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

2. The assembly of components to form the completed portion of a job.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Erection
Both extreme hot and cold will tend to slow down the pace of work.
Internal Factor - External Factor - Project Related-Factor

3. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
Contract Documents
True
The amount of work that can be done in an hour

4. Describe and provide examples of specific use equipment and general use equipment.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
A gross unit such as the number of hospital beds is used.
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

5. 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
Addenda
The ability to procure the right piece of equipment for the job when the unit is needed
Foundation

6. What are some of the factors a contractor considers when making a decision to bid?
True
Internal Factor - External Factor - Project Related-Factor
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

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

8. 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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
The Labor 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.

9. On certain projects the owner may accept proposals only from contractors who are invited 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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
True

10. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The amount of work that can be done in an hour
Internal Factor - External Factor - Project Related-Factor
Bid

11. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Internal Factor - External Factor - Project Related-Factor
Invitation to bid
The Labor Hour

12. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
Joist
Common labor and material portions
True

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.
Contract Documents
Addenda

14. A document stating the procedures to be followed by bidders.
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
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.

15. The location where material can be stored in relationship to the construction project affects productivity.
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
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed 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

16. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
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.
Common labor and material portions
True

17. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
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
Punch List
Invitation to bid

18. List the factors affecting labor productivity
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.
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
Retainage
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

19. Construction estimating is more an art than a science
Renting - Leasing - Buying
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.
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

20. A document stating the procedures to be followed by bidders.
Instruction to bidders
Skilled labor and material portions
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
Change Order

21. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.

22. Where the project will be constructed does not have a major influence in the preparation of an estimate.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Foundation
Direct Negotiation - Competitive Bidding
False

23. Describe the composition of the Construction Cost Index (CCI).
Internal Factor - External Factor - Project Related-Factor
Common labor and material portions
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
A gross unit such as the number of hospital beds is used.

24. 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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25. What is the payment bond?
Foundation
The amount of work that can be done in an hour
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.

26. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
The amount of work that can be done in an hour
False
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.
Liens

27. Name three common methods of procuring equipment.
Renting - Leasing - Buying
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Scheduling overtime for more than several weeks can result in huge productivity losses.

28. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Internal Factor - External Factor - Project Related-Factor
...
Bid
Erection

29. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Skilled labor and material portions
Erection
Joist
As-built drawings

30. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Retainage
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 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

31. A bathroom sink
Lavatory
False
Direct Negotiation - Competitive Bidding
Retainage

32. Five basic skills everyone should master

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33. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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
Joist
The Labor Hour
The Labor Hour

34. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Skilled labor and material portions
False
True
As-built drawings

35. Name two systems that establish standards for the building design/construction estimating process.
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.
A gross unit such as the number of hospital beds is used.
Master Format and Uniformat
Addenda

36. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
True
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Addenda
Change Order

37. What are the advantages to a small contractor of renting equipment instead of owning?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Punch List
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

38. Name three common methods of procuring equipment.
Renting - Leasing - Buying
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

39. 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
As-built drawings
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Liquidated Damages
Change Order

40. What is the maintenance bond?
True
Lavatory
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

41. 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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42. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
As-built drawings
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
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.

43. What are some of the costs that must be included in equipment operating costs?
Direct Negotiation - Competitive Bidding
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Invitation to bid
Addenda

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

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

46. 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.
Erection
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.
As-built drawings
Addenda

47. What does the labor hour represent?
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The amount of work that can be done in an hour
Liquidated Damages
True

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

49. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
The ability to procure the right piece of equipment for the job when the unit is needed
False
Punch List

50. 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
True
Change Order
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above