Week 8 Allowances

Question 1

What is a cash allowance

Answer 1

an amount stated in a contract to provide owners flexibility and predictability of a fixed-price contract.

Question 2

What is a contingency allowance

Answer 2

an amount of money set aside to cover any unexpected costs that can arise throughout a project

Question 3

If more $21,000 is spent on an item covered by a $20,000 Cash allowance, how much would the Change Order be?

Answer 3

(21000-20000)*1.07 (7% overhead) *1.02 (2% profit) =1091.40

Question 4

If $19,000 is spent on an item covered by a $20,000 Cash allowance, what would the Change Order be?

Answer 4

$19,000-$20,000 = -$1000

Question 5

What’s the difference between CCDC 5A and CCDC 5B

Answer 5

CCDC5A- Owner hires Contractor to do construction and hires subcontractors with CCDC-17

CCDC 5B- Construction Manager performs work with their personnel and their subcontractors, they are both a manager and general contractor

Question 6

What is a Class A estimate

Answer 6

based on complete working drawings and specifications, before bidding

Question 7

What is a Class B estimate?

Answer 7

based on preliminary drawings and specifications

Question 8

What is a Class C estimate

Answer 8

based on a full description of the project

Question 9

What is a Class D estimate?

Answer 9

based on a a statement of requirements and outline of potential solutions, A rough estimate for the final project cost.