Certified Residential Appraiser Practice Exam

Which method uses the quantities of raw materials to estimate the cost of construction?

1. Unit-in-place method

2. Quantity survey method

3. Comparative unit method

4. Index method

The correct answer is: Quantity survey method

The quantity survey method is a detailed approach to estimating the cost of construction, focusing on the quantities of raw materials required for a project. This method involves a comprehensive analysis of the project's elements, breaking it down into individual components and assessing the quantity and cost of each material needed. It allows for a precise estimation of total construction costs by accounting for specific requirements, labor, and overhead. This method is particularly useful for complex projects where individual material specifications are critical to the overall cost assessment. By relying on a detailed survey of quantities, it helps in creating a more accurate and reliable budget compared to other methods that may use broader estimations or averaged values. The other methods listed, while useful in their own contexts, do not primarily focus on raw material quantities for cost estimation. The unit-in-place approach tallies costs based on completed work items; the comparative unit method uses established unit costs for similar properties; and the index method adjusts costs based on price indices without necessarily detailing material quantities. Each of these approaches has its strengths but lacks the specificity of the quantity survey method concerning raw materials.