L7

Question 1

OPTIMISM BIAS?

Answer 1

We can’t all be above AVERAGE.

I’ll live longer than average
I’ll be wealthier than average
My grade in Estimation will be above average

Question 2

DRAW PROFIT GRAPH: X:REVENUE Y:EXPENSES

Question 3

RACE AGAINST _________?

Answer 3

TIME

Question 4

HOW DO WE (AR. & ENGRS) RACE AGAINST TIME AND WIN?

Answer 4

AS DEVELOPERS/CONTRACTORS CAN’T WAIT THAT LONG, THEY WILL ASK DESIGNERS FEW SHEETS TO START WITH, AND AT LEAST THE BALL IS ROLLING AND THEY ARE ALREADY STARTING SOMETHING THAN DOING NOTHING GIVEN TIME IS RUNNING.

Question 5

PLACEHOLDER = __________

Answer 5

ALLOWANCES = GUESS

Question 6

IS THERE A RISK WITH ALLOWANCES?

Answer 6

YES BUT VERY MINIMAL RISKS

AND ALSO, THIS IS EASY WHEN GUESSING(ALLOWANCING) THE PRICING OF COMMON TYPE OF MATERIALS BUT WHEN IT BECOMES INTRICATE OR VERY DETAILED (CURTAIN WALLS), IT’S HARDER TO GIVE A GUESS ON THE PRICE

Question 7

WE CAN ANTICIPATE A COST BASED ON __________

Answer 7

HISTORIC DATA

Question 8

ALLOWANCE VS. CONTIGENCY

Answer 8

Allowance is money set aside for things with uncertain costs, like fixtures.

Contingency is money set aside for unexpected problems, like design changes or delays. (AMOUNT DEPENDS ON RISK)

Question 9

CONTRACTOR’S CONTINGENCY VS. OWNER’S RESERVE

Answer 9

Contractor’s Contingency $
- is money set aside by the contractor for unexpected costs during construction.
E.G UNEXPECTED EXPLOSION DELAYED REM PROJECT, TURTLE DELAYS REM

Owner’s Reserve $
- is money set aside by the owner to cover unexpected costs beyond the contractor’s responsibility.

Question 10

VALUE ENGINEERING

Answer 10

is a process to find ways to reduce costs without sacrificing quality or function.
AS LONG IT DOES THE SAME JOB, IT’S FINE!

E.G, WOMEN SLOGAN POSTERS, CAN’T USE RUBBER,
GUARDRAILS FOR TENNIS COURT, FIBRE CEMENT PANELS

Question 11

COST CONTROLWHEN IS IT EASIEST?

Answer 11

• Easiest during the early stages of a project when decisions can be made to influence costs significantly,
• such as during the planning and design phases.

Question 12

IS IT ALWAYS A BAD THING WHEN THE BUDGET GOES UP DURING COST CONTROL?

Answer 12

• It’s not always a bad thing if the budget goes up during cost control.
• Sometimes, unexpected factors arise that require adjustments to the budget.
• The key is to manage these changes effectively to ensure the project’s overall success and adherence to financial constraints.