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

2. Why do many contractors hesitate to bid just before the expiration of a union contract?
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
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.
Punch List

3. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Common labor and material portions
Retainage
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
Punch List

4. 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
Instruction to bidders
Common labor and material portions
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

5. Explain why using overtime is not recommended for most construction projects.
Internal Factor - External Factor - Project Related-Factor
As-built drawings
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.

6. A document stating the procedures to be followed by bidders.
True
Instruction to bidders
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
The ability to procure the right piece of equipment for the job when the unit is needed

7. What is depreciation?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Invitation to bid

8. 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 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.
Retainage

9. 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
Change Order
Contract Documents
False

10. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
Contract Documents
Both extreme hot and cold will tend to slow down the pace of work.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

11. How does insurance differ from a surety bond?
Erection
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
...
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.

12. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
Liens
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.
Addenda

13. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Master Format and Uniformat
Common labor and material portions
A gross unit such as the number of hospital beds is used.
As-built drawings

14. What are the advantages to a small contractor of renting equipment instead of owning?
Addenda
Joist
Common 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.

15. What is the payment bond?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a 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.
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.
As-built drawings

16. Describe factors affecting the accuracy of detail cost estimating.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.
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.

17. Describe and provide examples of specific use equipment and general use equipment.
True
Master Format and Uniformat
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

18. Describe and provide examples of specific use equipment and general use equipment.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The Labor Hour
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

19. 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.
Invitation to bid
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.

20. 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
Renting - Leasing - Buying
False
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

21. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

22. A document stating the procedures to be followed by bidders.
Renting - Leasing - Buying
True
Instruction to bidders
Lavatory

23. Name 10 step process to bid

24. A bathroom sink
Lavatory
True
The ability to procure the right piece of equipment for the job when the unit is needed
Punch List

25. Five basic skills everyone should master

26. 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.
True
Addenda
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Change Order

27. 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
Contract Documents
Lump-Sum Estimate - Unit Price Estimate
...
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

28. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
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
Change Order
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

29. Name 10 step process to bid

30. Assemblies Estimate...
True
Erection
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

31. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

32. Operation costs include...
Skilled labor and material portions
Bid Bond
Direct Negotiation - Competitive Bidding
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

33. Where would information be found on whether a bid bond was required and - if so - its amount?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Punch List
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

34. Describe the CSI MasterFormat and how it is used.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Bid Bond
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.

35. Describe the composition of the Building Cost Index (BCI).
Common labor and material portions
Skilled labor and material portions
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

36. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
True
Retainage
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.

37. Name two systems that establish standards for the building design/construction estimating process.
Liens
As-built drawings
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
Master Format and Uniformat

38. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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.
True
The ability to procure the right piece of equipment for the job when the unit is needed

39. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Internal Factor - External Factor - Project Related-Factor
Scheduling overtime for more than several weeks can result in huge productivity losses.
Foundation
Punch List

40. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Liens
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Bid

41. Assemblies 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.
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

42. 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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Lump-Sum Estimate - Unit Price Estimate
Instruction to bidders

43. Construction estimating is more an art than a science
Lump-Sum Estimate - Unit Price Estimate
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Foundation
The amount of work that can be done in an hour

44. Why do many contractors hesitate to bid just before the expiration of a union contract?
Instruction to bidders
Common labor and material portions
Invitation to bid
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.

45. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
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 ability to procure the right piece of equipment for the job when the unit is needed

46. 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
Common labor and material portions
Lavatory
Liquidated Damages

47. Name the types of Estimates
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Invitation to bid
Invitation to bid
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

48. Where would information be found on whether a bid bond was required and - if so - its amount?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
A gross unit such as the number of hospital beds is used.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

49. What unit of time is used to measure labor?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The Labor 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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

50. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Erection