC Cost Estimation

Question 1

What is the primary purpose of cost estimation in construction?

Accepted Answer

To predict expenses and plan budgets accurately

Answer

Cost estimation helps predict project expenses, allowing for accurate budgeting and financial planning.

Question 2

Which type of cost estimate provides a rough budget early in the project planning phase?

Accepted Answer

Preliminary estimate

Answer

Preliminary estimates provide an initial budget assessment before detailed planning occurs.

Question 3

Which cost component accounts for expenses related to labor and materials?

Accepted Answer

Direct costs

Answer

Direct costs include labor, materials, and equipment, which are directly associated with construction work.

Question 4

What is the primary purpose of a contingency allowance in a construction estimate?

Accepted Answer

To cover unexpected expenses

Answer

A contingency allowance accounts for unforeseen costs or changes during the construction process.

Question 5

Which factor can significantly impact cost estimation accuracy?

Accepted Answer

Material price fluctuations

Answer

Market fluctuations in material costs can affect overall project expenses, making accurate estimation challenging.

(CAC) Certified Associate Constructor Practice Test