Question 1

Which of the following types of estimates would a contractor most likely use to bid a project?&#10;A) Square foot&#10;B) Unit price&#10;C) Systems&#10;D) Conceptual&#10;E) Aggregate

Accepted Answer

Unit price estimates are detailed and allow contractors to bid on projects by providing costs for each unit of work, making them suitable for competitive bidding.

Question 2

Which of the following best defines learning curve?&#10;A) Repetition is inversely related to productivity.&#10;B) Productivity increases as repetitions increase.&#10;C) Worker productivity is a constant.&#10;D) Productivity decreases as the size of a project increases.&#10;E) None of the above

Accepted Answer

The learning curve theory posits that as individuals or organizations perform tasks repetitively, they become more efficient at those tasks, leading to increased productivity over time. This is because repetition allows for the refinement of processes, the development of skills, and the reduction of errors.

Question 3

When adjusting an estimate for time and location, the adjustment for location must be made first.

Accepted Answer

The adjustment for time should be made first to bring the estimate to current dollars, and then the location adjustment is applied to account for geographical cost differences.

Question 4

The amount of profit a bidder includes is a factor of ????&#10;A) Extent of perceived risk&#10;B) Level of expected competition&#10;C) Project duration&#10;D) The particular client&#10;E) All of the above

Accepted Answer

The amount of profit a bidder includes in a bid can be influenced by various factors, including the extent of perceived risk associated with the project, the level of expected competition for the bid, the duration of the project, and the characteristics or requirements of the particular client. All these factors can affect the bidder's pricing strategy, including how much profit margin to include.

Question 5

As an estimate progresses from conceptual to detailed, it takes longer to prepare and becomes less accurate.

Accepted Answer

As an estimate progresses from conceptual to detailed, it takes longer to prepare but becomes more accurate, as more specific information and refined data are used in the estimation process.

Question 6

The value of the quality to the owner ????as the design quality of a project increases.&#10;A) Increases at a decreasing rate&#10;B) Increases at an increasing rate&#10;C) Increases at a constant rate&#10;D) Decreases&#10;E) Does not change

Accepted Answer

The value of the quality to the owner typically increases at a decreasing rate as the design quality of a project increases. This is because initial improvements in quality provide significant value, but as quality continues to increase, the additional value gained from further improvements tends to decrease.

Question 7

An index measures change with respect to an established baseline.

Accepted Answer

An index typically measures the change in a specific data point or group of data points relative to a base value, allowing for the tracking of fluctuations, trends, or growth over time.

Question 8

Overhead burden is greatest on which of the following cost categories?&#10;A) In-house material&#10;B) In-house labor&#10;C) In-house equipment&#10;D) Subcontractor&#10;E) Overhead is applied equally to all cost categories

Accepted Answer

Overhead burden often impacts in-house labor the most because it includes costs related to employee benefits, salaries of indirect labor, and other expenses directly tied to the workforce, which are not directly attributable to specific products or services but are necessary for the operation.

Question 9

The Masterformat specification format, as compared to the Uniformat, better reflects the manner in which a project is built.

Accepted Answer

The Masterformat is organized by work results or construction practices, while Uniformat is organized by systems and assemblies, which better reflects the way a project is built.

Question 10

The level of contingency applied to a project should ????as the project moves towards completion.&#10;A) Increase&#10;B) Decrease&#10;C) Remain constant

Accepted Answer

As a project progresses towards completion, the level of uncertainty typically decreases because more information becomes available and many of the initial risks have been addressed or mitigated. Therefore, the need for contingency—both in terms of budget and time—tends to decrease.

Deck 9: Estimating Project Costs