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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. Describe the composition of the Building Cost Index (BCI).
The Labor Hour
Skilled labor and material portions
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

2. What are some of the factors a contractor considers when making a decision to bid?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Scheduling overtime for more than several weeks can result in huge productivity losses.
Internal Factor - External Factor - Project Related-Factor
Contract Documents

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

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

5. What are the two most common methods by which a contractor can acquire a construction contract?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Direct Negotiation - Competitive Bidding
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

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

7. What are the advantages to a small contractor of renting equipment instead of owning?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
True
A gross unit such as the number of hospital beds is used.
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.

8. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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
Renting - Leasing - Buying
Lavatory
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.

9. Name three common methods of procuring equipment.
The amount of work that can be done in an hour
Liquidated Damages
Renting - Leasing - Buying
True

10. On certain projects the owner may accept proposals only from contractors who are invited 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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
True

11. The location where material can be stored in relationship to the construction project affects productivity.
Direct Negotiation - Competitive Bidding
True
Skilled labor and material portions
Internal Factor - External Factor - Project Related-Factor

12. Name three common methods of procuring equipment.
Invitation to bid
The Labor Hour
True
Renting - Leasing - Buying

13. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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.
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

14. 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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15. Name 10 step process to bid

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16. The most reliable productivity rates come from historical data
True
Instruction to bidders
Internal Factor - External Factor - Project Related-Factor
Instruction to bidders

17. Construction estimating is more an art than a science
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

18. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Renting - Leasing - Buying
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
True
Scheduling overtime for more than several weeks can result in huge productivity losses.

19. What are some of the costs that must be included in equipment operating costs?
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
Foundation
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

20. A bathroom sink
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lavatory

21. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Bid Bond
Both extreme hot and cold will tend to slow down the pace of work.
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.

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

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

24. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
The amount of work that can be done in an hour
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
False

25. How are the various surety bonds that may be required on a specific project obtained?
Renting - Leasing - Buying
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.
True

26. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Direct Negotiation - Competitive Bidding
Invitation to bid
Lavatory
Contract Documents

27. Under what conditions are wage premiums applied
True
Foundation
Addenda
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

28. 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.
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. 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.
Addenda
Contract Documents

29. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Common labor and material portions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Bid

30. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Joist
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Invitation to bid

31. What is depreciation?
...
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
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

32. Five basic skills everyone should master

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33. Describe and provide examples of specific use equipment and general use equipment.
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
False
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

34. 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
Renting - Leasing - Buying
...
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

35. 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 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.
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

36. Describe the composition of the Construction Cost Index (CCI).
Common labor and material portions
Lavatory
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.

37. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Instruction to bidders
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
Addenda
Liens

38. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
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.
True

39. Operation costs include...
Both extreme hot and cold will tend to slow down the pace of work.
Retainage
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Punch List

40. What are the advantages to a small contractor of renting equipment instead of owning?
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. 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.
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

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
Direct Negotiation - Competitive Bidding
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

42. What is the bid bond and how does it protect the owner?
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. 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
Instruction to bidders
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

43. 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.
Invitation to bid
Change Order
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.
Renting - Leasing - Buying

44. What is the maintenance 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.
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

45. How does insurance differ from a surety bond?
As-built drawings
Instruction to bidders
...
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.

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

47. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Renting - Leasing - Buying
Direct Negotiation - Competitive Bidding
Invitation to bid
True

48. What is estimating in construction?
Direct Negotiation - Competitive Bidding
Invitation to bid
The amount of work that can be done in an hour
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

49. List the factors affecting labor productivity
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liens
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Erection

50. 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
Both extreme hot and cold will tend to slow down the pace of work.
Liquidated Damages
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project