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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. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
As-built drawings
True
Renting - Leasing - Buying
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

2. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

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

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

5. 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.
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.
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
Change Order

6. How do climatic conditions influence the amount of work actually completed in an hour?
Direct Negotiation - Competitive Bidding
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
Both extreme hot and cold will tend to slow down the pace of work.

7. Where would information be found on whether a bid bond was required and - if so - its amount?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Erection
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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

8. What are the advantages to a small contractor of renting equipment instead of owning?
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
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.

9. What types of information are provided in the Invitation to Bid?
Renting - Leasing - Buying
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

10. Where would information be found on whether a bid bond was required and - if so - its amount?
True
Internal Factor - External Factor - Project Related-Factor
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

11. 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
Scheduling overtime for more than several weeks can result in huge productivity losses.
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 Labor Hour

12. Operation costs include...
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Lavatory
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

13. 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.
Invitation to bid
Joist
Instruction to bidders

14. What is estimating in construction?
True
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.
Common labor and material portions

15. On certain projects the owner may accept proposals only from contractors who are invited to 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.
Erection
True
Retainage

16. 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
True
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
...
The amount of work that can be done in an hour

17. What is depreciation?
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
False
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The amount of work that can be done in an hour

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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

19. 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
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

20. What are some of the factors a contractor considers when making a decision to bid?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Internal Factor - External Factor - Project Related-Factor

21. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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
Bid 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.

22. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
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
Erection
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

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

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

25. 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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26. Describe and provide examples of specific use equipment and general use equipment.
Liquidated Damages
Bid 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
True

27. Describe and provide examples of specific use equipment and general use equipment.
Retainage
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
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.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

28. Describe factors affecting the accuracy of detail cost estimating.
Liens
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Scheduling overtime for more than several weeks can result in huge productivity losses.
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

29. 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
Change Order
Joist

30. Name three common methods of procuring equipment.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions
Renting - Leasing - Buying
Punch List

31. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
A gross unit such as the number of hospital beds is used.
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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

32. 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.
Erection
Lavatory
Internal Factor - External Factor - Project Related-Factor

33. The assembly of components to form the completed portion of a job.
Erection
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True

34. A document stating the procedures to be followed by bidders.
Lavatory
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Instruction to bidders

35. 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
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 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.

36. A document stating the procedures to be followed by bidders.
False
A gross unit such as the number of hospital beds is used.
Instruction to bidders
Addenda

37. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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.
Direct Negotiation - Competitive Bidding
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

38. The substructure that supports a building or other structure.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Direct Negotiation - Competitive Bidding
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Foundation

39. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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.
As-built drawings
Master Format and Uniformat
False

40. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
Contract Documents
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
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

41. Describe and provide examples of specific use equipment and general use equipment.
True
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

42. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
False
A gross unit such as the number of hospital beds is used.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

43. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Bid Bond
Liens
Punch List
True

44. Explain why using overtime is not recommended for most construction projects.
Both extreme hot and cold will tend to slow down the pace of work.
Liens
Lump-Sum Estimate - Unit Price Estimate
Scheduling overtime for more than several weeks can result in huge productivity losses.

45. What are some of the costs that must be included in equipment operating costs?
Punch List
Joist
Lump-Sum Estimate - Unit Price Estimate
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

46. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Joist
Invitation to bid
A gross unit such as the number of hospital beds is used.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

47. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Foundation
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

48. 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
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.
Renting - Leasing - Buying
Master Format and Uniformat

49. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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
True
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
As-built drawings

50. Name two systems that establish standards for the building design/construction estimating process.
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.
False
Contract Documents
Master Format and Uniformat