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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. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
Punch List
The ability to procure the right piece of equipment for the job when the unit is needed
...

2. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Instruction to bidders
As-built drawings
True

3. How are the various surety bonds that may be required on a specific project obtained?
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
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.
True
The ability to procure the right piece of equipment for the job when the unit is needed

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

5. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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.
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
Foundation

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
Liquidated Damages
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Common labor and material portions
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

7. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
True
True
The amount of work that can be done in an hour

8. What is the bid bond and how does it protect the owner?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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 Labor Hour
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

9. 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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
A gross unit such as the number of hospital beds is used.
Addenda
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

10. Describe the CSI MasterFormat and how it is used.
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.
Contract Documents
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.
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.

11. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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.
Bid Bond
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
The Labor Hour

12. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Lavatory
Scheduling overtime for more than several weeks can result in huge productivity losses.
The Labor Hour
Invitation to bid

13. What is the performance bond?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
Contract Documents

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

15. The substructure that supports a building or other structure.
Foundation
Lump-Sum Estimate - Unit Price Estimate
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Skilled labor and material portions

16. Construction estimating is more an art than a science
Punch List
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

17. How does insurance differ from a surety bond?
Master Format and Uniformat
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Change Order

18. Describe the composition of the Construction Cost Index (CCI).
True
True
Common 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 payment bond?
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.
Internal Factor - External Factor - Project Related-Factor
Internal Factor - External Factor - Project Related-Factor
As-built drawings

20. What are the advantages to a small contractor of renting equipment instead of owning?
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
True
True

21. What types of information are provided in the Invitation to Bid?
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
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Change Order

22. Order of Magnitude Estimate...
Renting - Leasing - Buying
A gross unit such as the number of hospital beds is used.
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.

23. What types of information are provided in the Invitation to Bid?
True
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
A gross unit such as the number of hospital beds is used.
Liquidated Damages

24. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
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.
Internal Factor - External Factor - Project Related-Factor
True
Invitation to bid

25. How does insurance differ from a surety bond?
Invitation to bid
Liquidated Damages
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.
Foundation

26. On certain projects the owner may accept proposals only from contractors who are invited to bid.
True
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Scheduling overtime for more than several weeks can result in huge productivity losses.
A gross unit such as the number of hospital beds is used.

27. What is estimating in construction?
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lump-Sum Estimate - Unit Price Estimate
True

28. A document stating the procedures to be followed by bidders.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Instruction to bidders
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.

29. Name 10 step process to bid

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30. What does the labor hour represent?
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
The amount of work that can be done in an hour
Common labor and material portions

31. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Liens

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

33. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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
Bid

34. The location where material can be stored in relationship to the construction project affects productivity.
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.
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

35. Describe the composition of the Building Cost Index (BCI).
Retainage
Skilled labor and material portions
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.
Common labor and material portions

36. 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
Punch List
Change Order

37. Explain why using overtime is not recommended for most construction projects.
Scheduling overtime for more than several weeks can result in huge productivity losses.
True
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

38. 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
True
The ability to procure the right piece of equipment for the job when the unit is needed
Contract Documents

39. 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.
Change Order
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.
Instruction to bidders
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.

40. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Invitation to bid
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Punch List

41. Describe factors affecting the accuracy of detail cost estimating.
Erection
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Contract Documents

42. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.
Joist

43. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Master Format and Uniformat
Foundation
True

44. Name two systems that establish standards for the building design/construction estimating process.
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
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

45. Describe and provide examples of specific use equipment and general use equipment.
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.
...
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors

46. Operation costs include...
Punch List
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
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above

47. Assemblies Estimate...
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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. 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.
A gross unit such as the number of hospital beds is used.

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

49. What is the best source for productivity data?

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50. Under what conditions are wage premiums applied
Common labor and material portions
Renting - Leasing - Buying
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.