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
What is the primary function of a 'contingency fund' in a construction project budget?
Answer: To provide a financial reserve for unforeseen costs within the defined project scope
A contingency fund reserves funds for unforeseeable but statistically probable costs related to known risks within the current project scope.
A plastering subcontractor prices work at $4.50 per square yard. If a wall area is 2,400 square feet, what is the estimated cost? (1 square yard = 9 square feet)
Answer: $1,200
Convert SF to SY: 2,400 ÷ 9 = 266.67 SY; cost = 266.67 × $4.50 = $1,200.
Which contract type places the GREATEST cost risk on the owner?
Answer: Cost-plus percentage of cost contract
In a cost-plus percentage of cost contract, the contractor is reimbursed all costs plus a fee that increases as costs rise, giving the contractor no incentive to control costs and placing maximum risk on the owner.
During the bidding process, a 'bid bond' protects the owner by:
Answer: Ensuring the low bidder will enter into the contract at the bid price or forfeit the bond amount
A bid bond guarantees that if the contractor is awarded the project, they will sign the contract at the submitted bid price; otherwise the bond compensates the owner for the difference.
Which of the following is the BEST definition of 'planholder' in the bid process?
Answer: A company or individual that has obtained bidding documents and may submit a bid
A planholder is any firm or individual that has obtained the project's bidding documents and is eligible to submit a bid.
In construction scheduling and cost control, the 'critical path' is most directly relevant to cost because:
Answer: Delays on the critical path extend project duration and increase time-related overhead costs
Since the critical path governs project completion date, any delay on it extends the schedule, increasing general conditions, supervision, and other time-dependent costs.
A contractor uses the 'column line method' when performing a structural steel takeoff. What does this method primarily help organize?
Answer: The systematic counting and measurement of steel members by their grid location
The column line method organizes the steel takeoff by counting and measuring beams, columns, and connections between established column grid lines, ensuring no member is missed or double-counted.