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Questions and Answers
Cost models follow the structure of the _____ models.
_____ should contain replacement cost tables, depreciation schedules, guidelines for classifying structures, and building feature codes.
Material, labor, and supervision are considered _____ costs.
_____ is the cost for constructing an identical structure.
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Insurance, architectural, and engineering fees are examples of _____ costs.
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_____ is the cost of constructing a substitute structure of equal utility.
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Depreciation schedules must reflect differences in building and construction types and must be derived from the _____.
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Floors and roofing are examples of _____ cost components.
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When applying the comparative unit method, costs are expressed on a per _____ basis.
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Proper application of the _____ method requires detailed knowledge of construction.
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_____ is the amount one expects to receive for their contribution to a project that includes risk.
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Study Notes
Cost Models
- Cost models typically adopt a generic/hybrid structure, integrating various components for adaptability and precision.
Cost Manuals
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Cost manuals are essential resources that include:
- Replacement cost tables
- Depreciation schedules
- Guidelines for classifying building structures
- Building feature codes
Cost Classifications
- Direct costs encompass material, labor, and supervision, which are integral to the construction process.
- Indirect costs include expenses such as insurance and architectural and engineering fees, which support the project but are not directly linked to construction.
Cost Types in Construction
- Reproduction cost refers to the expense of constructing an exact replica of an existing structure.
- Replacement cost denotes the expenditure of building a substitute structure that serves the same function and utility, regardless of design fidelity.
Depreciation Schedules
- Depreciation schedules should be based on market data to accurately reflect changes in value according to building and construction types.
Cost Components
- Horizontal cost components include floors and roofing, which correspond to elements installed horizontally within a structure.
Comparative Unit Method
- The comparative unit method expresses costs on a per square foot basis, simplifying construction cost estimation.
Quantity Survey Method
- Mastering the quantity survey method necessitates thorough knowledge of construction techniques, as it involves detailed itemization and cost calculation.
Entrepreneurial Incentive
- The entrepreneurial incentive is the expected income one aims to earn from their investment in a project, factoring in associated risks beyond regular costs.
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Description
This quiz explores the structure of cost models, emphasizing the generic or hybrid nature essential for accurate valuation. Participants will also learn about the components that should be included in these models, such as depreciation schedules and classification guidelines.
