CMGT 120 AIAF114 FINAL EXAM
QUESTIONS WITH CORRECT ANSWERS
components of a BID estimate and various considerations which impact each. -
ANSWER-perform quantity takeoff for each type of item, price items and "extend"
(calculate the total price for each item by multiplying the quantity by unit price), analyze
and add subcontract costs, add bonds and insurance required for project add overhead
cost, add profit
Project Overhead - ANSWER-includes cost such as the job site office trailer, portable
toilets, and job photographs.
General Overhead - ANSWER-cost of doing business. Office expenses, executive
salaries, and automobile insurance.
factors that impact project costs - ANSWER-Project Size, Complexity, Location, time of
construction, quality of work, market conditions and, management factors,
Describe the 'site visit' component of preparing a bid and identify key items to consider
when conducting a site visit. - ANSWER-distance from office, site conditions, site
access, soil data, groundwater, security needed, traffic considerations, adjacent
structures, possible contamination, water, electricity, and telephone service
List of items included in a notice (instructions) to bidders. - ANSWER-Project name and
description, Proposals, examination of conditions, bid security, bid evaluation, pre-bid
conference, bonds
direct costs - ANSWER-The costs and expenses that are accountable directly on a
facility, function or product. This is the cost incurred on labor, material, equipment etc.
indirect costs - ANSWER-costs not directly accountable for a particular facility, product
or function. They can be either variable or fixed. The main sections coming under this
cost are personnel costs, security costs, and administration costs. These costs do not
have a direct connection with the construction project.
Request for Information - ANSWER-Written request from a contractor to the owner or
architect for clarification of the contract documents.
Describe the application for payment process and what items are included in the
payment application. - ANSWER-30 day billing cycle
Work completed > bills from subs and vendors > application for payment > payment
form owner received > payment made to vendors and subs
, The important items included in an advertisement for bid. - ANSWER-Project name and
description, location, owner/engineer/architect information, bid due date and time, plans
specs, start and completion dates, bonds required, restrictions, project budget and price
range
Retainage - ANSWER-A certain percentage of money owed to the contractor for work
progress that is held back by the owner to encourage completion of the project.
Liquidated damages - ANSWER-A daily amount of money paid by the contractor to the
owner for each day that the project fails to meet the completion date specified in the
contract.
Notice to proceed - ANSWER-The owner's official notification to the contractor to start
work on the project. The contractor may or may not begin on the exact day of the notice
but is authorized to proceed in whatever manner deemed appropriate.
Request for information - ANSWER-A written request for clarification regarding the
plans or specifications. The requests are usually made by subcontractors through the
general contractor to the architect.
Unbalanced bidding - ANSWER-includes a number of schemes in which bidders
manipulate line item bid prices in order to gain an advantage in the bidding process.
bid shopping - ANSWER-the practice of divulging a contractor's or subcontractor's bid to
other prospective contractor(s) or subcontractor(s) before the award of a contract in
order to secure a lower bid.
prevailing wage/Davis Bacon - ANSWER-the hourly wage, usual benefits and overtime,
paid to the majority of workers, laborers, and mechanics within a particular area. This
act is a United States federal law that establishes the requirement for paying the local
prevailing wages on public works projects for laborers and mechanics.
Alternate - ANSWER-additions or subtractions from the contract (switching)
Addendum - ANSWER-a change or addition to the contract documents issued after the
documents have been released but before the bids are due
Prequalification - ANSWER-The process in which an owner, based upon minimum
financial, management, and other qualitative data, determines whether a construction
firm is fundamentally qualified to compete for a certain project, or class of projects.
responsive bidder - ANSWER-a bid or proposal package that meets all of the
requirements of the solicitation instrument, respond to invite of bid, do what is told by
the owner.
responsible bidder - ANSWER-you have the capabilities to do work
QUESTIONS WITH CORRECT ANSWERS
components of a BID estimate and various considerations which impact each. -
ANSWER-perform quantity takeoff for each type of item, price items and "extend"
(calculate the total price for each item by multiplying the quantity by unit price), analyze
and add subcontract costs, add bonds and insurance required for project add overhead
cost, add profit
Project Overhead - ANSWER-includes cost such as the job site office trailer, portable
toilets, and job photographs.
General Overhead - ANSWER-cost of doing business. Office expenses, executive
salaries, and automobile insurance.
factors that impact project costs - ANSWER-Project Size, Complexity, Location, time of
construction, quality of work, market conditions and, management factors,
Describe the 'site visit' component of preparing a bid and identify key items to consider
when conducting a site visit. - ANSWER-distance from office, site conditions, site
access, soil data, groundwater, security needed, traffic considerations, adjacent
structures, possible contamination, water, electricity, and telephone service
List of items included in a notice (instructions) to bidders. - ANSWER-Project name and
description, Proposals, examination of conditions, bid security, bid evaluation, pre-bid
conference, bonds
direct costs - ANSWER-The costs and expenses that are accountable directly on a
facility, function or product. This is the cost incurred on labor, material, equipment etc.
indirect costs - ANSWER-costs not directly accountable for a particular facility, product
or function. They can be either variable or fixed. The main sections coming under this
cost are personnel costs, security costs, and administration costs. These costs do not
have a direct connection with the construction project.
Request for Information - ANSWER-Written request from a contractor to the owner or
architect for clarification of the contract documents.
Describe the application for payment process and what items are included in the
payment application. - ANSWER-30 day billing cycle
Work completed > bills from subs and vendors > application for payment > payment
form owner received > payment made to vendors and subs
, The important items included in an advertisement for bid. - ANSWER-Project name and
description, location, owner/engineer/architect information, bid due date and time, plans
specs, start and completion dates, bonds required, restrictions, project budget and price
range
Retainage - ANSWER-A certain percentage of money owed to the contractor for work
progress that is held back by the owner to encourage completion of the project.
Liquidated damages - ANSWER-A daily amount of money paid by the contractor to the
owner for each day that the project fails to meet the completion date specified in the
contract.
Notice to proceed - ANSWER-The owner's official notification to the contractor to start
work on the project. The contractor may or may not begin on the exact day of the notice
but is authorized to proceed in whatever manner deemed appropriate.
Request for information - ANSWER-A written request for clarification regarding the
plans or specifications. The requests are usually made by subcontractors through the
general contractor to the architect.
Unbalanced bidding - ANSWER-includes a number of schemes in which bidders
manipulate line item bid prices in order to gain an advantage in the bidding process.
bid shopping - ANSWER-the practice of divulging a contractor's or subcontractor's bid to
other prospective contractor(s) or subcontractor(s) before the award of a contract in
order to secure a lower bid.
prevailing wage/Davis Bacon - ANSWER-the hourly wage, usual benefits and overtime,
paid to the majority of workers, laborers, and mechanics within a particular area. This
act is a United States federal law that establishes the requirement for paying the local
prevailing wages on public works projects for laborers and mechanics.
Alternate - ANSWER-additions or subtractions from the contract (switching)
Addendum - ANSWER-a change or addition to the contract documents issued after the
documents have been released but before the bids are due
Prequalification - ANSWER-The process in which an owner, based upon minimum
financial, management, and other qualitative data, determines whether a construction
firm is fundamentally qualified to compete for a certain project, or class of projects.
responsive bidder - ANSWER-a bid or proposal package that meets all of the
requirements of the solicitation instrument, respond to invite of bid, do what is told by
the owner.
responsible bidder - ANSWER-you have the capabilities to do work
