,ENGV 380 Quiz 4 – Costs and Engineering | Questions & Answers |
Liberty University | 2026 Updated .
Section 1: Construction Cost Estimation (Questions 1–25)
Question 1: What is the primary purpose of a construction cost estimate?
A. To determine the contractor's profit margin
B. To forecast the total cost of completing a construction project
C. To select the architect for the project
D. To establish the project schedule
CorreCt Answer: B. To forecast the total cost of completing a construction project.
rAtionAle: A construction cost estimate is used to forecast how much it will cost to build a
structure or complete a project. It provides the basis for bidding, budgeting, and cost control
throughout the project lifecycle.
Question 2: What is an order of magnitude estimate?
A. A precise estimate used for final bidding
B. A rough estimate used during the conceptual phase with an accuracy range of -25% to +75%
C. An estimate used only for labor costs
D. A final cost report prepared after construction
CorreCt Answer: B. A rough estimate used during the conceptual phase with an accuracy
range of -25% to +75%.
rAtionAle: Order-of-magnitude estimates are preliminary estimates prepared during the
conceptual or feasibility stage. They have an accuracy range of -25% to +75% and are used for
initial budgeting and feasibility analysis.
Question 3: What is the typical accuracy range for a detailed estimate prepared from
completed construction documents?
A. -5% to +5%
B. -25% to +75%
C. -10% to +15%
D. -50% to +100%
CorreCt Answer: C. -10% to +15%.
, rAtionAle: Detailed estimates prepared from completed construction documents (plans and
specifications) typically have an accuracy range of -10% to +15%, reflecting the precision of the
available information.
Question 4: What are direct costs in construction estimating?
A. Overhead costs not attributable to specific work items
B. Costs directly attributable to the construction work (materials, labor, equipment)
C. Profit margins
D. Contingency costs
CorreCt Answer: B. Costs directly attributable to the construction work (materials, labor,
equipment).
rAtionAle: Direct costs are costs directly attributable to the construction work, including
materials, labor, and equipment used specifically for the project.
Question 5: What are indirect costs in construction estimating?
A. Material costs
B. Labor costs
C. Overhead costs not directly attributable to specific work items
D. Equipment costs
CorreCt Answer: C. Overhead costs not directly attributable to specific work items.
rAtionAle: Indirect costs (overhead) include home office overhead, field office costs, utilities,
supervision, insurance, and other costs not directly tied to specific work items.
Question 6: What is a contingency in construction estimating?
A. A guaranteed cost
B. An amount added to the estimate to cover unforeseen costs or risks
C. A fixed price
D. A profit margin
CorreCt Answer: B. An amount added to the estimate to cover unforeseen costs or risks.
rAtionAle: Contingency is an amount added to the estimate to cover unforeseen costs, risks,
or changes that may occur during construction. It is typically a percentage of the total estimated
cost.
Question 7: What is the contractor's profit in construction?
Liberty University | 2026 Updated .
Section 1: Construction Cost Estimation (Questions 1–25)
Question 1: What is the primary purpose of a construction cost estimate?
A. To determine the contractor's profit margin
B. To forecast the total cost of completing a construction project
C. To select the architect for the project
D. To establish the project schedule
CorreCt Answer: B. To forecast the total cost of completing a construction project.
rAtionAle: A construction cost estimate is used to forecast how much it will cost to build a
structure or complete a project. It provides the basis for bidding, budgeting, and cost control
throughout the project lifecycle.
Question 2: What is an order of magnitude estimate?
A. A precise estimate used for final bidding
B. A rough estimate used during the conceptual phase with an accuracy range of -25% to +75%
C. An estimate used only for labor costs
D. A final cost report prepared after construction
CorreCt Answer: B. A rough estimate used during the conceptual phase with an accuracy
range of -25% to +75%.
rAtionAle: Order-of-magnitude estimates are preliminary estimates prepared during the
conceptual or feasibility stage. They have an accuracy range of -25% to +75% and are used for
initial budgeting and feasibility analysis.
Question 3: What is the typical accuracy range for a detailed estimate prepared from
completed construction documents?
A. -5% to +5%
B. -25% to +75%
C. -10% to +15%
D. -50% to +100%
CorreCt Answer: C. -10% to +15%.
, rAtionAle: Detailed estimates prepared from completed construction documents (plans and
specifications) typically have an accuracy range of -10% to +15%, reflecting the precision of the
available information.
Question 4: What are direct costs in construction estimating?
A. Overhead costs not attributable to specific work items
B. Costs directly attributable to the construction work (materials, labor, equipment)
C. Profit margins
D. Contingency costs
CorreCt Answer: B. Costs directly attributable to the construction work (materials, labor,
equipment).
rAtionAle: Direct costs are costs directly attributable to the construction work, including
materials, labor, and equipment used specifically for the project.
Question 5: What are indirect costs in construction estimating?
A. Material costs
B. Labor costs
C. Overhead costs not directly attributable to specific work items
D. Equipment costs
CorreCt Answer: C. Overhead costs not directly attributable to specific work items.
rAtionAle: Indirect costs (overhead) include home office overhead, field office costs, utilities,
supervision, insurance, and other costs not directly tied to specific work items.
Question 6: What is a contingency in construction estimating?
A. A guaranteed cost
B. An amount added to the estimate to cover unforeseen costs or risks
C. A fixed price
D. A profit margin
CorreCt Answer: B. An amount added to the estimate to cover unforeseen costs or risks.
rAtionAle: Contingency is an amount added to the estimate to cover unforeseen costs, risks,
or changes that may occur during construction. It is typically a percentage of the total estimated
cost.
Question 7: What is the contractor's profit in construction?
