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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. The substructure that supports a building or other structure.
Foundation
Skilled labor and material portions
Punch List
Contract Documents

2. Name two systems that establish standards for the building design/construction estimating process.
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.
Skilled labor and material portions
Master Format and Uniformat

3. Why do many contractors hesitate to bid just before the expiration of a union contract?
Erection
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.
Invitation to bid
Both extreme hot and cold will tend to slow down the pace of work.

4. What is the performance bond?
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.
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
...

5. Five basic skills everyone should master

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6. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
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
Bid
Direct Negotiation - Competitive Bidding

7. What are some of the factors a contractor considers when making a decision to bid?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Internal Factor - External Factor - Project Related-Factor
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

8. What is the maintenance bond?
A gross unit such as the number of hospital beds 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.
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

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

10. What is depreciation?
Bid
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
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.

11. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
False
Bid Bond
True

12. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Change Order
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
Renting - Leasing - Buying

13. What does the labor hour represent?
The amount of work that can be done in an hour
Bid
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
Addenda

14. Construction estimating is more an art than a science
The ability to procure the right piece of equipment for the job when the unit is needed
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
Joist

15. A document stating the procedures to be followed by bidders.
Internal Factor - External Factor - Project Related-Factor
False
Lump-Sum Estimate - Unit Price Estimate
Instruction to bidders

16. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Master Format and Uniformat
Internal Factor - External Factor - Project Related-Factor
True
Change Order

17. 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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Common labor and material portions
Lavatory

18. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Bid 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 ability to procure the right piece of equipment for the job when the unit is needed
Erection

19. 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 Labor Hour
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
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

20. The most reliable productivity rates come from historical data
True
Joist
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
As-built drawings

21. Explain firm price contracting estimates.
Bid
Lump-Sum Estimate - Unit Price Estimate
...
True

22. What unit of time is used to measure labor?
The Labor Hour
False
Skilled labor and material portions
Bid

23. Explain firm price contracting estimates.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Lump-Sum Estimate - Unit Price Estimate
As-built drawings

24. Construction estimating is more an art than a science
Lavatory
True
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True

25. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Overtime work - shift work - hazardous work conditions - or unusually strenuous 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.
Instruction to bidders
As-built drawings

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

27. Where the project will be constructed does not have a major influence in the preparation of an estimate.
Lavatory
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.
False

28. How does insurance differ from a surety 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.
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.
Instruction to bidders
As-built drawings

29. What are the benefits of renting equipment?
Common 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.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The ability to procure the right piece of equipment for the job when the unit is needed

30. Why do many contractors hesitate to bid just before the expiration of a union contract?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
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

31. The most reliable productivity rates come from historical data
Lavatory
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.
Instruction to bidders
True

32. Under what conditions are wage premiums applied
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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 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 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.

33. What are the two most common methods by which a contractor can acquire a construction contract?
Direct Negotiation - Competitive Bidding
Retainage
True
Skilled labor and material portions

34. 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.
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
True
The amount of work that can be done in an hour

35. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Bid Bond
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
True
Addenda

36. Describe the composition of the Construction Cost Index (CCI).
Liquidated Damages
Punch List
Common labor and material portions
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

37. The location where material can be stored in relationship to the construction project affects productivity.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True
Bid
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

38. What types of information are provided in the 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.
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.
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.

39. What are the advantages to a small contractor of renting equipment instead of owning?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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
Direct Negotiation - Competitive Bidding

40. 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.
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
True
Addenda
Internal Factor - External Factor - Project Related-Factor

41. What is the bid bond and how does it protect the owner?
True
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Skilled labor and material portions

42. Order of Magnitude Estimate...
Invitation to bid
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.
A gross unit such as the number of hospital beds is used.
Foundation

43. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
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
False
As-built drawings

44. A document stating the procedures to be followed by bidders.
A gross unit such as the number of hospital beds is used.
Lavatory
True
Instruction to bidders

45. 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
Foundation
Addenda
True

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

47. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
The amount of work that can be done in an hour
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Bid Bond
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

48. How does insurance differ from a surety bond?
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.
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
Both extreme hot and cold will tend to slow down the pace of work.

49. List the factors affecting labor productivity
Renting - Leasing - Buying
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

50. What is the bid bond and how does it protect the owner?
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.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions