100 MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO QUANTITY SURVEYING AND VALUATION
- What is the primary role of a quantity surveyor?
a) Cost estimation and budgeting
b) Quality control and assurance
c) Project scheduling and planning
d) Risk management and mitigation
Answer: a) Cost estimation and budgeting - Which of the following is NOT a typical responsibility of a quantity surveyor?
a) Contract administration
b) Material procurement
c) Cost control and monitoring
d) Structural design
Answer: d) Structural design - What is the purpose of a Bill of Quantities (BOQ)?
a) To list the quantities of materials required for construction
b) To estimate the project cost accurately
c) To provide a schedule of works for the project
d) To outline the project specifications and standards
Answer: a) To list the quantities of materials required for construction - Which of the following is an example of indirect costs in construction?
a) Labor costs
b) Material costs
c) Overhead costs
d) Equipment costs
Answer: c) Overhead costs - What is the term used for the process of evaluating the value of a property?
a) Cost estimation
b) Property appraisal
c) Construction valuation
d) Market analysis
Answer: b) Property appraisal - Which method of property valuation is based on the principle of substitution?
a) Cost approach
b) Income approach
c) Sales comparison approach
d) Investment approach
Answer: c) Sales comparison approach - What does the abbreviation “NPV” stand for in the context of investment appraisal?
a) Net Property Value
b) Net Profit Value
c) Net Present Value
d) Normalized Property Variation
Answer: c) Net Present Value - What is the purpose of a feasibility study in construction projects?
a) To assess the financial viability of a project
b) To analyze the environmental impact of a project
c) To determine the project’s construction schedule
d) To evaluate the project’s quality standards
Answer: a) To assess the financial viability of a project - Which of the following is NOT a common type of construction contract?
a) Lump sum contract
b) Cost-plus contract
c) Design-build contract
d) Lease agreement
Answer: d) Lease agreement - What is the purpose of an Earned Value Analysis (EVA)?
a) To determine the market value of a property
b) To track and assess project performance
c) To estimate the depreciation of assets
d) To calculate the payback period of a project
Answer: b) To track and assess project performance - Which of the following is an example of a direct cost in construction?
a) Administrative expenses
b) Indirect labor costs
c) Material costs
d) Advertising expenses
Answer: c) Material costs - What is the purpose of a cost index in quantity surveying?
a) To adjust historical costs to current market conditions
b) To estimate the future cost of a construction project
c) To determine the project’s profitability ratio
d) To calculate the project’s return on investment
Answer: a) To adjust historical costs to current market conditions - Which of the following is a common method used for cost estimation in construction projects?
a) Parametric estimating
b) Historical estimating
c) Analytical estimating
d) All of the above
Answer: d) All of the above - What is the purpose of a variation order in construction contracts?
a) To modify the project specifications and standards
b) To change the project’s scope of work
c) To resolve disputes between the contracting parties
d) To monitor the project’s progress and performance
Answer: b) To change the project’s scope of work - Which of the following is an example of an intangible asset in property valuation?
a) Land
b) Building
c) Furniture and fixtures
d) Goodwill
Answer: d) Goodwill - What does the term “life cycle costing” refer to in quantity surveying?
a) Evaluating the cost of a property over its entire lifespan
b) Assessing the depreciation value of a property
c) Estimating the costs of maintenance and repairs
d) Analyzing the financial viability of a construction project
Answer: a) Evaluating the cost of a property over its entire lifespan - What is the purpose of a tender document in the procurement process?
a) To invite potential contractors to bid for a project
b) To provide a detailed breakdown of the project’s costs
c) To outline the project specifications and requirements
d) To evaluate and select the most suitable contractor
Answer: a) To invite potential contractors to bid for a project - Which of the following is NOT a characteristic of a well-written contract?
a) Clarity and precision in language
b) Balanced and fair terms and conditions
c) Lack of specific performance requirements
d) Adequate risk allocation between parties
Answer: c) Lack of specific performance requirements - What is the purpose of an interim valuation in construction contracts?
