Project Costs & Budgeting

Question 1

To use cost information effectively, an architect should apply what index?

Answer 1

A regional index should be applied to the national average for this information to be useful.

Question 2

When do contractors use the unit cost method?

Answer 2

This method is used to establish a bid or negotiated price.

Question 3

Profit is a percentage of what four items?

Answer 3

The four items used to calculate this cost item are
• labor
• materials
• equipment
• overhead

Question 4

How does matrix costing work?

Answer 4

This project costing method uses a matrix to break down the elements of a project into items that are compared for their cost effectiveness and efficiency.

Question 5

What negative impact can result from value engineering?

Answer 5

Reducing costs by reducing quality can result from this activity.

Question 6

At what stage of the project is the parameter method most useful to refines project budget?

Answer 6

This method of project budgeting is best employed during design development and the early phases of construction documentation.

Question 7

How does a life cycle cost analysis differ from a life cycle assessment?

Answer 7

The first evaluates the alternatives and their cost in present time, while the second analyzes the impact of the system or product over a period of time.