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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. How are the various surety bonds that may be required on a specific project obtained?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Scheduling overtime for more than several weeks can result in huge productivity losses.

2. 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
The amount of work that can be done in an hour
Invitation to bid

3. Describe factors affecting the accuracy of detail cost estimating.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

4. Order of Magnitude 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
True
A gross unit such as the number of hospital beds is used.

5. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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.
Liens
False
Addenda

6. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
...
Bid Bond
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

7. What are some of the costs that must be included in equipment operating costs?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
...

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

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

10. The assembly of components to form the completed portion of a job.
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.
Erection
Both extreme hot and cold will tend to slow down the pace of work.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

11. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid Bond
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

12. A bathroom sink
Direct Negotiation - Competitive Bidding
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Lavatory
Instruction to bidders

13. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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
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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

14. 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.
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.
Both extreme hot and cold will tend to slow down the pace of work.
Scheduling overtime for more than several weeks can result in huge productivity losses.

15. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Joist

16. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Foundation
Change Order

17. What is the maintenance bond?
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.
As-built drawings
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.

18. Name 10 step process to bid

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19. How does insurance differ from a surety bond?
The amount of work that can be done in an hour
Both extreme hot and cold will tend to slow down the pace of work.
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.
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

20. What is estimating in construction?
Bid Bond
A gross unit such as the number of hospital beds is used.
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

21. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Direct Negotiation - Competitive Bidding
Skilled labor and material portions
Bid
True

22. 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
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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

23. A document stating the procedures to be followed by bidders.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Instruction to bidders
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Master Format and Uniformat

24. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
Liens
Addenda
Lavatory

25. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Retainage
Foundation
The ability to procure the right piece of equipment for the job when the unit is needed
Bid

26. What unit of time is used to measure labor?
The Labor Hour
Both extreme hot and cold will tend to slow down the pace of work.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True

27. Describe and provide examples of specific use equipment and general use equipment.
Addenda
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
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

28. The substructure that supports a building or other structure.
False
Foundation
Liens
Change Order

29. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
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
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.
True

30. Construction estimating is more an art than a science
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.
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Liens

31. Describe the composition of the Construction Cost Index (CCI).
Instruction to bidders
Bid Bond
Retainage
Common labor and material portions

32. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Renting - Leasing - Buying
False
True
Lump-Sum Estimate - Unit Price Estimate

33. Describe the CSI MasterFormat and how it is used.
False
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 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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

34. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
Lump-Sum Estimate - Unit Price Estimate
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
True

35. Under what conditions are wage premiums applied
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
A gross unit such as the number of hospital beds is used.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

36. Why do many contractors hesitate to bid just before the expiration of a union contract?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.
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.

37. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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
As-built drawings
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

38. 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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39. What are the advantages to a small contractor of renting equipment instead of owning?
True
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.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

40. 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.
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.
Lavatory

41. Name 10 step process to bid

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42. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Internal Factor - External Factor - Project Related-Factor
Punch List
Liquidated Damages
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

43. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
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.
Punch List
Instruction to bidders
Scheduling overtime for more than several weeks can result in huge productivity losses.

44. Explain firm price contracting estimates.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Lavatory
Liens
Lump-Sum Estimate - Unit Price Estimate

45. Name three common methods of procuring equipment.
Renting - Leasing - Buying
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.
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 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.

46. List the factors affecting labor productivity
False
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Direct Negotiation - Competitive Bidding

47. What are the two most common methods by which a contractor can acquire a construction contract?
Both extreme hot and cold will tend to slow down the pace of work.
Change Order
True
Direct Negotiation - Competitive Bidding

48. What is depreciation?
Punch List
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Joist

49. What does the labor hour represent?
The amount of work that can be done in an 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.
As-built drawings
Addenda

50. What are the benefits of renting equipment?
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
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.