FINAL ESTIMATES EXAM QUESTIONS AND CORRECT ANSWERS

FINAL ESTIMATES EXAM QUESTIONS AND CORRECT ANSWERS "Perhaps the most important item considered at the estimate review is ____. - Correct Answer the amount of fee to include in the bid price" "While an experienced estimator will certainly know what to look for and assess when investigating the site, the presence of the ____ or a project superintendent on the visit will always be valuable if only to offer alternative viewpoints in the evaluation of the data obtained. - Correct Answer chief estimator" "An estimate begins with a quantity takeoff. - Correct Answer True" "The estimator should note that quantities of materials are measured in the takeoff process. - Correct Answer False" "A materials takeoff generally provides sufficient information for pricing. - Correct Answer False" "There are four basic categories of units used in estimating: number, length, area, and weight. - Correct Answer False" We put together estimates all the time in our everyday lives, often with little or no calculating. - Correct Answer True" "The different project delivery systems use the same types of estimates— conceptual, preliminary and detailed—at various stages in the development of the project. - Correct Answer False" "With the design- build method, the owner indicates that he or she requires a certain facility and usually outlines some parameters relating to location, size, design and the desired time of occupancy. - Correct Answer True" "Most general contractors and subtrades enter into cost-plus contracts in order to perform a defined scope of work. - Correct Answer False" "A(n) ____ in its essence is an assessment of the probable total cost of some future activity. - Correct Answer estimate" "A ____ estimate has to be prepared from a minimum amount of information because it is required at a time when the project is often little more than a vague idea in the mind of the owner. - Correct Answer conceptual" "Once the design of a project is underway, budget amounts can be established for the various elements of the project using procedures for a ____ estimate. - Correct Answer preliminary" "Using a construction management organization seeks to facilitate overlap between project stages, often referred to as ____, to allow earlier completion of the project. - Correct Answer fast tracking" "____ contracts are usually the owner's choice of last resort because they can place the owner in a vulnerable financial position. - Correct Answer Cost-plus" "____ contracts are based on a pricing schedule that consists of a breakdown of the work and estimated quantities for each of the items on the breakdown. - Correct Answer Unit-price" "The basis of a ____ is the accurate assessment of the work in the form of a quantity takeoff that can only be obtained from the full design of the project - Correct Answer detailed estimate" "Construction groups in major cities have formed associations or plan service centers where both public and private bodies may deposit plans and specifications of projects calling for bids. - Correct Answer True" "In a closed bid system the number of companies invited to bid is typically limited to no more than ten contractors who are known to the owner or designers and who meet the qualification criteria set by the owner. - Correct Answer False" "An effective way to proceed with the planning of estimating operations is achieved by means of a simple line chart form of time schedule. - Correct Answer False" "On most projects general contractors request two complete sets of bid documents for estimating a project. - Correct Answer True" "If an estimator does not know exactly what the computer is accomplishing in the preparation of an estimate, the estimator will not be in control of the process. - Correct Answer True" "The use of fax machines, cellular telephones, and e-mail has had little impact on the bidding process as it is still mostly a manual process. - Correct Answer False" "Agencies of the U.S. government use a standard form called the "____" to provide bid information. - Correct Answer Pre-Solicitation Notice" "Private owners often directly invite contractors to bid on their construction projects in a system known as a(n) ____ system. - Correct Answer Closed bid" "A method of addressing the problem of bids from contractors of questionable financial situation and experience capability is to call for bids only from ____ contractors. - Correct Answer prequalified" "Designers usually require a cash or certified check deposit from contractors who obtain bid documents and the deposit is reimbursed when the drawings and specifications are returned to the designer's office in "____." - Correct Answer Good order" "A method of handling the problem of review questions is to compile a list of all the questions that arise, the ____, then later make a single call to the designer to cover all the items that have accumulated. - Correct Answer query list" "Significant details provided in response to questions about a bid will be incorporated into written documents that are distributed to all bidders in publications that are known as ____. - Correct Answer addenda" "A perimeter length is calculated from the figured dimensions that are provided on the plan of the structure. - Correct Answer True" "A ____ is a process of measuring the work of the project in the form of a series of quantified work items. - Correct Answer quantity takeoff" "In a quantity takeoff, measurements are made ____. - Correct Answer net in place" "Dimensions are entered onto the takeoff in this order: ____. - Correct Answer length, width, and depth" "When using the metric system, record dimensions in ____ rounded to two decimal places. - Correct Answer meters" "The process of ____ quantities onto a separate pricing sheet is adopted because it makes the task of pricing an estimate far more efficient since all related items are gathered in a concise manner - Correct Answer recapping" "The formulas for a parallelogram are ____. - Correct Answer perimeter = 2a + 2b; area = a x h" "Measuring sitework and excavation work is the same as measuring most other work of a construction project. - Correct Answer False" "Before the estimator can measure the site work, he or she has to make an assessment of excavation requirements from data in the specifications and drawings and from information gathered on visits to the site. - Correct Answer True" "When a soils report is included with the specifications, it is usually in a bid document. - Correct Answer False" "The soils report provides information about the subsurface conditions at the site obtained from bore holes or other investigations made by the topographic engineer. - Correct Answer False" "The soil that is extracted from an excavation is less dense than before it was excavated, so it will occupy more space than it did when it was in the ground. - Correct Answer True" ""Bank measure" amounts are obtained by using the dimensions of the holes excavated or filled with no adjustment made to the quantities obtained for swell or compaction of materials. - Correct Answer True" "Contractors are usually advised in the "____" to satisfy themselves as to the present condition of the site. - Correct Answer instruction to bidders" "The purpose of the ____ is to furnish data about the site that is necessary to undertake the design of the foundation system. - Correct Answer soil report" "The difference between the volume of the hole and the volume of the material once it has been dug out is known as the ____. - Correct Answer swell factor" "The difference between the volume of the hole to be filled and the volume of fill material used to fill is referred to as the ____. - Correct Answer compaction factor" "In accordance with the general principle of measuring net quantities, excavation and backfill quantities are calculated using "____." - Correct Answer bank measure" "The volume of excavation for pits or basements can be obtained by using this formula: ____ - Correct Answer Pit Volume = Average Length of Pit X Average Width of Pit X Average Depth of Pit" "Preparing a quantity takeoff of concrete work requires the estimator to measure a combination of items—some of which are shown on the drawings while others are to be inferred from the drawings. - Correct Answer True" "Because the concrete is detailed on the drawings, it makes sense to begin the takeoff by measuring the volume of concrete in an item. - Correct Answer True" "The ____ trade has a wide scope that in very general terms can be defined as metal items that are neither part of the structural steel work nor part of any other trade section. - Correct Answer miscellaneous metals" "The ____ is a wide-ranging trade section of the specifications that includes items of work such as bulletin boards, canopies, signs, and folding partitions. - Correct Answer specialties trade" "When estimating finish hardware, a ____ is often specified on larger projects; otherwise a finish hardware price is obtained from a subcontractor. - Correct Answer cash allowance" "Ridge blocking is measured along the ridge of the ____ plus the width of the overhang outside of the gables. - Correct Answer trusses" "Flooring, drywall wallboards, insulation, vapor barriers, paint, and other finishes are measured in square feet with no deductions for openings less than ____ square feet. - Correct Answer 40" "Materials are usually quoted including taxes. - Correct Answer False" "The unit prices used in an estimate are generally obtained directly from the suppliers. - Correct Answer False" "Almost all price quotations received from material suppliers will have terms and conditions attached to them. - Correct Answer True" "Calculate the volume of concrete from the dimensions given on the drawings with adjustments for "add-on" factors. - Correct Answer False" "Where there is an opening in a form system of less than 100 square feet, a deduction is made from the total area of the forms. - Correct Answer False" "Linear inserts such as waterstops are measured in cubic feet or cubic meters. - Correct Answer False" "A small sketch incorporated into the takeoff notes is useful to clarify complex details. - Correct Answer True" "Concrete shall be measured in ____ net in place. - Correct Answer cubic yards" "The estimator measures the surface area of the concrete that comes into contact with the forms; this is known as the ____. - Correct Answer contact area" "Because only the ____ of formwork is measured, the estimator does not have to be concerned about the design of the forms at the time of the takeoff. - Correct Answer area" "Slab finishes are measured in ____. - Correct Answer square feet or square meters of plan area" "Welded wire mesh shall be measured in plan area with an additional ____% included for overlaps. - Correct Answer 10%" "Expansion joints are measured in ____, stating the size of joint and the type of material used. - Correct Answer linear feet or linear meters" "Grout to anchor bolts and base plates is measured in ____. - Correct Answer cubic feet or cubic meters" "Masonry work includes construction with clay bricks, concrete bricks and blocks, clay tiles, and natural and artificial stone. - Correct Answer True" "Masonry work is now typically performed by subcontractors who supply the labor, materials, and equipment required to complete the work. - Correct Answer True" "Estimating the costs of masonry work involving products other than standard bricks and concrete blocks can proceed in the same way as with standard bricks and concrete blocks and is mostly the task of the general contractor. - Correct Answer False" "The units of measurement for masonry are generally the number of masonry pieces such as concrete blocks or, in the case of bricks, the number of thousands of clay bricks. - Correct Answer True" "There are more variables to consider with concrete blocks than with clay bricks. - Correct Answer False" "For the volume of mortar per square foot of wall area, the volume of brick plus joints is calculated times the volume of brick per square foot of wall area. - Correct Answer False" "Trade rules in some locations require the subcontractor supplying reinforcing steel to the project to supply the rebar for the masonry work. - Correct Answer True" "Wire "ladder" reinforcing is required in every third course of blockwork. - Correct Answer False" "A typical example of the kind of work item that is related to masonry work but may not be included in the quote from a subtrade is the item of ____ during construction. - Correct Answer temporary bracing masonry work" "To calculate the BM of lumber, multiply the length in feet by the nominal width and thickness of the pieces in inches, then divide the product by 12. - Correct Answer True" "The general contractor's estimator usually measures finishes work for an estimate. - Correct Answer False" "The unit of measurement of lumber is generally the ____, which is sometimes referred to as board foot. - Correct Answer BM" "A 1000-board feet unit is written ____. - Correct Answer MBF" "Materials for finish carpentry on a commercial project are usually supplied by ____. - Correct Answer a millwork subcontractor" "On most projects a ____ will be included with the drawings or bound in the specifications providing information about the type and size of doors and frames, and often also details of the hardware specified for each door. - Correct Answer door schedule" "The process of pricing an estimate can be divided into four stages. - Correct Answer False" "The reason for preparing the recap is to bring together all work of a similar nature so that the estimator can concentrate on the needs of one trade at a time. - Correct Answer True" "The nature of the recap breakdown depends on the type of work involved in the project and the type of contract the contractor will be entering into with the owner. - Correct Answer True" "In general, all subtrades offer lump-sum bids - Correct Answer False" "The most common reason for failure to perform by a subtrade is the financial collapse of the subtrade. - Correct Answer True" "A sorted list of items that are part of an estimate is referred to as the ____. - Correct Answer recap" "When the recap is complete, prices of each trade will be presented in ____ form, which facilitates easier evaluation of the estimate. - Correct Answer summary" "When a contract states that the contractor will be reimbursed all project costs by the owner plus an added amount for profit, this is known as a ____. - Correct Answer cost-plus contract" "Where union labor is used, the wage rate will be the rate that is found ____. - Correct Answer in the local union agreement for the craft involved" "A price quoted as ____, in the absence of a definition to the contrary, is interpreted to mean the price includes delivery to the site but the contractor is responsible for the cost of any unloading requirements at the site. - Correct Answer F.O.B." "Most project specifications provide detailed descriptions of the materials to be supplied by the ____. - Correct Answer contractor" "The risk of bankruptcy by a subtrade can be reduced by calling for ____ from subtrades. - Correct Answer performance bonds" "A contractor needs to own some basic construction equipment in order to carry on business. - Correct Answer False" "More often than not, equipment is rented with an operator. - Correct Answer False" "Since the rental rate quoted by a contractor to another party for the use of the contractor's equipment is, in a sense, a kind of bid, the same considerations should be applied to the markup on the rental rate as are applied to markup on any of the contractor's bids. - Correct Answer True" "A spreadsheet template can be readily set up to provide the basic format of the calculation process; then the data applicable to the specific item of equipment can be inserted to generate the ownership cost of that item - Correct Answer True" "Hand tools up to a certain value together with blades, drill bits, and other consumables used in the work are priced as a ____ of the total labor price of the estimate. - Correct Answer percentage" "The percentage of the total labor cost that includes such things as hand tools up to a certain value and other consumables are referred to as the "____." - Correct Answer Small Tools Allowance" "Generally a large project causes crews and equipment to have low rates of productivity - Correct Answer False" "Changes in productivity should be dealt with in the same component of the unit price as wage rate changes for the most accuracy - Correct Answer False" "Whenever it is possible, the contractor will use the material excavated at the site for backfill requirements. - Correct Answer True" "Backfill material that is compacted will be more dense than before it is compacted so, to fill a certain volume with compacted material, a larger volume of loose material will be required - Correct Answer True" "The cost of transporting minor items of equipment such as plate compactors, small rollers, bobcats, and small tractors to and from the site is priced on the General Expense Sheet under the item "____." - Correct Answer Trucking and Material Handling" "The Small Tools Allowance is included with the "____" that are found toward the end of the estimate Summary Sheet. - Correct Answer add-ons" "In everyday usage the term ____ refers to the decline in market value of an asset. - Correct Answer depreciation" "The process of allocating the cost of the item over its useful life is known as ____. - Correct Answer amortization" "The ____ method is the most commonly used method of calculating depreciation. - Correct Answer straight-line" "With the ____ method of depreciation, the annual depreciation amounts decline as the asset gets older. - Correct Answer declining-balance" "The interest expense rate and the rate for taxes, insurance, and storage costs are often combined to give - Correct Answer total equipment overhead rate" "Company ____ costs are basically the fixed costs associated with running a business. - Correct Answer overhead" "____ includes an amount for company overhead costs and an amount for profit. - Correct Answer Markup" "Excavation contractors tend to concentrate on a single specific type of construction. - Correct Answer True" "A large-size excavation company is generally equipped to effectively perform all types of excavation work. - Correct Answer False" "Transportation of major items of equipment—backhoes, bulldozers, loaders, power shovels, and the like—is better priced on an item- by- item basis. - Correct Answer True" "____ are used when loads that are oversize are transported. - Correct Answer Scout trucks" "The equipment used in cut-and-fill operations depends mostly on the ____ of the project. - Correct Answer scale" "Pit and sump excavation is mostly performed using ____. - Correct Answer backhoes" "Perhaps the most important job factors that must be established before an estimate of any trade can be prepared are the ____ and equipment prices prevailing at the location of the project under consideration. - Correct Answer trade wage rates" "Tracking productivity rates separately from prices also has the advantage of "____"—the same productivity rates can be used in different localities, only the wage rates have to be adjusted to reflect pay rates that differ from place to place. - Correct Answer transportability" "When soil or gravel is excavated, the resulting material is less dense than it was in the ground before it was disturbed and this same material now occupies more volume, a concept called the ____. - Correct Answer swell factor" "The ____ is an allowance for the extra material required to fill volumes with compacted material rather than loose material. - Correct Answer compaction factor" "It is not uncommon to receive subtrade prices that are clearly in error—either too high or too low—and