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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. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Contract Documents

2. Under what conditions are wage premiums applied
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 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.
...

3. The most reliable productivity rates come from historical data
True
Change Order
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
A gross unit such as the number of hospital beds is used.

4. What are the two most common methods by which a contractor can acquire a construction contract?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Both extreme hot and cold will tend to slow down the pace of work.
Direct Negotiation - Competitive Bidding
True

5. What are the advantages to a small contractor of renting equipment instead of owning?
Liens
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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.

6. Under what conditions are wage premiums applied
Addenda
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Skilled labor and material portions
True

7. Describe the CSI MasterFormat and how it is used.
Lump-Sum Estimate - Unit Price Estimate
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.
Erection
Renting - Leasing - Buying

8. Name 10 step process to bid

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9. How are the various surety bonds that may be required on a specific project obtained?
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.
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.
As-built drawings
Bid

10. What are some of the factors a contractor considers when making a decision to bid?
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.
Lavatory
Internal Factor - External Factor - Project Related-Factor
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

11. What types of information are provided in the Invitation to Bid?
False
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 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.
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

12. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
As-built drawings
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.
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.

13. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Common labor and material portions
Bid
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

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

15. What is the bid bond and how does it protect the owner?
Scheduling overtime for more than several weeks can result in huge productivity losses.
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
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

16. What does the labor hour represent?
The amount of work that can be done in an hour
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

17. How do climatic conditions influence the amount of work actually completed in an hour?
Retainage
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.
Both extreme hot and cold will tend to slow down the pace of work.

18. How are the various surety bonds that may be required on a specific project obtained?
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.
True
Common labor and material portions
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

19. The substructure that supports a building or other structure.
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
Foundation
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 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.

20. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Direct Negotiation - Competitive Bidding
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid Bond
False

21. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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
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.
True

22. 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
Renting - Leasing - Buying
The Labor Hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

23. Where would information be found on whether a bid bond was required and - if so - its amount?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Renting - Leasing - Buying

24. A bathroom sink
Lavatory
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
False
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

25. What are the advantages to a small contractor of renting equipment instead of owning?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Lavatory
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.
Direct Negotiation - Competitive Bidding

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

27. Where would information be found on whether a bid bond was required and - if so - its amount?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
As-built drawings
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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

28. Name the types of Estimates
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.
Invitation to bid
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Instruction to bidders

29. Assemblies Estimate...
As-built drawings
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Erection
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.

30. 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
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
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.

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

32. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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
Invitation to bid

33. Describe and provide examples of specific use equipment and general use equipment.
Foundation
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.

34. Describe factors affecting the accuracy of detail cost estimating.
Lavatory
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
Liquidated Damages

35. The assembly of components to form the completed portion of a job.
Erection
Master Format and Uniformat
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.
Renting - Leasing - Buying

36. Name two systems that establish standards for the building design/construction estimating process.
Skilled labor and material portions
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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Master Format and Uniformat

37. Construction estimating is more an art than a science
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Renting - Leasing - Buying

38. Describe the composition of the Construction Cost Index (CCI).
Internal Factor - External Factor - Project Related-Factor
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
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

39. 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
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The Labor Hour
False

40. What is the best source for productivity data?

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41. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
As-built drawings

42. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Common labor and material portions
Bid
The Labor Hour
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.

43. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Master Format and Uniformat
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.
False
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.

44. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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.
...
Direct Negotiation - Competitive Bidding

45. Explain why using overtime is not recommended for most construction projects.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Renting - Leasing - Buying
Scheduling overtime for more than several weeks can result in huge productivity losses.
Renting - Leasing - Buying

46. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Common labor and material portions
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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

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

48. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Liens
Foundation
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.

49. 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
False
True
Bid Bond

50. List the factors affecting labor productivity
True
Retainage
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