AACE CCT PRIMER 2026 EXAM TEST QUESTIONS AND
ANSWERS GRADED A+
✔✔Scope - ✔✔The equipment and materials to be provided, and the work to be done.
Scope is documented by the contract parameters for a project to which the company is
committed [S&K 4th Ed., 1-2].
✔✔Value Engineering - ✔✔A practice function that is targeted at the design itself. The
objective of value engineering is to develop or design a facility or item that will yield the
least lifecycle costs or provide the greatest value while satisfying all performance and
other criteria established for it [S&K 4th Ed.].
✔✔Types of Estimates - ✔✔Order of Magnitude, Budget Estimates, Definitive Estimates
✔✔Order of Magnitude Estimates - ✔✔Estimates made without detailed engineering
data. An estimate of this type
would normally be expected to be accurate within +50 percent or - 30 percent. Order-of-
magnitude estimates are sometimes referred to as "conceptual" or "ballpark" estimates.
✔✔Budget Estimates - ✔✔Budget estimates are prepared with the help of flow sheets,
layouts, and
equipment details. In other words, enough preliminary engineering has taken place to
further define the project scope. An estimate of this type is normally expected to be
accurate within +30 percent or -15 percent. Since the budget estimate is more definitive
than the order-of-magnitude estimate, it is better suited for determining project feasibility
and establishing definitive budget. The accuracy and usefulness of a budget estimate
depends, to a large extent, on the amount and quality of information available [S&K 4th
Ed., 1-5].
✔✔Definitive Estimates - ✔✔estimates prepared from very defined engineering data.
The definitive estimate includes various degrees of detail estimates which could be
made from "approved for construction" drawings and specifications. Definitive estimates
are also called "check" lump sum, "tender," and "post-contract change estimates. An
estimate of this type is usually expected to be accurate within +15 percent or - 5 percent
[S&K 4th Ed., 1-5].
✔✔Class 5 Estimate - ✔✔0% to 2% Level of Project Definition; Screening End Usage
✔✔Class 4 Estimate - ✔✔1% to 15% Level of Project Definition; Concept Study End
Usage
✔✔Class 3 Estimate - ✔✔10% to 40% Level of Project Definition; Budget End Usage
✔✔Class 2 Estimate - ✔✔30% to 70% Level of Project Definition; Control or Bid End
Usage
, ✔✔Class 1 Estimate - ✔✔50% to 100% Level of Project Definition; Check or Bid End
Usage
✔✔Basis of Estimate - ✔✔Document that supports the estimate. States the purpose of
the estimate (i.e. cost study, project options, funding, etc), who developed it, project
scope, pricing basis, allowances, assumptions, exclusions, cost risks & opportunities, &
deviations from standard practices
✔✔______ costs, ________ costs, ________ costs, ______ costs are all considered
direct costs in an estimate. - ✔✔labor, material, equipment, subcontract
✔✔Indirect costs in an estimate include ______, ______, ______, home office ______,
job site _______, and _______. - ✔✔taxes, profit, contingency, overhead, overhead,
escalation
✔✔The following are all considered ____________:
a) Salaries (home office)
b) Employee benefits
c) Professional fees
d) Insurance
e) Office lease or rent
f) Office stationary and supplies
g) Depreciation
h) Maintenance
i) Procurement and marketing
j) Home office travel and entertainment
k) Advertising - ✔✔Home Office Overhead
✔✔The following are all considered ____________:
a) Bonds
b) Permits
c) Mobilization
d) Professional services
e) Safety equipment
f) Small tools
g) Supervision
h) Temporary facilities
i) Travel and lodging
j) Miscellaneous costs
k) Demobilization - ✔✔Job Site Overhead
✔✔Large projects will often use __________ and _________ as components of the
overall coding structure. - ✔✔work breakdown structures, resource breakdown
structures
ANSWERS GRADED A+
✔✔Scope - ✔✔The equipment and materials to be provided, and the work to be done.
Scope is documented by the contract parameters for a project to which the company is
committed [S&K 4th Ed., 1-2].
✔✔Value Engineering - ✔✔A practice function that is targeted at the design itself. The
objective of value engineering is to develop or design a facility or item that will yield the
least lifecycle costs or provide the greatest value while satisfying all performance and
other criteria established for it [S&K 4th Ed.].
✔✔Types of Estimates - ✔✔Order of Magnitude, Budget Estimates, Definitive Estimates
✔✔Order of Magnitude Estimates - ✔✔Estimates made without detailed engineering
data. An estimate of this type
would normally be expected to be accurate within +50 percent or - 30 percent. Order-of-
magnitude estimates are sometimes referred to as "conceptual" or "ballpark" estimates.
✔✔Budget Estimates - ✔✔Budget estimates are prepared with the help of flow sheets,
layouts, and
equipment details. In other words, enough preliminary engineering has taken place to
further define the project scope. An estimate of this type is normally expected to be
accurate within +30 percent or -15 percent. Since the budget estimate is more definitive
than the order-of-magnitude estimate, it is better suited for determining project feasibility
and establishing definitive budget. The accuracy and usefulness of a budget estimate
depends, to a large extent, on the amount and quality of information available [S&K 4th
Ed., 1-5].
✔✔Definitive Estimates - ✔✔estimates prepared from very defined engineering data.
The definitive estimate includes various degrees of detail estimates which could be
made from "approved for construction" drawings and specifications. Definitive estimates
are also called "check" lump sum, "tender," and "post-contract change estimates. An
estimate of this type is usually expected to be accurate within +15 percent or - 5 percent
[S&K 4th Ed., 1-5].
✔✔Class 5 Estimate - ✔✔0% to 2% Level of Project Definition; Screening End Usage
✔✔Class 4 Estimate - ✔✔1% to 15% Level of Project Definition; Concept Study End
Usage
✔✔Class 3 Estimate - ✔✔10% to 40% Level of Project Definition; Budget End Usage
✔✔Class 2 Estimate - ✔✔30% to 70% Level of Project Definition; Control or Bid End
Usage
, ✔✔Class 1 Estimate - ✔✔50% to 100% Level of Project Definition; Check or Bid End
Usage
✔✔Basis of Estimate - ✔✔Document that supports the estimate. States the purpose of
the estimate (i.e. cost study, project options, funding, etc), who developed it, project
scope, pricing basis, allowances, assumptions, exclusions, cost risks & opportunities, &
deviations from standard practices
✔✔______ costs, ________ costs, ________ costs, ______ costs are all considered
direct costs in an estimate. - ✔✔labor, material, equipment, subcontract
✔✔Indirect costs in an estimate include ______, ______, ______, home office ______,
job site _______, and _______. - ✔✔taxes, profit, contingency, overhead, overhead,
escalation
✔✔The following are all considered ____________:
a) Salaries (home office)
b) Employee benefits
c) Professional fees
d) Insurance
e) Office lease or rent
f) Office stationary and supplies
g) Depreciation
h) Maintenance
i) Procurement and marketing
j) Home office travel and entertainment
k) Advertising - ✔✔Home Office Overhead
✔✔The following are all considered ____________:
a) Bonds
b) Permits
c) Mobilization
d) Professional services
e) Safety equipment
f) Small tools
g) Supervision
h) Temporary facilities
i) Travel and lodging
j) Miscellaneous costs
k) Demobilization - ✔✔Job Site Overhead
✔✔Large projects will often use __________ and _________ as components of the
overall coding structure. - ✔✔work breakdown structures, resource breakdown
structures
