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Construction Estimating

Instructions:

Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. Name the types of Estimates
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
The Labor Hour
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Addenda

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

3. Where would information be found on whether a bid bond was required and - if so - its amount?
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Erection

4. Describe factors affecting the accuracy of detail cost estimating.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Joist

5. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
A gross unit such as the number of hospital beds is used.
True
Joist

6. What is the performance 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.
Liens
True
Instruction to bidders

7. List the factors affecting labor productivity
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

8. Explain firm price contracting estimates.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
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
Lump-Sum Estimate - Unit Price Estimate

9. What types of information are provided in the Invitation to Bid?
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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

10. 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
The ability to procure the right piece of equipment for the job when the unit is needed
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.
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

11. 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
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Lavatory
True

12. Explain firm price contracting estimates.
The ability to procure the right piece of equipment for the job when the unit is needed
Lump-Sum Estimate - Unit Price Estimate
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

13. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The Labor Hour
Internal Factor - External Factor - Project Related-Factor
Joist

14. Operation costs include...
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Change Order
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
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.

15. 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.
Renting - Leasing - Buying
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.
Common labor and material portions
Addenda

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

17. How are the various surety bonds that may be required on a specific project obtained?
Instruction to bidders
False
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

18. Construction estimating is more an art than a science
Scheduling overtime for more than several weeks can result in huge productivity losses.
Addenda
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

19. A bathroom sink
Invitation to bid
The Labor Hour
Lavatory
True

20. What is retainage? Why should a contractor be concerned with a retainage clause in a contract?
True
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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.

21. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
As-built drawings
Change Order
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.

22. Describe the composition of the Building Cost Index (BCI).
True
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.
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Skilled labor and material portions

23. Describe the CSI MasterFormat and how it is used.
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 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.
Liquidated Damages
True

24. Describe factors affecting the accuracy of detail cost estimating.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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

25. What are some of the factors a contractor considers when making a decision to bid?
Liquidated Damages
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 Labor Hour
Internal Factor - External Factor - Project Related-Factor

26. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
True
Direct Negotiation - Competitive Bidding
The ability to procure the right piece of equipment for the job when the unit is needed

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

28. Name 10 step process to bid

29. 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
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Bid Bond

30. Proposal prepared by prospective contractor specifying the charges to be made for doing the work in accordance with the contract documents.
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Retainage
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.
Bid

31. Name three common methods of procuring equipment.
True
Punch List
Renting - Leasing - Buying
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.

32. Assemblies Estimate...
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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 estimator uses more detailed information such as the bay size - square feet of partition wall - number of plumbing fixtures - or square feet of carpet.
Skilled labor and material portions

33. Name two systems that establish standards for the building design/construction estimating process.
Master Format and Uniformat
Direct Negotiation - Competitive Bidding
False
True

34. What are some of the costs that must be included in equipment operating costs?
Bid Bond
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
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 amount of work that can be done in an hour

35. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
True
Renting - Leasing - Buying
Retainage
True

36. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
Liens
True
Skilled labor and material portions
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

37. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Bid Bond
Skilled labor and material portions
As-built drawings
Invitation to bid

38. A document stating the procedures to be followed by bidders.
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
Erection
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Instruction to bidders

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

40. Working drawings - specifications - general conditions - supplementary general conditions - the owner-contractor agreement - and all addenda (if issued).
Contract Documents
Master Format and Uniformat
Internal Factor - External Factor - Project Related-Factor
The loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

41. Why do many contractors hesitate to bid just before the expiration of a union contract?
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.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
The Labor Hour

42. 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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence
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
Common labor and material portions
Liquidated Damages

43. What is the best source for productivity data?

44. List the factors affecting labor productivity
True
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liens
The ability to procure the right piece of equipment for the job when the unit is needed

45. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Liens
Master Format and Uniformat
The Labor Hour
True

46. How does insurance differ from a surety bond?
Joist
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.
Invitation to bid
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.

47. What unit of time is used to measure labor?
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
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.
The Labor Hour

48. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
Both extreme hot and cold will tend to slow down the pace of work.
Joist
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.

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

50. The most reliable productivity rates come from historical data
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
Instruction to bidders
Liens