HCC Healthcare Construction Cost Estimating & Budget Management 2

Question 1

Which document formally authorizes a change to the contract sum or schedule in a healthcare construction project?

Accepted Answer

Change Order

Answer

Request for Information (RFI)

Answer

Submittal

Answer

Notice to Proceed

Question 2

In construction cost accounting, 'cost codes' are primarily used to:

Accepted Answer

Categorize and track costs according to specific work activities or phases

Answer

Encrypt sensitive financial data about the project

Answer

Identify the contractor's license number on invoices

Answer

Rate the complexity level of each construction task

Question 3

What distinguishes a 'contingency' from an 'allowance' in a healthcare construction budget?

Accepted Answer

Contingency covers unforeseen events; allowance is for known but undefined scope items

Answer

Contingency is for known costs; allowance is for unknown costs

Answer

Both terms refer to the same type of budget reserve

Answer

Contingency applies to soft costs only; allowance applies to hard costs only

Question 4

Earned Value Management (EVM) primarily helps a healthcare construction project manager:

Accepted Answer

Measure project performance by comparing planned versus actual cost and schedule

Answer

Determine the aesthetic value of completed work

Answer

Calculate the resale value of the completed facility

Answer

Track subcontractor licensing and certification status

Question 5

When preparing a healthcare construction budget, which CSI MasterFormat division primarily covers HVAC systems?

Accepted Answer

Division 23 – HVAC

Answer

Division 03 – Concrete

Answer

Division 21 – Fire Suppression

Answer

Division 26 – Electrical

Question 6

The primary purpose of a 'schedule of values' in a healthcare construction contract is to:

Accepted Answer

List the monetary value assigned to each line item for progress payment purposes

Answer

Set the timeline for project completion milestones

Answer

Document the appraised value of existing healthcare equipment

Answer

Track the daily productivity of construction workers

Question 7

In healthcare construction, 'cost segregation' is most commonly used for:

Accepted Answer

Identifying building components that qualify for accelerated tax depreciation

Answer

Separating contractor costs from subcontractor costs in financial reports

Answer

Dividing construction costs between multiple facility co-owners

Answer

Segregating infection control costs from general construction expenses