a) To calculate the final payment for a completed project
b) To assess the progress of the construction works
c) To determine the project’s cash flow requirements
d) To evaluate the project’s environmental impact
Answer: b) To assess the progress of the construction works - What is the term used to describe the process of quantifying and valuing changes to the project scope?
a) Value engineering
b) Cost control
c) Change management
d) Risk assessment
Answer: c) Change management - Which of the following is a component of the cost management process?
a) Cost planning
b) Cost analysis
c) Cost tracking
d) All of the above
Answer: d) All of the above - What does the abbreviation “ROI” stand for in the context of investment appraisal?
a) Return on Investment
b) Rate of Inflation
c) Risk of Insolvency
d) Real Option Valuation
Answer: a) Return on Investment - Which of the following is a characteristic of a cost-plus contract?
a) Fixed price for the entire project
b) Contractor assumes all project risks
c) Payment based on actual costs incurred
d) Contractor receives a bonus for early completion
Answer: c) Payment based on actual costs incurred - What is the purpose of a tender analysis in the procurement process?
a) To evaluate the technical capabilities of the bidders
b) To assess the financial stability of the bidders
c) To compare and select the most advantageous bid
d) To negotiate the contract terms with the preferred bidder
Answer: c) To compare and select the most advantageous bid - Which of the following is a common method used for property valuation?
a) Sales comparison method
b) Income capitalization method
c) Cost approach method
d) All of the above
Answer: d) All of the above - What is the purpose of a depreciation schedule in property valuation?
a) To estimate the value of improvements made to the property
b) To assess the financial performance of the property
c) To calculate the annual depreciation expenses
d) To determine the remaining useful life of the property
Answer: c) To calculate the annual depreciation expenses - What does the term “standard deviation” refer to in cost estimation?
a) The average cost of a construction project
b) The maximum cost of a construction project
c) The spread of costs around the average value
d) The cost overrun experienced in a project
Answer: c) The spread of costs around the average value - What is the purpose of a cost report in construction projects?
a) To communicate project costs to stakeholders
b) To compare actual costs against the budget
c) To identify cost variances and deviations
d) All of the above
Answer: d) All of the above - Which of the following is a characteristic of the cost approach in property valuation?
a) It is most suitable for income-generating properties
b) It focuses on the property’s market value
c) It considers the property’s replacement cost
d) It relies on recent comparable sales data
Answer: c) It considers the property’s replacement cost - What does the abbreviation “BOQ” stand for in quantity surveying?
a) Bill of Quantity
b) Budget of Quotation
c) Building Order Queue
d) Base of Quality
Answer: a) Bill of Quantity - Which of the following is a purpose of cost control in construction projects?
a) To minimize project delays and disruptions
b) To ensure compliance with project specifications
c) To manage and reduce project costs
d) All of the above
Answer: d) All of the above - What is the purpose of a progress payment in construction contracts?
a) To reimburse the contractor for work completed
b) To provide advance funding for the project
c) To cover the contractor’s overhead costs
d) To compensate the contractor for design changes
Answer: a) To reimburse the contractor for work completed - Which of the following is a component of the project risk management process?
a) Risk identification
b) Risk assessment
c) Risk response planning
d) All of the above
Answer: d) All of the above - What does the term “liquidated damages” refer to in construction contracts?
a) A specific amount of money payable for breach of contract
b) Additional compensation for the contractor’s extra work
c) A reduction in the project’s contract price
d) A penalty for delays in project completion
Answer: d) A penalty for delays in project completion - Which of the following is a factor considered in the sales comparison approach to property valuation?
a) Replacement cost of the property
b) Potential income from the property
c) Market value of similar properties
d) Historical cost of the property
Answer: c) Market value of similar properties - What is the purpose of a cost-benefit analysis in construction projects?
