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 of the following best describes the 'quantity takeoff' process in construction estimating?
Answer: Measuring and listing all materials and work items from project drawings
A quantity takeoff is the systematic process of measuring and quantifying all materials, labor, and equipment needs directly from the construction documents.
A project has a Schedule Performance Index (SPI) of 0.90 and a Cost Performance Index (CPI) of 1.10. Which statement best describes the project status?
Answer: Behind schedule but under budget
SPI 1.0 means the work accomplished cost less than budgeted (under budget).
When preparing a bid, a contractor includes an amount for 'escalation.' What does this cover?
Answer: Anticipated increases in material and labor costs over the project duration
Escalation is an allowance built into the estimate to account for expected inflation in labor and material costs over the life of the project.
Which risk response strategy is being used when a contractor purchases builder's risk insurance to cover potential losses from fire or storm damage?
Answer: Risk transfer
Purchasing insurance transfers the financial consequences of a risk event to a third party (the insurer), making it a risk transfer strategy.
The process of comparing bid prices received against the engineer's estimate is primarily done to:
Answer: Verify bid completeness and identify potential errors or scope gaps
Comparing bids against the engineer's estimate helps identify unusually low or high bids that may indicate missing scope, errors, or unrealistic pricing.
In earned value management, if the Estimate at Completion (EAC) is greater than the Budget at Completion (BAC), what does this indicate?
Answer: The project is projected to exceed its original budget
When EAC > BAC, the project's current cost performance trends forecast a final cost higher than the original approved budget.
Which of the following is the MOST accurate description of 'value engineering' in the context of cost control?
Answer: A systematic review to achieve required functions at the lowest total cost without sacrificing performance
Value engineering is a formal, organized process of analyzing project functions to identify alternatives that achieve those functions at reduced cost while maintaining quality and performance.