Cost Estimation Actual Review Exam Questions Correct Detailed Answers.
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Course
ESTIMASTICS
Institution
ESTIMASTICS
Construction Cost Estimate - correct answer An approximation of the financial impact of a future project. Vary in accuracy, depending on the need; order of magnitude estimates are often used for budgeting purposes, while exact estimates are used to secure the funding necessary to complete the ...
Construction Cost Estimate - correct answer An approximation of the financial impact of a future
project. Vary in accuracy, depending on the need; order of magnitude estimates are often used for
budgeting purposes, while exact estimates are used to secure the funding necessary to complete the
project.
Highly Accurate Construction Cost Estimates - correct answer Take into account the actual equipment
that will be used, all materials, labor, site preparation, acquisition costs, management and oversight
costs, overhead, and engineering and contingency costs. In order to prepare an accurate assessment
one must:
Detail specific work items that must be accomplished to complete the project
Quantify each item-
purchase price, hours, quantity, manpower, etc.
Assign a dollar figure to each item
Three Main Functions of Estimates in the Construction Industry - correct answer Provide a conceptual
assessment- tell owner how expensive it will be so they can decide to do it or not
Provide management system for cost control- help the team stay within a budget with a baseline cost
estimate
Allow for accurate contractor pricing- Ensure that the contractor will stay within budget
Two Factors Commonly Assessed to Determine Project Feasibility - correct answer Project Value- all
benefits of a project after it's completed (usability, savings, future worth, etc.)
Project Cost- final installed cost of the project
, Feasible - correct answer The project value exceeds the project cost based on a threshold set by the
owner (cost of capital, roi, % operating cost decrease, etc.) the project is considered ________.
Conceptual Estimate - correct answer Prelim estimate based on little detailed design info. It is done to
provide an overall assessment of project feasibility before much time, effort, or expense is invested in
detailed project planning and design. _________ _________ give the owner a sense of the cost of a
project to determine whether funding is available and whether the project adds value to the business.
Preliminary Estimates - correct answer Prepared to track costs during the design development phase
of the project to ensure that the design stays within the confines of the project budget. ___________
_________ can also assist designers in considering alternate designs by providing cost information on
those alternatives, allowing them to make educated decisions based on value to ensure the
improvements are warranted.
Cost Per Unit Area - correct answer Total Cost/Area
Cost Per Unit Volume - correct answer Total Cost/Volume
Total Cost - correct answer (Cost Per Unit Area)*(Area)
Stages of Detailed Construction Cost Estimate - correct answer 1: Material Takeoff- all elements of
the project are assessed with detailed drawings to get accurate view of scope and costs involved
2: Summarize Quantities- Material takeoff summarized/rearranged so it can be used with a pricing
standard
3: Develop Pricing- Combine stage 1 and 2 to develop prices for each item including labor, equipment,
and material for each element
4: Pricing Work to be Subcontracted- Some bids sent out, estimate based on lowest bid received
5: General/Overhead Expense Pricing- Review overhead costs, all of them
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