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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 are the two most common methods by which a contractor can acquire a construction contract?
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.
Direct Negotiation - Competitive Bidding
Addenda

2. 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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The amount of work that can be done in an hour
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

3. How do climatic conditions influence the amount of work actually completed in an hour?
Joist
Both extreme hot and cold will tend to slow down the pace of work.
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.
Internal Factor - External Factor - Project Related-Factor

4. 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
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 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

5. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
Common labor and material portions
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False

6. 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
Foundation
Invitation to bid
Master Format and Uniformat
...

7. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Liens
Skilled labor and material portions
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.

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

9. Operation costs include...
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
Common labor and material portions
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

10. What are some of the factors a contractor considers when making a decision to bid?
Contract Documents
The amount of work that can be done in an hour
Internal Factor - External Factor - Project Related-Factor
True

11. Describe the CSI MasterFormat and how it is used.
Liquidated Damages
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 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.
Punch List

12. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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.
Direct Negotiation - Competitive Bidding
Change Order
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

13. What unit of time is used to measure labor?
True
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
Bid

14. 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
Direct Negotiation - Competitive Bidding
True
Master Format and Uniformat

15. Name 10 step process to bid

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16. The most reliable productivity rates come from historical data
Bid Bond
True
Internal Factor - External Factor - Project Related-Factor
Bid

17. 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.
As-built drawings
Master Format and Uniformat
Addenda
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.

18. What unit of time is used to measure labor?
The Labor Hour
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
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.
Punch List

19. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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
Contract Documents

20. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Master Format and Uniformat
Bid Bond
Lump-Sum Estimate - Unit Price Estimate
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

21. A bathroom sink
Scheduling overtime for more than several weeks can result in huge productivity losses.
Punch List
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.
Lavatory

22. A document stating the procedures to be followed by bidders.
Change Order
Instruction to bidders
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

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

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

25. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Contract Documents
True
As-built drawings
Retainage

26. What types of information are provided in the Invitation to Bid?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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
Instruction to bidders
Invitation to bid

27. What are the two most common methods by which a contractor can acquire a construction contract?
True
Instruction to bidders
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.

28. What are the benefits of renting equipment?
Erection
The ability to procure the right piece of equipment for the job when the unit is needed
The Labor Hour
True

29. 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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30. What is the best source for productivity data?

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31. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Retainage
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
Addenda

32. What does the labor hour represent?
The amount of work that can be done in an hour
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
Liens
Invitation to bid

33. The assembly of components to form the completed portion of a job.
Erection
The ability to procure the right piece of equipment for the job when the unit is needed
Invitation to bid
The Labor Hour

34. Name three common methods of procuring equipment.
True
Renting - Leasing - Buying
Bid Bond
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

35. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Punch List
Joist
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
A gross unit such as the number of hospital beds is used.

36. Name 10 step process to bid

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37. What are some of the costs that must be included in equipment operating costs?
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.
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

38. The most reliable productivity rates come from historical data
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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.
The Labor Hour

39. What is estimating in construction?
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Instruction to bidders
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

40. The location where material can be stored in relationship to the construction project affects productivity.
The ability to procure the right piece of equipment for the job when the unit is needed
Skilled labor and material portions
The ability to procure the right piece of equipment for the job when the unit is needed
True

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

42. Name three common methods of procuring equipment.
Renting - Leasing - Buying
Erection
False
Retainage

43. What is the maintenance bond?
Bid 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.
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.
Internal Factor - External Factor - Project Related-Factor

44. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Liens
The amount of work that can be done in an hour
Lump-Sum Estimate - Unit Price Estimate

45. 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
True
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. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

46. 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 ability to procure the right piece of equipment for the job when the unit is needed
Liquidated Damages
Foundation
False

47. Describe the composition of the Building Cost Index (BCI).
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
Skilled labor and material portions
Scheduling overtime for more than several weeks can result in huge productivity losses.

48. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
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
A gross unit such as the number of hospital beds is used.
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.
Liens

49. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
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.
Joist
Lump-Sum Estimate - Unit Price Estimate

50. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Lump-Sum Estimate - Unit Price Estimate
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
True