Estimating Practice Exam

Are most general expense items explicitly listed in the project specifications?

1. Yes

2. No

3. Only for large projects

4. Only for government projects

The correct answer is: No

Most general expense items are not explicitly listed in the project specifications because project specifications tend to focus on specific materials, methods, and requirements necessary for executing the project. General expenses, such as overhead and indirect costs, are usually estimated rather than detailed in specifications. They are often derived from calculations based on project conditions, overhead rates, or company policies rather than being line items included in the formal documentation. This approach allows for flexibility in managing expenses that may vary significantly depending on the project size and complexity, rather than detailing every possible expense in the specifications. As a result, these expenses are typically incorporated into the overall cost estimates submitted by contractors rather than provided in the project documentation itself.