ARE Study Review

What is the difference between life-cycle cost analysis (LCC) and life-cycle assessment analysis (LCA)?

What is likely to happen by shortening the construction schedule of a building project? (Choose 4) A. decreases contractor's overhead, B. increases overtime costs, C. decreases overtime costs, D. increases labor by requiring additional workers, E. shortens required time to carry insurance, utilities & project office, F. increases contractor's overhead, G. fewer laborers will offset the overtime cost

Which of the following is NOT a publisher of construction cost data? A. Engineering News Record, B. RS Means Company, Inc.,  C. Dodge Reports, D. Building Design & Construction Magazine,  E. US Environmental Protection Agency, F. US Geological Survey

One method of estimating costs derives from detailed actual project costs reported by contractors that are published. Other sources of data are also used as a reference. It can also be used in checking bids and controlling costs. A "measure" of an item is chosen to derive an estimated unit cost. What is this system called?

Which of the following is a sum established by the owner as funds available for the entire project? A. Project budget B. Internal project budget C. Construction budget D. None of the above Answer A. Project budget - which includes construction budget (C) and is not the same as the internal project budget (B) established by the design firm to cover its obligations to complete a project. ARE 4.0 exam prep: CDS

In a small office building (20,000sf), what is a reasonable breakdown of mechanical and electrical systems by percentage of total budget (projected cost = $2.5 million)? A. mech 10% / elec 5% B. mech 15% / elec 10% C. mech 20% / elec 10% D. mech 10% / elec 10% Answer D. mech 10% / elec 10%. A typical small office building project allocates equal percentages on mechanical and electrical systems for a total of 20% of the projected costs. ARE 4.0 exam prep: BS

In a basic proforma equation to test the economic viability of a potential development project, the sum of hard costs and soft costs equals total cost , which will incorporate total interest on the construction loan. The total cost is figured into an annualized expense amount toward mortgage retirement. net income minus total expense equals profit (or percentage of equity). Which of the following would be considered in calculating "soft costs"? Choose 3 A. Legal expenses/accounting B. Marketing fees C. Cost of construction - Circulation areas (typ. 20%) D. Architect/Engineer fee E. Real estate taxes F. Management office expense Answer A, B, D are soft costs. C is a hard cost (normally only construction cost and land acquisition). E, F are (operating) expenses. ARE 4.0 exam prep: CDS

Which of the following are included in estimates for both project costs and construction costs? A. architect design fees B. FF&E C. site development D. financing E. moving costs F. labor Answer C&F only - the other costs are part of the project costs, but not construction costs.

Which of the following is not considered a General Overhead Cost? (Select 2) A. Advertising B. Consulting fees C. Permits D. Equipment storage E. Wages (staff) Answer Permits and equipment storage can be charged to a specific project and are considered Project Overhead Costs.

Which of the following are indirect costs to be added to a detailed construction cost estimate? I. Cost escalation contingency amount II. Permits III. Labor unit costs IV. Equipment rental costs Answer I, II, IV, but not III. This is considered as part of direct costs, which includes costs per unit of material and labor multiplied by quantities. ARE 4.0 exam prep: CDS