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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 types of information are provided in the Invitation to Bid?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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
Master Format and Uniformat
Renting - Leasing - Buying

2. A good database of past project experiences is essential to preparing a quick and accurate estimate.
True
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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. 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
The Labor Hour
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Liquidated Damages

4. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Joist
False
The ability to procure the right piece of equipment for the job when the unit is needed
Lump-Sum Estimate - Unit Price Estimate

5. Order of Magnitude 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.
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
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

6. 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
Internal Factor - External Factor - Project Related-Factor
Invitation to bid
Liquidated Damages
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.

7. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
The Labor Hour
Renting - Leasing - Buying
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.

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

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

10. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Liquidated Damages
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
Addenda

11. 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
Bid
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions

12. What is the bid bond and how does it protect the owner?
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 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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

13. What is the payment 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.
Lump-Sum Estimate - Unit Price 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.
Renting - Leasing - Buying

14. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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
As-built drawings
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

15. Five basic skills everyone should master

16. 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
...
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
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.

17. 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.
True
Joist
Liens

18. What are the benefits of renting equipment?
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
The ability to procure the right piece of equipment for the job when the unit is needed
Skilled labor and material portions
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.

19. What is the performance bond?
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
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

20. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
Punch List
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

21. 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.
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.
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.
Addenda

22. The most reliable productivity rates come from historical data
True
Retainage
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.
Joist

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

24. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
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.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Liens

25. List the factors affecting labor productivity
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Erection

26. Order of Magnitude Estimate...
Common labor and material portions
A gross unit such as the number of hospital beds is used.
Lavatory
Renting - Leasing - Buying

27. How are the various surety bonds that may be required on a specific project obtained?
Both extreme hot and cold will tend to slow down the pace of work.
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.
Instruction to bidders
Bid

28. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
A gross unit such as the number of hospital beds is used.

29. Name the types of Estimates
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.
Skilled labor and material portions
Foundation
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

30. What is the maintenance bond?
Liquidated Damages
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. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Lump-Sum Estimate - Unit Price Estimate

31. Describe the composition of the Building Cost Index (BCI).
True
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
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

32. Describe and provide examples of specific use equipment and general use equipment.
Change Order
Renting - Leasing - Buying
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

33. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Liens
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
False

34. The substructure that supports a building or other structure.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Foundation
True
True

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

36. Name 10 step process to bid

37. Name three common methods of procuring equipment.
Both extreme hot and cold will tend to slow down the pace of work.
The ability to procure the right piece of equipment for the job when the unit is needed
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Renting - Leasing - Buying

38. Describe factors affecting the accuracy of detail cost estimating.
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions
True

39. Name 10 step process to bid

40. 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
Both extreme hot and cold will tend to slow down the pace of work.
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

41. Name two systems that establish standards for the building design/construction estimating process.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Joist
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Master Format and Uniformat

42. What does the labor hour represent?
The amount of work that can be done in an 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Erection

43. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Bid

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

45. 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.
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.
Lump-Sum Estimate - Unit Price Estimate
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

46. Five basic skills everyone should master

47. What are the benefits of renting equipment?
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 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 ability to procure the right piece of equipment for the job when the unit is needed
Liens

48. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Punch List
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Invitation to bid

49. Construction estimating is more an art than a science
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
As-built drawings
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Lump-Sum Estimate - Unit Price Estimate

50. How do climatic conditions influence the amount of work actually completed in an hour?
Foundation
Both extreme hot and cold will tend to slow down the pace of work.
The ability to procure the right piece of equipment for the job when the unit is needed
Addenda