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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. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
Foundation
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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

2. Under what conditions are wage premiums applied
True
Contract Documents
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A gross unit such as the number of hospital beds is used.

3. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
Bid 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.
Master Format and Uniformat

4. What types of information are provided in the Invitation to Bid?
Bid
Common labor and material portions
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

5. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Both extreme hot and cold will tend to slow down the pace of work.
False
Contract 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

6. Operation costs include...
False
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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

7. What are the advantages to a small contractor of renting equipment instead of owning?
Contract Documents
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.
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.
Bid

8. 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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9. Describe factors affecting the accuracy of detail cost estimating.
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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 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

10. What are some of the costs that must be included in equipment operating costs?
Punch List
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
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.

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

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

13. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
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.
Both extreme hot and cold will tend to slow down the pace of work.
Contract Documents
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.

14. The assembly of components to form the completed portion of a job.
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Bid Bond
Erection

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

16. Why do many contractors hesitate to bid just before the expiration of a union 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
A gross unit such as the number of hospital beds is used.
True

17. What is the bid bond and how does it protect the owner?
Joist
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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

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

19. Describe factors affecting the accuracy of detail cost estimating.
Skilled labor and material portions
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Lump-Sum Estimate - Unit Price Estimate
Retainage

20. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
The amount of work that can be done in an hour
The Labor Hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

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

22. Under what conditions are wage premiums applied
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Overtime work - shift work - hazardous work conditions - or unusually strenuous 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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

23. 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
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.
Liquidated Damages
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

24. How are the various surety bonds that may be required on a specific project obtained?
Contract Documents
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.
Lavatory
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.

25. Construction estimating is more an art than a science
Lavatory
Both extreme hot and cold will tend to slow down the pace of work.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.

26. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
A gross unit such as the number of hospital beds is used.
Liens
A gross unit such as the number of hospital beds is used.

27. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
False
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Punch List
...

28. 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
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
A gross unit such as the number of hospital beds is used.

29. Name 10 step process to bid

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30. What unit of time is used to measure labor?
Direct Negotiation - Competitive Bidding
True
The Labor Hour
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.

31. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Skilled labor and material portions
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

32. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Erection
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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

33. Where would information be found on whether a bid bond was required and - if so - its amount?
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 ability to procure the right piece of equipment for the job when the unit is needed
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

34. 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
The amount of work that can be done in an hour
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.
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.
...

35. Construction estimating is more an art than a science
Internal Factor - External Factor - Project Related-Factor
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.
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

36. Describe the CSI MasterFormat and how it is used.
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 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
Both extreme hot and cold will tend to slow down the pace of work.
Punch List

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

38. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Liquidated Damages
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
A gross unit such as the number of hospital beds is used.

39. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Bid Bond
True

40. 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.
Master Format and Uniformat
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed 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.

41. 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
Direct Negotiation - Competitive Bidding
Contract Documents
False

42. What is depreciation?
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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

43. Explain why using overtime is not recommended for most construction projects.
True
Scheduling overtime for more than several weeks can result in huge productivity losses.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

44. 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
False
Instruction to bidders
...
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.

45. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Liquidated Damages
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
False

46. Five basic skills everyone should master

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47. Explain firm price contracting estimates.
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 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
Lump-Sum Estimate - Unit Price Estimate
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

48. Describe the composition of the Construction Cost Index (CCI).
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Common labor and material portions
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

49. Describe the composition of the Building Cost Index (BCI).
Joist
True
Skilled labor and material portions
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

50. The substructure that supports a building or other structure.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
Retainage
Foundation