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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 types of information are provided in the Invitation to Bid?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Invitation to bid
Lump-Sum Estimate - Unit Price Estimate
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

2. Describe and provide examples of specific use equipment and general use equipment.
...
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.
Master Format and Uniformat
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

3. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
False
True
Erection
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

4. What is the maintenance bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions
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.
The Labor Hour

5. What unit of time is used to measure labor?
Change Order
The Labor Hour
Both extreme hot and cold will tend to slow down the pace of work.
The amount of work that can be done in an hour

6. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Liens
Change Order
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

7. Operation costs include...
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

8. Describe the composition of the Construction Cost Index (CCI).
Common labor and material portions
False
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False

9. Construction estimating is more an art than a science
Retainage
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

10. What are some of the costs that must be included in equipment operating costs?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Liquidated Damages
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

11. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
False
Instruction to bidders
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.

12. What is the performance bond?
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.
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Skilled labor and material portions

13. What are the two most common methods by which a contractor can acquire a construction contract?
Retainage
Direct Negotiation - Competitive Bidding
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

14. What is the payment bond?
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.
...
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.
As-built drawings

15. Explain firm price contracting estimates.
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.
Lump-Sum Estimate - Unit Price Estimate
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.

16. What is depreciation?
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
Bid
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.

17. What are the benefits of renting 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
Addenda
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 ability to procure the right piece of equipment for the job when the unit is needed

18. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Addenda
Contract Documents
Instruction to bidders
True

19. Describe the composition of the Building Cost Index (BCI).
Lavatory
Skilled labor and material portions
Change Order
A gross unit such as the number of hospital beds is used.

20. The substructure that supports a building or other structure.
Liquidated Damages
Bid Bond
Foundation
Common labor and material portions

21. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Skilled labor and material portions
Retainage

22. The assembly of components to form the completed portion of a job.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Master Format and Uniformat
Erection
Internal Factor - External Factor - Project Related-Factor

23. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Scheduling overtime for more than several weeks can result in huge productivity losses.
Invitation to bid
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

24. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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.
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.
Instruction to bidders
False

25. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Bid
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
False
Invitation to bid

26. 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.
Internal Factor - External Factor - Project Related-Factor
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

27. Name three common methods of procuring equipment.
Lump-Sum Estimate - Unit Price Estimate
The Labor Hour
Renting - Leasing - Buying
False

28. Operation costs include...
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
The ability to procure the right piece of equipment for the job when the unit is needed

29. 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
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Liquidated Damages

30. What is estimating in construction?
Bid Bond
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
False
Skilled labor and material portions

31. Assemblies Estimate...
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

32. Order of Magnitude Estimate...
True
Addenda
A gross unit such as the number of hospital beds is used.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

33. What unit of time is used to measure labor?
The Labor Hour
Internal Factor - External Factor - Project Related-Factor
Direct Negotiation - Competitive Bidding
Invitation to bid

34. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Instruction to bidders
Both extreme hot and cold will tend to slow down the pace of work.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

35. Where would information be found on whether a bid bond was required and - if so - its amount?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.
False
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

36. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
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.
...
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

37. What is the bid bond and how does it protect the owner?
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
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

38. What is the maintenance bond?
Bid Bond
Liens
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.
True

39. 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.
Addenda
Liquidated Damages
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

40. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
The amount of work that can be done in an hour
True
True
Punch List

41. What is the best source for productivity data?

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42. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
As-built drawings
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

43. List the factors affecting labor productivity
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

44. 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
Liquidated Damages
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
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.
Bid Bond

45. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Bid Bond
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False

46. Name the types of Estimates
Contract Documents
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Invitation to bid
Common labor and material portions

47. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
As-built drawings
Liquidated Damages
Addenda

48. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Joist
Lavatory

49. The location where material can be stored in relationship to the construction project affects productivity.
Both extreme hot and cold will tend to slow down the pace of work.
Erection
Foundation
True

50. What are some of the factors a contractor considers when making a decision to bid?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Internal Factor - External Factor - Project Related-Factor
Skilled labor and material portions
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.