Oregon Construction Contractors (CCB) Practice Test

In square-foot estimating, what does the unit cost represent?

1. Profit margin

2. The total project cost

3. The cost per square foot

4. The average market price

The correct answer is: The cost per square foot

In square-foot estimating, the unit cost specifically refers to the cost per square foot of construction. This metric is used to provide a straightforward and quick way of estimating the total construction costs based on the size of the project. By determining the cost associated with each individual square foot, contractors can easily multiply that number by the total square footage to arrive at an estimated total cost for the project. This method is particularly useful for projects where the design and build specifications are relatively uniform, allowing for efficient calculations and budgeting. It provides a clear and understandable basis for estimating and helps stakeholders get a handle on potential expenses right from the start. Understanding this concept is crucial for contractors and project managers as they plan and budget their construction projects, ensuring they remain within financial constraints.