a) To assess the project’s financial viability
b) To calculate the payback period of the project
c) To determine the project’s return on investment
d) All of the above
Answer: d) All of the above - Which of the following is a component of the tender evaluation process?
a) Technical evaluation
b) Financial evaluation
c) Compliance evaluation
d) All of the above
Answer: d) All of the above - What is the purpose of a project schedule in construction projects?
a) To allocate resources and manage project timeframes
b) To calculate the project’s net present value
c) To assess the project’s financial performance
d) To evaluate the project’s quality standards
Answer: a) To allocate resources and manage project timeframes - Which of the following is a characteristic of a fixed-price contract?
a) The contractor assumes all project risks
b) The contract price is subject to change
c) Payment based on the actual costs incurred
d) Contractor receives a bonus for early completion
Answer: b) The contract price is subject to change - What does the abbreviation “CAPEX” stand for in property valuation?
a) Capital Expenditure
b) Cost Analysis and Projection Estimate
c) Construction and Property Expense
d) Comparative Analysis of Property Expenses
Answer: a) Capital Expenditure - What is the purpose of a tender opening in the procurement process?
a) To evaluate the technical capabilities of the bidders
b) To assess the financial stability of the bidders
c) To open and disclose the submitted bids
d) To negotiate the contract terms with the preferred bidder
Answer: c) To open and disclose the submitted bids - Which of the following is NOT a component of the construction cost?
a) Labor costs
b) Material costs
c) Administrative costs
d) Equipment costs
Answer: c) Administrative costs - What is the purpose of a contingency fund in construction projects?
a) To cover unforeseen events and risks
b) To provide additional profit to the contractor
c) To compensate the contractor for design changes
d) To fund the project’s marketing and advertising expenses
Answer: a) To cover unforeseen events and risks - Which of the following is a characteristic of an escalation clause in construction contracts?
a) It allows the contractor to terminate the contract
b) It specifies the methods of dispute resolution
c) It allows the contractor to increase the contract price
d) It outlines the project’s quality standards and specifications
Answer: c) It allows the contractor to increase the contract price - What is the purpose of a valuation report in property appraisal?
a) To determine the property’s market value
b) To assess the property’s condition and quality
c) To provide an opinion of the property’s value
d) All of the above
Answer: d) All of the above - Which of the following is a characteristic of the income capitalization method in property valuation?
a) It considers the property’s replacement cost
b) It focuses on the property’s market value
c) It estimates the property’s potential income
d) It relies on recent comparable sales data
Answer: c) It estimates the property’s potential income - What is the purpose of a cost control system in construction projects?
a) To monitor and track project costs
b) To ensure compliance with project specifications
c) To identify and address cost overruns
d) All of the above
Answer: d) All of the above - Which of the following is a characteristic of the design-build contract?
a) The owner assumes all project risks
b) Separate contracts for design and construction
c) The contractor receives a bonus for early completion
d) The contractor is responsible for both design and construction
Answer: d) The contractor is responsible for both design and construction - What is the purpose of a risk register in project risk management?
a) To document and assess project risks
b) To track and monitor project risks
c) To develop strategies for mitigating risks
d) All of the above
Answer: d) All of the above - Which of the following is a component of the construction cost estimate?
a) Direct costs
b) Indirect costs
c) Contingency costs
d) All of the above
Answer: d) All of the above - What does the term “discounted cash flow” refer to in investment appraisal?
a) The present value of future cash inflows and outflows
b) The interest rate used to calculate project returns
c) The expected rate of return on the investment
d) The net cash flow generated by the project
Answer: a) The present value of future cash inflows and outflows - Which of the following is a component of the cost management plan?
a) Cost baseline
b) Cost variance analysis
c) Cost performance index
d) All of the above
Answer: d) All of the above - What is the purpose of a progress claim in construction contracts?
