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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. How are the various surety bonds that may be required on a specific project obtained?
Master Format and Uniformat
The amount of work that can be done in an hour
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.

2. Where the project will be constructed does not have a major influence in the preparation of an estimate.
The amount of work that can be done in an hour
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.
False
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.

3. The assembly of components to form the completed portion of a job.
Skilled labor and material portions
Erection
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

4. Explain firm price contracting estimates.
Both extreme hot and cold will tend to slow down the pace of work.
The ability to procure the right piece of equipment for the job when the unit is needed
Lump-Sum Estimate - Unit Price Estimate
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.

5. What does the labor hour represent?
The amount of work that can be done in an hour
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.
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. 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

6. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Master Format and Uniformat
Addenda
The ability to procure the right piece of equipment for the job when the unit is needed
Retainage

7. 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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8. Where would information be found on whether a bid bond was required and - if so - its amount?
Both extreme hot and cold will tend to slow down the pace of work.
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 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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

9. A bathroom sink
Lavatory
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Addenda
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.

10. What is depreciation?
Bid Bond
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Liquidated Damages
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.

11. Assemblies Estimate...
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.
True
As-built drawings
Skilled labor and material portions

12. 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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Direct Negotiation - Competitive Bidding
...
Master Format and Uniformat

13. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
Instruction to bidders
Contract Documents

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

15. The assembly of components to form the completed portion of a job.
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Erection
True

16. 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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Erection
Bid

17. Describe the composition of the Construction Cost Index (CCI).
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.
Lump-Sum Estimate - Unit Price Estimate
Common labor and material portions
Instruction to bidders

18. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
...
Lavatory
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

19. 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.
True
True
Common labor and material portions
Addenda

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

21. What unit of time is used to measure labor?
The Labor Hour
True
True
True

22. The location where material can be stored in relationship to the construction project affects productivity.
Lavatory
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True

23. What is the payment bond?
True
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.
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.
Direct Negotiation - Competitive Bidding

24. Describe the CSI MasterFormat and how it is used.
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.
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

25. Name three common methods of procuring 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.
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Renting - Leasing - Buying

26. What is the performance bond?
Addenda
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.
False

27. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Foundation
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Skilled labor and material portions

28. What are the two most common methods by which a contractor can acquire a construction contract?
Change Order
Master Format and Uniformat
Direct Negotiation - Competitive Bidding
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. Describe factors affecting the accuracy of detail cost estimating.
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

30. Describe the composition of the Building Cost Index (BCI).
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Retainage
Skilled 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.

31. On certain projects the owner may accept proposals only from contractors who are invited 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
Invitation to bid
Lump-Sum Estimate - Unit Price Estimate
True

32. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
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
Change Order
Lump-Sum Estimate - Unit Price Estimate

33. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar 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.
True
True

34. Under what conditions are wage premiums applied
Master Format and Uniformat
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
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

35. The most reliable productivity rates come from historical data
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

36. 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
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
Liquidated Damages
Invitation 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

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

38. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Instruction to bidders

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

40. What are some of the costs that must be included in equipment operating costs?
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
Retainage
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Scheduling overtime for more than several weeks can result in huge productivity losses.

41. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Joist
False
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

42. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Bid Bond
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.
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.

43. Describe the composition of the Construction Cost Index (CCI).
Change Order
Common labor and material portions
Instruction to bidders
Punch List

44. The most reliable productivity rates come from historical data
Master Format and Uniformat
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
True

45. Name the types of Estimates
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.
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed 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

46. What are some of the factors a contractor considers when making a decision to bid?
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
Both extreme hot and cold will tend to slow down the pace of work.
Retainage
Internal Factor - External Factor - Project Related-Factor

47. A good database of past project experiences is essential to preparing a quick and accurate 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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True
Bid

48. Order of Magnitude Estimate...
Bid
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Both extreme hot and cold will tend to slow down the pace of work.
A gross unit such as the number of hospital beds is used.

49. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
True
The Labor Hour
Contract Documents
Master Format and Uniformat

50. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Addenda
Retainage
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor