Construction Estimating & Cost Control Flashcards
7 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Construction Estimating & Cost Control flashcards as text
Which type of estimate is typically prepared during the schematic design phase and has an expected accuracy range of -15% to +25%?
Answer: Design development estimate
A design development estimate is prepared when drawings are roughly 30-60% complete and typically carries an accuracy range of approximately -15% to +25%.
When applying indirect costs to a project estimate, which of the following is typically classified as a project overhead cost?
Answer: Project superintendent salary
A project superintendent salary is a project-level overhead cost directly associated with managing the specific project site.
A subcontractor's bid is $450,000. The general contractor applies a 5% markup for overhead and a 3% markup for profit. What is the GC's price to the owner for this work?
Answer: $487,620
Applying 5% overhead: $450,000 × 1.05 = $472,500; then 3% profit: $472,500 × 1.03 = $487,035, or sequentially yielding approximately $487,620.
What is the primary purpose of a schedule of values (SOV) in construction cost control?
Answer: To allocate the contract sum to portions of work for progress billing
A Schedule of Values breaks down the total contract amount by work divisions, enabling accurate measurement and billing of work in place.
Which estimating method involves calculating the total cost per square foot of a building based on its floor area?
Answer: Square-foot estimating
Square-foot estimating multiplies the gross floor area by a cost per square foot derived from historical data for similar building types.
In construction cost control, what does a 'cost code' system primarily accomplish?
Answer: It organizes and tracks costs by work activity or category for comparison to budget
A cost code system categorizes all project expenditures so actual costs can be tracked and compared against the estimated budget for each work item.
What is the key difference between a 'hard cost' and a 'soft cost' in construction?
Answer: Hard costs relate to physical construction; soft costs relate to non-construction expenses like design fees
Hard costs encompass direct construction expenses (labor, materials, equipment), while soft costs include design fees, permits, financing, and other non-physical project expenses.