AACE CCT PRIMER EXAM AND PRACTICE EXAM
NEWEST 2025 COMPLETE 250 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW!!
The sum of the practices and processes that an enterprise uses to manage the total life
cycle cost investment in its portfolio of strategic assets is called _________ -
✔✔ANSWER✔✔>>Total Cost Management
______ is the application of scientific principles and techniques to problems of :
- estimation
- cost control
- business planning & management science
- profitability analysis
- project management
- planning & scheduling - ✔✔ANSWER✔✔>>Cost Engineering
At Cost Pricing - ✔✔ANSWER✔✔>>In slow construction cycles, contractors often price
jobs at or just
below cost to keep their workforce employed and active in the market. However,
contracts awarded in this case often suffer from extensive change order requests to
make the project profitable.
Cost Estimate - ✔✔ANSWER✔✔>>cost estimate is defined as "a compilation of all the
costs of the elements of a project or effort included within an agreed upon scope." To a
contractor, this is the cost that will most likely be incurred in completing the project as
defined in the contract documents. The contractor's cost includes its own internal costs,
as well as those of its subcontractors, suppliers, and third parties [S&K 4th Ed., 1-1].
Basic Steps of Estimating - ✔✔ANSWER✔✔>>Take Off, Costing, Pricing
Take-Off - ✔✔ANSWER✔✔>>Measuring and cataloging the quantities of work derived
from the scope
documents [S&K 4th Ed., 1-1].
Costing (estimating) - ✔✔ANSWER✔✔>>Using the take-off and the information
presented in the scope documents to assign cost values to the elements of work
previously cataloged [S&K 4th Ed., 1-1].
Pricing (estimating) - ✔✔ANSWER✔✔>>Determining the amount to be charged to the
owner/client so as to fully
,include direct and indirect cost items, as well as contingency and profit [S&K 4th Ed., 1-
1].
Addendum (Addenda) - ✔✔ANSWER✔✔>>A written change or graphic instrument
issued before the date bids are opened. An addendum may interpret or modify the
bidding documents by making additions, deletions, clarifications, or corrections [S&K 4th
Ed., 1-1
Allowances - ✔✔ANSWER✔✔>>Additional resources included in estimates to cover the
cost of known but
undefined requirements for an individual activity, work item, account, or
subaccount [S&K 4th Ed., 1-1;
Alternate - ✔✔ANSWER✔✔>>A request from the owner for the cost of adding or
deleting an item or work
element from the basic bid. The cost of adding an item is usually known as an additive
alternate, while the cost of deleting an item is known as a deductive alternate
Bid Documents - ✔✔ANSWER✔✔>>The advertisement for bids, instructions to bidders,
information available to
bidders, bid form with all attachments, and proposed contract documents
(including all addenda issued before the receipt of bids)
Change Order - ✔✔ANSWER✔✔>>A document requesting a change or correction; a
written change made by the architect / engineer to the contract drawings and/or
specifications aster the contract award. Generally, a change order must be approved by
the owner/client and the contractor before it becomes a legal change to contract [S&K
4th Ed., 1-2;
Cost Index - ✔✔ANSWER✔✔>>A number that relates the cost of an item at a specific
time to the
corresponding cost at some arbitrarily specified time in the past. A cost index is useful in
taking known past costs for an item and relating them to the present. [S&K 4th Ed., 1-2].
Direct Cost - ✔✔ANSWER✔✔>>Costs that can be directly attributed to a particular item
of work or activity
[S&K 4th Ed., 1-2].
Distributable Cost - ✔✔ANSWER✔✔>>A cost item that is spread over other cost items
rather than managed as a
separate account [S&K 4th Ed., 1-2].
Field Costs - ✔✔ANSWER✔✔>>Indirect costs of engineering and construction
associated with the project's
field site rather than with the home office [S&K 4th Ed., 1-2; RP10S-90].
, General Conditions - ✔✔ANSWER✔✔>>A specific portion of the contract documents.
They state the responsibilities and relationships of all parties to the contract, as well as
any conditions applicable to the contract [S&K 4th Ed., 1-2].
Productivity - ✔✔ANSWER✔✔>>A relative measure of labor efficiency, either good or
bad, when compared to an established base or norm as determined from an area of
great experience. Alternatively, productivity is defined as the reciprocal of the labor
factor [S&K 4th Ed., 1-2].
Scope - ✔✔ANSWER✔✔>>The equipment and materials to be provided, and the work
to be done. Scope is documented by the contract parameters for a project to which the
company is committed [S&K 4th Ed., 1-2].
Value Engineering - ✔✔ANSWER✔✔>>A practice function that is targeted at the design
itself. The objective of value engineering is to develop or design a facility or item that will
yield the least lifecycle costs or provide the greatest value while satisfying all
performance and other criteria established for it [S&K 4th Ed.].
Types of Estimates - ✔✔ANSWER✔✔>>Order of Magnitude, Budget Estimates,
Definitive Estimates
Order of Magnitude Estimates - ✔✔ANSWER✔✔>>Estimates made without detailed
engineering data. An estimate of this type
would normally be expected to be accurate within +50 percent or - 30 percent. Order-of-
magnitude estimates are sometimes referred to as "conceptual" or "ballpark" estimates.
Budget Estimates - ✔✔ANSWER✔✔>>Budget estimates are prepared with the help of
flow sheets, layouts, and
equipment details. In other words, enough preliminary engineering has taken place to
further define the project scope. An estimate of this type is normally expected to be
accurate within +30 percent or -15 percent. Since the budget estimate is more definitive
than the order-of-magnitude estimate, it is better suited for determining project feasibility
and establishing definitive budget. The accuracy and usefulness of a budget estimate
depends, to a large extent, on the amount and quality of information available [S&K 4th
Ed., 1-5].
Definitive Estimates - ✔✔ANSWER✔✔>>estimates prepared from very defined
engineering data. The definitive estimate includes various degrees of detail estimates
which could be made from "approved for construction" drawings and specifications.
Definitive estimates are also called "check" lump sum, "tender," and "post-contract
change estimates. An estimate of this type is usually expected to be accurate within +15
percent or - 5 percent [S&K 4th Ed., 1-5].
NEWEST 2025 COMPLETE 250 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW!!
The sum of the practices and processes that an enterprise uses to manage the total life
cycle cost investment in its portfolio of strategic assets is called _________ -
✔✔ANSWER✔✔>>Total Cost Management
______ is the application of scientific principles and techniques to problems of :
- estimation
- cost control
- business planning & management science
- profitability analysis
- project management
- planning & scheduling - ✔✔ANSWER✔✔>>Cost Engineering
At Cost Pricing - ✔✔ANSWER✔✔>>In slow construction cycles, contractors often price
jobs at or just
below cost to keep their workforce employed and active in the market. However,
contracts awarded in this case often suffer from extensive change order requests to
make the project profitable.
Cost Estimate - ✔✔ANSWER✔✔>>cost estimate is defined as "a compilation of all the
costs of the elements of a project or effort included within an agreed upon scope." To a
contractor, this is the cost that will most likely be incurred in completing the project as
defined in the contract documents. The contractor's cost includes its own internal costs,
as well as those of its subcontractors, suppliers, and third parties [S&K 4th Ed., 1-1].
Basic Steps of Estimating - ✔✔ANSWER✔✔>>Take Off, Costing, Pricing
Take-Off - ✔✔ANSWER✔✔>>Measuring and cataloging the quantities of work derived
from the scope
documents [S&K 4th Ed., 1-1].
Costing (estimating) - ✔✔ANSWER✔✔>>Using the take-off and the information
presented in the scope documents to assign cost values to the elements of work
previously cataloged [S&K 4th Ed., 1-1].
Pricing (estimating) - ✔✔ANSWER✔✔>>Determining the amount to be charged to the
owner/client so as to fully
,include direct and indirect cost items, as well as contingency and profit [S&K 4th Ed., 1-
1].
