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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. Construction estimating is more an art than a science
Common labor and material portions
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Common labor and material portions
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

2. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Both extreme hot and cold will tend to slow down the pace of work.
Foundation

3. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Lavatory
The amount of work that can be done in an hour
False

4. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Retainage
True
Invitation to bid

5. What types of information are provided in the Invitation to Bid?
Internal Factor - External Factor - Project Related-Factor
True
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
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

6. 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.
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
Invitation to bid
Lump-Sum Estimate - Unit Price Estimate

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. How does insurance differ from a surety bond?
Invitation to bid
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
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.

9. Where would information be found on whether a bid bond was required and - if so - its amount?
Master Format and Uniformat
A gross unit such as the number of hospital beds is used.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

10. Name two systems that establish standards for the building design/construction estimating process.
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.
Both extreme hot and cold will tend to slow down the pace of work.
Master Format and Uniformat
Invitation to bid

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

12. 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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13. 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
Liquidated Damages
Contract Documents
Master Format and Uniformat

14. What unit of time is used to measure labor?
Master Format and Uniformat
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.
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
The Labor Hour

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

16. What does the labor hour represent?
Master Format and Uniformat
The amount of work that can be done in an hour
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

17. What is the maintenance bond?
Erection
Scheduling overtime for more than several weeks can result in huge productivity losses.
Bid Bond
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. How are the various surety bonds that may be required on a specific project obtained?
True
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Scheduling overtime for more than several weeks can result in huge productivity losses.

19. Describe the composition of the Building Cost Index (BCI).
Erection
Direct Negotiation - Competitive Bidding
Skilled labor and material portions
Retainage

20. Explain firm price contracting estimates.
Master Format and Uniformat
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Lump-Sum Estimate - Unit Price 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

21. stimating labor requires determining the number of work hours to do a specific task and then applying the 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.
Erection
True
The Labor Hour

22. 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
Punch List
Direct Negotiation - Competitive Bidding
Bid

23. 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
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liquidated Damages
Scheduling overtime for more than several weeks can result in huge productivity losses.

24. 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 ability to procure the right piece of equipment for the job when the unit is needed
...
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. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

25. What is the payment 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.
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.

26. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Foundation
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Common labor and material portions
True

27. 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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Change Order
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
Retainage

28. 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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Skilled labor and material portions
Instruction to bidders

29. Describe the composition of the Construction Cost Index (CCI).
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
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.

30. A good database of past project experiences is essential to preparing a quick and accurate estimate.
False
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
The amount of work that can be done in an hour
True

31. Assemblies 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. 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
The amount of work that can be done in an hour
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.

32. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
Renting - Leasing - Buying
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
A gross unit such as the number of hospital beds is used.

33. A document stating the procedures to be followed by bidders.
Instruction to bidders
Invitation to bid
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.

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

35. Under what conditions are wage premiums applied
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Joist
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The Labor Hour

36. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
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
Retainage

37. Name 10 step process to bid

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38. 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.
Change Order
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

39. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid
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.
Bid Bond

40. A document stating the procedures to be followed by 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.
Instruction to bidders
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
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.

41. Explain why using overtime is not recommended for most construction projects.
Liens
Scheduling overtime for more than several weeks can result in huge productivity losses.
Liquidated Damages
Master Format and Uniformat

42. Under what conditions are wage premiums applied
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
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.
Contract Documents

43. What are the benefits of renting equipment?
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.
Skilled labor and material portions
The ability to procure the right piece of equipment for the job when the unit is needed
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

44. What are the two most common methods by which a contractor can acquire a construction contract?
...
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
True

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

46. The assembly of components to form the completed portion of a job.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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
Erection
Joist

47. Name the types of Estimates
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.

48. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Joist
True
Renting - Leasing - Buying
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

49. What is the payment bond?
Master Format and Uniformat
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.
Bid

50. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Direct Negotiation - Competitive Bidding
True
Erection