Design Economics and Cost Planning Quiz - 2

What types of estimate are there?

• Cost estimate

• Risk assessment

• Budget / feasibility

• Cost plan

What is a feasibility estimate?

• An estimate of the time required to complete a project

• A detailed breakdown of all costs involved in a project

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

• A forecast of the possible cost of a building based on historical data

What is the format of a feasibility / budget estimate?

• Rate per m2 or per functional unit

• Total project cost

• Hourly rate

• Fixed price

What is a functional unit?

• The ‘factors which express the intended use of the building better than any other’

• A unit of measurement for equipment costs

• A unit of measurement for labor costs

• A unit of measurement for material costs

What information do you need to be able to carry out a feasibility estimate?

• Number of employees

• Type of building (function)

• Marketing strategy

• Customer feedback

What is the % error on a feasibility estimate?

• 15%

• 5%

• 10%

• 20%

What is a cost estimate?

• An estimate of the time required to complete a project

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

• A detailed breakdown of all costs involved in a project

• A forecast of the possible cost of a building based on historical data

When would you do one?

• Stage G/H

• Stage E/F

• Stage A/B

• Stage C/D

What is contingency?

• A sum included in the estimate to cover unknown expenses or unmitigated risks during the project

• A detailed breakdown of all costs involved in a project

• A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme

• An estimate of the time required to complete a project

What are preliminaries?

• A type of construction equipment

• The final stage of a project

• A type of construction material

• They define the scope of works