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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. How do climatic conditions influence the amount of work actually completed in an hour?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Both extreme hot and cold will tend to slow down the pace of work.
The payment bond (labor and material bond) guarantees the payment of all bills incurred by the contractor for labor and materials incurred or supplied on the project.
The amount of work that can be done in an hour

2. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period.Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.
True
As-built drawings
Direct Negotiation - Competitive Bidding

3. Statements or drawings that modify the basic contract documents after the latter have been issued to the bidders - but prior to the taking of bids.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
The Labor Hour
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Addenda

4. List the factors affecting labor productivity
1. Better understanding of the work to be subcontracted -2. Establishment of fair cost estimate for evaluating subcontractor's bid - 3. Checking of a subcontractor's scope of work - and4. Determination of time duration that can be assigned to a sub
There may be hesitation to bid a project just before the expiration of a union agreement due to the uncertainty of the outcomes of the negotiations. There is the possibility of a strike or dramatic increases in the prevailing wage rate.
The ability to procure the right piece of equipment for the job when the unit is needed
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

5. A common error made by GCs in their dealings with subcontractors is to hand them a single technical specifications section relating to their trade - without copies of either the General Requirements or the General and Supplementary General Conditions
Skilled labor and material portions
False
...
Both extreme hot and cold will tend to slow down the pace of work.

6. What are the advantages to a small contractor of renting equipment instead of owning?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
1. The contractor can get the most suitable piece of equipment.2. The equipment is most likely newer and in a better state of repair.3. The rental company handles maintenance.4. The contractor does not tie up their capital.
Skilled labor and material portions
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

7. An agreed-to sum chargeable against the contractor as reimbursement for damages suffered by the owner because of contractor's failure to fulfill contractual obligations
The Labor Hour
Liquidated Damages
Direct Negotiation - Competitive Bidding
Foundation

8. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Scheduling overtime for more than several weeks can result in huge productivity losses.
The ability to procure the right piece of equipment for the job when the unit is needed
The bid bond ensures that if a contractor is awarded the bid with the time specified - the contractor will enter into the contract and provide all other specified bonds.If the contractor fails to do so without justification -the bond shall be forfeit
Contract Documents

9. A document stating the procedures to be followed by bidders.
Instruction to bidders
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Surety bonds can only be obtained through companies who specialize in issuing surety bonds. The contractor will have to request the surety company to provide the bonds.
The ability to procure the right piece of equipment for the job when the unit is needed

10. The substructure that supports a building or other structure.
The amount of work that can be done in an hour
Foundation
Change Order
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

11. Where would information be found on whether a bid bond was required and - if so - its amount?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
1. The contractor can get the most suitable piece of equipment.2. The equipment is most likely newer and in a better state of repair.3. The rental company handles maintenance.4. The contractor does not tie up their capital.

12. The most reliable productivity rates come from historical data
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
True
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Master Format and Uniformat

13. Explain firm price contracting estimates.
Lump-Sum Estimate - Unit Price Estimate
The Labor Hour
Direct Negotiation - Competitive Bidding
Liens

14. Explain why using overtime is not recommended for most construction projects.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Scheduling overtime for more than several weeks can result in huge productivity losses.
True

15. What is depreciation?
False
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Contract Documents

16. Construction estimating is more an art than a science
Instruction to bidders
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Generally - the advertisement describes the location - extent - and nature of the work. It will designate the authority under which the project originated. Concerning the bid - it will give the place where bidding documents are available and list the

17. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Addenda
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Generally - the advertisement describes the location - extent - and nature of the work. It will designate the authority under which the project originated. Concerning the bid - it will give the place where bidding documents are available and list the
Joist

18. What is estimating in construction?
True
Liens
Renting - Leasing - Buying
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

19. Describe and provide examples of specific use equipment and general use equipment.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Bid Bond

20. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
The CSI format is a numbering system which divides the major areas involved in the construction project into 50 divisions (0 to 49). The format allows the contractor to develop a tracking system for all types of information.
Retainage
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
True

21. The assembly of components to form the completed portion of a job.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Both extreme hot and cold will tend to slow down the pace of work.
Erection
A gross unit such as the number of hospital beds is used.

22. What is the maintenance bond?
Both extreme hot and cold will tend to slow down the pace of work.
The maintenance bond guarantees the owner that the GC agrees to correct all defects of workmanship and materials for a specified period (one to three years) following occupancy by the owner.
Joist
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

23. What is the bid bond and how does it protect the owner?
Lump-Sum Estimate - Unit Price Estimate
The bid bond ensures that if a contractor is awarded the bid with the time specified - the contractor will enter into the contract and provide all other specified bonds.If the contractor fails to do so without justification -the bond shall be forfeit
Punch List
Bid

24. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period.Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.
False
Surety bonds can only be obtained through companies who specialize in issuing surety bonds. The contractor will have to request the surety company to provide the bonds.
With insurance an insurance company assumes the financial liability fora specified loss.The surety guarantees the performance of a contractor.The surety company will try to recover any losses from the contractor.

25. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
There may be hesitation to bid a project just before the expiration of a union agreement due to the uncertainty of the outcomes of the negotiations. There is the possibility of a strike or dramatic increases in the prevailing wage rate.
The performance bond guarantees the owner that - within limits - the contractor will perform all work in accordance with the contract documents - and thatthe owner will receive the project built in substantialagreement with the documents.
There may be hesitation to bid a project just before the expiration of a union agreement due to the uncertainty of the outcomes of the negotiations. There is the possibility of a strike or dramatic increases in the prevailing wage rate.
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period.Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.

26. Where would information be found on whether a bid bond was required and - if so - its amount?
Change Order
The amount of work that can be done in an hour
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

27. The assembly of components to form the completed portion of a job.
The ability to procure the right piece of equipment for the job when the unit is needed
Finding and bidding the type of work that's appropriate for your company - Making accurate cost estimates - Using pricing strategies that reduces your risk of loss - Anticipating the bids of your competition - Tracking overhead so you know the actual
...
Erection

28. Describe factors affecting the accuracy of detail cost estimating.
Renting - Leasing - Buying
The payment bond (labor and material bond) guarantees the payment of all bills incurred by the contractor for labor and materials incurred or supplied on the project.
Punch List
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

29. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
True
Surety bonds can only be obtained through companies who specialize in issuing surety bonds. The contractor will have to request the surety company to provide the bonds.
True

30. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
The amount of work that can be done in an hour
Foundation
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
True

31. How does insurance differ from a surety bond?
Joist
With insurance an insurance company assumes the financial liability fora specified loss.The surety guarantees the performance of a contractor.The surety company will try to recover any losses from the contractor.
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period.Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.
...

32. What are the benefits of renting equipment?
Direct Negotiation - Competitive Bidding
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The ability to procure the right piece of equipment for the job when the unit is needed
Retainage

33. What is the best source for productivity data?

34. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
True
Instruction to bidders
False

35. Name the types of Estimates
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Retainage
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

36. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
The performance bond guarantees the owner that - within limits - the contractor will perform all work in accordance with the contract documents - and thatthe owner will receive the project built in substantialagreement with the documents.

37. What are some of the factors a contractor considers when making a decision to bid?
Foundation
The estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
Internal Factor - External Factor - Project Related-Factor
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

38. What does the labor hour represent?
The amount of work that can be done in an hour
Lump-Sum Estimate - Unit Price Estimate
True
Invitation to bid

39. A document stating the procedures to be followed by bidders.
Bid
Master Format and Uniformat
Instruction to bidders
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

40. Describe the composition of the Building Cost Index (BCI).
There may be hesitation to bid a project just before the expiration of a union agreement due to the uncertainty of the outcomes of the negotiations. There is the possibility of a strike or dramatic increases in the prevailing wage rate.
Skilled labor and material portions
Both extreme hot and cold will tend to slow down the pace of work.
Scheduling overtime for more than several weeks can result in huge productivity losses.

41. A bathroom sink
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Liens
Lavatory
The Labor Hour

42. How are the various surety bonds that may be required on a specific project obtained?
Instruction to bidders
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Master Format and Uniformat
Surety bonds can only be obtained through companies who specialize in issuing surety bonds. The contractor will have to request the surety company to provide the bonds.

43. What is depreciation?
True
A gross unit such as the number of hospital beds is used.
The bid bond ensures that if a contractor is awarded the bid with the time specified - the contractor will enter into the contract and provide all other specified bonds.If the contractor fails to do so without justification -the bond shall be forfeit
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

44. Construction estimating is more an art than a science
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Erection
Liens
Scheduling overtime for more than several weeks can result in huge productivity losses.

45. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Lavatory
Finding and bidding the type of work that's appropriate for your company - Making accurate cost estimates - Using pricing strategies that reduces your risk of loss - Anticipating the bids of your competition - Tracking overhead so you know the actual

46. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Bid
Liquidated Damages
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True

47. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Finding and bidding the type of work that's appropriate for your company - Making accurate cost estimates - Using pricing strategies that reduces your risk of loss - Anticipating the bids of your competition - Tracking overhead so you know the actual
The CSI format is a numbering system which divides the major areas involved in the construction project into 50 divisions (0 to 49). The format allows the contractor to develop a tracking system for all types of information.
Lump-Sum Estimate - Unit Price Estimate

48. Explain firm price contracting estimates.
Common labor and material portions
Lump-Sum Estimate - Unit Price Estimate
The bid bond ensures that if a contractor is awarded the bid with the time specified - the contractor will enter into the contract and provide all other specified bonds.If the contractor fails to do so without justification -the bond shall be forfeit
As-built drawings

49. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Liens
Internal Factor - External Factor - Project Related-Factor
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

50. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Common labor and material portions
True
Direct Negotiation - Competitive Bidding