Preview Questions Cost Estimator | Role Specific Skill

Question 1: How can a Cost Estimator ensure that their contingency planning accounts for both direct and indirect risks?

Which action should you take?

Choose only one option

By evaluating both direct costs (labor, materials) and indirect risks (delays, legal issues, market changes) and incorporating them into the overall contingency plan

By estimating only direct costs and assuming indirect risks will not occur

By focusing solely on direct costs and ignoring indirect risks

By excluding indirect risks as they are too difficult to quantify

Question 2: When is it best to apply an expert judgment technique in construction cost estimation?

Which action should you take?

Choose only one option

During the initial stages when cost data is available

In the final stages of the project for budget revision

When the project has a well-defined work breakdown structure

When the project is too complex and lacks detailed data

Question 3: How can a Cost Estimator ensure that unit costs for materials and labor are accurate?

Which action should you take?

Choose only one option

Use standard unit costs for all projects without modification

Use only estimates from contractors without verifying unit costs

Assume unit costs remain the same across different locations and project types

Research current market rates, adjust for location and project type, and use up-to-date pricing information

Question 4: How does the use of estimating software with integrated project management features benefit a project?

Which action should you take?

Choose only one option

By limiting the number of project phases and reducing complexity

By aligning project timelines with cost forecasts and resource allocation

By generating reports on client interactions automatically

By eliminating the need for a manual approval process

Question 5: What is the most effective way to estimate the risk of material price fluctuations for a construction project?

Which action should you take?

Choose only one option

By assuming a fixed price for all materials

By including a fixed percentage of cost increase across all materials

By using historical price trends, future market forecasts, and a contingency factor

By reducing the material budget to absorb potential fluctuations

Question 6: When evaluating project risks, what is the role of a "contingency reserve" in risk management?

Which action should you take?

Choose only one option

It outlines specific financial risks to be avoided

It determines the insurance cost required for the project

It sets a fixed amount of money for risk mitigation

It provides additional funds to cover unforeseen costs