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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. Why do many contractors hesitate to bid just before the expiration of a union contract?
A gross unit such as the number of hospital beds is used.
Common labor and material portions
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.
Lavatory

2. What is the maintenance bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Bid Bond
Lump-Sum Estimate - Unit Price 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.

3. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
Foundation
False
Joist

4. Explain firm price contracting estimates.
False
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.
Lump-Sum Estimate - Unit Price Estimate

5. The substructure that supports a building or other structure.
Addenda
Foundation
True
Joist

6. Under what conditions are wage premiums applied
True
As-built drawings
Instruction to bidders
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

7. 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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Skilled labor and material portions
Master Format and Uniformat

8. What are the advantages to a small contractor of renting equipment instead of owning?
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.
False
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

9. What are the benefits of renting 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
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The ability to procure the right piece of equipment for the job when the unit is needed
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

10. Name the types of Estimates
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
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

11. Five basic skills everyone should master

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12. Where would information be found on whether a bid bond was required and - if so - its amount?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
False
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 ability to procure the right piece of equipment for the job when the unit is needed

13. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid

14. Explain why using overtime is not recommended for most construction projects.
Contract Documents
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The Labor Hour
Scheduling overtime for more than several weeks can result in huge productivity losses.

15. A document stating the procedures to be followed by bidders.
Bid
Instruction to bidders
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Punch List

16. How does insurance differ from a surety bond?
Liens
Instruction to bidders
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

17. Order of Magnitude Estimate...
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Liquidated Damages
A gross unit such as the number of hospital beds is used.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

18. Name three common methods of procuring equipment.
Internal Factor - External Factor - Project Related-Factor
Renting - Leasing - Buying
As-built drawings
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.

19. The location where material can be stored in relationship to the construction project affects productivity.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
Erection
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.

20. What is the performance bond?
Master Format and Uniformat
True
The amount of work that can be done in an hour
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.

21. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Invitation to bid
Retainage
Skilled labor and material portions

22. What is the bid bond and how does it protect the owner?
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 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 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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

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

24. Explain firm price contracting estimates.
Instruction to bidders
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.
Lump-Sum Estimate - Unit Price Estimate
True

25. What types of information are provided in the Invitation to Bid?
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.
Retainage
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

26. A document stating the procedures to be followed by bidders.
Renting - Leasing - Buying
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Instruction to bidders

27. What is the bid bond and how does it protect the owner?
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
True
Common labor and material portions

28. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid Bond
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 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.

29. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Both extreme hot and cold will tend to slow down the pace of work.
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
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 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.

30. 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.
Liquidated Damages
A gross unit such as the number of hospital beds is used.
Change Order

31. Name 10 step process to bid

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32. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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

33. Describe the composition of the Building Cost Index (BCI).
Erection
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
Skilled labor and material portions
False

34. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
As-built drawings
True
Invitation to bid
Contract Documents

35. Describe factors affecting the accuracy of detail cost estimating.
Direct Negotiation - Competitive Bidding
A gross unit such as the number of hospital beds is used.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.

36. What is the payment bond?
Skilled labor and material portions
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. 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.

37. The assembly of components to form the completed portion of a job.
True
As-built drawings
Erection
Bid

38. Describe the CSI MasterFormat and how it is used.
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.
Bid Bond
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.
False

39. 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
A gross unit such as the number of hospital beds is used.
Foundation
As-built drawings

40. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Renting - Leasing - Buying
Both extreme hot and cold will tend to slow down the pace of work.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True

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
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Liquidated Damages
Internal Factor - External Factor - Project Related-Factor
Scheduling overtime for more than several weeks can result in huge productivity losses.

42. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Instruction to bidders
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
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

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

44. 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
Direct Negotiation - Competitive Bidding
True
Bid Bond

45. How are the various surety bonds that may be required on a specific project obtained?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Liquidated Damages
Invitation to bid
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.

46. Five basic skills everyone should master

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47. List the factors affecting labor productivity
Bid
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

48. What is the payment bond?
Scheduling overtime for more than several weeks can result in huge productivity losses.
Internal Factor - External Factor - Project Related-Factor
Internal Factor - External Factor - Project Related-Factor
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.

49. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.

50. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Skilled labor and material portions
As-built drawings
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.