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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
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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. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

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2. Name two systems that establish standards for the building design/construction estimating process.
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
Common labor and material portions
False
Master Format and Uniformat

3. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Bid
True
Scheduling overtime for more than several weeks can result in huge productivity losses.
Renting - Leasing - Buying

4. Name two systems that establish standards for the building design/construction estimating process.
Skilled labor and material portions
Master Format and Uniformat
Liquidated Damages
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

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

6. Explain firm price contracting estimates.
Lump-Sum Estimate - Unit Price Estimate
Direct Negotiation - Competitive Bidding
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.
True

7. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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 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.

8. What are the two most common methods by which a contractor can acquire a construction contract?
True
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
Direct Negotiation - Competitive Bidding
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

9. What is depreciation?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Liquidated Damages
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Foundation

10. Describe and provide examples of specific use equipment and general use equipment.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Bid Bond
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

11. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

12. How do climatic conditions influence the amount of work actually completed in an hour?
Both extreme hot and cold will tend to slow down the pace of work.
Contract Documents
Joist
Foundation

13. Describe the CSI MasterFormat and how it is used.
Liquidated Damages
The ability to procure the right piece of equipment for the job when the unit is needed
Erection
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.

14. What are the advantages to a small contractor of renting equipment instead of owning?
Liquidated Damages
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.
True
False

15. The substructure that supports a building or other structure.
Foundation
Direct Negotiation - Competitive Bidding
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.
Lavatory

16. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Direct Negotiation - Competitive Bidding
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.
Invitation to bid

17. 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
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.
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

18. 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 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 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

19. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
Foundation
Lump-Sum Estimate - Unit Price Estimate
Internal Factor - External Factor - Project Related-Factor

20. What is the performance bond?
Change Order
The ability to procure the right piece of equipment for the job when the unit is needed
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.
A gross unit such as the number of hospital beds is used.

21. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Invitation to bid
A gross unit such as the number of hospital beds is used.

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

23. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Skilled labor and material portions
Common labor and material portions
Punch List
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

24. 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.
True
True
Change Order
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.

25. 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
Instruction to bidders
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
Joist

26. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Internal Factor - External Factor - Project Related-Factor
True

27. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Joist
True
Direct Negotiation - Competitive Bidding
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.

28. Why do many contractors hesitate to bid just before the expiration of a union contract?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
True
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.

29. List the factors affecting labor productivity
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False
True

30. The assembly of components to form the completed portion of a job.
Change Order
Erection
Joist
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

31. The substructure that supports a building or other structure.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Foundation
True
Bid

32. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
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
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

33. How does insurance differ from a surety bond?
Instruction to bidders
True
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.
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.

34. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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.
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.
False
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

35. What unit of time is used to measure labor?
Instruction to bidders
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

36. The location where material can be stored in relationship to the construction project affects productivity.
Change Order
Foundation
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

37. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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
False
Erection
Direct Negotiation - Competitive Bidding

38. What are some of the costs that must be included in equipment operating costs?
Scheduling overtime for more than several weeks can result in huge productivity losses.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

39. Explain why using overtime is not recommended for most construction projects.
Liquidated Damages
The Labor Hour
Invitation to bid
Scheduling overtime for more than several weeks can result in huge productivity losses.

40. Assemblies 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
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 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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.

41. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Retainage
Change Order
Internal Factor - External Factor - Project Related-Factor

42. 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
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
True
Liens

43. On certain projects the owner may accept proposals only from contractors who are invited 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
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

44. What are the benefits of renting equipment?
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 ability to procure the right piece of equipment for the job when the unit is needed
Punch List
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

45. Assemblies Estimate...
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.

46. Describe and provide examples of specific use equipment and general use equipment.
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.
Direct Negotiation - Competitive Bidding
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Liquidated Damages

47. Under what conditions are wage premiums applied
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
True
Renting - Leasing - Buying
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

48. 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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
True
True

49. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Joist
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Retainage

50. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Punch List
Master Format and Uniformat
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.