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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. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Erection

2. What is the best source for productivity data?

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3. On certain projects the owner may accept proposals only from contractors who are invited to bid.
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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

4. Name the types of Estimates
Punch List
Direct Negotiation - Competitive Bidding
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

5. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
The amount of work that can be done in an hour
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 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.
...

6. Name two systems that establish standards for the building design/construction estimating process.
Renting - Leasing - Buying
Addenda
Skilled labor and material portions
Master Format and Uniformat

7. Name 10 step process to bid

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8. What are some of the costs that must be included in equipment operating costs?
Both extreme hot and cold will tend to slow down the pace of work.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
True

9. What is the maintenance bond?
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
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 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.
Foundation

10. Order of Magnitude Estimate...
Bid Bond
Joist
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A gross unit such as the number of hospital beds is used.

11. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
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
Contract Documents
Retainage
Foundation

12. Name two systems that establish standards for the building design/construction estimating process.
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.
True
Master Format and Uniformat

13. Describe and provide examples of specific use equipment and general use equipment.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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. 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

14. Five basic skills everyone should master

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15. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Punch List
True
Common labor and material portions
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

16. What is the best source for productivity data?

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17. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
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
Lump-Sum Estimate - Unit Price Estimate
Erection
Retainage

18. What is the performance bond?
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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.

19. 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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True

20. What does the labor hour represent?
The amount of work that can be done in an hour
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.
Erection
Internal Factor - External Factor - Project Related-Factor

21. Describe the composition of the Construction Cost Index (CCI).
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.
Common labor and material portions
Foundation

22. A good database of past project experiences is essential to preparing a quick and accurate estimate.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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
Common labor and material portions
True

23. Explain firm price contracting estimates.
Direct Negotiation - Competitive Bidding
Lump-Sum Estimate - Unit Price Estimate
Liquidated Damages
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

24. Describe the composition of the Construction Cost Index (CCI).
True
Change Order
True
Common labor and material portions

25. How are the various surety bonds that may be required on a specific project obtained?
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
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.
Invitation to bid

26. What is the performance bond?
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.
Punch List
Contract Documents
Scheduling overtime for more than several weeks can result in huge productivity losses.

27. Describe factors affecting the accuracy of detail cost estimating.
Liens
Erection
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

28. How do climatic conditions influence the amount of work actually completed in an hour?
True
Contract Documents
The amount of work that can be done in an hour
Both extreme hot and cold will tend to slow down the pace of work.

29. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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.
Invitation to bid
Common labor and material portions
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.

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

31. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Renting - Leasing - Buying
True
False
Invitation to bid

32. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Liens
Foundation

33. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.

34. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Invitation to bid
Punch List
Both extreme hot and cold will tend to slow down the pace of work.
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.

35. The most reliable productivity rates come from historical data
Lump-Sum Estimate - Unit Price Estimate
False
True
Both extreme hot and cold will tend to slow down the pace of work.

36. On certain projects the owner may accept proposals only from contractors who are invited to bid.
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
Erection
Liquidated Damages
True

37. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Liquidated Damages
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Contract Documents
False

38. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
True
Bid Bond
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

39. What is the bid bond and how does it protect the owner?
Lump-Sum Estimate - Unit Price Estimate
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
Foundation

40. How does insurance differ from a surety 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.
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.
Invitation to bid
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

41. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
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.
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 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

42. What are the benefits of renting equipment?
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
False
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

43. What is depreciation?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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
True

44. Describe the composition of the Building Cost Index (BCI).
Common labor and material portions
Skilled labor and material portions
Lavatory
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 are the advantages to a small contractor of renting equipment instead of owning?
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
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. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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
Direct Negotiation - Competitive Bidding
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.

47. What are the benefits of renting equipment?
Both extreme hot and cold will tend to slow down the pace of work.
Internal Factor - External Factor - Project Related-Factor
The amount of work that can be done in an hour
The ability to procure the right piece of equipment for the job when the unit is needed

48. What is estimating in construction?
True
Liquidated Damages
Common labor and material portions
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

49. Order of Magnitude Estimate...
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A gross unit such as the number of hospital beds is used.
Master Format and Uniformat
Lavatory

50. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Addenda
Punch List
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