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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?
Direct Negotiation - Competitive Bidding
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

2. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Direct Negotiation - Competitive Bidding
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
...
False

3. 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.
Contract Documents
Erection
Scheduling overtime for more than several weeks can result in huge productivity losses.
Addenda

4. Name three common methods of procuring equipment.
Joist
Renting - Leasing - Buying
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

5. A document stating the procedures to be followed by bidders.
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
Instruction to bidders
...
The ability to procure the right piece of equipment for the job when the unit is needed

6. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Skilled labor and material portions
Bid
...
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

7. 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
True
Liquidated Damages
False
...

8. Describe the composition of the Building Cost Index (BCI).
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
Skilled labor and material portions
Invitation to bid
Erection

9. Name three common methods of procuring equipment.
Joist
Internal Factor - External Factor - Project Related-Factor
Renting - Leasing - Buying
True

10. Describe and provide examples of specific use equipment and general use equipment.
False
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Punch List
...

11. The most reliable productivity rates come from historical data
Foundation
Internal Factor - External Factor - Project Related-Factor
True
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. What is the maintenance bond?
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.
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

13. A bathroom sink
Lavatory
Direct Negotiation - Competitive Bidding
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

14. Why do many contractors hesitate to bid just before the expiration of a union contract?
Both extreme hot and cold will tend to slow down the pace of work.
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.

15. Describe the composition of the Construction Cost Index (CCI).
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.
Common labor and material portions
Direct Negotiation - Competitive Bidding
Erection

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.
Invitation to bid
Joist
Change Order
Addenda

17. 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.
Skilled 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
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

18. What types of information are provided in the Invitation to Bid?
Retainage
Lavatory
Contract 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

19. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Contract Documents
Punch List
Invitation to bid

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

21. Five basic skills everyone should master

22. The location where material can be stored in relationship to the construction project affects productivity.
Renting - Leasing - Buying
True
Foundation
Common labor and material portions

23. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Common labor and material portions
Punch List
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.

24. What is estimating in construction?
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.
Joist
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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

25. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

26. What are some of the factors a contractor considers when making a decision to bid?
Instruction to bidders
Internal Factor - External Factor - Project Related-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.
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

27. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Change Order
Joist
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

28. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
The amount of work that can be done in an hour
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 Labor Hour

29. 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
False
A gross unit such as the number of hospital beds is used.

30. Name the types of Estimates
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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
As-built drawings

31. What is the payment bond?
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 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.
Foundation
As-built drawings

32. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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.
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 is estimating in construction?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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

34. 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
The Labor Hour
...
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

35. Describe the composition of the Building Cost Index (BCI).
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
Bid Bond
Master Format and Uniformat
Skilled labor and material portions

36. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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.
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
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.

37. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

38. The substructure that supports a building or other structure.
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.
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

39. How does insurance differ from a surety bond?
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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
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.

40. How are the various surety bonds that may be required on a specific project obtained?
Master Format and Uniformat
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.
True

41. 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.
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

42. How are the various surety bonds that may be required on a specific project obtained?
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
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.
Internal Factor - External Factor - Project Related-Factor
False

43. Five basic skills everyone should master

44. What does the labor hour represent?
The amount of work that can be done in an hour
Liquidated Damages
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 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.

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

46. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
A gross unit such as the number of hospital beds is used.
False
True
True

47. Under what conditions are wage premiums applied
Scheduling overtime for more than several weeks can result in huge productivity losses.
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Bid

48. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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.
Renting - Leasing - Buying
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

49. What is the best source for productivity data?

50. A good database of past project experiences is essential to preparing a quick and accurate estimate.
The amount of work that can be done in an hour
True
Liquidated Damages
Lump-Sum Estimate - Unit Price Estimate