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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. What are some of the costs that must be included in equipment operating costs?
Direct Negotiation - Competitive Bidding
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Bid Bond

2. Describe the composition of the Construction Cost Index (CCI).
Direct Negotiation - Competitive Bidding
False
...
Common labor and material portions

3. Order of Magnitude Estimate...
True
A gross unit such as the number of hospital beds is used.
Lavatory
Internal Factor - External Factor - Project Related-Factor

4. 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
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Liquidated Damages
A gross unit such as the number of hospital beds is used.
Both extreme hot and cold will tend to slow down the pace of work.

5. Construction estimating is more an art than a science
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Punch List
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

6. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions
Liens
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Internal Factor - External Factor - Project Related-Factor

7. How do climatic conditions influence the amount of work actually completed in an hour?
Instruction to bidders
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.
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.

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

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

10. The most reliable productivity rates come from historical data
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
Liens
The Labor Hour
True

11. Describe and provide examples of specific use equipment and general use equipment.
Contract Documents
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Liquidated Damages
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

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

13. What is the maintenance 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
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
As-built drawings

14. stimating labor requires determining the number of work hours to do a specific task and then applying the wage rate.
True
The ability to procure the right piece of equipment for the job when the unit is needed
Bid Bond
Liquidated Damages

15. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
False
Addenda
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
Bid

16. Where the project will be constructed does not have a major influence in the preparation of an estimate.
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
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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

17. Name 10 step process to bid

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18. The assembly of components to form the completed portion of a job.
Common labor and material portions
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Invitation to bid
Erection

19. 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.
Lump-Sum Estimate - Unit Price Estimate
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 amount of work that can be done in an hour

20. 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
Bid Bond
True
True

21. Describe the CSI MasterFormat and how it is used.
The amount of work that can be done in an hour
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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 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. Name the types of Estimates
Contract Documents
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Instruction to bidders
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

23. Five basic skills everyone should master

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24. Explain why using overtime is not recommended for most construction projects.
Liquidated Damages
As-built drawings
Change Order
Scheduling overtime for more than several weeks can result in huge productivity losses.

25. Describe and provide examples of specific use equipment and general use equipment.
As-built drawings
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.

26. A good database of past project experiences is essential to preparing a quick and accurate 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.
True
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

27. What is estimating in construction?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Lavatory
...
As-built drawings

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

29. What are some of the factors a contractor considers when making a decision to bid?
Internal Factor - External Factor - Project Related-Factor
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.
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

30. Describe factors affecting the accuracy of detail cost estimating.
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
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

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

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

33. What types of information are provided in the Invitation to Bid?
Skilled labor and material portions
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
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

34. The location where material can be stored in relationship to the construction project affects productivity.
Units are assignable to jobs and are not shared by other subcontractors. Tractors; Scrapers; Front shovels; Hoes; Loaders and backhoe loaders; Hauling units; Compactors
As-built drawings
True
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

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

36. Under what conditions are wage premiums applied
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.
Internal Factor - External Factor - Project Related-Factor
Common labor and material portions
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

37. Legal claims against an owner for amounts due those engaged in or supplying materials for the construction of the building.
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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
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.
Liens

38. What is the bid bond and how does it protect the owner?
Lump-Sum Estimate - Unit Price Estimate
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
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.

39. Operation costs include...
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
A. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
Master Format and Uniformat

40. Describe factors affecting the accuracy of detail cost estimating.
Liens
True
False
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

41. What are the two most common methods by which a contractor can acquire a construction contract?
Contract Documents
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
As-built drawings

42. What are the advantages to a small contractor of renting equipment instead of owning?
Joist
Both extreme hot and cold will tend to slow down the pace of work.
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 bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.

43. Name the types of Estimates
True
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate
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

44. Drawings made during the progress of construction - or subsequent thereto - illustrating how various elements of the project were actually installed.
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 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.
As-built drawings
Invitation to bid

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

46. What is the maintenance bond?
Instruction to bidders
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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

47. Describe the CSI MasterFormat and how it is used.
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 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

48. 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
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A gross unit such as the number of hospital beds is used.

49. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Liquidated Damages
Retainage
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.

50. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
True
Liquidated Damages
Addenda
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor