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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. List the factors affecting labor productivity
The amount of work that can be done in an hour
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Contract Documents
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

2. What is the performance bond?
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
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.
Lump-Sum Estimate - Unit Price Estimate
True

3. Where would information be found on whether a bid bond was required and - if so - its amount?
Bid
The amount of work that can be done in an hour
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

4. What does the labor hour represent?
The amount of work that can be done in an hour
Instruction to bidders
True
Bid

5. Name three common methods of procuring equipment.
Liquidated Damages
Renting - Leasing - Buying
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

6. What does the labor hour represent?
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.
Lump-Sum Estimate - Unit Price Estimate
Master Format and Uniformat
The amount of work that can be done in an hour

7. Where the project will be constructed does not have a major influence in the preparation of an estimate.
True
False
Lump-Sum Estimate - Unit Price Estimate
Joist

8. How do climatic conditions influence the amount of work actually completed in an hour?
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.
Both extreme hot and cold will tend to slow down the pace of work.
Skilled labor and material portions
The Labor Hour

9. Where the project will be constructed does not have a major influence in the preparation of an estimate.
False
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True

10. Describe and provide examples of specific use equipment and general use equipment.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

11. 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.
The amount of work that can be done in an hour
Retainage
The ability to procure the right piece of equipment for the job when the unit is needed

12. Under what conditions are wage premiums applied
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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
True

13. What are the benefits of renting equipment?
False
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 ability to procure the right piece of equipment for the job when the unit is needed

14. Describe the composition of the Construction Cost Index (CCI).
...
Common 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
Bid

15. A bathroom sink
Lavatory
True
Liens
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

16. Five basic skills everyone should master

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17. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
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.
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.
Contract Documents
Bid

18. Describe and provide examples of specific use equipment and general use equipment.
Retainage
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

19. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
The amount of work that can be done in an hour
A gross unit such as the number of hospital beds is used.
Liens

20. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid Bond
Foundation
Common labor and material portions
The Labor Hour

21. Operation costs include...
Contract Documents
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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

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

23. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
Renting - Leasing - Buying
Bid
The Labor Hour

24. Describe the composition of the Construction Cost Index (CCI).
The amount of work that can be done in an hour
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.
Common 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

25. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
...
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
Joist

26. What is the payment bond?
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
Invitation to bid
Change Order
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.

27. What is depreciation?
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
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 Labor Hour

28. Explain why using overtime is not recommended for most construction projects.
Scheduling overtime for more than several weeks can result in huge productivity losses.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Instruction to bidders
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

29. 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.
Master Format and Uniformat
Invitation to bid
Direct Negotiation - Competitive Bidding

30. Name 10 step process to bid

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31. Describe factors affecting the accuracy of detail cost estimating.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Contract Documents
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Instruction to bidders

32. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
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.
As-built drawings

33. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
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
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.

34. 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.
A gross unit such as the number of hospital beds is used.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
Addenda

35. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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 Labor Hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.

36. How are the various surety bonds that may be required on a specific project obtained?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.
Renting - Leasing - Buying
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 is the bid bond and how does it protect the owner?
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 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
Liquidated Damages
A gross unit such as the number of hospital beds is used.

38. 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
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 amount of work that can be done in an hour
A gross unit such as the number of hospital beds is used.

39. The substructure that supports a building or other structure.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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
Foundation
Internal Factor - External Factor - Project Related-Factor

40. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
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
The amount of work that can be done in an hour
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

41. 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
...
Liquidated Damages
Joist
Retainage

42. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Scheduling overtime for more than several weeks can result in huge productivity losses.

43. Name the types of Estimates
Common labor and material portions
Liquidated Damages
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

44. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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
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. Construction estimating is more an art than a science
The ability to procure the right piece of equipment for the job when the unit is needed
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid Bond

46. Name two systems that establish standards for the building design/construction estimating process.
Bid
Master Format and Uniformat
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

47. What is the performance bond?
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. 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.
Internal Factor - External Factor - Project Related-Factor
Punch List

48. 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
As-built drawings
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

49. List the factors affecting labor productivity
Lump-Sum Estimate - Unit Price Estimate
Addenda
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Invitation to bid

50. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
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 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.
Retainage
Direct Negotiation - Competitive Bidding