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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. 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.
True
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Liens

2. What is the bid bond and how does it protect the owner?
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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 ability to procure the right piece of equipment for the job when the unit is needed
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

3. Name two systems that establish standards for the building design/construction estimating process.
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.
Master Format and Uniformat
Addenda
The ability to procure the right piece of equipment for the job when the unit is needed

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

5. Under what conditions are wage premiums applied
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Renting - Leasing - Buying
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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

6. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Direct Negotiation - Competitive Bidding
True
As-built drawings

7. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
A gross unit such as the number of hospital beds is used.
Joist
Change Order
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

8. Describe the composition of the Building Cost Index (BCI).
Scheduling overtime for more than several weeks can result in huge productivity losses.
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
Skilled labor and material portions
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.

9. Describe and provide examples of specific use equipment and general use equipment.
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
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a 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

10. On certain projects the owner may accept proposals only from contractors who are invited to bid.
False
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.
Instruction to bidders
True

11. What are some of the factors a contractor considers when making a decision to bid?
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
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

12. 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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.
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

13. 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
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
Liquidated Damages
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

14. Name the types of Estimates
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Bid Bond
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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

15. Name three common methods of procuring equipment.
A gross unit such as the number of hospital beds is used.
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.
Renting - Leasing - Buying
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

16. Where the project will be constructed does not have a major influence in the preparation of an estimate.
False
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
A gross unit such as the number of hospital beds is used.

17. What are the advantages to a small contractor of renting equipment instead of owning?
Punch List
True
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.

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

19. 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
True
Instruction to bidders
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.

20. Explain firm price contracting estimates.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liquidated Damages
Internal Factor - External Factor - Project Related-Factor
Lump-Sum Estimate - Unit Price Estimate

21. The assembly of components to form the completed portion of a job.
Erection
As-built drawings
Addenda
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.

22. 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
Invitation to bid
Both extreme hot and cold will tend to slow down the pace of work.
False

23. Describe factors affecting the accuracy of detail cost estimating.
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
The ability to procure the right piece of equipment for the job when the unit is needed
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.

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

25. Where would information be found on whether a bid bond was required and - if so - its amount?
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 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 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.

26. 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Joist

27. How do climatic conditions influence the amount of work actually completed in an hour?
Both extreme hot and cold will tend to slow down the pace of work.
Skilled labor and material portions
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
Renting - Leasing - Buying

28. A document stating the procedures to be followed by bidders.
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.
Instruction to bidders
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 amount of work that can be done in an hour

29. Assemblies 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 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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.

30. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
True
Liens
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.

31. What are the benefits of renting equipment?
Liquidated Damages
Invitation to bid
The ability to procure the right piece of equipment for the job when the unit is needed
True

32. 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.
True
True
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

33. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Erection
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Liens
Punch List

34. What is the maintenance bond?
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.
...

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

36. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
Instruction to bidders
Punch List
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.

37. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Renting - Leasing - Buying
True
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Punch List

38. The most reliable productivity rates come from historical data
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
True

39. What does the labor hour represent?
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 ability to procure the right piece of equipment for the job when the unit is needed
Instruction to bidders
The amount of work that can be done in an hour

40. What are the advantages to a small contractor of renting equipment instead of owning?
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
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.
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

41. 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.
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.
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

42. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Joist
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.

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

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

45. What unit of time is used to measure labor?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The Labor Hour
The amount of work that can be done in an hour
Foundation

46. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
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.
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.

47. Describe the CSI MasterFormat and how it is used.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Invitation to bid
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.

48. How do climatic conditions influence the amount of work actually completed in an hour?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Foundation
Both extreme hot and cold will tend to slow down the pace of work.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

49. What is the maintenance bond?
Master Format and Uniformat
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 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.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

50. Five basic skills everyone should master

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