CHC Cost Management & Contract Administration Flashcards
6 cards from real CHC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CHC Cost Management & Contract Administration flashcards as text
A preliminary cost estimate prepared during schematic design is known as:
Answer: An order-of-magnitude estimate
An order-of-magnitude estimate is a rough preliminary estimate prepared early in design when project scope is not yet fully defined, typically within +50%/-30% accuracy.
The CSI MasterFormat divides construction costs into:
Answer: Numbered divisions organized by work type
CSI MasterFormat organizes construction specifications and cost data into numbered divisions based on work type, providing a universal standard framework for estimating.
What percentage contingency is typically applied to healthcare construction cost estimates at the schematic design phase?
Answer: 15–25%
A contingency of 15–25% is typical at schematic design for healthcare projects due to the complexity of the work and undefined scope at early stages.
In healthcare construction budgeting, 'hard costs' refer to:
Answer: Physical construction labor, materials, and installed equipment
Hard costs are direct construction costs including labor, materials, and equipment physically incorporated into the completed project.
Soft costs in a healthcare construction project budget include:
Answer: Design fees, permitting, and owner's project management costs
Soft costs are indirect project costs such as professional design fees, permits, owner's representative fees, and financing costs.
In a Guaranteed Maximum Price (GMP) contract, cost savings below the GMP typically:
Answer: Are shared between the owner and contractor per the contract terms
In a GMP contract, savings below the guaranteed maximum are shared between the owner and contractor according to the agreed-upon split defined in the contract.