Cost Management Terms – Key Concepts,
Definitions & Exam Questions with 100%
Verified Answers | Comprehensive Review |
2026–2027
, Feasibility Estimate An early cost estimate prepared when design information is limited. It helps the
client understand whether the project vision is financially realistic before major
design work begins.
Budget Alignment The process of confirming that the client's budget, scope, quality expectations, and
schedule are realistically matched.
Benchmarking Using historical cost data from similar completed projects to estimate likely project
costs.
Historical Project Costs Cost information from past projects used to support benchmarking and early
estimates.
Cost per Square Foot A common estimating metric calculated by dividing total cost by total area.
Test Fit Estimate A high-level estimate based on an early layout or planning option.
High-Level Cost Plan An early cost breakdown organized by major project elements to help guide design
and client decisions.
Elemental Cost Breakdown A cost estimate organized by major building elements or categories, such as
structure, MEP, finishes, sitework, and contingency.
Cash Flow A projection showing when project costs are expected to be spent over time.
Project Constraints Factors that limit or influence the project, such as site conditions, budget, schedule,
permitting, existing conditions, logistics, or lease requirements.
Early Risk A possible issue identified early that could affect cost, schedule, scope, or delivery.
Program Requirements The client's functional needs for the project, such as space types, room quantities,
operational needs, and performance requirements.
Site Conditions The physical conditions of the project location that may affect cost or construction,
including existing structures, access, utilities, or hidden conditions.
Regulatory Considerations Rules, codes, permits, and approvals that may affect project cost, timing, or
feasibility.
Client Expectations The client's assumptions or goals about cost, quality, schedule, and final outcome.
Definitions & Exam Questions with 100%
Verified Answers | Comprehensive Review |
2026–2027
, Feasibility Estimate An early cost estimate prepared when design information is limited. It helps the
client understand whether the project vision is financially realistic before major
design work begins.
Budget Alignment The process of confirming that the client's budget, scope, quality expectations, and
schedule are realistically matched.
Benchmarking Using historical cost data from similar completed projects to estimate likely project
costs.
Historical Project Costs Cost information from past projects used to support benchmarking and early
estimates.
Cost per Square Foot A common estimating metric calculated by dividing total cost by total area.
Test Fit Estimate A high-level estimate based on an early layout or planning option.
High-Level Cost Plan An early cost breakdown organized by major project elements to help guide design
and client decisions.
Elemental Cost Breakdown A cost estimate organized by major building elements or categories, such as
structure, MEP, finishes, sitework, and contingency.
Cash Flow A projection showing when project costs are expected to be spent over time.
Project Constraints Factors that limit or influence the project, such as site conditions, budget, schedule,
permitting, existing conditions, logistics, or lease requirements.
Early Risk A possible issue identified early that could affect cost, schedule, scope, or delivery.
Program Requirements The client's functional needs for the project, such as space types, room quantities,
operational needs, and performance requirements.
Site Conditions The physical conditions of the project location that may affect cost or construction,
including existing structures, access, utilities, or hidden conditions.
Regulatory Considerations Rules, codes, permits, and approvals that may affect project cost, timing, or
feasibility.
Client Expectations The client's assumptions or goals about cost, quality, schedule, and final outcome.
