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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. 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
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 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

2. 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
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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
Liquidated Damages

3. What does the labor hour represent?
The amount of work that can be done in an hour
Liens
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.
As-built drawings

4. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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
Joist
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 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.

5. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Common labor and material portions
A gross unit such as the number of hospital beds is used.
Retainage

6. Describe the composition of the Construction Cost Index (CCI).
True
False
Common labor and material portions
False

7. What types of information are provided in the Invitation to Bid?
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
The Labor Hour
Renting - Leasing - Buying
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.

8. The assembly of components to form the completed portion of a job.
Scheduling overtime for more than several weeks can result in huge productivity losses.
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
Erection

9. Where would information be found on whether a bid bond was required and - if so - its amount?
Internal Factor - External Factor - Project Related-Factor
Renting - Leasing - Buying
Renting - Leasing - Buying
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

10. What is the best source for productivity data?

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11. How does insurance differ from a surety bond?
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.
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.

12. What are the advantages to a small contractor of renting equipment instead of owning?
False
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.
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.

13. Describe the CSI MasterFormat and how it is used.
Both extreme hot and cold will tend to slow down the pace of work.
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.
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

14. Describe and provide examples of specific use equipment and general use equipment.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time 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

15. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Addenda
Joist
Liquidated Damages
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

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.
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
Direct Negotiation - Competitive Bidding
Change Order
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

17. What is the payment bond?
True
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
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.

18. Describe the composition of the Building Cost Index (BCI).
A gross unit such as the number of hospital beds is used.
Skilled labor and material portions
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
Lavatory

19. 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
Bid
...
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.

20. Order of Magnitude Estimate...
Common labor and material portions
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.
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
A gross unit such as the number of hospital beds is used.

21. Explain why using overtime is not recommended for most construction projects.
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Addenda
Foundation

22. Describe the CSI MasterFormat and how it is used.
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.
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

23. Name 10 step process to bid

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24. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Addenda
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Retainage

25. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
True
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.

26. 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
True
A gross unit such as the number of hospital beds is used.
Bid

27. How are the various surety bonds that may be required on a specific project obtained?
A gross unit such as the number of hospital beds is used.
As-built drawings
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.
Instruction to bidders

28. Explain firm price contracting estimates.
Invitation to bid
Lump-Sum Estimate - Unit Price Estimate
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
Instruction to bidders

29. What is depreciation?
Retainage
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
...
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

30. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Instruction to bidders
A gross unit such as the number of hospital beds is used.

31. Describe factors affecting the accuracy of detail cost estimating.
False
Addenda
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

32. 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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33. What is estimating in construction?
Punch List
Instruction to bidders
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Renting - Leasing - Buying

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

35. Where the project will be constructed does not have a major influence in the preparation of an estimate.
The ability to procure the right piece of equipment for the job when the unit is needed
False
True
The ability to procure the right piece of equipment for the job when the unit is needed

36. Construction estimating is more an art than a science
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Internal Factor - External Factor - Project Related-Factor
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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

37. A bathroom sink
Erection
A gross unit such as the number of hospital beds is used.
Liens
Lavatory

38. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Punch List
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Renting - Leasing - Buying
True

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

40. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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.
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 Labor Hour
As-built drawings

41. What are the advantages to a small contractor of renting equipment instead of owning?
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Lavatory
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.

42. A good database of past project experiences is essential to preparing a quick and accurate estimate.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Common labor and material portions
Bid
True

43. Name the types of Estimates
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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Internal Factor - External Factor - Project Related-Factor

44. A bathroom sink
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.
...
Lavatory

45. What is the best source for productivity data?

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46. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Invitation to 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.

47. Assemblies Estimate...
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.
Erection
Bid Bond
Change Order

48. What is the maintenance bond?
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.
Direct Negotiation - Competitive Bidding
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.

49. The location where material can be stored in relationship to the construction project affects productivity.
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
The Labor Hour

50. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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.
Skilled labor and material portions
False