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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 do climatic conditions influence the amount of work actually completed in an hour?
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
Both extreme hot and cold will tend to slow down the pace of work.
Lump-Sum Estimate - Unit Price 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.

2. 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
...
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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

3. Describe the composition of the Building Cost Index (BCI).
Direct Negotiation - Competitive Bidding
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Skilled labor and material portions
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.

4. A good database of past project experiences is essential to preparing a quick and accurate estimate.
The ability to procure the right piece of equipment for the job when the unit is needed
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
True

5. Describe and provide examples of specific use equipment and general use equipment.
True
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

6. What unit of time is used to measure labor?
Lump-Sum Estimate - Unit Price Estimate
The Labor Hour
False
Joist

7. 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.
Punch List
Common labor and material portions
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Addenda

8. How does insurance differ from a surety bond?
Foundation
Addenda
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

9. Name two systems that establish standards for the building design/construction estimating process.
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.
Master Format and Uniformat
Addenda

10. 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.
Foundation
Change Order
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
A gross unit such as the number of hospital beds is used.

11. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
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
Bid Bond

12. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Bid
Invitation to bid
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 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.

13. What are some of the costs that must be included in equipment operating costs?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Contract Documents
Punch List

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

15. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

16. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Contract Documents
Both extreme hot and cold will tend to slow down the pace of work.
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

17. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
The ability to procure the right piece of equipment for the job when the unit is needed
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

18. 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
Erection
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

19. 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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20. How do climatic conditions influence the amount of work actually completed in an hour?
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.
Both extreme hot and cold will tend to slow down the pace of work.
True

21. What types of information are provided in the Invitation 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
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
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.

22. Assemblies 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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.

23. The most reliable productivity rates come from historical data
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
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.
False
True

24. 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.
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
True

25. 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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26. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Joist
Master Format and Uniformat
Punch List
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.

27. What is the performance bond?
Instruction to bidders
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 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.
Erection

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

29. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

30. Construction estimating is more an art than a science
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

31. What are the advantages to a small contractor of renting equipment instead of owning?
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.
Internal Factor - External Factor - Project Related-Factor
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

32. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Bid Bond
Erection
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

33. What are the benefits of renting equipment?
True
The amount of work that can be done in an hour
The ability to procure the right piece of equipment for the job when the unit is needed
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.

34. Where would information be found on whether a bid bond was required and - if so - its amount?
Retainage
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
True
As-built drawings

35. Describe and provide examples of specific use equipment and general use 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.
Foundation
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

36. Describe the CSI MasterFormat and how it 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.
Change Order
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 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.

37. 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
False
Liquidated Damages
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 amount of work that can be done in an hour

38. Explain why using overtime is not recommended for most construction projects.
Erection
Direct Negotiation - Competitive Bidding
Scheduling overtime for more than several weeks can result in huge productivity losses.
True

39. Assemblies Estimate...
Instruction to bidders
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.
As-built drawings
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

40. Five basic skills everyone should master

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41. What is depreciation?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True

42. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Lump-Sum Estimate - Unit Price Estimate
True
Change Order

43. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Common labor and material portions
True
As-built drawings
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

44. 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.
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.
Both extreme hot and cold will tend to slow down the pace of work.
Joist

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

46. Explain firm price contracting estimates.
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 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
Bid Bond

47. A document stating the procedures to be followed by bidders.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Instruction to bidders
Scheduling overtime for more than several weeks can result in huge productivity losses.

48. Explain firm price contracting estimates.
Joist
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lump-Sum Estimate - Unit Price Estimate

49. The assembly of components to form the completed portion of a job.
Direct Negotiation - Competitive Bidding
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Erection
Bid Bond

50. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Common labor and material portions