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

2. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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

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

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

5. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Renting - Leasing - Buying
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.
Change Order
Punch List

6. Name 10 step process to bid

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7. What is depreciation?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
False
True

8. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Erection
Renting - Leasing - Buying
Punch List

9. Describe the CSI MasterFormat and how it is used.
Bid
Instruction to bidders
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.
Lump-Sum Estimate - Unit Price Estimate

10. The substructure that supports a building or other structure.
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Foundation
Retainage

11. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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
As-built drawings
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

12. Describe and provide examples of specific use equipment and general use equipment.
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 Labor Hour
Erection
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

13. What is the bid bond and how does it protect the owner?
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
False
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

14. Name three common methods of procuring equipment.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
Renting - Leasing - Buying

15. The substructure that supports a building or other structure.
True
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.
Foundation
Common labor and material portions

16. What does the labor hour represent?
The amount of work that can be done in an hour
Contract Documents
Both extreme hot and cold will tend to slow down the pace of work.
Lump-Sum Estimate - Unit Price Estimate

17. 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
Liquidated Damages
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.
Liens

18. Under what conditions are wage premiums applied
The Labor Hour
True
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

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

20. 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.
Contract Documents
Skilled labor and material portions
Bid

21. A good database of past project experiences is essential to preparing a quick and accurate estimate.
True
Joist
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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

22. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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
Instruction to bidders
Lavatory

23. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
False
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Instruction to bidders
True

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

25. Why do many contractors hesitate to bid just before the expiration of a union contract?
Liquidated Damages
Foundation
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.
Skilled labor and material portions

26. Construction estimating is more an art than a science
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Contract Documents
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

27. 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
Direct Negotiation - Competitive Bidding
True
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.

28. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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

29. Explain firm price contracting estimates.
The Labor Hour
Joist
Direct Negotiation - Competitive Bidding
Lump-Sum Estimate - Unit Price Estimate

30. 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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
A gross unit such as the number of hospital beds is used.
Liquidated Damages
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.

31. What are some of the costs that must be included in equipment operating costs?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Change Order
Bid Bond
True

32. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Master Format and Uniformat
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

33. 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
Liquidated Damages
Both extreme hot and cold will tend to slow down the pace of work.
Direct Negotiation - Competitive Bidding
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.

34. On certain projects the owner may accept proposals only from contractors who are invited to bid.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.
Addenda

35. 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.
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.
Addenda
True
Skilled labor and material portions

36. 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.
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.
Foundation
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

37. 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.
Both extreme hot and cold will tend to slow down the pace of work.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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

38. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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 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.
Addenda
False

39. The location where material can be stored in relationship to the construction project affects productivity.
Bid
Direct Negotiation - Competitive Bidding
Contract Documents
True

40. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
Liens
Erection
Contract Documents

41. Where would information be found on whether a bid bond was required and - if so - its amount?
Instruction to bidders
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Retainage
True

42. Describe and provide examples of specific use equipment and general use equipment.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

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

44. What is the payment bond?
Liens
True
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.
Liquidated Damages

45. The location where material can be stored in relationship to the construction project affects productivity.
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
Foundation

46. What are the advantages to a small contractor of renting equipment instead of owning?
Retainage
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

47. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
True
Liens
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
False

48. Name three common methods of procuring equipment.
Renting - Leasing - Buying
Bid
Scheduling overtime for more than several weeks can result in huge productivity losses.
Master Format and Uniformat

49. 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.
Change Order
As-built drawings
Liquidated Damages
True

50. Describe the composition of the Construction Cost Index (CCI).
Instruction to bidders
Common labor and material portions
Scheduling overtime for more than several weeks can result in huge productivity losses.
Erection