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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. Order of Magnitude Estimate...
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
A gross unit such as the number of hospital beds is used.
Contract Documents

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

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

4. The assembly of components to form the completed portion of a job.
Erection
The Labor Hour
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
...

5. 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.
Punch List
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.

6. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Lump-Sum Estimate - Unit Price Estimate
False
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.
Bid

7. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Liquidated Damages
Contract Documents
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
Bid Bond

8. Construction estimating is more an art than a science
Both extreme hot and cold will tend to slow down the pace of work.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

9. What is depreciation?
Master Format and Uniformat
Addenda
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

10. 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
Lavatory
Change Order
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

11. On certain projects the owner may accept proposals only from contractors who are invited to bid.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.

12. How does insurance differ from a surety bond?
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.
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.
The ability to procure the right piece of equipment for the job when the unit is needed

13. What is the bid bond and how does it protect the owner?
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 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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True

14. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
Retainage
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

15. The location where material can be stored in relationship to the construction project affects productivity.
Liquidated Damages
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
Direct Negotiation - Competitive Bidding

16. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
As-built drawings
Retainage
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time 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.

17. What is the maintenance bond?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Foundation
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.
Retainage

18. Name three common methods of procuring 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.
Erection
Renting - Leasing - Buying
Change Order

19. 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
Internal Factor - External Factor - Project Related-Factor
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

20. What is the best source for productivity data?

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

23. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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.
Liens
Invitation to bid
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

24. What is the performance bond?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Addenda
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 Labor Hour

25. What is the payment bond?
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.
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.

26. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Direct Negotiation - Competitive Bidding
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.
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

27. 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
True
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
Both extreme hot and cold will tend to slow down the pace of work.

28. How are the various surety bonds that may be required on a specific project obtained?
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
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

29. What are the advantages to a small contractor of renting equipment instead of owning?
A gross unit such as the number of hospital beds is used.
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.
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.

30. 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
Bid Bond
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 amount of work that can be done in an hour

31. Name three common methods of procuring equipment.
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.
Foundation
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.

32. Describe the CSI MasterFormat and how it is used.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Foundation
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.

33. Name 10 step process to bid

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34. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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 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.
Change Order
Invitation to bid

35. Five basic skills everyone should master

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

37. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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 amount of work that can be done in an hour
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
True

38. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Lavatory
Renting - Leasing - Buying

39. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

40. Describe factors affecting the accuracy of detail cost estimating.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled 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.
Liens

41. What unit of time is used to measure labor?
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
The Labor Hour
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.

42. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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. 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
Renting - Leasing - Buying

43. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
Erection
Lump-Sum Estimate - Unit Price Estimate
Erection

44. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
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
Internal Factor - External Factor - Project Related-Factor
Instruction to bidders

45. What are the benefits of renting equipment?
Contract Documents
The ability to procure the right piece of equipment for the job when the unit is needed
...
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.

46. List the factors affecting labor productivity
As-built drawings
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Addenda

47. A document stating the procedures to be followed by bidders.
Foundation
Bid Bond
Instruction to bidders
Both extreme hot and cold will tend to slow down the pace of work.

48. 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.
Skilled labor and material portions
Change Order
True
Bid

49. 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
False
Direct Negotiation - Competitive Bidding
True

50. The location where material can be stored in relationship to the construction project affects productivity.
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
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above