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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. What are the two most common methods by which a contractor can acquire a construction contract?
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.
Direct Negotiation - Competitive Bidding
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.

2. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Punch List
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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. What are the two most common methods by which a contractor can acquire a construction contract?
The ability to procure the right piece of equipment for the job when the unit is needed
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Master Format and Uniformat
Direct Negotiation - Competitive Bidding

4. Assemblies Estimate...
The ability to procure the right piece of equipment for the job when the unit is needed
Skilled labor and material portions
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

5. 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.
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.
True

6. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Invitation to bid
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.

7. What is the best source for productivity data?

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8. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Renting - Leasing - Buying
False
A gross unit such as the number of hospital beds is used.
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

9. What unit of time is used to measure labor?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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
The Labor Hour

10. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
The Labor Hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Retainage
True

11. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Liens
False
Bid Bond
Change Order

12. Describe the composition of the Building Cost Index (BCI).
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
Skilled labor and material portions

13. Describe the composition of the Building Cost Index (BCI).
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Contract Documents
Renting - Leasing - Buying
Skilled labor and material portions

14. What is the bid bond and how does it protect the owner?
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
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
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.

15. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
Skilled labor and material portions
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 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. 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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
As-built drawings
Master Format and Uniformat

17. How are the various surety bonds that may be required on a specific project obtained?
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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

18. What are some of the factors a contractor considers when making a decision to bid?
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
The Labor Hour
Common labor and material portions

19. Construction estimating is more an art than a science
Master Format and Uniformat
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.

20. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Invitation to bid
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
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

21. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Lavatory
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

22. Name 10 step process to bid

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23. A good database of past project experiences is essential to preparing a quick and accurate estimate.
The ability to procure the right piece of equipment for the job when the unit is needed
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True
A gross unit such as the number of hospital beds is used.

24. Why do many contractors hesitate to bid just before the expiration of a union contract?
True
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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

25. Describe the CSI MasterFormat and how it 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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.

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

27. Five basic skills everyone should master

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28. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Lavatory
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.
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.
Contract Documents

29. What is the payment bond?
Liquidated Damages
False
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.
False

30. The most reliable productivity rates come from historical data
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
True
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

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

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

33. What are the advantages to a small contractor of renting equipment instead of owning?
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.
Addenda
Erection
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.

34. The substructure that supports a building or other structure.
True
Foundation
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
Both extreme hot and cold will tend to slow down the pace of work.

35. A bathroom sink
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.
Lavatory
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

36. Name the types of Estimates
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
False
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

37. What are the benefits of renting equipment?
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.
As-built drawings
The ability to procure the right piece of equipment for the job when the unit is needed
...

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

39. Under what conditions are wage premiums applied
Liquidated Damages
False
Common labor and material portions
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

40. How does insurance differ from a surety bond?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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.

41. What are some of the costs that must be included in equipment operating costs?
Joist
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

42. Explain firm price contracting estimates.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Bid
Lump-Sum Estimate - Unit Price Estimate
Lavatory

43. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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.
Invitation to bid
True

44. 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
A gross unit such as the number of hospital beds is used.
As-built drawings
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

45. What are some of the costs that must be included in equipment operating costs?
The amount of work that can be done in an hour
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Liens

46. 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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47. 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
...
Erection
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.

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

49. 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
Lavatory
As-built drawings
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.

50. Under what conditions are wage premiums applied
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
Liquidated Damages