Intro Cost Estimation Techniques

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What is the purpose of using parametric modeling for cost estimation?

Estimating costs after a full-scale design

Setting design-to-cost targets (correct)

Quickly choosing from alternate design schemes for detailed cost estimation

Evaluating the cost of changes to existing products

Based on the provided example, what is the total cost estimate for constructing the new warehouse?

$5,000,000.00

$3,000,000.00

$2,464,455.41 (correct)

$1,234,455.41

What was the approach taken by AMEC engineers to develop the cost estimate for the warehousing facility?

Conducting a survey with potential warehouse users

Guessing the cost based on intuition

Using historical data from a hotel construction project

Analyzing the relationship between material costs and building parameters (correct)

Why would a company use computerized tools for cost estimation?

To make working with different cost estimates easier Signup and view all the answers

In what scenarios can the parametric method be effectively used for cost estimation?

When quickly choosing from alternate design schemes with little time for detail design Signup and view all the answers

What is a key advantage of using computer-based tools in construction cost estimation?

Facilitation of working with different cost estimation models Signup and view all the answers

Which of the following is NOT a factor that influences the choice of project cost estimation approach by a project organization?

The company's budgeting requirements Signup and view all the answers

Which of the following is a key shortcoming of computerized cost estimation tools?

A meaningful cost plan cannot be developed unless a project plan with considerable detail is available Signup and view all the answers

Which of the following is NOT one of the four methods of cost estimation mentioned in the text?

Detailed analysis Signup and view all the answers

Which of the following is a key advantage of using project planning software?

All of the above Signup and view all the answers

What is a key factor that influences the accuracy of cost estimates?

All of the above Signup and view all the answers

Which of the following is a potential downside of relying on subjective judgments of estimators when determining resource and skill requirements for project activities?

It can lead to inaccurate cost estimates Signup and view all the answers

What is the primary purpose of the Value Analysis Creative Phase?

To develop realistic alternatives to conventional or current design using brainstorming methods Signup and view all the answers

Which of the following is NOT a typical step in the Value Analysis methodology?

Selection Phase Signup and view all the answers

During the Value Analysis Evaluation Phase, the team typically evaluates the ideas based on which two factors?

Cost and function Signup and view all the answers

Which of the following is a key objective of the Value Analysis Implementation Phase?

To help implement the recommendations during construction, manufacturing, production, and maintenance Signup and view all the answers

Which of the following is a key output of the Value Analysis Presentation Phase?

A cost-value analysis, life cycle cost estimate, and sketches Signup and view all the answers

What is the primary purpose of the Value Analysis Information Phase?

To evaluate the project and product function criteria and design concepts Signup and view all the answers

Intro Cost Estimation Techniques

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