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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 does the labor hour represent?
Internal Factor - External Factor - Project Related-Factor
The amount of work that can be done in an hour
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.

2. Assemblies Estimate...
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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
Bid
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.

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

4. Explain why using overtime is not recommended for most construction projects.
As-built drawings
False
Renting - Leasing - Buying
Scheduling overtime for more than several weeks can result in huge productivity losses.

5. What is the maintenance bond?
A gross unit such as the number of hospital beds is used.
True
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.
As-built drawings

6. Order of Magnitude Estimate...
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
A gross unit such as the number of hospital beds is used.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

7. 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.
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
Master Format and Uniformat

8. What is the maintenance bond?
Lavatory
Liquidated Damages
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 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.

9. What are the benefits of renting equipment?
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
The Labor Hour
Renting - Leasing - Buying

10. List the factors affecting labor productivity
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Bid Bond
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

11. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Common labor and material portions
Direct Negotiation - Competitive Bidding
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

12. 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
Liens
Retainage
The ability to procure the right piece of equipment for the job when the unit is needed

13. The most reliable productivity rates come from historical data
True
Addenda
Scheduling overtime for more than several weeks can result in huge productivity losses.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

14. What is the payment bond?
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.
Renting - Leasing - Buying
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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

15. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Contract Documents
Bid Bond
Invitation to bid
False

16. The location where material can be stored in relationship to the construction project affects productivity.
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

17. What is depreciation?
Lavatory
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.
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

18. Why do many contractors hesitate to bid just before the expiration of a union contract?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Punch List

19. What are some of the factors a contractor considers when making a decision to bid?
Bid
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Lump-Sum Estimate - Unit Price Estimate
Internal Factor - External Factor - Project Related-Factor

20. What is the performance bond?
Bid Bond
False
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.
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

21. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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.
Master Format and Uniformat
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Invitation to bid

22. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
False
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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

23. Name 10 step process to bid

24. Operation costs include...
Direct Negotiation - Competitive Bidding
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
True

25. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Addenda
Bid 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.
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.

26. 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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid Bond
Change Order
Scheduling overtime for more than several weeks can result in huge productivity losses.

27. On certain projects the owner may accept proposals only from contractors who are invited to bid.
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.
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
Punch List

28. The substructure that supports a building or other structure.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a 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
Foundation

29. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Liens
Bid Bond
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

30. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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
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.
Joist
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.

31. A good database of past project experiences is essential to preparing a quick and accurate 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
True
Both extreme hot and cold will tend to slow down the pace of 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

32. How do climatic conditions influence the amount of work actually completed in an hour?
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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
Both extreme hot and cold will tend to slow down the pace of work.

33. Describe the composition of the Building Cost Index (BCI).
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
Skilled labor and material portions

34. Name 10 step process to bid

35. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Change Order

36. 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
Scheduling overtime for more than several weeks can result in huge productivity losses.
...
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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

37. A bathroom sink
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Lavatory
Instruction to bidders
Liquidated Damages

38. What are the benefits of renting 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.
The ability to procure the right piece of equipment for the job when the unit is needed
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

39. What is depreciation?
False
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
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.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

40. The substructure that supports a building or other structure.
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.
Foundation
True
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

41. What unit of time is used to measure labor?
The ability to procure the right piece of equipment for the job when the unit is needed
The Labor Hour
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.

42. Describe factors affecting the accuracy of detail cost estimating.
Direct Negotiation - Competitive Bidding
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
False
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

43. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
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 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.
Punch List
Invitation to bid

44. A document stating the procedures to be followed by bidders.
Bid Bond
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
Instruction to bidders
True

45. Order of Magnitude Estimate...
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.
Addenda
Lavatory
A gross unit such as the number of hospital beds is used.

46. What is the bid bond and how does it protect the owner?
Punch List
The Labor Hour
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.
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

47. Five basic skills everyone should master

48. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
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.

49. Describe factors affecting the accuracy of detail cost estimating.
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

50. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Change Order
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 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.