EXAC SECTION 4 - COST
MANAGEMENT EXAM QUESTIONS
AND ANSWERS
4.1. Understand the factors influencing cost - Correct Answers -Factors influencing
Cost:
i. Design (form)
ii. Selection of Building Materials & systems
iii. Scheduling
iv. Long-term maintenance
v. Taxes on Value engineering
4.1. What are some activities a Intern Architect would practice? - Correct Answers -
Intern Activities:
i. Calc. areas and columns of a project '
ii. Compare costs of material (VE)
iii. Assist in prep. of cost estimates of each stage
iv. Review documents in cost estimating
v. Assist / prep. of cost analyses
vi. Conduct a survey of current costs /sqft
4.1.1 What are the typical fees of each stage of project: - Correct Answers -1. Predesign
(programming): Extra Fee
2. Schematic Design: 12-18% - (12.5%)
3. Design Development: 12-18% - (12.5%)
4. Construction Document: 35-45% (45%)
5. Bidding and Negotiation: 2.5-6.5% (5%)
6. Construction Administration: 25-35% (25%)
*4.1.2. Identify the factors that influence cost. - Correct Answers -1. Economic &
Political: Inflation
- Market conditions (ie. too much construction - bids are less competitive = more
expensive)
- Costs can change during election periods (ie. Harder to estimate in less stable
countries)
- Union vs. non. Union: interest rates, exchanges rates for importing materials
2. Environmental:
, - Site Characteristics:
i. Topography
ii. Site conditions
iii. Brown Sites
iv. Context Buildings
- Weather conditions (winter vs. summer)
- Location (suburb vs urban core vs rural)
3. Building Type & Design
- Compliance with Building Codes
- Construction type: steel vs concrete
- Building Height & form
- Material Finish (standard vs. custom)
- Life cycle of structure
- Equip. selection (mech. elec. struct.)
- Sustainable Design Req. (LEED)
4. Characteristics of Owners/ Client
- High Standard or greatly controlled by client (private vs. public)
- Complex bidding procedures (gov. vs. inst.)
- Insurance req.
- Difficult client (new to being developer)
5. Definition of Project Req.
- Consist changes from client
- External Factors:
i. new code
ii. new tech devp.
iii. new market conditions
- Lack of info from client
- Change in client group / Stakeholders
6. Project Delivery method
- Design, Bid, Build - Competitive bids but can result in frequent change orders on poor
bids
- Con. Management Contract: Sequential bidding of trades
I. Bidding out different parts of project rather than one
ii. More competitive bidding process, according to changing market
iii. Reduces risk because decisions are made as the project progresses
iv. Fees slightly reduced.
MANAGEMENT EXAM QUESTIONS
AND ANSWERS
4.1. Understand the factors influencing cost - Correct Answers -Factors influencing
Cost:
i. Design (form)
ii. Selection of Building Materials & systems
iii. Scheduling
iv. Long-term maintenance
v. Taxes on Value engineering
4.1. What are some activities a Intern Architect would practice? - Correct Answers -
Intern Activities:
i. Calc. areas and columns of a project '
ii. Compare costs of material (VE)
iii. Assist in prep. of cost estimates of each stage
iv. Review documents in cost estimating
v. Assist / prep. of cost analyses
vi. Conduct a survey of current costs /sqft
4.1.1 What are the typical fees of each stage of project: - Correct Answers -1. Predesign
(programming): Extra Fee
2. Schematic Design: 12-18% - (12.5%)
3. Design Development: 12-18% - (12.5%)
4. Construction Document: 35-45% (45%)
5. Bidding and Negotiation: 2.5-6.5% (5%)
6. Construction Administration: 25-35% (25%)
*4.1.2. Identify the factors that influence cost. - Correct Answers -1. Economic &
Political: Inflation
- Market conditions (ie. too much construction - bids are less competitive = more
expensive)
- Costs can change during election periods (ie. Harder to estimate in less stable
countries)
- Union vs. non. Union: interest rates, exchanges rates for importing materials
2. Environmental:
, - Site Characteristics:
i. Topography
ii. Site conditions
iii. Brown Sites
iv. Context Buildings
- Weather conditions (winter vs. summer)
- Location (suburb vs urban core vs rural)
3. Building Type & Design
- Compliance with Building Codes
- Construction type: steel vs concrete
- Building Height & form
- Material Finish (standard vs. custom)
- Life cycle of structure
- Equip. selection (mech. elec. struct.)
- Sustainable Design Req. (LEED)
4. Characteristics of Owners/ Client
- High Standard or greatly controlled by client (private vs. public)
- Complex bidding procedures (gov. vs. inst.)
- Insurance req.
- Difficult client (new to being developer)
5. Definition of Project Req.
- Consist changes from client
- External Factors:
i. new code
ii. new tech devp.
iii. new market conditions
- Lack of info from client
- Change in client group / Stakeholders
6. Project Delivery method
- Design, Bid, Build - Competitive bids but can result in frequent change orders on poor
bids
- Con. Management Contract: Sequential bidding of trades
I. Bidding out different parts of project rather than one
ii. More competitive bidding process, according to changing market
iii. Reduces risk because decisions are made as the project progresses
iv. Fees slightly reduced.
