Test your basic knowledge |

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. Describe and provide examples of specific use equipment and general use equipment.
As-built drawings
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 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 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.

2. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Bid
Renting - Leasing - Buying

3. What unit of time is used to measure labor?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.
False
The Labor Hour

4. 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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment 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
Bid

5. Describe factors affecting the accuracy of detail cost estimating.
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
True
Master Format and Uniformat
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

6. Describe the CSI MasterFormat and how it is used.
True
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.
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.

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

8. 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
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 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.
Skilled labor and material portions
...

9. How do climatic conditions influence the amount of work actually completed in an hour?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Common labor and material portions
Invitation to bid
Both extreme hot and cold will tend to slow down the pace of work.

10. What are some of the factors a contractor considers when making a decision to bid?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
As-built drawings
Internal Factor - External Factor - Project Related-Factor
False

11. Describe the composition of the Building Cost Index (BCI).
As-built drawings
Skilled labor and material portions
Addenda
Internal Factor - External Factor - Project Related-Factor

12. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Both extreme hot and cold will tend to slow down the pace of work.
As-built drawings
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.
Lavatory

13. Describe the composition of the Building Cost Index (BCI).
Renting - Leasing - Buying
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.
Skilled labor and material portions

14. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
Bid Bond
Liquidated Damages
Erection

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

16. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Joist
True
Internal Factor - External Factor - Project Related-Factor
Skilled labor and material portions

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

18. Describe the CSI MasterFormat and how it is used.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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 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

19. 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
...
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid
Liquidated Damages

20. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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
A gross unit such as the number of hospital beds is used.

21. 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.
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Addenda
Bid

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

23. Name three common methods of procuring equipment.
The Labor Hour
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.
Renting - Leasing - Buying

24. The assembly of components to form the completed portion of a job.
Lavatory
Contract Documents
Erection
Liens

25. List the factors affecting labor productivity
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.
Both extreme hot and cold will tend to slow down the pace of work.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.

26. 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.
Addenda
Internal Factor - External Factor - Project Related-Factor
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

27. What are some of the factors a contractor considers when making a decision to bid?
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Internal Factor - External Factor - Project Related-Factor

28. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Invitation to bid
Instruction to bidders
As-built drawings
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

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

30. What is depreciation?
Both extreme hot and cold will tend to slow down the pace of work.
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Foundation

31. The most reliable productivity rates come from historical data
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
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.

32. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
False
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.
Contract Documents

33. What does the labor hour represent?
The amount of work that can be done in an hour
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Skilled labor and material portions
Erection

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

35. Name the types of Estimates
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.
Change Order
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

36. Under what conditions are wage premiums applied
False
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

37. 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
Skilled labor and material portions
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.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

38. Describe and provide examples of specific use equipment and general use equipment.
Invitation to bid
Lavatory
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

39. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Foundation
Invitation to bid
Liens
Contract Documents

40. The most reliable productivity rates come from historical data
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True
As-built drawings
Instruction to bidders

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

42. The substructure that supports a building or other structure.
As-built drawings
Punch List
Foundation
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

43. Assemblies 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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
...

44. 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.
Punch List
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Bid Bond

45. What are the advantages to a small contractor of renting equipment instead of owning?
Instruction to bidders
The amount of work that can be done in an hour
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

46. Under what conditions are wage premiums applied
Master Format and Uniformat
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

47. Explain firm price contracting estimates.
True
True
Both extreme hot and cold will tend to slow down the pace of work.
Lump-Sum Estimate - Unit Price Estimate

48. Order of Magnitude Estimate...
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lump-Sum Estimate - Unit Price Estimate
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
A gross unit such as the number of hospital beds is used.

49. Construction estimating is more an art than a science
Instruction to bidders
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

50. A document stating the procedures to be followed by bidders.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Instruction to bidders
Lump-Sum Estimate - Unit Price Estimate
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work