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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 maintenance bond?
A gross unit such as the number of hospital beds is used.
True
True
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.

2. The assembly of components to form the completed portion of a job.
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.
Erection
Both extreme hot and cold will tend to slow down the pace of work.
True

3. 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
...
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

4. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
Contract Documents
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Addenda

5. 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.
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Renting - Leasing - Buying
Change Order

6. What is the best source for productivity data?

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

8. What is the maintenance bond?
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 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.
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

9. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Both extreme hot and cold will tend to slow down the pace of work.

10. What is the performance bond?
Both extreme hot and cold will tend to slow down the pace of 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.
The ability to procure the right piece of equipment for the job when the unit is needed
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.

11. What is retainage? Why should a contractor be concerned with a retainage clause in a 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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.

12. 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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Erection

13. Where would information be found on whether a bid bond was required and - if so - its amount?
Joist
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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

14. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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.

15. A bathroom sink
Erection
Lavatory
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.

16. Explain firm price contracting estimates.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lump-Sum Estimate - Unit Price Estimate
Liens

17. Name the types of Estimates
True
Instruction to bidders
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

18. What are the benefits of renting equipment?
Common labor and material portions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The ability to procure the right piece of equipment for the job when the unit is needed
The Labor Hour

19. Name two systems that establish standards for the building design/construction estimating process.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Master Format and Uniformat
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.

20. 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
Master Format and Uniformat
Liquidated Damages
Master Format and Uniformat
Change Order

21. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
...
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.

22. What are some of the factors a contractor considers when making a decision to bid?
Liquidated Damages
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
Internal Factor - External Factor - Project Related-Factor

23. 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Addenda
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

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

25. What unit of time is used to measure labor?
The Labor Hour
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

26. 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
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.
Contract Documents

27. What is depreciation?
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.
Both extreme hot and cold will tend to slow down the pace of work.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

28. 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.
A gross unit such as the number of hospital beds is used.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.

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. How do climatic conditions influence the amount of work actually completed in an hour?
Both extreme hot and cold will tend to slow down the pace of work.
True
Instruction to bidders
True

31. 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
Change Order
...
Lump-Sum Estimate - Unit Price Estimate
True

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

33. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
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. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Punch List

34. Describe the CSI MasterFormat and how it is used.
Lavatory
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
Joist

35. How do climatic conditions influence the amount of work actually completed in an hour?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
...
Both extreme hot and cold will tend to slow down the pace of work.
Master Format and Uniformat

36. 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
Scheduling overtime for more than several weeks can result in huge productivity losses.
...
Foundation

37. 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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False
Change Order

38. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Invitation to bid
Instruction to bidders
False
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.

39. The most reliable productivity rates come from historical data
Foundation
Internal Factor - External Factor - Project Related-Factor
True
Joist

40. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Master Format and Uniformat
Bid
Retainage

41. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Scheduling overtime for more than several weeks can result in huge productivity losses.
False
Bid
Bid Bond

42. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
...
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

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

44. 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
Erection
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.

45. What are some of the costs that must be included in equipment operating costs?
Liens
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Bid
Renting - Leasing - Buying

46. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
...
The Labor Hour
True
Skilled labor and material portions

47. Describe factors affecting the accuracy of detail cost estimating.
Bid
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

48. What are the advantages to a small contractor of renting equipment instead of owning?
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.
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.
Renting - Leasing - Buying
The Labor Hour

49. How does insurance differ from a surety bond?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.

50. What is the performance bond?
The Labor Hour
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 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.
Addenda