Addendum (Addenda) - ✔✔ANSWER✔✔>>A written change or graphic instrument
issued before the date bids are opened. An addendum may interpret or modify the
bidding documents by making additions, deletions, clarifications, or corrections [S&K 4th
Ed., 1-1
Allowances - ✔✔ANSWER✔✔>>Additional resources included in estimates to cover the
cost of known but
undefined requirements for an individual activity, work item, account, or
subaccount [S&K 4th Ed., 1-1;
Alternate - ✔✔ANSWER✔✔>>A request from the owner for the cost of adding or
deleting an item or work
element from the basic bid. The cost of adding an item is usually known as an additive
alternate, while the cost of deleting an item is known as a deductive alternate
Bid Documents - ✔✔ANSWER✔✔>>The advertisement for bids, instructions to bidders,
information available to
bidders, bid form with all attachments, and proposed contract documents
(including all addenda issued before the receipt of bids)
Change Order - ✔✔ANSWER✔✔>>A document requesting a change or correction; a
written change made by the architect / engineer to the contract drawings and/or
specifications aster the contract award. Generally, a change order must be approved by
the owner/client and the contractor before it becomes a legal change to contract [S&K
4th Ed., 1-2;
Cost Index - ✔✔ANSWER✔✔>>A number that relates the cost of an item at a specific
time to the
corresponding cost at some arbitrarily specified time in the past. A cost index is useful in
taking known past costs for an item and relating them to the present. [S&K 4th Ed., 1-2].
Direct Cost - ✔✔ANSWER✔✔>>Costs that can be directly attributed to a particular item
of work or activity
[S&K 4th Ed., 1-2].
Distributable Cost - ✔✔ANSWER✔✔>>A cost item that is spread over other cost items
rather than managed as a
separate account [S&K 4th Ed., 1-2].
Field Costs - ✔✔ANSWER✔✔>>Indirect costs of engineering and construction
associated with the project's
field site rather than with the home office [S&K 4th Ed., 1-2; RP10S-90].
, General Conditions - ✔✔ANSWER✔✔>>A specific portion of the contract documents.
They state the responsibilities and relationships of all parties to the contract, as well as
any conditions applicable to the contract [S&K 4th Ed., 1-2].
Productivity - ✔✔ANSWER✔✔>>A relative measure of labor efficiency, either good or
bad, when compared to an established base or norm as determined from an area of
great experience. Alternatively, productivity is defined as the reciprocal of the labor
factor [S&K 4th Ed., 1-2].
Scope - ✔✔ANSWER✔✔>>The equipment and materials to be provided, and the work
to be done. Scope is documented by the contract parameters for a project to which the
company is committed [S&K 4th Ed., 1-2].
Value Engineering - ✔✔ANSWER✔✔>>A practice function that is targeted at the design
itself. The objective of value engineering is to develop or design a facility or item that will
yield the least lifecycle costs or provide the greatest value while satisfying all
performance and other criteria established for it [S&K 4th Ed.].
Types of Estimates - ✔✔ANSWER✔✔>>Order of Magnitude, Budget Estimates,
Definitive Estimates
Order of Magnitude Estimates - ✔✔ANSWER✔✔>>Estimates made without detailed
engineering data. An estimate of this type
would normally be expected to be accurate within +50 percent or - 30 percent. Order-of-
magnitude estimates are sometimes referred to as "conceptual" or "ballpark" estimates.
Budget Estimates - ✔✔ANSWER✔✔>>Budget estimates are prepared with the help of
flow sheets, layouts, and
equipment details. In other words, enough preliminary engineering has taken place to
further define the project scope. An estimate of this type is normally expected to be
accurate within +30 percent or -15 percent. Since the budget estimate is more definitive
than the order-of-magnitude estimate, it is better suited for determining project feasibility
and establishing definitive budget. The accuracy and usefulness of a budget estimate
depends, to a large extent, on the amount and quality of information available [S&K 4th
Ed., 1-5].
Definitive Estimates - ✔✔ANSWER✔✔>>estimates prepared from very defined
engineering data. The definitive estimate includes various degrees of detail estimates
which could be made from "approved for construction" drawings and specifications.
Definitive estimates are also called "check" lump sum, "tender," and "post-contract
change estimates. An estimate of this type is usually expected to be accurate within +15
percent or - 5 percent [S&K 4th Ed., 1-5].
