Question 1

Which of the following types of engineers is responsible for determining the requisite skeleton to maintain the building's integrity?

Accepted Answer

A structural engineer is responsible for determining the requisite skeleton (i.e. beams, columns, foundations) to maintain the building's integrity.

Question 2

Which of the following types of engineers is responsible for providing specifications and design for the HVAC system and other building systems?

Accepted Answer

Mechanical engineers are responsible for designing and providing specifications for the HVAC (heating, ventilation, and air conditioning) system and other building systems that require mechanical engineering expertise. Soils engineers are responsible for assessing soil conditions for building foundations, structural engineers for designing the building's structure, and civil engineers for the overall design and construction of infrastructure projects. Therefore, the best choice is C) Mechanical engineer.

Question 3

Which of the following types of engineers is responsible for designing on-site utility systems, including sewers, water, streets, parking, and site grading?

Accepted Answer

Civil engineers are responsible for designing on-site utility systems, including sewers, water, streets, parking, and site grading. They play a key role in the planning and construction of buildings and other infrastructure projects such as roads, bridges, and airports.

Question 4

In considering the main components of a construction budget, which costs would be expected to constitute the largest portion of a development project's expense?

Accepted Answer

Hard construction costs, which include materials, labor, and equipment needed for construction, are typically the largest expense in a development project. Land costs may also be significant, but they are usually a one-time expense at the beginning of the project. Soft construction costs, such as architectural and engineering fees and permits, may also add up but are usually a smaller percentage of the total budget. Marketing costs are typically a smaller portion of the budget and only become relevant after the project is completed.

Question 5

Which of the following types of engineers is responsible for designing the power sources and distribution system?

Accepted Answer

Electrical engineers specialize in designing and implementing electrical systems, including power sources and distribution systems. Structural engineers focus on the design and construction of buildings and other structures. Mechanical engineers work on the design, development, and maintenance of mechanical systems, such as engines and machines. Civil engineers design and oversee construction projects related to infrastructure such as roads, bridges, and water systems. Therefore, the best choice for designing power sources and distribution systems would be an Electrical engineer.

Question 6

The construction budget has six main components: land costs, hard costs, construction soft costs, marketing soft costs, developer's fee, and total construction financing costs. Which of the following would be considered a hard cost?

Accepted Answer

Hard costs refer to the actual physical construction costs, such as materials, labor, and equipment. The cost of materials for construction falls under this category. Carry costs (A) and legal fees (C) are considered construction soft costs, while developer fees (D) belong to a separate category.

Question 7

Which of the following individuals focuses on the topography, soil, and vegetation that are the context for a structure, with the goal of giving a harmonious and enhancing immediate setting for the structure?

Accepted Answer

A landscape architect is trained to design outdoor spaces, including landform, water features, planting, and paving, to create a compatible and functional extension of a structure into the surrounding site. They focus on the topography, soil, and vegetation that are the context for a structure to give a harmonious and enhancing immediate setting for the structure.

Question 8

The second stage of the development process requires an analysis of the project's feasibility. The developer will typically begin this stage of the development process with which of the following types of analysis?

Accepted Answer

The analysis of financial feasibility is typically the first step in assessing a project's viability. This analysis involves evaluating the costs and potential profits associated with the project. Environmental feasibility involves analyzing the impact of the project on the natural world, while legal feasibility focuses on whether the project complies with relevant laws and regulations. Political feasibility involves assessing whether the project has the necessary support from governmental and community stakeholders.

Question 9

After construction has been completed, a developer may decide to seek additional financing. If current interest rates are relatively high, but the developer expects them to decline in the near future, the developer would most likely seek financing in the form of a:

Accepted Answer

A miniperm loan is a type of financing that is often used when long-term rates are high but expected to fall. It provides short to medium-term financing, allowing the developer to refinance at a later date when rates are more favorable.

Question 10

Based on your understanding of the relation between risk and the phases of an income producing property's life, which phase would you expect to entail the highest risk?

Accepted Answer

During the development and construction phase, the property is not generating any income yet, and there are often uncertainties such as delays, cost overruns, and zoning or permit issues that can increase the risk of the project's successful completion. Additionally, there is no guarantee of finding tenants or leasing the property once construction is finished. Therefore, this phase typically entails the highest risk.

Question 11

When a developer decides to break down the project design into sequential phases and begins construction before the last phases of the design are complete, this procedure is more commonly referred to as

Accepted Answer

Fast-track construction is the process where phases of the design are done sequentially so that construction can begin before the design is entirely complete. This process is used to accelerate the completion time of a project.

Question 12

For all but the largest of developers, the marketing and leasing of the project will be through an external broker. Given their special knowledge of the target market, it would be most beneficial for the developer to bring the broker into the development process during which of the following stages?

Accepted Answer

Bringing the broker into the development process during the design stage will allow them to provide valuable input on the target market, including what features and amenities will be most attractive to potential tenants. This can help ensure that the project is designed with the target market in mind and increase the likelihood of a successful leasing effort. Waiting until the financing or construction stages may result in missed opportunities or design choices that are not well-suited to the target market. Bringing the broker in during the operation stage would be too late to have a significant impact on the success of the project.

Quiz 23: Development: The Dynamics of Creating Value