Republic of the Philippines

University of Rizal System

Morong, Rizal

COLLEGE OF ENGINEERING

I. Multiple Choice

1. What is the typical responsibility of the Civil Engineer regarding legal, land,
administration, staffing, and financial costs in a construction project?

A) Full control and estimation

B) Minimal involvement
C) Collaboration with the client
D) Complete delegation to the client

Answer: C) Collaboration with the client

2. When should contingency allowances be increased or decreased as a construction

project progresses?

A) Always increased
B) Always decreased
C) Increased as the project progresses
D) Decreased as the project progresses

Answer: C) Increased as the project progresses

3. What is the primary purpose of contingency allowances in project cost estimation?

A) Cover known costs

B) Cover tangible costs
C) Cover intangible costs and uncertainties
D) Cover administrative costs

Answer: C) Cover intangible costs and uncertainties

4. When is it common practice to add a higher percentage, such as 20%, to the

estimated probable total project cost?

A) At the completion of the final design phase

B) At the completion of the study and report phase
C) At the start of the construction phase
D) At the completion of the project

Answer: B) At the completion of the study and report phase

5. Why might larger or more complex construction projects require higher contingency
allowances?

A) They have fewer uncertainties.

B) They have more experienced project managers.
C) They involve simpler processes.
D) They have increased uncertainties.

Answer: D) They have increased uncertainties.

6. When does the final project cost become a known quantity in a construction project?

A) At the start of the project

B) During the final design phase
C) At the completion of the project
D) During the study and report phase

Answer: C) At the completion of the project

7. According to the information provided, should engineers revise the estimate of the
probable total project cost as the design progresses?

A) No, it remains fixed.

B) Yes, it should be revised periodically.
C) Only at the start of the construction phase.
D) Only when construction bids are known.

Answer: B) Yes, it should be revised periodically.

8. Who is typically responsible for estimating costs related to legal, land, administrative,
and financial aspects of a construction project?

A) Civil Engineer
B) Project manager
C) Construction workers
D) Client

Answer: D) Client

9. Which of the following is considered an intangible cost in project estimation

according to the provided information?

A) Labor costs
B) Material costs
C) Audits
D) Land acquisition costs

Answer: C) Audits

10. How often are contingency allowances adjusted as a construction project

progresses?

A) Once at the start of the project

B) Periodically as the project advances
C) Only when construction bids are received
D) They are never adjusted

Answer: B) Periodically as the project advances

II. Identification

1. Audits: What type of financial assessments or examinations are included under

the category of audits in project cost estimation?

2. Cost of issuing bonds: In project cost estimation, what does the term "cost of
issuing bonds" refer to, and why is it considered a part of the project cost?
 3. Land costs: How are land costs calculated in project cost estimation, and why
are they important to consider?

4. Interest for borrowed money during construction: What is the significance of

including interest for borrowed money during construction in the probable total
project cost estimation?

5. Contingency allowance: Explain the purpose of a contingency allowance in

project cost estimation and how it evolves as the project progresses.

6. Intangible costs: What are intangible costs in project cost estimation, and why
should they be considered?

7. Client's responsibility: What is the typical role of the client in providing cost
estimates for certain aspects of a construction project, and why is it necessary?

8. Revision of cost estimates: Why is it important for engineers to periodically

revise their estimates of probable total project cost as a project advances through
different phases?

9. Complex projects: Why might larger or more complex projects require higher
contingency allowances in their cost estimates?

10. Final project cost: At what point in a construction project does the final project
cost become a known quantity, and what factors influence this knowledge?

III. Enumeration

1 – 3) List three examples of costs that are part of the probable total project cost.

Answers:
Audits
The cost of issuing bonds
Land costs
Interest for borrowed money during construction
Administrative costs

4 – 6) Name three project phases mentioned in the text through which the project
progresses.

Answers:
Study and report phase
Final design phase
Construction award phase

7 – 10) List four areas where the client is normally responsible for providing cost
estimates.

Answers:
Legal costs
Land costs
Administrative costs
Financial costs
IV. True or False

1. True or False: Legal, land, administration, staffing, and financial costs are
typically within the control of Civil Engineers during a construction project.

Answer: False. These costs are usually outside the knowledge and control of
Civil Engineers.

2. True or False: Contingency allowances should be decreased as a project

progresses from the study and report phase to the final design phase.

Answer: False. Contingency allowances are commonly increased as a project

progresses to account for uncertainties.

3. True or False: Contingency allowances are meant to account for intangible costs
that may arise during a construction project.

Answer: True. Contingency allowances are added to cover unforeseen or

intangible costs.

4. True or False: It is common practice to add 5% or more to the estimated

probable total project cost when construction bids become known.

Answer: False. It is common practice to reduce contingency allowances as more

information becomes known, potentially down to 5% or lower.

5. True or False: Larger or more complex projects generally require lower

contingency allowances compared to smaller projects.

Answer: False. Larger or more complex projects may require higher contingency
allowances due to increased uncertainties.

6. True or False: The final project cost is known at the start of a construction
project.

Answer: False. The final project cost becomes known only at the completion of
the project.

7. True or False: Civil engineers should not revise the estimate of the probable total
project cost as the design progresses.

Answer: False. Engineers should periodically revise cost estimates as more

information becomes known.

8. True or False: Clients are typically responsible for estimating costs related to
legal, land, administrative, and financial aspects of a project.

Answer: True. Clients often provide estimates for these costs.

9. True or False: Audits are considered an intangible cost in project estimation.

Answer: True. Audits are often intangible costs.

10. True or False: Contingency allowances are only added once, at the beginning of
a project, and are not adjusted throughout its duration.

Answer: False. Contingency allowances are adjusted as the project progresses to

account for changing levels of uncertainty.