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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. Where the project will be constructed does not have a major influence in the preparation of an 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.
Contract Documents
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
False

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

3. How do climatic conditions influence the amount of work actually completed in an hour?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Both extreme hot and cold will tend to slow down the pace of work.
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.
Bid Bond

4. Explain why using overtime is not recommended for most construction projects.
False
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
Instruction to bidders
Scheduling overtime for more than several weeks can result in huge productivity losses.

5. Why do many contractors hesitate to bid just before the expiration of a union contract?
Scheduling overtime for more than several weeks can result in huge productivity losses.
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 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.
...

6. What are the benefits of renting equipment?
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.
Change Order
Bid

7. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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.
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
Joist

8. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
Lump-Sum Estimate - Unit Price Estimate
Lavatory
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.
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.

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

10. Assemblies 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.
Direct Negotiation - Competitive Bidding
Both extreme hot and cold will tend to slow down the pace of work.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

11. What unit of time is used to measure labor?
Renting - Leasing - Buying
The Labor Hour
True
Joist

12. Name two systems that establish standards for the building design/construction estimating process.
False
Master Format and Uniformat
Scheduling overtime for more than several weeks can result in huge productivity losses.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

13. What types of information are provided in the 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
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.
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

14. The most reliable productivity rates come from historical data
Bid
Foundation
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

15. Name three common methods of procuring equipment.
Renting - Leasing - Buying
Invitation to bid
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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

16. What is the maintenance 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.
Erection
Bid 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.

17. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Common labor and material portions
Invitation to bid
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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.

18. 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.
Foundation
True
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.
Change Order

19. What is the bid bond and how does it protect 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
Bid
Skilled labor and material portions
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

20. Order of Magnitude Estimate...
A gross unit such as the number of hospital beds is used.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Invitation to bid

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.
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.
Invitation to bid
Addenda

22. The location where material can be stored in relationship to the construction project affects productivity.
True
The Labor Hour
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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

23. Describe and provide examples of specific use equipment and general use equipment.
The ability to procure the right piece of equipment for the job when the unit is needed
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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

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

25. How does insurance differ from a surety bond?
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.
Bid
True

26. Describe and provide examples of specific use equipment and general use equipment.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Retainage

27. What is the performance bond?
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 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.
True
Instruction to bidders

28. The assembly of components to form the completed portion of a job.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
...
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Erection

29. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Instruction to bidders
True
False
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

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

31. What does the labor hour represent?
The amount of work that can be done in an hour
Retainage
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

32. 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.
Bid
Common labor and material portions
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.

33. What are some of the costs that must be included in equipment operating costs?
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Lump-Sum Estimate - Unit Price Estimate

34. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

35. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Bid
Renting - Leasing - Buying
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.

36. Describe the composition of the Construction Cost Index (CCI).
Skilled labor and material portions
Common labor and material portions
As-built drawings
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.

37. The most reliable productivity rates come from historical data
The Labor Hour
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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

38. What is the best source for productivity data?

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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.
Addenda
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
True
Change Order

40. Construction estimating is more an art than a science
Lavatory
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Bid Bond
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

41. A bathroom sink
Lavatory
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

42. What does the labor hour represent?
True
Liquidated Damages
The amount of work that can be done in an hour
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

43. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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
False
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

44. Describe and provide examples of specific use equipment and general use equipment.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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
Retainage

45. Describe the composition of the Building Cost Index (BCI).
Direct Negotiation - Competitive Bidding
Skilled labor and material portions
As-built drawings
Internal Factor - External Factor - Project Related-Factor

46. Assemblies 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.
Erection
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
Invitation to bid

47. Operation costs include...
Instruction to bidders
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
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

48. What are the advantages to a small contractor of renting equipment instead of owning?
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
Change Order
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.

49. The substructure that supports a building or other structure.
Foundation
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.
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

50. How does insurance differ from a surety bond?
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 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
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.
A gross unit such as the number of hospital beds is used.