on more than one occasion an estimator has been left having to prepare a hasty estimate because subtrades have failed to deliver the prices they promised. - Correct Answer True" "In the residential industry especially, a subcontractor will offer to perform carpentry framing work at a ____ of building area. - Correct Answer price per square foot" "____ is lumber used for general building purposes. - Correct Answer Yard lumber" "Factory and ____ lumber is lumber selected for remanufacturing use. - Correct Answer shop" "____ lumber is sawn lumber that has not been surfaced. - Correct Answer Rough" "Lumber is generally available in lengths that are multiples of ____ feet. - Correct Answer 2 feet" "Allowable stresses are specified according to ____ of the lumber and grade within each of the categories. - Correct Answer species" "____ hardware for lumber mostly consists of nails, but other fasteners and such items as joist hangers may also be required. - Correct Answer Rough" "The amount of nails required for rough carpentry can be roughly determined by allowing ____ lbs of nails for every 1000 square feet of sheathing. - Correct Answer 7" "A ____% allowance for waste is considered appropriate on finish carpentry materials. - Correct Answer 20" "Cases of underlap and overlap occur when work is not clearly defined as being part of the scope of a single trade or as being the general contractor's work - Correct Answer True" "On some publicly funded projects, the general contractor may be required by government regulations to award a certain percentage of the work to women-owned and minority-owned businesses. - Correct Answer True" "Most contractors maintain a directory of the subtrades they prefer to deal with. - Correct Answer True" "Subcontracting problems are exclusive to the subtrades new to the prime contractor. - Correct Answer False" "Under the terms of the contract it has with the owner, the prime contractor is always held responsible for the performance of the work, excluding the performance of the work done by subcontractors. - Correct Answer False" "Subcontractors generally can be persuaded to submit their bids earlier than the bid closing, if you can guarantee that their prices will not become public knowledge. - Correct Answer False" "When a bid proposal has been obtained from a subtrade, it should list inclusions that detail all the work that the bidder is offering to do for the price quoted. - Correct Answer True" "Bid shopping or bid peddling is illegal - Correct Answer True" "Subcontractors often perform ____% or more of the work on building construction projects. - Correct Answer 80" "____ estimating methods include the price per unit, price per unit area, and price per unit volume. - Correct Answer Single-rate" "____ estimation methods include price per typical bay, assembly, and elemental estimates. - Correct Answer Multi-rate" "With the ____ method of estimating, a certain unit that is common to all projects of this type is selected and the number of these units is calculated for each project. - Correct Answer price per unit" "The ____ is defined as the area of all floors measured to the outside of the containing walls - Correct Answer gross floor area" "____ is the most common method of preliminary estimating. - Correct Answer Price per unit area" "The ____ of the building is calculated by multiplying the area of the building by the height from the bottom of the gravel under the basement slab-on-grade to the top of the roof surface. - Correct Answer volume" "The ____ estimating method can be used with any building layout and provides the estimator the opportunity to account for variables on an overall basis without having to contend with the fine detail of the design. - Correct Answer assembly" "Using the ____ method, a building, which may contain hundreds of components, may be reduced to a few assemblies, which can be measured and priced relatively quickly from records of previous assembly costs. - Correct Answer assembly" "The____ method is the most sophisticated preliminary estimating technique and provides the greatest ability to manage the cost of projects from conception to construction. - Correct Answer elemental" "The estimator's task becomes far more complicated when subtrades attach ____ to their bids. - Correct Answer conditions" "When investigating the financial condition of a subtrade, a useful source of information can be ____. - Correct Answer bonding companies" "A subtrade ____ would give the prime contractor the right to damages from the bonding company in the event that a subtrade fails to execute the subcontract after its bid has been properly accepted by the prime contractor. - Correct Answer bid bond" "The method of submitting bids now preferred by most subcontractors is to use ____. - Correct Answer the fax machine" "____ require subtrades to submit their bids at a specified time usually two days before the prime bids are due to be submitted. - Correct Answer Bid