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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. 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.
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.
Change Order
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The amount of work that can be done in an hour

2. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
As-built drawings
Renting - Leasing - Buying
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

3. The substructure that supports a building or other structure.
Internal Factor - External Factor - Project Related-Factor
Foundation
Retainage
True

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

5. Where would information be found on whether a bid bond was required and - if so - its amount?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Direct Negotiation - Competitive Bidding
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.

6. What are some of the costs that must be included in equipment operating costs?
The bid bond ensures that if a contractor is awarded the bid with the time specified - the contractor will enter into the contract and provide all other specified bonds.If the contractor fails to do so without justification -the bond shall be forfeit
Punch List
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

7. What is estimating in construction?
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 ability to procure the right piece of equipment for the job when the unit is needed
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
As-built drawings

8. What are the two most common methods by which a contractor can acquire a construction contract?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Direct Negotiation - Competitive Bidding
Renting - Leasing - Buying
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

9. Name two systems that establish standards for the building design/construction estimating process.
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
Master Format and Uniformat
Contract Documents
The amount of work that can be done in an hour

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

11. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Liens
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

12. 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.
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 ability to procure the right piece of equipment for the job when the unit is needed
True
Addenda

13. What is the performance bond?
Common labor and material portions
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
The performance bond guarantees the owner that - within limits - the contractor will perform all work in accordance with the contract documents - and thatthe owner will receive the project built in substantialagreement with the documents.
Skilled labor and material portions

14. Five basic skills everyone should master

15. How does insurance differ from a surety bond?
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
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 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.

16. A bathroom sink
A gross unit such as the number of hospital beds is used.
Lavatory
Both extreme hot and cold will tend to slow down the pace of work.
A gross unit such as the number of hospital beds is used.

17. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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.
A gross unit such as the number of hospital beds is used.
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.

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

19. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
The ability to procure the right piece of equipment for the job when the unit is needed
Both extreme hot and cold will tend to slow down the pace of work.
False

20. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
Punch List
Master Format and Uniformat
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.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

21. 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 most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
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
Liquidated Damages
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

22. 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
Common labor and material portions
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. What are the advantages to a small contractor of renting equipment instead of owning?
Instruction to bidders
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.
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

24. Describe the composition of the Construction Cost Index (CCI).
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.
Common labor and material portions
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Scheduling overtime for more than several weeks can result in huge productivity losses.

25. A common error made by GCs in their dealings with subcontractors is to hand them a single technical specifications section relating to their trade - without copies of either the General Requirements or the General and Supplementary General Conditions
1. Better understanding of the work to be subcontracted -2. Establishment of fair cost estimate for evaluating subcontractor's bid - 3. Checking of a subcontractor's scope of work - and4. Determination of time duration that can be assigned to a sub
Punch List
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.
...

26. 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.
Erection
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.
As-built drawings

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

28. Describe the composition of the Building Cost Index (BCI).
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.
Skilled labor and material portions
Internal Factor - External Factor - Project Related-Factor
False

29. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
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 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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

30. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
Common labor and material portions
True
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work

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

32. What is the performance bond?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Foundation
Instruction to 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.

33. What are the two most common methods by which a contractor can acquire a construction contract?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Direct Negotiation - Competitive Bidding
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.

34. What is the bid bond and how does it protect the owner?
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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
Scheduling overtime for more than several weeks can result in huge productivity losses.
True

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

36. What is the maintenance bond?
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 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.
Liquidated Damages
Foundation

37. 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 bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.
Lavatory

38. What is the best source for productivity data?

39. A document stating the procedures to be followed by bidders.
Instruction to bidders
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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
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.

40. What are the benefits of renting equipment?
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
Direct Negotiation - Competitive Bidding
The ability to procure the right piece of equipment for the job when the unit is needed

41. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Bid
False

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

43. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Internal Factor - External Factor - Project Related-Factor
True
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.

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

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

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
Master Format and Uniformat
True

47. Order of Magnitude 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
A gross unit such as the number of hospital beds is used.
True
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.

48. What is estimating in construction?
True
True
Foundation
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project

49. The most reliable productivity rates come from historical data
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.
True
Punch List

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