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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. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Joist
Erection

2. 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.
Punch List
Addenda
Liens
Lavatory

3. What is estimating in construction?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Liquidated Damages
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

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

5. What are some of the factors a contractor considers when making a decision to bid?
True
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.
Both extreme hot and cold will tend to slow down the pace of work.
Internal Factor - External Factor - Project Related-Factor

6. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Erection
True
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Bid Bond

7. A document stating the procedures to be followed by bidders.
Foundation
Instruction to bidders
Internal Factor - External Factor - Project Related-Factor
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

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

9. Describe and provide examples of specific use equipment and general use equipment.
Change Order
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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

10. What is depreciation?
Direct Negotiation - Competitive Bidding
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.
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.

11. Order of Magnitude Estimate...
Instruction to bidders
A gross unit such as the number of hospital beds is used.
Foundation
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

12. 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.
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.
Lump-Sum Estimate - Unit Price Estimate

13. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a 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.
Punch List
The ability to procure the right piece of equipment for the job when the unit is needed

14. 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.
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Addenda
Punch List

15. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
True
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

16. What is the best source for productivity data?

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17. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Direct Negotiation - Competitive Bidding
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
Liens

18. 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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19. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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
True
Instruction to bidders

20. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Direct Negotiation - Competitive Bidding
Renting - Leasing - Buying
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.
Liens

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

22. The assembly of components to form the completed portion of a job.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
True
Erection

23. The location where material can be stored in relationship to the construction project affects productivity.
True
Master Format and Uniformat
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liens

24. Name three common methods of procuring equipment.
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 ability to procure the right piece of equipment for the job when the unit is needed
Renting - Leasing - Buying

25. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
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.

26. Explain why using overtime is not recommended for most construction projects.
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.
Contract Documents
Scheduling overtime for more than several weeks can result in huge productivity losses.
Liens

27. What is the performance bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Liquidated Damages
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.

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

29. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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.
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
False

30. Explain why using overtime is not recommended for most construction projects.
Liens
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Retainage

31. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Contract Documents
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
False
Retainage

32. What unit of time is used to measure labor?
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.
The Labor Hour
True

33. What are the two most common methods by which a contractor can acquire a construction 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.
Lavatory
Lump-Sum Estimate - Unit Price Estimate
Direct Negotiation - Competitive Bidding

34. Five basic skills everyone should master

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35. Describe factors affecting the accuracy of detail cost estimating.
Lump-Sum Estimate - Unit Price Estimate
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
A gross unit such as the number of hospital beds is used.

36. Assemblies 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
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
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.

37. Under what conditions are wage premiums applied
Retainage
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
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.

38. Name two systems that establish standards for the building design/construction estimating process.
Direct Negotiation - Competitive Bidding
Liens
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.

39. List the factors affecting labor productivity
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Both extreme hot and cold will tend to slow down the pace of work.

40. The location where material can be stored in relationship to the construction project affects productivity.
As-built drawings
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Invitation to bid
True

41. What does the labor hour represent?
The Labor Hour
Lump-Sum Estimate - Unit Price Estimate
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 amount of work that can be done in an hour

42. 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
Addenda
Direct Negotiation - Competitive Bidding
Renting - Leasing - Buying

43. 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.
Contract Documents
Lump-Sum Estimate - Unit Price Estimate
Change Order
True

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

45. What are the benefits of renting equipment?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Invitation to bid
The ability to procure the right piece of equipment for the job when the unit is needed
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

46. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Bid Bond
True
Bid Bond

47. What is the performance bond?
False
Addenda
Addenda
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.

48. 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
False
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
...
False

49. Construction estimating is more an art than a science
The Labor Hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Punch List
True

50. The assembly of components to form the completed portion of a job.
Foundation
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.
Lavatory