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

2. Name the types of Estimates
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Punch List

3. The assembly of components to form the completed portion of a job.
Direct Negotiation - Competitive Bidding
True
Both extreme hot and cold will tend to slow down the pace of work.
Erection

4. How do climatic conditions influence the amount of work actually completed in an hour?
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Both extreme hot and cold will tend to slow down the pace of work.
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.

5. Name three common methods of procuring equipment.
Renting - Leasing - Buying
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
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

6. The substructure that supports a building or other structure.
Foundation
Change Order
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True

7. What is the payment bond?
True
Internal Factor - External Factor - Project Related-Factor
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.
Contract Documents

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

9. How are the various surety bonds that may be required on a specific project obtained?
Direct Negotiation - Competitive Bidding
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
False

10. Describe the CSI MasterFormat and how it is used.
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.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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

11. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Lavatory
True
Joist
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

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

13. A document stating the procedures to be followed by bidders.
Direct Negotiation - Competitive Bidding
Joist
Instruction to bidders
...

14. A bathroom sink
A gross unit such as the number of hospital beds is used.
Lavatory
True
The ability to procure the right piece of equipment for the job when the unit is needed

15. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Bid Bond
False
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 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.

16. What is the best source for productivity data?

17. The location where material can be stored in relationship to the construction project affects productivity.
A gross unit such as the number of hospital beds is used.
Instruction to bidders
Renting - Leasing - Buying
True

18. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Retainage
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

19. Describe and provide examples of specific use equipment and general use equipment.
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Change Order

20. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Punch List
The Labor Hour
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
False

21. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
False
...
Punch List
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

22. What is the payment bond?
Liquidated Damages
Contract Documents
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.
Both extreme hot and cold will tend to slow down the pace of work.

23. 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.
As-built drawings
Addenda
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

24. What is depreciation?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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
Bid

25. What is the performance bond?
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.
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.
True
False

26. Describe the composition of the Construction Cost Index (CCI).
Punch List
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

27. What are the two most common methods by which a contractor can acquire a construction contract?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The amount of work that can be done in an hour
...
Direct Negotiation - Competitive Bidding

28. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Invitation to bid
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
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

29. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Bid Bond
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
Internal Factor - External Factor - Project Related-Factor
False

30. Describe factors affecting the accuracy of detail cost estimating.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Contract Documents
Lavatory
Internal Factor - External Factor - Project Related-Factor

31. Name 10 step process to bid

32. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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
True
Skilled labor and material portions

33. What are some of the factors a contractor considers when making a decision to bid?
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
Bid
True

34. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid Bond
True
Bid
Joist

35. 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
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.
Liquidated Damages
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.

36. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
As-built drawings
Direct Negotiation - Competitive Bidding
True

37. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

38. Describe the composition of the Building Cost Index (BCI).
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
Skilled labor and material portions
Lump-Sum Estimate - Unit Price Estimate
The Labor Hour

39. How do climatic conditions influence the amount of work actually completed in an hour?
Liens
Erection
Renting - Leasing - Buying
Both extreme hot and cold will tend to slow down the pace of work.

40. Name two systems that establish standards for the building design/construction estimating process.
The ability to procure the right piece of equipment for the job when the unit is needed
True
Master Format and Uniformat
Bid

41. Under what conditions are wage premiums applied
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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
Both extreme hot and cold will tend to slow down the pace of work.

42. What unit of time is used to measure labor?
The Labor Hour
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
Erection
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.

43. 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.
A gross unit such as the number of hospital beds is used.
Common labor and material portions
Master Format and Uniformat

44. The most reliable productivity rates come from historical data
True
Invitation to bid
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Joist

45. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Foundation
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True

46. How does insurance differ from a surety bond?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.
Addenda
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.

47. What are the two most common methods by which a contractor can acquire a construction contract?
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
The amount of work that can be done in an hour
Direct Negotiation - Competitive Bidding

48. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
Liquidated Damages
The amount of work that can be done in an hour
Scheduling overtime for more than several weeks can result in huge productivity losses.

49. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
Bid
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
False

50. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
True
False
Bid Bond
True