depositories" "Direct costs are sometimes titled General Requirements of the Project or Project Overheads - Correct Answer False" "Most general expense items are referred to in the project specifications. - Correct Answer False" "The price of general expenses can be a substantial component of the bid, amounting to 15% and more of the total price in some cases. - Correct Answer True" "Even when the new project is of a different type or size from the contractor's previous projects, an approximate schedule in the form of a bar chart of the major activities can often still be drafted. - Correct Answer True" "The final cleanup expenses include the cost of renting large garbage containers and the cost of constructing and later taking down temporary garbage chutes on the project. - Correct Answer False" "The cost of labor, material, and equipment expended on the items that were measured in the quantity takeoffs is usually referred to as the "____" of the work. - Correct Answer direct costs" "The "____" of a project comprise all of the additional, indirect costs that are necessary to facilitate the construction of the project. - Correct Answer general expenses" "On a small to medium-sized project, the ____ sheet can be used as a checklist that allows the estimator to choose those items that are required on the project under consideration. - Correct Answer general expenses" "General expenses that cannot be priced until the total price of the work is determined are separated from the other general expense items and are priced at the end of the estimate as "____." - Correct Answer add-ons" "____ refer to the cost of removing water from excavations and in some cases from the basements of projects under construction. - Correct Answer Dewatering expenses" "____ is an allowance for the cost of helpers assisting a surveyor, an engineer, or the project superintendent with survey work involved in setting out the lines and levels of the project. - Correct Answer layout" "The ____ is the extra payment over and above the basic wage rate that is paid to employees who work time in excess of the standard work day or work week. - Correct Answer overtime premium" "At the very start of the estimating process, the estimator can set up the summary sheet by checking off the trades that will be completed by "own forces" and those that will be subcontracted. - Correct Answer True" "The recap format for the takeoff items of a unit- price bid is the same as the format used with a lump-sum bid. - Correct Answer False" "Contractors seldom see an advantage in allowing a higher proportion of overheads and fee against the work being completed early in the project. - Correct Answer False" "The estimate-cost control process is linear in nature. - Correct Answer False" "Add-ons for small tools and payroll additives are calculated as a percentage of the total labor amount of the bid. - Correct Answer True" "Most contractors use a ____ sheet to gather together all of the constituent prices of the estimate. - Correct Answer bid summary" "A construction contract bid is compiled in three stages: the advance stage, the review stage, and the ____ stage. - Correct Answer closing" "A bid may sometimes be called a(n) "____" or a "proposal." - Correct Answer tender" "____ are quoted for proposed changes in the specifications. - Correct Answer Alternative prices" "A stipulated sum of money to be expended by a contractor on a specific work item on a project is usually referred to as a ____. - Correct Answer cash allowance" "____ is defined as the amount of money remaining after all project expenses and company expenses have been paid. - Correct Answer Profit" "The information on a ____ is generally requested to provide a basis for evaluating monthly progress payments on the project. - Correct Answer cost breakdown" "The last stage in the preparation of a unit-price bid is to ____. - Correct Answer complete the bid form" "The ____ function in a construction company will record all the expenses incurred in the operation of the entire company. - Correct Answer cost accounting" "Estimators typically turn to preliminary estimating methods to compile a budget estimate when there is too little design information available to put together a detailed estimate. - Correct Answer True" "Using the price per unit estimating method can generate a rough estimate quickly, but the lack of accuracy will render it of little use in cost planning. - Correct Answer True" "Typical bay estimates are very common because it is easy to find a "typical" bay size - Correct Answer False" "The typical bay method is more flexible than the assembly method. - Correct Answer False" "Assembly estimating can be a powerful cost control tool since the nature of the assembly, materials, and construction methods can all be defined and these data can be reflected in the estimated price. - Correct Answer True" "The assembly method of estimating is less accurate than the single-rate methods - Correct Answer False"