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. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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
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.


2. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Direct Negotiation - Competitive Bidding
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid Bond
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project


3. 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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Bid Bond
Common labor and material portions


4. A document stating the procedures to be followed by bidders.
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
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
Instruction to bidders
True


5. What is estimating in construction?
Liquidated Damages
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Skilled labor and material portions
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.


6. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
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
Punch List
Common labor and material portions


7. What is the best source for productivity data?

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


9. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
...
Liens
Bid Bond


10. What unit of time is used to measure labor?
Internal Factor - External Factor - Project Related-Factor
Joist
Joist
The Labor Hour


11. What is the payment 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.
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.
Both extreme hot and cold will tend to slow down the pace of work.


12. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Liquidated Damages
True
As-built drawings
Lump-Sum Estimate - Unit Price Estimate


13. Explain why using overtime is not recommended for most construction projects.
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.
True
Lump-Sum Estimate - Unit Price Estimate
Scheduling overtime for more than several weeks can result in huge productivity losses.


14. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Skilled labor and material portions
Addenda
True
Foundation


15. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Lavatory
Liens
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.


16. What are some of the factors a contractor considers when making a decision to bid?
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 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
Internal Factor - External Factor - Project Related-Factor


17. What is the performance 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.
False
False
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.


18. What types of information are provided in the Invitation to Bid?
Internal Factor - External Factor - Project Related-Factor
Lavatory
Direct Negotiation - Competitive Bidding
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


19. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Punch List
Internal Factor - External Factor - Project Related-Factor
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.
Retainage


20. Explain firm price contracting estimates.
...
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Lump-Sum Estimate - Unit Price Estimate
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.


21. What is the maintenance bond?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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. 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


22. How does insurance differ from a surety bond?
Bid Bond
Invitation to bid
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.


23. 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
Both extreme hot and cold will tend to slow down the pace of work.
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


24. Describe factors affecting the accuracy of detail cost estimating.
Erection
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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
Lump-Sum Estimate - Unit Price Estimate


25. Name 10 step process to bid

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26. Name two systems that establish standards for the building design/construction estimating process.
Liens
Master Format and Uniformat
Bid Bond
A gross unit such as the number of hospital beds is used.


27. 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
The ability to procure the right piece of equipment for the job when the unit is needed
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Scheduling overtime for more than several weeks can result in huge productivity losses.


28. 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.
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 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.
Direct Negotiation - Competitive Bidding


29. The location where material can be stored in relationship to the construction project affects 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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Change Order
True


30. 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
True
Common 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


31. What are some of the factors a contractor considers when making a decision to bid?
Renting - Leasing - Buying
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
Internal Factor - External Factor - Project Related-Factor


32. What are some of the costs that must be included in equipment operating costs?
False
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire


33. Five basic skills everyone should master

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34. Explain firm price contracting estimates.
False
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.
Lump-Sum Estimate - Unit Price Estimate
Invitation to bid


35. Construction estimating is more an art than a science
Internal Factor - External Factor - Project Related-Factor
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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.
Direct Negotiation - Competitive Bidding


36. Name 10 step process to bid

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37. Describe the composition of the Construction Cost Index (CCI).
Common labor and material portions
True
Liens
True


38. List the factors affecting labor productivity
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 Labor 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.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions


39. Explain why using overtime is not recommended for most construction projects.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Internal Factor - External Factor - Project Related-Factor
Contract Documents


40. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Bid Bond
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate


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

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42. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed 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.
False


43. How do climatic conditions influence the amount of work actually completed in an hour?
Addenda
Both extreme hot and cold will tend to slow down the pace of work.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
False


44. What are the two most common methods by which a contractor can acquire a construction contract?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Direct Negotiation - Competitive Bidding
True
True


45. 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
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
False
True


46. Under what conditions are wage premiums applied
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
The ability to procure the right piece of equipment for the job when the unit is needed
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.


47. Describe the composition of the Building Cost Index (BCI).
Retainage
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.
Skilled labor and material portions


48. What unit of time is used to measure labor?
The amount of work that can be done in an hour
Lump-Sum Estimate - Unit Price Estimate
The Labor Hour
...


49. What are the advantages to a small contractor of renting equipment instead of owning?
True
Direct Negotiation - Competitive Bidding
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.


50. Describe and provide examples of specific use equipment and general use equipment.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
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