a) To request payment for work completed
b) To negotiate changes to the project scope
c) To assess the project’s compliance with specifications
d) To evaluate the project’s environmental impact
Answer: a) To request payment for work completed - Which of the following is a characteristic of a lump sum contract?
a) Contractor assumes all project risks
b) Payment based on the actual costs incurred
c) Contractor receives a bonus for early completion
d) Fixed price for the entire project
Answer: d) Fixed price for the entire project - What does the term “net lettable area” refer to in property valuation?
a) The area available for lease in a property
b) The total floor area of a property
c) The area allocated for common facilities
d) The area excluded from rental calculations
Answer: a) The area available for lease in a property - Which of the following is a purpose of project control in construction projects?
a) To manage project risks and issues
b) To ensure compliance with project specifications
c) To monitor and track project progress
d) All of the above
Answer: d) All of the above - What is the purpose of a tender bond in the procurement process?
a) To secure the contractor’s performance in case of default
b) To cover the contractor’s overhead costs
c) To compensate the owner for design changes
d) To evaluate and select the most suitable contractor
Answer: a) To secure the contractor’s performance in case of default - Which of the following is a characteristic of a cost estimate?
a) It is a precise and accurate calculation of costs
b) It is based on historical data and experience
c) It is subject to change as the project progresses
d) It includes only direct costs and excludes overheads
Answer: c) It is subject to change as the project progresses - What is the purpose of a feasibility study in construction projects?
a) To assess the project’s technical and economic viability
b) To develop the project’s design and specifications
c) To estimate the project’s construction costs
d) To evaluate the project’s environmental impact
Answer: a) To assess the project’s technical and economic viability - What does the term “depreciation” refer to in property valuation?
a) The increase in the property’s value over time
b) The reduction in the property’s market price
c) The wear and tear of the property over time
d) The improvement and enhancement of the property
Answer: c) The wear and tear of the property over time - What is the purpose of a bill of quantities (BOQ) in construction projects?
a) To provide a detailed list of all project materials and quantities
b) To estimate the total cost of the construction project
c) To allocate resources and manage project timeframes
d) To assess the project’s compliance with specifications
Answer: a) To provide a detailed list of all project materials and quantities - Which of the following is a characteristic of the unit cost method in cost estimation?
a) It estimates costs based on the area or volume of the project
b) It considers the market value of similar projects
c) It relies on historical data and cost indices
d) It focuses on the property’s replacement cost
Answer: a) It estimates costs based on the area or volume of the project - What is the purpose of a progress schedule in construction projects?
a) To allocate resources and manage project timeframes
b) To calculate the project’s net present value
c) To assess the project’s financial performance
d) To evaluate the project’s quality standards
Answer: a) To allocate resources and manage project timeframes - Which of the following is a component of the final account in construction projects?
a) Variation orders
b) Progress payments
c) Contingency funds
d) All of the above
Answer: d) All of the above - What does the term “valuation basis” refer to in property appraisal?
a) The method used to estimate the property’s value
b) The financial basis for calculating project returns
c) The factors considered in the cost estimation process
d) The legal basis for determining property ownership
Answer: a) The method used to estimate the property’s value - Which of the following is a purpose of cost estimating in construction projects?
a) To determine the project’s financial viability
b) To allocate resources and manage project budgets
c) To evaluate the project’s environmental impact
d) All of the above
Answer: d) All of the above - What is the purpose of a cost performance report in construction projects?
a) To compare actual costs against the budget
b) To assess the project’s compliance with specifications
c) To evaluate the project’s quality standards
d) To communicate project costs to stakeholders
Answer: a) To compare actual costs against the budget - Which of the following is a characteristic of a cost-plus contract?
a) Contractor assumes all project risks
b) Fixed price for the entire project
c) Payment based on the actual costs incurred plus a fee
d) Contractor receives a bonus for early completion
Answer: c) Payment based on the actual costs incurred plus a fee - What does the term “variation order” refer to in construction projects?
