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. 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
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.
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 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.

2. How does insurance differ from a surety bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Internal Factor - External Factor - Project Related-Factor
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 amount of work that can be done in an hour

3. 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.
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.
Joist
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

4. Name the types of Estimates
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions
Liens

5. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Change Order
Bid Bond
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Bid

6. How are the various surety bonds that may be required on a specific project obtained?
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

7. What types of information are provided in the Invitation to Bid?
The amount of work that can be done in an hour
True
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

8. What are the advantages to a small contractor of renting equipment instead of owning?
As-built drawings
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.
Joist
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.

9. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Liquidated Damages
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
True

10. What is depreciation?
Common labor and material portions
Instruction to bidders
Retainage
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

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

12. Explain firm price contracting estimates.
True
Common labor and material portions
True
Lump-Sum Estimate - Unit Price Estimate

13. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Retainage
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.

14. What are the advantages to a small contractor of renting equipment instead of owning?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Invitation to bid
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.

15. Five basic skills everyone should master

16. What is depreciation?
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
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.

17. Name three common methods of procuring equipment.
Internal Factor - External Factor - Project Related-Factor
Change Order
Renting - Leasing - Buying
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

18. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Lump-Sum Estimate - Unit Price Estimate
Renting - Leasing - Buying
Contract 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.

19. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Liens
The ability to procure the right piece of equipment for the job when the unit is needed
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
True

20. Name two systems that establish standards for the building design/construction estimating process.
Lavatory
True
Master Format and Uniformat
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

21. 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.
Lavatory
Lump-Sum Estimate - Unit Price Estimate
Liquidated Damages
Change Order

22. What is the performance bond?
Internal Factor - External Factor - Project Related-Factor
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.
Retainage

23. What are the two most common methods by which a contractor can acquire a construction contract?
Instruction to bidders
Direct Negotiation - Competitive Bidding
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.

24. 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
Erection
Liquidated Damages
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Lump-Sum Estimate - Unit Price Estimate

25. 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
Liquidated Damages
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.

26. A bathroom sink
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.
Lavatory
True

27. What unit of time is used to measure labor?
Bid
Common labor and material portions
The Labor Hour
Direct Negotiation - Competitive Bidding

28. What are some of the factors a contractor considers when making a decision to bid?
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. 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
Renting - Leasing - Buying
Internal Factor - External Factor - Project Related-Factor

29. What is the best source for productivity data?

30. The location where material can be stored in relationship to the construction project affects productivity.
Foundation
Bid
Joist
True

31. What are the two most common methods by which a contractor can acquire a construction contract?
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 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.
Direct Negotiation - Competitive Bidding
False

32. Describe factors affecting the accuracy of detail cost estimating.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
...
Retainage
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

33. How does insurance differ from a surety 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.
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 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

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

35. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Contract Documents
Renting - Leasing - Buying
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

36. Where would information be found on whether a bid bond was required and - if so - its amount?
A gross unit such as the number of hospital beds is used.
Bid
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Renting - Leasing - Buying

37. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Addenda
Liens
Bid

38. 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
Joist
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The amount of work that can be done in an hour

39. Describe the CSI MasterFormat and how it is used.
The amount of work that can be done in an hour
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
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.

40. Explain why using overtime is not recommended for most construction projects.
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.
A gross unit such as the number of hospital beds is used.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

41. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Joist
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.
Bid Bond
Lump-Sum Estimate - Unit Price Estimate

42. What is the payment bond?
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.
False
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.
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.

43. Explain why using overtime is not recommended for most construction projects.
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True
Scheduling overtime for more than several weeks can result in huge productivity losses.

44. The assembly of components to form the completed portion of a job.
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
A gross unit such as the number of hospital beds is used.
Erection
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

45. What does the labor hour represent?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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 amount of work that can be done in an hour
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.

46. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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
Common labor and material portions
True

47. 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
Joist
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

48. The most reliable productivity rates come from historical data
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
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.
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.

49. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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.
False

50. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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
Bid Bond
The ability to procure the right piece of equipment for the job when the unit is needed