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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. Under what conditions are wage premiums applied
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
As-built drawings
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

2. What are some of the factors a contractor considers when making a decision to bid?
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Internal Factor - External Factor - Project Related-Factor
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

3. Describe and provide examples of specific use equipment and general use equipment.
True
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Invitation to bid

4. How are the various surety bonds that may be required on a specific project obtained?
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
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.
Contract Documents

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

6. 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The amount of work that can be done in an hour
True

7. What are some of the costs that must be included in equipment operating costs?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
Liquidated Damages
Contract Documents

8. What is the bid bond and how does it protect the owner?
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 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 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

9. What does the labor hour represent?
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.
The amount of work that can be done in an hour
False

10. 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.
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
Contract Documents

11. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Contract Documents
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
...

12. What is estimating in construction?
Retainage
Lump-Sum Estimate - Unit Price Estimate
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

13. The substructure that supports a building or other structure.
Invitation to bid
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Foundation
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

14. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Lavatory
Bid
Retainage

15. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Erection
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
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 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.

16. On certain projects the owner may accept proposals only from contractors who are invited to bid.
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
Direct Negotiation - Competitive Bidding
True

17. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Bid
Punch List
Common labor and material portions

18. A good database of past project experiences is essential to preparing a quick and accurate estimate.
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.
Liquidated Damages
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
True

19. 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
The amount of work that can be done in an hour

20. Why do many contractors hesitate to bid just before the expiration of a union contract?
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.

21. 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
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
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

22. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Joist
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.

23. The assembly of components to form the completed portion of a job.
Master Format and Uniformat
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Erection
Renting - Leasing - Buying

24. What is the payment bond?
False
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.

25. The location where material can be stored in relationship to the construction project affects productivity.
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.
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
Contract Documents
True

26. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Instruction to bidders
True

27. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
True
Contract Documents
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

28. 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
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.
Lavatory
False

29. What is depreciation?
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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

30. What are some of the costs that must be included in equipment operating costs?
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
Liquidated Damages
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

31. What are the advantages to a small contractor of renting equipment instead of owning?
Bid Bond
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.
Liens

32. The location where material can be stored in relationship to the construction project affects productivity.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
As-built drawings
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True

33. How are the various surety bonds that may be required on a specific project obtained?
Direct Negotiation - Competitive Bidding
Overtime work - shift work - hazardous work conditions - or unusually strenuous 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.
Liquidated Damages

34. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Punch List
A gross unit such as the number of hospital beds is used.
Bid

35. Name three common methods of procuring equipment.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Renting - Leasing - Buying
True
Punch List

36. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
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.
Foundation
Joist
The Labor Hour

37. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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
True
A gross unit such as the number of hospital beds is used.

38. A document stating the procedures to be followed by bidders.
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
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

39. Describe the composition of the Building Cost Index (BCI).
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.
Skilled labor and material portions
Contract Documents
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

40. Name two systems that establish standards for the building design/construction estimating process.
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
The Labor Hour
Master Format and Uniformat

41. What are the two most common methods by which a contractor can acquire a construction contract?
Bid Bond
Direct Negotiation - Competitive Bidding
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.
Common labor and material portions

42. Describe and provide examples of specific use equipment and general use equipment.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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
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.
Instruction to bidders
False
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.

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

45. Name the types of Estimates
Contract Documents
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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 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

46. What is depreciation?
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
False
Invitation to bid
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

47. 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
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.
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.

48. Operation costs include...
Overtime work - shift work - hazardous work conditions - or unusually strenuous 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
Master Format and Uniformat

49. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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.
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

50. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
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.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Lump-Sum Estimate - Unit Price Estimate