# Step-by-Step Solutions --- ## 1. Insurance for Vandalized Project Trailer **Question:** If a project trailer is vandalized, which of the following type of insurance would cover the claim? ### Choices: - a. errors and omissions - b. builder’s risk - c. general liability - d. property insurance - e. None of these ### **Explanation:** - **Errors and omissions:** Covers professional mistakes, not physical property damage. - **Builder’s risk:** Covers buildings under construction, not equipment/trailers not being built. - **General liability:** Covers injury or damage to others, not your own property. - **Property insurance:** Covers damage to owned property, including vandalism. ### **Final Answer:** **d. property insurance** --- ## 2. Cost Code Structure **Question:** Which of the following statements is true about a company's cost code structure? ### Choices: - a. Organized alphabetically by item description - b. Organized by sequence of installation - c. Often organized by CSI division with adaptations - d. Completely unique to each company - e. None of these ### **Explanation:** - Most companies use the **CSI (Construction Specifications Institute) division** as a base and adapt it to their needs. ### **Final Answer:** **c. often organized by CSI division with adaptations by individual companies** --- ## 3. Best Contract Type When Scope is Defined but Quantities Are Not **Question:** Which of the following contract types is best used if the scope is well defined but not the quantities of material? ### Choices: - a. lump sum - b. unit price - c. cost plus - d. cost plus with GMP - e. None of these ### **Explanation:** - **Unit price** contracts are best when the type of work is known but exact quantities are not. ### **Final Answer:** **b. unit price** --- ## 4. Historic Cost Index Calculation ### **Given Table:** | Year | Amman | Irbid | Karak | Tafila | |------|-------|-------|-------|--------| | 2015 | 47. | 41. | 39.5 | 41. | | 2012 | 41. | 36. | 34.5 | 34.5 | ### **Question:** How much would a house that costs 500,000 JD in Karak in 2015 cost in 2012 if built in Tafila? ### **Step-by-Step Solution:** - **Step 1:** Find the cost index for Karak in 2015: **39.5** - **Step 2:** Find the cost index for Tafila in 2012: **34.5** - **Step 3:** Use the formula: \[ \text{Cost in 2012 Tafila} = \text{Cost in 2015 Karak} \times \left( \frac{\text{Index in 2012 Tafila}}{\text{Index in 2015 Karak}} \right) \] \[ \text{Cost in 2012 Tafila} = 500,000 \times \left( \frac{34.5}{39.5} \right) \] \[ = 500,000 \times .8734 = 436,684.81 \] - **Step 4:** Match to the closest choice: **367,155 JD**, **628,947 JD**, **680,912 JD**, **889,685 JD**, **None of these** ### **Final Answer:** **e. None of these** --- ## **Summary Table** | # | Question Topic | Final Answer | |---|-----------------------------|---------------------------------------------------| | 1 | Vandalized trailer insurance| **d. property insurance** | | 2 | Cost code structure | **c. often organized by CSI division...** | | 3 | Contract type | **b. unit price** | | 4 | Historic cost index | **e. None of these** |