HCC Healthcare Construction Cost Estimating & Budget Management 3

Question 1

A healthcare facility's total project budget includes a line item for 'Owner's Project Manager fees.' This cost is best categorized as:

Accepted Answer

Soft cost

Answer

Hard cost

Answer

Contingency

Answer

Allowance

Question 2

When total construction costs for a healthcare project significantly exceed the approved budget, the FIRST step the project manager should take is:

Accepted Answer

Perform a thorough cost analysis to identify root causes of the overrun

Answer

Immediately authorize all change orders required to proceed

Answer

Unilaterally reduce project scope without consulting the project team

Answer

Terminate the contractor for non-performance

Question 3

Which procurement method is most commonly used for complex healthcare construction projects requiring early contractor involvement and a Guaranteed Maximum Price?

Accepted Answer

Construction Manager at Risk (CMaR)

Answer

Design-Bid-Build

Answer

Design-Build

Answer

Indefinite Delivery/Indefinite Quantity (IDIQ)

Question 4

In preparing a healthcare facility cost estimate, 'parametric estimating' uses:

Accepted Answer

Statistical relationships between historical data and measurable project variables

Answer

Detailed quantity takeoffs for every material and labor item

Answer

The average of multiple competing subcontractor bids

Answer

Engineering judgment alone without reference to historical data

Question 5

A 'bid bond' in healthcare construction procurement serves what primary purpose?

Accepted Answer

Provides financial assurance that the contractor will honor the submitted bid price if selected

Answer

Guarantees the quality of the contractor's completed work

Answer

Insures the owner against construction defects discovered after occupancy

Answer

Covers the cost of design changes issued after contract award

Question 6

At what intervals should formal cost reconciliation be conducted on a healthcare construction project?

Accepted Answer

At regular intervals throughout the project lifecycle

Answer

Only at project completion

Answer

Only when a significant change order is issued

Answer

Once per year during the annual budget review

Question 7

When a healthcare construction project is described as having a 'budget variance,' this means:

Accepted Answer

There is a measurable difference between the budgeted and actual costs

Answer

The project is running ahead of the approved schedule

Answer

The contractor has submitted a formal change order request

Answer

The architectural design has been modified from the original approved plans