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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. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
True
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
Bid Bond

2. 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
...
Liens
Renting - Leasing - Buying
A gross unit such as the number of hospital beds is used.

3. Describe and provide examples of specific use equipment and general use equipment.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
1. Review scope 2. Quantity takeoff 3. Price materials 4. Price labor 5. Price equipment 6. Obtain specialty contractor's bid 7. Obtain supplier's bid 8. Calculate taxes - bonds - insurance - and overhead 9. Contingency 10. Profit
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
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.

4. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Instruction to bidders
Renting - Leasing - Buying
Retainage
Internal Factor - External Factor - Project Related-Factor

5. What is the bid bond and how does it protect the owner?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Liquidated Damages
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 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.

6. The most reliable productivity rates come from historical data
Skilled labor and material portions
True
Joist
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

7. Assemblies Estimate...
Lump-Sum Estimate - Unit Price Estimate
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Invitation to bid

8. What are the benefits of renting equipment?
Contract Documents
The ability to procure the right piece of equipment for the job when the unit is needed
As-built drawings
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.

9. The most reliable productivity rates come from historical data
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.
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.
Master Format and Uniformat

10. What is the payment bond?
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
Lump-Sum Estimate - Unit Price Estimate
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.
True

11. Order of Magnitude Estimate...
1. Review scope 2. Quantity takeoff 3. Price materials 4. Price labor 5. Price equipment 6. Obtain specialty contractor's bid 7. Obtain supplier's bid 8. Calculate taxes - bonds - insurance - and overhead 9. Contingency 10. Profit
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.
A gross unit such as the number of hospital beds is used.
Punch List

12. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Erection
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
False
Addenda

13. 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
...
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Internal Factor - External Factor - Project Related-Factor
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

14. A work order - usually prepared by the architect and signed by the owner or the owner's agent - authorizing a change in the scope of the work and a change in the cost of the project.
Change Order
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
False
A gross unit such as the number of hospital beds is used.

15. The assembly of components to form the completed portion of a job.
A gross unit such as the number of hospital beds is used.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Erection
False

16. Name three common methods of procuring equipment.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Renting - Leasing - Buying
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 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

17. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Punch List
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.
Both extreme hot and cold will tend to slow down the pace of work.

18. What are the two most common methods by which a contractor can acquire a construction contract?
Contract Documents
Direct Negotiation - Competitive Bidding
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Internal Factor - External Factor - Project Related-Factor

19. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
The ability to procure the right piece of equipment for the job when the unit is needed
False
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Internal Factor - External Factor - Project Related-Factor

20. Describe the composition of the Construction Cost Index (CCI).
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Common labor and material portions
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.
Lavatory

21. Describe factors affecting the accuracy of detail cost estimating.
Both extreme hot and cold will tend to slow down the pace of work.
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.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

22. Describe the composition of the Building Cost Index (BCI).
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True
Skilled labor and material portions
Joist

23. The assembly of components to form the completed portion of a job.
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.
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.
Erection
Common labor and material portions

24. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Punch List
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.
Renting - Leasing - Buying
Both extreme hot and cold will tend to slow down the pace of work.

25. What is estimating in construction?
Both extreme hot and cold will tend to slow down the pace of work.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Instruction to bidders
The Labor Hour

26. Why do many contractors hesitate to bid just before the expiration of a union contract?
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
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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

27. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

28. Name 10 step process to bid

29. 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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Erection

30. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
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
True
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.

31. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Lavatory

32. Operation costs include...
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.
Skilled labor and material portions
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

33. What are some of the costs that must be included in equipment operating costs?
True
Invitation to bid
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

34. What is the performance bond?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Scheduling overtime for more than several weeks can result in huge productivity losses.
A gross unit such as the number of hospital beds is used.
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.

35. What are the benefits of renting equipment?
A gross unit such as the number of hospital beds is used.
The ability to procure the right piece of equipment for the job when the unit is needed
True
The amount of work that can be done in an hour

36. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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.
1. Review scope 2. Quantity takeoff 3. Price materials 4. Price labor 5. Price equipment 6. Obtain specialty contractor's bid 7. Obtain supplier's bid 8. Calculate taxes - bonds - insurance - and overhead 9. Contingency 10. Profit
Bid Bond
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.

37. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Joist
Internal Factor - External Factor - Project Related-Factor
Liens
Retainage

38. Name 10 step process to bid

39. What is depreciation?
True
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Scheduling overtime for more than several weeks can result in huge productivity losses.
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

40. Explain firm price contracting estimates.
Lump-Sum Estimate - Unit Price Estimate
Bid
The Labor Hour
True

41. How do climatic conditions influence the amount of work actually completed in an hour?
Liens
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.
Invitation to bid
Both extreme hot and cold will tend to slow down the pace of work.

42. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
1. Review scope 2. Quantity takeoff 3. Price materials 4. Price labor 5. Price equipment 6. Obtain specialty contractor's bid 7. Obtain supplier's bid 8. Calculate taxes - bonds - insurance - and overhead 9. Contingency 10. Profit
...
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.

43. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Foundation
True
...
Internal Factor - External Factor - Project Related-Factor

44. How are the various surety bonds that may be required on a specific project obtained?
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.
False
False
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.

45. 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 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.
Liquidated Damages
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 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

46. A document stating the procedures to be followed by bidders.
1. Review scope 2. Quantity takeoff 3. Price materials 4. Price labor 5. Price equipment 6. Obtain specialty contractor's bid 7. Obtain supplier's bid 8. Calculate taxes - bonds - insurance - and overhead 9. Contingency 10. Profit
Erection
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.
Instruction to bidders

47. Five basic skills everyone should master

48. What types of information are provided in the Invitation to Bid?
The ability to procure the right piece of equipment for the job when the unit is needed
Liens
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
Contract Documents

49. What unit of time is used to measure labor?
The amount of work that can be done in an hour
The Labor Hour
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.

50. What is the best source for productivity data?