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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. Describe the composition of the Construction Cost Index (CCI).
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Skilled labor and material portions
Master Format and Uniformat
Common labor and material portions

2. The most reliable productivity rates come from historical data
True
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Invitation to bid
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.

3. What types of information are provided in the Invitation to 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
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.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar 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

4. Construction estimating is more an art than a science
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Foundation
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Addenda

5. Why do many contractors hesitate to bid just before the expiration of a union contract?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
True
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.

6. Explain firm price contracting estimates.
Lump-Sum Estimate - Unit Price Estimate
Both extreme hot and cold will tend to slow down the pace of work.
Foundation
Both extreme hot and cold will tend to slow down the pace of work.

7. How does insurance differ from a surety bond?
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

8. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
A gross unit such as the number of hospital beds is used.
Internal Factor - External Factor - Project Related-Factor
Retainage

9. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
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
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

10. What is depreciation?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

11. Name 10 step process to bid

12. The location where material can be stored in relationship to the construction project affects productivity.
Direct Negotiation - Competitive Bidding
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.
True
Contract Documents

13. 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
Retainage
Lavatory
Liens

14. The assembly of components to form the completed portion of a job.
Erection
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.
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

15. How are the various surety bonds that may be required on a specific project obtained?
Direct Negotiation - Competitive Bidding
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.

16. Name two systems that establish standards for the building design/construction estimating process.
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.
Master Format and Uniformat
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

17. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Joist
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

18. Construction estimating is more an art than a science
Master Format and Uniformat
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

19. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
A gross unit such as the number of hospital beds is used.
Skilled labor and material portions
Common labor and material portions
Invitation to bid

20. Describe and provide examples of specific use equipment and general use 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
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Addenda
The amount of work that can be done in an hour

21. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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
Common labor and material portions
True

22. What is the payment bond?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

23. 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.
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.
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

24. What are some of the costs that must be included in equipment operating costs?
Common labor and material portions
False
Erection
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

25. What are the two most common methods by which a contractor can acquire a construction contract?
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
Direct Negotiation - Competitive Bidding
Scheduling overtime for more than several weeks can result in huge productivity losses.

26. What unit of time is used to measure labor?
Bid
True
The Labor Hour
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.

27. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
True
Renting - Leasing - Buying
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 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.

28. Describe the composition of the Construction Cost Index (CCI).
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
Common labor and material portions
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.

29. What is depreciation?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Liens
The ability to procure the right piece of equipment for the job when the unit is needed

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

31. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Change Order

32. What are the benefits of renting equipment?
True
The ability to procure the right piece of equipment for the job when the unit is needed
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Skilled labor and material portions

33. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
True
The ability to procure the right piece of equipment for the job when the unit is needed
Scheduling overtime for more than several weeks can result in huge productivity losses.

34. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Punch List
Common labor and material portions
Lump-Sum Estimate - Unit Price Estimate
False

35. Name three common methods of procuring equipment.
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.
Renting - Leasing - Buying
True
Retainage

36. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract 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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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
Bid

37. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Master Format and Uniformat
Bid Bond
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

38. A document stating the procedures to be followed by bidders.
Instruction to bidders
Retainage
True
Contract Documents

39. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Skilled labor and material portions
Contract Documents
The amount of work that can be done in an hour
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

40. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
A gross unit such as the number of hospital beds is used.
True
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.
Punch List

41. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
Skilled labor and material portions
Erection
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

42. The substructure that supports a building or other structure.
Foundation
Retainage
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

43. Name the types of Estimates
True
Bid
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

44. Explain why using overtime is not recommended for most construction projects.
Bid
Scheduling overtime for more than several weeks can result in huge productivity losses.
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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

45. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Instruction to bidders
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

46. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
The Labor Hour
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

47. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Change Order
Both extreme hot and cold will tend to slow down the pace of work.
Addenda
Joist

48. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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.
Joist
Contract Documents
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

49. Five basic skills everyone should master

50. What does the labor hour represent?
Internal Factor - External Factor - Project Related-Factor
The Labor Hour
The amount of work that can be done in an hour
Bid