CM-Exam-Construction Estimating
Questions with All Detailed Answers
2026-2027 Updated.
What is Estimating? - Answer Determine the forecast costs required to complete a project in
accordance with the plans and specifications.
Direct costs - Answer (material, labor, equipment)
Overhead - Answer (indirect costs required to build project)
Contingencies - Answer (costs for potential unforeseen work)
Profit - Answer (compensation for work being performed)
Cost estimating is both an art and a science - Answer Common Sense Experience Intuition
Judgment
overhead - Answer Anything that is not permanent materials, labor, or equipment
Job Overhead - Cost associated with a specific project (staff salaries, utilities, supplies, office
rental, permits, insurance, etc.)
General Overhead - Costs incurred by the general (main) office (office space, staff, utilities, etc.)
Insurance - Answer Workers Compensation - Covers medical expenses and lost wages during
period of injury. Varies by location
Builders Risk - Covers the project that is being constructed from fire, lightning strike, etc. Can be
expanded to cover wind, smoke, explosion, and vandalism.
Public Liability and Property Damage - Covers actions of the contractor while performing at the
jobsite that cause damage to the public or public property
Others...
Why not bid on all projects? - Answer Contractors invest time and money on bids
,Probability of winning the bid and making a profit
Need to maintain a presence
Risk of winning the project
Factors Affecting Decision to Bid - Answer • Skills and availability of labor and equipment
• Level of experience with project type
• Bonding capacity
• Geographic location
• Complexity
• Owner/designer reputation
• Available working capital
• Desire to expand operations
• Desire to gain expertise
Kick-Off Meeting - Answer Just like with any project, you want to make sure everyone on the
team has a clear understanding of
• the expectations of the team
• what the "customer" wants (either outside customer or management team)
• individual responsibilities
• the work to be accomplished
Methods and Techniques of Estimates - Answer Methods used to develop estimate are a
function of
• Level of scope definition
• Time allowed
• Level of accuracy
• Intended use of estimate
Contingency - Answer Percentage of Base Estimate (Very Simple, but less accurate)
Expected net Risk - Answer Procedure
1. Identify a max cost for each item.
, 2. Calculate the difference between max cost and base cost...the maximum risk.
3. Establish a percentage probability of each risk occurring
4. Calculate the expected net risk of each item, which is the maximum risk times the percentage
probability
5. The total expected net risk is your contingency
Estimate Quality - Answer The quality of an estimate is a function of:
• Quality and amount of information provided to prepare the estimate
• Time allocated to prepare the estimate
• Proficiency of the estimator and estimating team
• Tools and techniques used in preparing the estimate
• Quality of the plan and management (control) of
estimating process...quality of lead estimator
Contractor - Answer A person or company that undertakes a contract to provide materials or
labor to perform a service or do a job
Typical Bidding Documents - Answer Design Drawings (Blueprints)
•Design Specifications (CSI Div. 01 -49) & Industry
Standards by Reference
•Bid Manual (CSI Div. 00 & 01)
Design Drawings - Answer Plan View (A view of an object as projected onto a horizontal
plane.)
Elevations (Whole side of building/ horizontal cutout)
Sections (Full vertical cut right down a section of the object)
Example of Bidding Requirements - Answer Bid Solicitation (Invitation to Bid)
Instructions to Bidders
Description of Work (Scope of Work)
Information Available to Bidder
Bid Form (lump sum or unit price)
Etc.
Questions with All Detailed Answers
2026-2027 Updated.
What is Estimating? - Answer Determine the forecast costs required to complete a project in
accordance with the plans and specifications.
Direct costs - Answer (material, labor, equipment)
Overhead - Answer (indirect costs required to build project)
Contingencies - Answer (costs for potential unforeseen work)
Profit - Answer (compensation for work being performed)
Cost estimating is both an art and a science - Answer Common Sense Experience Intuition
Judgment
overhead - Answer Anything that is not permanent materials, labor, or equipment
Job Overhead - Cost associated with a specific project (staff salaries, utilities, supplies, office
rental, permits, insurance, etc.)
General Overhead - Costs incurred by the general (main) office (office space, staff, utilities, etc.)
Insurance - Answer Workers Compensation - Covers medical expenses and lost wages during
period of injury. Varies by location
Builders Risk - Covers the project that is being constructed from fire, lightning strike, etc. Can be
expanded to cover wind, smoke, explosion, and vandalism.
Public Liability and Property Damage - Covers actions of the contractor while performing at the
jobsite that cause damage to the public or public property
Others...
Why not bid on all projects? - Answer Contractors invest time and money on bids
,Probability of winning the bid and making a profit
Need to maintain a presence
Risk of winning the project
Factors Affecting Decision to Bid - Answer • Skills and availability of labor and equipment
• Level of experience with project type
• Bonding capacity
• Geographic location
• Complexity
• Owner/designer reputation
• Available working capital
• Desire to expand operations
• Desire to gain expertise
Kick-Off Meeting - Answer Just like with any project, you want to make sure everyone on the
team has a clear understanding of
• the expectations of the team
• what the "customer" wants (either outside customer or management team)
• individual responsibilities
• the work to be accomplished
Methods and Techniques of Estimates - Answer Methods used to develop estimate are a
function of
• Level of scope definition
• Time allowed
• Level of accuracy
• Intended use of estimate
Contingency - Answer Percentage of Base Estimate (Very Simple, but less accurate)
Expected net Risk - Answer Procedure
1. Identify a max cost for each item.
, 2. Calculate the difference between max cost and base cost...the maximum risk.
3. Establish a percentage probability of each risk occurring
4. Calculate the expected net risk of each item, which is the maximum risk times the percentage
probability
5. The total expected net risk is your contingency
Estimate Quality - Answer The quality of an estimate is a function of:
• Quality and amount of information provided to prepare the estimate
• Time allocated to prepare the estimate
• Proficiency of the estimator and estimating team
• Tools and techniques used in preparing the estimate
• Quality of the plan and management (control) of
estimating process...quality of lead estimator
Contractor - Answer A person or company that undertakes a contract to provide materials or
labor to perform a service or do a job
Typical Bidding Documents - Answer Design Drawings (Blueprints)
•Design Specifications (CSI Div. 01 -49) & Industry
Standards by Reference
•Bid Manual (CSI Div. 00 & 01)
Design Drawings - Answer Plan View (A view of an object as projected onto a horizontal
plane.)
Elevations (Whole side of building/ horizontal cutout)
Sections (Full vertical cut right down a section of the object)
Example of Bidding Requirements - Answer Bid Solicitation (Invitation to Bid)
Instructions to Bidders
Description of Work (Scope of Work)
Information Available to Bidder
Bid Form (lump sum or unit price)
Etc.
