Cost Management Flashcards
When managing cost, the CM must control the project budget and cost growth and deliver the project within budget. T/F
True
Select the two types of cost estimates
Detailed and Conceptual
______ is defined as “the process of looking and finding ways to maximize value for the client by delivering a design that meets the program…”
Value Analysis
Construction cost is a subset of the overall project cost. T/F
True
Public entities usually provide more flexibility with procurement strategies. T/F
False
Cost or price may vary with these types of procurement strategies
Unit Price and Cost Reimbursement
A cost management system should track costs, identify variances and help predict how decisions impact the budget. T/F
True
Developing a cost management system involves these processes, EXCEPT:
Procuring resources and materials
The cash flow schedule allows the owner to predict when the project will need cash. To fund the project , the owner would typically need the most cash during this phase of the project.
Middle of the construction phase
Cost monitoring involves these tasks: (all the above)
- Report actual vs. planned
- Estimate cost at project completion
- Determine the need for cash flow based on planned vs. actual cash
- Track actual vs. planned performance
These items are needed to develop a cash flow schedule, EXCEPT:
Detailed estimate
The more detailed information the CM has, the more accurate the cost estimate will be. T/F
True
Project contingencies increase as the project progresses from inception to completion. T/F
False
This type of estimating is typically used for negotiating change orders or settling claims or disputes
Range estimating
This type of change order pricing is done after work has already been completed
Actual cost pricing
