DPA Appraisal Fundamentals Practice Test 2025 – Complete Exam Prep

The method characterized by lump sum costs for both horizontal and vertical construction is known as Unit-In-Place. This approach entails calculating the total cost of constructing a complete unit or section, which includes all necessary horizontal and vertical elements. By aggregating the costs for the individual components into a single lump sum, it simplifies the process of budgeting and planning for construction projects.

Unit-In-Place recognizes the expenses associated with on-site labor, materials, and any subcontracted work, allowing appraisers and builders to assess total project costs effectively. This method is particularly useful for large-scale construction projects where detailed breakdowns of every small component might be impractical or unnecessary.

In contrast, the other methods would handle costs differently. For instance, Quantity Survey typically involves a more detailed itemization of materials and labor rather than lump sum figures. Comparative Unit draws comparisons based on standard cost figures for similar works, while Trended Original Cost adjusts past costs for inflation and other economic changes but does not centralize costs in a lump sum format.