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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. Operation costs include...
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.
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. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Lavatory

2. 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
Direct Negotiation - Competitive Bidding
Master Format and Uniformat
True

3. 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 amount of work that can be done in an hour
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.
Liquidated Damages
Lump-Sum Estimate - Unit Price Estimate

4. What are the benefits of renting equipment?
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 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 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.

5. 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
...
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

6. Describe and provide examples of specific use equipment and general use equipment.
Direct Negotiation - Competitive Bidding
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 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.
Joist

7. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
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.
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.
Lump-Sum Estimate - Unit Price Estimate
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

8. Describe and provide examples of specific use equipment and general use equipment.
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
Internal Factor - External Factor - Project Related-Factor
...

9. Name three common methods of procuring equipment.
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 Labor Hour
Renting - Leasing - Buying
Punch List

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

11. What are the benefits of renting equipment?
Skilled labor and material portions
The ability to procure the right piece of equipment for the job when the unit is needed
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 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.

12. The assembly of components to form the completed portion of a job.
Erection
...
Liens
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.

13. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Foundation
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
Joist

14. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

15. Describe the composition of the Building Cost Index (BCI).
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
Contract Documents
Liquidated Damages
Skilled labor and material portions

16. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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

17. Why do many contractors hesitate to bid just before the expiration of a union contract?
Master Format and Uniformat
True
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.

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

19. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Both extreme hot and cold will tend to slow down the pace of work.
Invitation to bid
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

20. How does insurance differ from a surety bond?
Punch List
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.
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.

21. On certain projects the owner may accept proposals only from contractors who are invited to bid.
The amount of work that can be done in an hour
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.
Erection

22. What is depreciation?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Foundation
The ability to procure the right piece of equipment for the job when the unit is needed

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

24. Assemblies Estimate...
True
False
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 ability to procure the right piece of equipment for the job when the unit is needed

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

26. Describe the CSI MasterFormat and how it is used.
Skilled labor and material portions
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
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.

27. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
True
As-built drawings
Addenda
Bid Bond

28. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
Bid
Punch List
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

29. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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 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.
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
Change Order

30. Where the project will be constructed does not have a major influence in the preparation of an estimate.
False
As-built drawings
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
Internal Factor - External Factor - Project Related-Factor

31. What is the payment bond?
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 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.

32. What are some of the costs that must be included in equipment operating costs?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Punch List
Scheduling overtime for more than several weeks can result in huge productivity losses.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

33. How do climatic conditions influence the amount of work actually completed in an hour?
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
Retainage
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.

34. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
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.
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.

35. What is the performance bond?
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True

36. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Master Format and Uniformat
Common labor and material portions
True
Lavatory

37. Explain why using overtime is not recommended for most construction projects.
Change Order
Invitation to bid
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.

38. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Punch List
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.
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

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

40. The substructure that supports a building or other structure.
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. 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
Bid Bond

41. What are the advantages to a small contractor of renting equipment instead of owning?
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
Erection
Master Format and Uniformat

42. What types of information are provided in the Invitation to Bid?
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Direct Negotiation - Competitive Bidding
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

43. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Instruction to bidders
True
False

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.
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 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
Change Order

45. 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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46. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Joist

47. Under what conditions are wage premiums applied
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
True

48. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Joist
Erection
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.
Contract Documents

49. 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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

50. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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 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.
Invitation to bid
As-built drawings