Oregon Construction Contractors (CCB) Practice Test

What estimating method calculates project costs based on square footage multiplied by a unit cost?

1. Cost-plus method

2. Square-foot method

3. Detailed method

4. Unit cost method

The correct answer is: Square-foot method

The square-foot method is a common estimating technique used in construction to determine project costs. It involves calculating the overall expenses by multiplying the total square footage of the construction project by a predetermined unit cost per square foot. This approach allows for a quick and systematic way to estimate construction costs, particularly during the initial planning phases. The unit cost is typically derived from historical data or regional market values, reflecting the average cost to build per square foot for a specific type of project. By using this method, contractors can provide clients with a rough estimate of total costs efficiently, making it useful for budgeting and decision-making purposes. The cost-plus method involves calculating total cost by adding a markup for profit to the actual costs incurred during construction, while the detailed method requires a comprehensive breakdown of all individual costs associated with a project. The unit cost method is similar but specifically focuses on per-unit measures rather than square footage. The square-foot method's straightforward calculation makes it an effective choice for many contractors looking to provide quick estimates.