ARE 5.0 Construction & Evaluation
UPDATED Exam Questions and
CORRECT Answers
(3) ways cost estimates can be performed during Programming - CORRECT ANSWER - 1.
Unit cost system.
2. Historical data on similar types of projects.
3. Cost per square foot.
Cost estimating method used during the Schematic Design - CORRECT ANSWER -
Preliminary (rough) estimates are based on pricing major elements, such as structural system
selected and the MEP systems used.
Cost estimating method used during the Design Development - CORRECT ANSWER -
Detailed pricing based on the actual components being considered, including windows, curtain
walls, finishes and equipment.
Cost estimating method used during the Construction Documents - CORRECT ANSWER -
Complete and final pricing of the project, based on direct quotes from suppliers, installers, sub-
contractors and manufacturers.
Requires great deal of effort and can only be done once nearly everything in the building has
been specified.
This pricing is a final check before construction begins/allows for revision to the design as
needed to meet the budget.
Factors that can have an effect on cost estimates - CORRECT ANSWER - 1. Availability of
labor & material, labor rates, material prices, resources to produce the material, convenience of
transportation, location (more remote = more costly), less predictable costs of rural areas.
2. High Interest Rates = less housing construction = lower material prices
Increased cost of living = increased union wages and higher labor costs
,Typical profit margin factored into the Construction Cost estimate - CORRECT ANSWER -
15-20% for smaller projects
10-15% for larger projects
5-10% for ver large projects
Typical fees of Engineering Consultants (Struc., MEP, Civil) - CORRECT ANSWER -
Mechanical: 15%
Electrical: 12.5%
Civil: 10.5%
Structural: 9.4%
(% Construction Cost)
ENR 20 Cities Building Cost Index - CORRECT ANSWER - Cost estimating with Parameter
Costs can be adapted to a city by using ______ or adding an inflation factor.
A Pro-forma is a financial analysis of the building project, showing costs and return on
investment.
This report is typically done by the client at the beginning of the project to determine if the
project will be profitable. - CORRECT ANSWER - What is Pro-forma?
Who does it?
During what phase of the project is it typically done?
General Obligation Bond - CORRECT ANSWER - Municipal bond issues when a state or
local government wants to raise money for a project.
Shareholders (investors) are guaranteed to be repaid using future tax revenues.
Revenue Bond - CORRECT ANSWER - Type of municipal bond where the shareholders are
promised payment from the revenue collection of the project, such as tolls from a new bridge,
instead of being repaid by future tax revenue.
It is less secure than a General Obligation Bond and typically offer slightly higher interest rates.
,(5) phases used by firms to help in cost estimating - CORRECT ANSWER - 1. Pre-
planning/Proposal Phase: Cost is broken down by units, which would come from the occupancy
of the building.
2. Programming Phase: Function of spaces and unit costs come from similar buildings.
3. Schematic Design: Determines major elements in the building, such as number of plumbing
fixtures, electrical layout, structure, and mechanical systems.
4. Design Development: Defined materials like windows, doors, dropped ceilings, and cabinets
are added.
5. Construction Documents: Finishes are in place and should reflect the pre-bid cost breakdowns.
Depreciation - CORRECT ANSWER - Federal tax benefit given for the decrease in the value
of assets over time.
Quantity and Quality (in regards to project budget) - CORRECT ANSWER - Change in one
will ultimately affect the other.
Sometimes these changes are negative, such as if the Owner decides to increase the quantity of
an item in the building and thus reduce the quality in order to keep the budget intact.
(4) Conditions outside the Architect's control in developing cost estimates - CORRECT
ANSWER - 1. Market Conditions
2. Inflation and the Cost of Goods & Services
3. Contractor Means & Methods of Construction
4. Unknown Site Conditions
Project Development Budget - CORRECT ANSWER - Budget for the entire project,
including but not limited to Site Acquisitions, Construction Costs, Professional Service Fees,
Permit and Inspection Costs, Financing Costs, and Contingencies.
(7) Steps in Project Development Budget - CORRECT ANSWER - 1. Site Acquisition &
Purchase
, 2. Construction: Off-Site and On-Site
3. Professional Services (Architect, Engineers, and Consultants)
4. Miscellaneous Fees (bids, permits or reports)
5. Inspection and Testing
6. Contingencies
7. Financing Costs
(5) Contract elements between Owner and Architect - CORRECT ANSWER - 1. Description
of Services Provided
2. Fees of Services
3. Name, Address, and License Number of Architect
4. Provisions for Additional Services
5. Terminal Clause
Direct Personal Expense
Instead of a multiple of employee salaries, the client is billed for the salaries of staff working on
the job, plus the cost of their benefits and set amount for overhead and profit.
Since this is the exact cost of the employee for the Architect, this approach is best for new clients
with speculative work, minimizing the risk for the Architect. - CORRECT ANSWER -
Method of compensation for Architectural Services that reduces risk to the Architect
Time Based billing methods - CORRECT ANSWER - The following are examples of what
type of billing method?
1. Multiple of Direct Salary Expense
2. Direct Personnel Expense
3. Hourly Billing Rate
Fast track schedule - CORRECT ANSWER - Construction documents are issued in phases
and construction begins while design is still being completed.
