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

2. What are some of the factors a contractor considers when making a decision to bid?
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
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
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
Internal Factor - External Factor - Project Related-Factor

3. 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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4. 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.
Internal Factor - External Factor - Project Related-Factor
Addenda
Bid Bond
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

5. Describe the composition of the Building Cost Index (BCI).
Skilled labor and material portions
Direct Negotiation - Competitive Bidding
Instruction to bidders
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

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

7. Construction estimating is more an art than a science
Foundation
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.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.

8. What does the labor hour represent?
True
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps
Change Order
The amount of work that can be done in an hour

9. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
True
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
The amount of work that can be done in an hour

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

11. What does the labor hour represent?
Common labor and material portions
The most reliable productivity records are the contractor's own historical data based on actual experiences performing similar work
The amount of work that can be done in an hour
...

12. What are the two most common methods by which a contractor can acquire a construction 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
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.
Direct Negotiation - Competitive Bidding
Kept on the site over a longer period of time - throughout almost the entire construction phase.Cranes; Air compressors; Floodlights and light towersForklifts; Pumps

13. 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.
...
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed 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.

14. The substructure that supports a building or other structure.
Foundation
Predicting the cost in advance based on a model (formal or informal - plans and specifications) of a project
Both extreme hot and cold will tend to slow down the pace of work.
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire

15. 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
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
False
Liquidated Damages

16. What are the benefits of renting equipment?
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.
A gross unit such as the number of hospital beds is used.
The amount of work that can be done in an hour
The ability to procure the right piece of equipment for the job when the unit is needed

17. The location where material can be stored in relationship to the construction project affects productivity.
True
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
As-built drawings

18. On certain projects the owner may accept proposals only from contractors who are invited to 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.
Internal Factor - External Factor - Project Related-Factor
True
Lavatory

19. On certain projects the owner may accept proposals only from contractors who are invited to bid.
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.
True
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.
False

20. A good database of past project experiences is essential to preparing a quick and accurate estimate.
Punch List
Operating costs include everything required to operate each piece of equipment.Fuel - Grease and Oil - Electricity and Tire
True
As-built drawings

21. Describe the CSI MasterFormat and how it is used.
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.
Punch List
Both extreme hot and cold will tend to slow down the pace of work.
Contract Documents

22. 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.
Direct Negotiation - Competitive Bidding
Bid bond requirements are stated in the advertisement of Bidders.They are usually amplified in the specifications.
Addenda
False

23. What is the performance bond?
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Liquidated Damages
Retainage
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.

24. The most reliable productivity rates come from historical data
True
Both extreme hot and cold will tend to slow down the pace of 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
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.

25. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
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
False
Addenda
External factors: market conditions and climatic conditions; beyond the control of the contractors.Internal factors: work conditions and management conditions

26. The information provided in the General Conditions and Supplementary General Conditions does not influence the project cost.
As-built drawings
Renting - Leasing - Buying
False
Erection

27. What are the two most common methods by which a contractor can acquire a construction contract?
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.
Direct Negotiation - Competitive Bidding
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 loss in value of equipment that the contractor owns.The loss is a result of age - wear and tear - and obsolescence

28. Closely spaced beams supporting a floor or ceiling.They may be wood - steel - or concrete.
Scheduling overtime for more than several weeks can result in huge productivity losses.
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.
Joist
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

29. Under what conditions are wage premiums applied
Direct Negotiation - Competitive Bidding
Lump-Sum Estimate - Unit Price Estimate
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
Instruction to bidders

30. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Punch List
Invitation to bid
Truly - its both - it will never be a science. Estimators rely on their - intuition - past experience - judgment and sometimes guesses.

31. What types of information are provided in the Invitation to Bid?
As-built drawings
Master Format and Uniformat
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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs

32. Explain firm price contracting estimates.
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
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
The amount of work that can be done in an hour

33. What are the advantages to a small contractor of renting equipment instead of owning?
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.
False
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

34. Assemblies Estimate...
Joist
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.
Scheduling overtime for more than several weeks can result in huge productivity losses.
Invitation to bid

35. What is depreciation?
A gross unit such as the number of hospital beds is used.
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 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

36. Order of Magnitude Estimate...
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
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.
A gross unit such as the number of hospital beds is used.

37. What are the difficulties encountered by the estimator during the preparation of a project's conceptual estimate?
Erection
Scheduling overtime for more than several weeks can result in huge productivity losses.
Common labor and material portions
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor

38. Describe the composition of the Construction Cost Index (CCI).
Contract Documents
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
False
Common labor and material portions

39. What is the payment bond?
Invitation 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.
Punch List
Liquidated Damages

40. 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
Instruction to bidders
...
Punch List
True

41. A sum withheld from each payment to the contractor in accordance with the terms of the owner-contractor agreement.
Retainage
Overtime work - shift work - hazardous work conditions - or unusually strenuous work.
A gross unit such as the number of hospital beds is used.
Foundation

42. An invitation to a selected list of contractors furnishing information on the submission of bids on a subject.
Invitation to bid
Instruction to bidders
Joist
Liquidated Damages

43. What is retainage? Why should a contractor be concerned with a retainage clause in a 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.
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. Tires and other wear itemsb. Fuel - lubricants - and filtersc. Repair reservesd. All of the above
Punch List

44. The equipment used on construction projects can be divided into three categories: Owned - leased - and rented.
Lavatory
True
Foundation
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. Describe the CSI MasterFormat and how it is used.
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
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.
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

46. 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
1. Construction Materials 2. Erection Labor 3. Fixed Equipment Costs
Both extreme hot and cold will tend to slow down the pace of work.
Scheduling overtime for more than several weeks can result in huge productivity losses.

47. A surety bond guaranteeing that a bidder will sign a contract - if offered - in accordance with their proposal.
True
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
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

48. Name the types of Estimates
Published cost standards seldom represent 100% of the project under consideration.The location factor -The time factor
Instruction to bidders
Common labor and material portions
Order of Magnitude Estimate - Square foot and cubic foot estimate - Assemblies(Systems estimate) - Detailed Estimate

49. Name two systems that establish standards for the building design/construction estimating process.
Bid
Renting - Leasing - Buying
Master Format and Uniformat
Retainage

50. 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.
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
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.
Master Format and Uniformat