Test your basic knowledge |

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. Order of Magnitude Estimate...
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.
Contract Documents
A gross unit such as the number of hospital beds is used.
Instruction to bidders

2. 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.
False
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.

3. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Bid Bond
A gross unit such as the number of hospital beds is used.
Joist
Retainage

4. What is estimating in construction?
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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Master Format and Uniformat
Contract Documents

5. 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.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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
Foundation

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

7. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Master Format and Uniformat
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

8. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
The Labor Hour
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

9. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
False
As-built drawings
True
Both extreme hot and cold will tend to slow down the pace of work.

10. Five basic skills everyone should master

11. 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.
Liquidated Damages
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
Addenda

12. 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Invitation to bid
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

13. A good database of past project experiences is essential to preparing a quick and accurate 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
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.

14. What are the advantages to a small contractor of renting equipment instead of owning?
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.
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.
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

15. Name three common methods of procuring equipment.
As-built drawings
Renting - Leasing - Buying
Liens
The Labor Hour

16. Describe the composition of the Construction Cost Index (CCI).
True
Skilled labor and material portions
Retainage
Common labor and material portions

17. Describe the composition of the Building Cost Index (BCI).
False
Direct Negotiation - Competitive Bidding
Skilled labor and material portions
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.

18. Name 10 step process to bid

19. A bathroom sink
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
Retainage
Lavatory

20. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Bid Bond
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.
True
Retainage

21. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
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.
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
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Contract Documents

22. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Erection
Renting - Leasing - Buying
Liens
False

23. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Retainage
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

24. 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
Addenda
Bid
Liquidated Damages
Renting - Leasing - Buying

25. Name two systems that establish standards for the building design/construction estimating process.
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.
Master Format and Uniformat
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True

26. Describe and provide examples of specific use equipment and general use equipment.
Renting - Leasing - Buying
Master Format and Uniformat
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 Labor Hour

27. What is the maintenance bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.
Joist
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

28. Operation costs include...
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The Labor Hour
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
True

29. How do climatic conditions influence the amount of work actually completed in an hour?
Common labor and material portions
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Both extreme hot and cold will tend to slow down the pace of work.

30. How are the various surety bonds that may be required on a specific project obtained?
Contract Documents
Renting - Leasing - Buying
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. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

31. Describe and provide examples of specific use equipment and general use equipment.
True
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
True

32. The most reliable productivity rates come from historical data
As-built drawings
Joist
A gross unit such as the number of hospital beds is used.
True

33. Construction estimating is more an art than a science
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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Master Format and Uniformat

34. 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.
True
Change Order
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

35. Name three common methods of procuring equipment.
Master Format and Uniformat
Renting - Leasing - Buying
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True

36. Where the project will be constructed does not have a major influence in the preparation of an estimate.
False
Lump-Sum Estimate - Unit Price Estimate
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
True

37. Under what conditions are wage premiums applied
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

38. Why is it a good idea for the general contractor to perform quantity surveys on work that is to be subcontracted out?

39. How does insurance differ from a surety bond?
True
Common labor and material portions
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
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.

40. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Liens
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
Retainage

41. Describe the composition of the Building Cost Index (BCI).
True
Skilled labor and material portions
Retainage
Addenda

42. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Retainage
The Labor Hour
Punch List
True

43. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Overtime work - shift work - hazardous work conditions - or unusually strenuous 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.
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
True

44. 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
...
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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

45. What unit of time is used to measure labor?
False
The Labor Hour
False
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

46. 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
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

47. Where the project will be constructed does not have a major influence in the preparation of an 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.
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
False

48. Describe and provide examples of specific use equipment and general use equipment.
Lavatory
Liquidated Damages
A gross unit such as the number of hospital beds is used.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

49. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Contract Documents
Internal Factor - External Factor - Project Related-Factor
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.

50. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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
Bid Bond
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above