Test your basic knowledge |

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. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
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
Bid Bond
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

2. A document stating the procedures to be followed by bidders.
The Labor Hour
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Instruction to bidders

3. Explain firm price contracting estimates.
True
Lump-Sum Estimate - Unit Price Estimate
Addenda
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

4. What are the advantages to a small contractor of renting equipment instead of owning?
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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
As-built drawings

5. What are the benefits of renting equipment?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The ability to procure the right piece of equipment for the job when the unit is needed
As-built drawings
Both extreme hot and cold will tend to slow down the pace of work.

6. Name three common methods of procuring equipment.
Bid Bond
Contract Documents
False
Renting - Leasing - Buying

7. What unit of time is used to measure labor?
Common labor and material portions
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. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
The Labor Hour

8. The assembly of components to form the completed portion of a job.
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Erection

9. Describe and provide examples of specific use equipment and general use equipment.
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
True
True

10. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Lump-Sum Estimate - Unit Price Estimate
...

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

12. Construction estimating is more an art than a science
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
The ability to procure the right piece of equipment for the job when the unit is needed
False
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

13. Name 10 step process to bid

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

14. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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 Labor Hour
True

15. Why do many contractors hesitate to bid just before the expiration of a union contract?
False
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.
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.

16. A good database of past project experiences is essential to preparing a quick and accurate 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
True
Renting - Leasing - Buying
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

17. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Internal Factor - External Factor - Project Related-Factor
Liens
Bid Bond
True

18. A bathroom sink
Both extreme hot and cold will tend to slow down the pace of work.
Lavatory
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The Labor Hour

19. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Lavatory
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.

20. A good database of past project experiences is essential to preparing a quick and accurate estimate.
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Punch List
True

21. Assemblies Estimate...
Liquidated Damages
Liens
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

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

23. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
True
Punch List
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Bid Bond

24. The location where material can be stored in relationship to the construction project affects productivity.
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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

25. The most reliable productivity rates come from historical data
True
Invitation to bid
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.

26. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Instruction to bidders
Change Order
Retainage
...

27. Where the project will be constructed does not have a major influence in the preparation of an estimate.
False
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

28. Explain why using overtime is not recommended for most construction projects.
A gross unit such as the number of hospital beds is used.
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

29. How does insurance differ from a surety bond?
Liquidated Damages
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.
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

30. Explain firm price contracting estimates.
Lump-Sum Estimate - Unit Price Estimate
True
Joist
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

31. 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 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.
False
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
...

32. What does the labor hour represent?
Renting - Leasing - Buying
Joist
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
The amount of work that can be done in an hour

33. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Bid
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Invitation to bid

34. 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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
The amount of work that can be done in an hour

35. What is the performance bond?
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
Foundation

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

37. 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 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.
False
Addenda

38. A document stating the procedures to be followed by bidders.
Instruction to bidders
Retainage
True
Liquidated Damages

39. How does insurance differ from a surety bond?
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
False
False
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.

40. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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

41. What is the maintenance bond?
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.
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 ability to procure the right piece of equipment for the job when the unit is needed

42. 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.
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.
Retainage
Addenda
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.

43. 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.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

44. Order of Magnitude Estimate...
True
Retainage
True
A gross unit such as the number of hospital beds is used.

45. Explain why using overtime is not recommended for most construction projects.
True
Foundation
Punch List
Scheduling overtime for more than several weeks can result in huge productivity losses.

46. What are some of the costs that must be included in equipment operating costs?
The Labor Hour
False
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

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

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

49. Name two systems that establish standards for the building design/construction estimating process.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Change Order
Master Format and Uniformat
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

50. List the factors affecting labor productivity
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False
Renting - Leasing - Buying
The ability to procure the right piece of equipment for the job when the unit is needed