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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Where would information be found on whether a bid bond was required and - if so - its amount?
True
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

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

3. 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.
Direct Negotiation - Competitive Bidding
Bid Bond
Change Order
Contract Documents

4. Why do many contractors hesitate to bid just before the expiration of a union contract?
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
A gross unit such as the number of hospital beds is used.
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

5. How does insurance differ from a surety bond?
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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.
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
Change Order

6. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
As-built drawings
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.

7. What is the performance bond?
Punch List
Punch List
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.
...

8. How are the various surety bonds that may be required on a specific project obtained?
Foundation
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
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

9. Describe the composition of the Building Cost Index (BCI).
Joist
Skilled labor and material portions
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.

10. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
Erection
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
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.

11. 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
False
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.
Lump-Sum Estimate - Unit Price Estimate

12. What are some of the costs that must be included in equipment operating costs?
Retainage
Internal Factor - External Factor - Project Related-Factor
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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.

13. Describe factors affecting the accuracy of detail cost estimating.
Direct Negotiation - Competitive Bidding
Skilled labor and material portions
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

14. 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.
Master Format and Uniformat
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Renting - Leasing - Buying

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

16. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Liens
Bid Bond
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

17. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
True
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.
Invitation to bid
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

18. Under what conditions are wage premiums applied
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
Master Format and Uniformat
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

19. What does the labor hour represent?
The amount of work that can be done in an hour
False
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Instruction to bidders

20. What are the benefits of renting equipment?
Joist
Internal Factor - External Factor - Project Related-Factor
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 ability to procure the right piece of equipment for the job when the unit is needed

21. Explain why using overtime is not recommended for most construction projects.
Skilled labor and material portions
Direct Negotiation - Competitive Bidding
Foundation
Scheduling overtime for more than several weeks can result in huge productivity losses.

22. List the factors affecting labor productivity
Foundation
Bid
Direct Negotiation - Competitive Bidding
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

23. 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.
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
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

24. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract 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
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Joist

25. 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
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The Labor Hour
Liquidated Damages
True

26. 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.
Addenda
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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 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.

27. Five basic skills everyone should master

28. Under what conditions are wage premiums applied
Master Format and Uniformat
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

29. A bathroom sink
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Lavatory

30. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
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. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Bid Bond
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.

31. What is the best source for productivity data?

32. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
True
Erection
Direct Negotiation - Competitive Bidding

33. How does insurance differ from a surety bond?
Lump-Sum Estimate - Unit Price Estimate
The practice of withholding a percentage of the payment due to the contractor for the work performed and completed for that payment period.Retainage can affect the cash flow of the contractor and must be considered in the preparation of the bid.
Master Format and Uniformat
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.

34. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
True
Contract Documents
The ability to procure the right piece of equipment for the job when the unit is needed
Instruction to bidders

35. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
The amount of work that can be done in an hour
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.
Joist

36. On certain projects the owner may accept proposals only from contractors who are invited to bid.
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
Master Format and Uniformat
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

37. 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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Foundation
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.

38. What are some of the costs that must be included in equipment operating costs?
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
Common labor and material portions
Direct Negotiation - Competitive Bidding

39. 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
Liens
Liquidated Damages
Lavatory
As-built drawings

40. What are the benefits of renting equipment?
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Skilled labor and material portions
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.

41. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
The Labor Hour
True
The Labor Hour
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

42. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Bid
Internal Factor - External Factor - Project Related-Factor
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Invitation to bid

43. Why do many contractors hesitate to bid just before the expiration of a union contract?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Bid Bond
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.
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

44. What is the maintenance bond?
Bid
Generally - the advertisement describes the location - extent - and nature of the work. It will designate the authority under which the project originated. Concerning the bid - it will give the place where bidding documents are available and list the
The 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

45. A list prepared by the architect or engineer of the contractor's uncompleted work or work to be corrected.
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Punch List

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

47. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
Master Format and Uniformat
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Bid Bond
True

48. What is the bid bond and how does it protect the owner?
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
Master Format and Uniformat
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

49. What is depreciation?
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
False

50. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
The performance bond guarantees the owner that - within limits - the contractor will perform all work in accordance with the contract documents - and thatthe owner will receive the project built in substantialagreement with the documents.
True
Renting - Leasing - Buying
Lavatory