a) A change to the project scope or specifications
b) An order for additional project materials
c) A request for payment by the contractor
d) An order to terminate the contract
Answer: a) A change to the project scope or specifications - Which of the following is a factor considered in the cost approach to property valuation?
a) Potential income from the property
b) Market value of similar properties
c) Replacement cost of the property
d) Historical cost of the property
Answer: c) Replacement cost of the property - What is the purpose of a risk management plan in construction projects?
a) To identify and assess project risks
b) To develop strategies for mitigating risks
c) To monitor and control project risks
d) All of the above
Answer: d) All of the above - Which of the following is a characteristic of the residual method in property valuation?
a) It estimates the property’s potential income
b) It relies on recent comparable sales data
c) It considers the property’s replacement cost
d) It focuses on the property’s market value
Answer: d) It focuses on the property’s market value - What is the purpose of a variation claim in construction contracts?
a) To request compensation for changes to the project scope
b) To assess the contractor’s performance
c) To evaluate the project’s compliance with specifications
d) To negotiate the contract terms with the owner
Answer: a) To request compensation for changes to the project scope - Which of the following is a component of the construction budget?
a) Direct costs
b) Indirect costs
c) Contingency costs
d) All of the above
Answer: d) All of the above - What does the term “market value” refer to in property valuation?
a) The price at which a property can be bought or sold in the open market
b) The cost of replacing a property with a similar one
c) The income generated by a property
d) The value of a property after deducting depreciation
Answer: a) The price at which a property can be bought or sold in the open market - Which of the following is a purpose of quantity takeoff in construction projects?
a) To estimate the project’s construction costs
b) To evaluate the project’s environmental impact
c) To assess the project’s compliance with specifications
d) To monitor and control project progress
Answer: a) To estimate the project’s construction costs - What is the purpose of a cost-benefit analysis in investment appraisal?
a) To assess the financial viability of the investment
b) To allocate resources and manage project budgets
c) To evaluate the project’s quality standards
d) To calculate the project’s net present value
Answer: a) To assess the financial viability of the investment - Which of the following is a characteristic of a provisional sum in construction contracts?
a) It is a fixed amount included in the contract sum
b) It covers the cost of known project risks
c) It is subject to adjustment based on actual costs incurred
d) It is paid separately from the contract sum
Answer: c) It is subject to adjustment based on actual costs incurred - What does the term “valuation date” refer to in property appraisal?
a) The date when the property was last appraised
b) The date when the property was first built
c) The date on which the valuation report is prepared
d) The date when the property will be sold
Answer: c) The date on which the valuation report is prepared - What is the purpose of a tender document in the procurement process?
a) To provide project specifications and requirements to potential bidders
b) To assess the financial stability of the bidders
c) To evaluate the technical capabilities of the bidders
d) To negotiate the contract terms with the preferred bidder
Answer: a) To provide project specifications and requirements to potential bidders - Which of the following is a component of a feasibility study in construction projects?
a) Market analysis
b) Cost estimation
c) Risk assessment
d) All of the above
Answer: d) All of the above - What does the term “earnings before interest, taxes, depreciation, and amortization” (EBITDA) refer to in financial analysis?
a) A measure of a company’s operating performance
b) The total revenue generated by a company
c) The net income of a company after taxes
d) The value of a company’s assets minus liabilities
Answer: a) A measure of a company’s operating performance - Which of the following is a characteristic of a cost consultant in quantity surveying?
a) Providing cost estimation and control services
b) Evaluating project risks and opportunities
c) Advising on procurement strategies
d) All of the above
Answer: d) All of the above - What is the purpose of a snagging list in construction projects?
a) To identify and document defects or incomplete works
b) To allocate resources and manage project timeframes
c) To assess the project’s compliance with specifications
d) To negotiate changes to the project scope
Answer: a) To identify and document defects or incomplete works - Which of the following is a characteristic of a cost database in quantity surveying?
a) It contains historical cost data for construction projects
b) It provides benchmarks for cost estimation purposes
c) It is used to track and monitor project costs
d) All of the above
Answer: d) All of the above - What does the term “green building” refer to in construction?
a) A sustainable and environmentally friendly building design and construction approach
b) A building with a green-colored exterior
c) A building made entirely of recycled materials
d) A building located in a green space or park
Answer: a) A sustainable and environmentally friendly building design and construction approach - Which of the following is a component of the risk management process in quantity surveying?
a) Risk identification
b) Risk analysis
c) Risk response planning
d) All of the above
Answer: d) All of the above - What is the purpose of a final account in construction projects?
a) To reconcile and document all project costs and payments
b) To evaluate the project’s compliance with specifications
c) To calculate the project’s net present value
d) To assess the project’s financial performance
Answer: a) To reconcile and document all project costs and payments - Which of the following is a characteristic of a feasibility study report?
a) It assesses the technical and economic viability of a project
b) It provides recommendations for project implementation
c) It includes a cost-benefit analysis of the project
d) All of the above
Answer: d) All of the above - What does the term “earned value analysis” refer to in project management?
a) A technique used to measure project performance and progress
b) The total cost incurred in completing a project
c) The revenue generated by a completed project
d) The amount of work completed in relation to the project budget
Answer: a) A technique used to measure project performance and progress - Which of the following is a purpose of life cycle costing in quantity surveying?
a) To evaluate the total cost of a building throughout its lifespan
b) To estimate the project’s construction costs
c) To assess the project’s compliance with specifications
d) To allocate resources and manage project budgets
Answer: a) To evaluate the total cost of a building throughout its lifespan - What is the purpose of a valuation report in property appraisal?
a) To provide an estimate of the property’s market value
b) To assess the property’s condition and potential risks
c) To evaluate the property’s income-generating potential
d) To negotiate the sale or purchase price of the property
Answer: a) To provide an estimate of the property’s market value - Which of the following is a characteristic of a cost plan in quantity surveying?
a) It provides an estimate of the project’s total cost
b) It breaks down the project cost into various cost categories
c) It is used to track and control project costs
d) All of the above
Answer: d) All of the above - What does the term “tender evaluation” refer to in the procurement process?
a) The process of reviewing and assessing submitted bids or proposals
b) The negotiation of contract terms with the preferred bidder
c) The assessment of the financial stability of potential bidders
d) The evaluation of the technical capabilities of potential bidders
Answer: a) The process of reviewing and assessing submitted bids or proposals - Which of the following is a component of the valuation process in property appraisal?
a) Market analysis
b) Property inspection
c) Comparable sales analysis
d) All of the above
Answer: d) All of the above - What is the purpose of a change order in construction contracts?
a) To document and authorize changes to the project scope
b) To assess the contractor’s performance
c) To negotiate the contract terms with the owner
d) To request additional time for project completion
Answer: a) To document and authorize changes to the project scope - Which of the following is a characteristic of a quantity surveyor?
a) Providing cost estimation and control services
b) Preparing bills of quantities
c) Evaluating project risks and opportunities
d) All of the above
Answer: d) All of the above - What does the term “net present value” (NPV) refer to in investment appraisal?
a) The difference between the present value of cash inflows and cash outflows
b) The total revenue generated by an investment project
c) The expected rate of return on the investment
d) The interest rate used to discount future cash flows
Answer: a) The difference between the present value of cash inflows and cash outflows - Which of the following is a purpose of cost control in construction projects?
a) To monitor and track project costs
b) To ensure that project costs are within the approved budget
c) To identify and address cost variances
d) All of the above
Answer: d) All of the above - What is the purpose of a schedule of rates in construction contracts?
a) To provide unit prices for various work items
b) To assess the project’s compliance with specifications
c) To negotiate changes to the project scope
d) To allocate resources and manage project budgets
Answer: a) To provide unit prices for various work items
