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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. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
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.
False
Retainage
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

2. 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.
False
Contract Documents
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

3. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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
Lump-Sum Estimate - Unit Price Estimate
False
Invitation to bid

4. What are the difficulties encountered by the estimator during the preparation of a project's conceptual 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.
Foundation
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.

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

6. What is depreciation?
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
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.

7. Name the types of Estimates
Change Order
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

8. 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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Erection
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

9. 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
As-built drawings
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

10. Explain firm price contracting estimates.
Invitation to bid
Lump-Sum Estimate - Unit Price Estimate
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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

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

12. The substructure that supports a building or other structure.
True
As-built drawings
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Foundation

13. Five basic skills everyone should master

14. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
False
Internal Factor - External Factor - Project Related-Factor
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Bid Bond

15. What is depreciation?
True
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Liens
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

16. What does the labor hour represent?
True
Scheduling overtime for more than several weeks can result in huge productivity losses.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The amount of work that can be done in an hour

17. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Retainage
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
False

18. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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
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
A gross unit such as the number of hospital beds is used.

19. Why do many contractors hesitate to bid just before the expiration of a union contract?
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 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.
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.
...

20. 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.
Change Order
Erection
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.

21. How do climatic conditions influence the amount of work actually completed in an hour?
Joist
The amount of work that can be done in an hour
Both extreme hot and cold will tend to slow down the pace of work.
Liquidated Damages

22. 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.
Both extreme hot and cold will tend to slow down the pace of work.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Punch List

23. A good database of past project experiences is essential to preparing a quick and accurate estimate.
A gross unit such as the number of hospital beds is used.
Erection
...
True

24. Operation costs include...
As-built drawings
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
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

25. 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.
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.
Change Order
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.

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

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

28. 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
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
Liquidated Damages
False

29. Five basic skills everyone should master

30. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Master Format and Uniformat
The Labor Hour
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

31. What does the labor hour represent?
The amount of work that can be done in an hour
True
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True

32. What is the bid bond and how does it protect the owner?
Bid
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
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

33. Construction estimating is more an art than a science
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Joist
Internal Factor - External Factor - Project Related-Factor

34. What is the maintenance bond?
Instruction to bidders
Scheduling overtime for more than several weeks can result in huge productivity losses.
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

35. The location where material can be stored in relationship to the construction project affects productivity.
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.
True
False

36. 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
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.
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
...

37. 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
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
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

38. What is the performance bond?
True
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

39. Describe factors affecting the accuracy of detail cost estimating.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True

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

41. Name 10 step process to bid

42. The assembly of components to form the completed portion of a job.
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True
Erection

43. 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
...
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.
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

44. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
True
Bid
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
False

45. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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
False
Lump-Sum Estimate - Unit Price Estimate
The ability to procure the right piece of equipment for the job when the unit is needed

46. Describe the CSI MasterFormat and how it is used.
Bid
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

47. Describe the composition of the Construction Cost Index (CCI).
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.
Common labor and material portions

48. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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.
A gross unit such as the number of hospital beds is used.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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.

49. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
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
Invitation to bid
Direct Negotiation - Competitive Bidding

50. The assembly of components to form the completed portion of a job.
Erection
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Bid Bond
Skilled labor and material portions