Estimating 2

What is the primary purpose of a preliminary cost estimate?

• To determine the final project cost

• To forecast the probable construction cost before the detailed design

• To negotiate contractor payments

• To determine profit margins

Which of the following factors influence a cost estimate?

• Type, shape, and size of the building

• Quality of materials used

• Methods of construction

• All of the above

What is a consequence of an excessively low preliminary cost estimate?

• The design could be inferior

• The project cost remains unchanged

• The client receives excess funds

• The construction is completed faster

Which of the following is NOT a method of preliminary cost estimation?

• Floor area method

• Storey enclosure method

• Approximate quantities method

• Net profit method

In the Unit Method of preliminary cost estimation, how is the cost estimated?

• Based on the total gross floor area

• By multiplying the cost per unit of accommodation by the number of units

• Using elemental cost planning

• By evaluating composite work items

Which method is commonly used in Malaysia to estimate the cost of air-conditioned spaces?

• Floor Area Method

• Cubic Method

• Storey Enclosure Method

• Elemental Estimate

Which of the following is a key disadvantage of the Floor Area Method?

• It does not consider differences in building height and shape

• It is too complex for clients to understand

• It cannot be used for public sector projects

• It is the slowest method to obtain cost estimates

Why is the Tender Price Index (TPI) preferred over the Cost Index (CI)?

• It is easier to calculate

• It takes into account the tendering market and competitiveness

• It ignores inflation effects

• It is only relevant to the contractor

What is the purpose of cost data in construction?

• To create financial statements

• To forecast and control construction activities

• To replace contract documents

• To estimate worker salaries

What is the purpose of cost index adjustments in cost planning?

• To convert currency values

• To update historical cost data to current values

• To eliminate all cost variations

• To avoid using preliminary cost estimates