Question

1. The Owner’s ability to influence design and cost is highest at the construction phase.

1. True
2. False

2. The conceptual estimate is useful in the schematic design phase when design details are not available.

1. True
2. False

3. A Cost-Plus contract is considered a reimbursable type of contract.

3. True
4. False

4. An advantage of a Lump Sum Contract is that the owner assumes the risk of construction cost.

5. True
6. False

Answer 1

Solution -

1. The Owner’s ability to influence design and cost is highest at the construction phase.

1. True
2. False

Answer – False

Explanation –

The influence on design is best and highest in the design phase, as we move forward with the construction it gets harder and harder to influence the design.

2. The conceptual estimate is useful in the schematic design phase when design details are not available.

1. True
2. False

Answer – True

Explanation –

When we don’t have a detailed design available, we can use the concepts to get a rough estimate and work on it. Also, during design phase we use concepts to get an idea of the final estimate and to stay within limits.

3. A Cost-Plus contract is considered a reimbursable type of contract.

3. True
4. False

Answer – True

Explanation –

A cost-plus contract is on under which the contractor is paid for all it’s bills and expenses and an additional fee is paid for its profit. It is also known as cost reimbursement contracts.

4. An advantage of a Lump Sum Contract is that the owner assumes the risk of construction cost.

5. True
6. False

Answer – False

Explanation –

Lump sum or fixed price contracts – a detailed budget is already made before the start of the project and total price for all the construction related activities.

They can have additional benefits for early termination of projects and also penalties for late termination etc.

So, the risk is not assumed by the owner only.