UPDATED Exam Questions and
CORRECT Answers
(3) ways cost estimates can be performed during Programming - CORRECT ANSWER - 1.
Unit cost system.
2. Historical data on similar types of projects.
3. Cost per square foot.
Cost estimating method used during the Schematic Design - CORRECT ANSWER -
Preliminary (rough) estimates are based on pricing major elements, such as structural system
selected and the MEP systems used.
Cost estimating method used during the Design Development - CORRECT ANSWER -
Detailed pricing based on the actual components being considered, including windows, curtain
walls, finishes and equipment.
Cost estimating method used during the Construction Documents - CORRECT ANSWER -
Complete and final pricing of the project, based on direct quotes from suppliers, installers, sub-
contractors and manufacturers.
Requires great deal of effort and can only be done once nearly everything in the building has
been specified.
This pricing is a final check before construction begins/allows for revision to the design as
needed to meet the budget.
Factors that can have an effect on cost estimates - CORRECT ANSWER - 1. Availability of
labor & material, labor rates, material prices, resources to produce the material, convenience of
transportation, location (more remote = more costly), less predictable costs of rural areas.
2. High Interest Rates = less housing construction = lower material prices
Increased cost of living = increased union wages and higher labor costs
,Typical profit margin factored into the Construction Cost estimate - CORRECT ANSWER -
15-20% for smaller projects
10-15% for larger projects
5-10% for ver large projects
Typical fees of Engineering Consultants (Struc., MEP, Civil) - CORRECT ANSWER -
Mechanical: 15%
Electrical: 12.5%
Civil: 10.5%
Structural: 9.4%
(% Construction Cost)
ENR 20 Cities Building Cost Index - CORRECT ANSWER - Cost estimating with Parameter
Costs can be adapted to a city by using ______ or adding an inflation factor.
A Pro-forma is a financial analysis of the building project, showing costs and return on
investment.
This report is typically done by the client at the beginning of the project to determine if the
project will be profitable. - CORRECT ANSWER - What is Pro-forma?
Who does it?
During what phase of the project is it typically done?
General Obligation Bond - CORRECT ANSWER - Municipal bond issues when a state or
local government wants to raise money for a project.
Shareholders (investors) are guaranteed to be repaid using future tax revenues.
Revenue Bond - CORRECT ANSWER - Type of municipal bond where the shareholders are
promised payment from the revenue collection of the project, such as tolls from a new bridge,
instead of being repaid by future tax revenue.
It is less secure than a General Obligation Bond and typically offer slightly higher interest rates.
,(5) phases used by firms to help in cost estimating - CORRECT ANSWER - 1. Pre-
planning/Proposal Phase: Cost is broken down by units, which would come from the occupancy
of the building.
2. Programming Phase: Function of spaces and unit costs come from similar buildings.
3. Schematic Design: Determines major elements in the building, such as number of plumbing
fixtures, electrical layout, structure, and mechanical systems.
4. Design Development: Defined materials like windows, doors, dropped ceilings, and cabinets
are added.
5. Construction Documents: Finishes are in place and should reflect the pre-bid cost breakdowns.
Depreciation - CORRECT ANSWER - Federal tax benefit given for the decrease in the value
of assets over time.
Quantity and Quality (in regards to project budget) - CORRECT ANSWER - Change in one
will ultimately affect the other.
Sometimes these changes are negative, such as if the Owner decides to increase the quantity of
an item in the building and thus reduce the quality in order to keep the budget intact.
(4) Conditions outside the Architect's control in developing cost estimates - CORRECT
ANSWER - 1. Market Conditions
2. Inflation and the Cost of Goods & Services
3. Contractor Means & Methods of Construction
4. Unknown Site Conditions
Project Development Budget - CORRECT ANSWER - Budget for the entire project,
including but not limited to Site Acquisitions, Construction Costs, Professional Service Fees,
Permit and Inspection Costs, Financing Costs, and Contingencies.
(7) Steps in Project Development Budget - CORRECT ANSWER - 1. Site Acquisition &
Purchase
, 2. Construction: Off-Site and On-Site
3. Professional Services (Architect, Engineers, and Consultants)
4. Miscellaneous Fees (bids, permits or reports)
5. Inspection and Testing
6. Contingencies
7. Financing Costs
(5) Contract elements between Owner and Architect - CORRECT ANSWER - 1. Description
of Services Provided
2. Fees of Services
3. Name, Address, and License Number of Architect
4. Provisions for Additional Services
5. Terminal Clause
Direct Personal Expense
Instead of a multiple of employee salaries, the client is billed for the salaries of staff working on
the job, plus the cost of their benefits and set amount for overhead and profit.
Since this is the exact cost of the employee for the Architect, this approach is best for new clients
with speculative work, minimizing the risk for the Architect. - CORRECT ANSWER -
Method of compensation for Architectural Services that reduces risk to the Architect
Time Based billing methods - CORRECT ANSWER - The following are examples of what
type of billing method?
1. Multiple of Direct Salary Expense
2. Direct Personnel Expense
3. Hourly Billing Rate
Fast track schedule - CORRECT ANSWER - Construction documents are issued in phases
and construction begins while design is still being completed.
