Preview Questions Cost Estimator | Role Specific Skill

Question 1: How should a Cost Estimator ensure that the final budget aligns with the initial cost estimate?

Which action should you take?

Choose only one option

Accept any overages as long as the project is completed on time

Ignore any changes that occur during the project

Regularly track project expenses against the initial estimate, identify discrepancies early, and make adjustments to keep the project on track

Only review the final costs at the end of the project

Question 2: How should a cost estimator adjust unit costs for materials that are subject to market volatility and sudden price increases during construction?

Which action should you take?

Choose only one option

Apply a cost escalation factor to the materials budget

Use historical cost data and apply it as a fixed rate for all materials

Ignore the price fluctuations if the materials are part of the contract

Estimate a fixed price for all materials regardless of market price fluctuations

Question 3: How does a Cost Estimator integrate project risks into cost estimates?

Which action should you take?

Choose only one option

By excluding any risks from the budget to reduce overall costs

By assessing potential risks and allocating a contingency for each identified risk

By using a fixed contingency percentage for all projects, regardless of risks

By estimating the risks based on project milestones instead of total project scope

Question 4: How does "Cost of Quality" (COQ) impact cost control in a construction project?

Which action should you take?

Choose only one option

It helps in calculating the cost of labor and materials

It helps identify the cost implications of poor quality and rework

It provides a method for allocating overhead costs

It focuses solely on labor cost optimization

Question 5: How should a Cost Estimator account for risks in projects with high uncertainty or complexity?

Which action should you take?

Choose only one option

By using a higher contingency percentage and detailed risk assessments for each project phase

By using industry averages for similar projects without adjusting for uncertainty

By reducing the budget contingency to minimize costs

By assuming that all risks will be covered by the project timeline

Question 6: What is the primary purpose of a risk register in the context of contingency planning for a construction project?

Which action should you take?

Choose only one option

To monitor subcontractor performance during the project

To determine the exact material quantities needed for the project

To ensure all stakeholders are informed about the project budget

To identify and prioritize potential risks that could affect project costs or timeline