CEE 4100 EXAM REVIEW QUESTIONS
What format is used for cost estimation - Answer -Construction Specifications Institue
(csi)
Why CSI format? - Answer -16 major divisions
grouped by building trades and broad scope sections
industry standard for cataloguing info
Main variables for Unit Price Estimating - Answer -- Unit price cost
- Construction equipment rental cost
- Crew listing
- Historical cost index
- City cost index
- Location factor
-Overhead and profit
2 Construction Cost Indices - Answer -Construction Cost Index (CCI)
Building Cost Index (BCI)
Labor Productivity Rate - Answer -Work per unit time or other unit
Quantity takeoff - Answer -required number of units including waste
Work hours required - Answer -Productivity rate (work hours per unit) x quantity takeoff
Duration - Answer -work hours required per crew size
Activity labor cost - Answer -duration x hourly crew labor cost
Steps to prepare a detailed estimate - Answer -1. scope of work
2. materials quantity takeoff
3. cost of materials
4. cost of labor
5. cost of owned and rented equipment
6. cost of specialty work
7. taxes, bonds, insurance
8. project contingency
9. determine reasonable profit
Total direct costs - Answer -multiply quantities of each of the components by material,
labor and equipment unit costs
, Type of summary sheets - Answer -Lump-sum bid
Unit price bid
Lump sum bid - Answer --quantity survey totals and their units
-material unit prices and extensions
-labor unit prices and extensions
-equipment costs for entire project computed separately
UNIT Price Bid - Answer --one summary sheet per pay item
-each summary sheet includes several different work categories
-columns for materials labor, equipment, and subcontracts
Why recap sheets - Answer -- organization
- summarize entire project on single sheet
- allows for easy adjustments
What does unbalanced bidding apply to? - Answer -unit bidding
What is front end loading - Answer -Raises prices for items that occur early in the
project and reduces prices for pay items that occur later in the project
What does unbalanced bidding allow for - Answer -taking advantage of expected
mistakes in owners (engineers) estimate
Disadvantages of unbalanced bidding - Answer --changes can have an unrealistic
impact on the pricing
-Unrealistic unit prices can adversely affect the owner's or A/E's decision
- bid can be rejected if thought to be unfair or unresponsive
Direct cost - Answer --can be assigned directly to work items -cause and effect
relationship
-disappears if a work item is eliminated
Indirect cost - Answer --can be assigned indirectly to work items
-remains if a work item is eliminated
Direct cost examples - Answer -Basic wages
Indirect cost examples - Answer --taxes and insurance
-social security
health and welfare funds
Owning costs - Answer --Depreciation
-interest
-insurance
-taxes
What format is used for cost estimation - Answer -Construction Specifications Institue
(csi)
Why CSI format? - Answer -16 major divisions
grouped by building trades and broad scope sections
industry standard for cataloguing info
Main variables for Unit Price Estimating - Answer -- Unit price cost
- Construction equipment rental cost
- Crew listing
- Historical cost index
- City cost index
- Location factor
-Overhead and profit
2 Construction Cost Indices - Answer -Construction Cost Index (CCI)
Building Cost Index (BCI)
Labor Productivity Rate - Answer -Work per unit time or other unit
Quantity takeoff - Answer -required number of units including waste
Work hours required - Answer -Productivity rate (work hours per unit) x quantity takeoff
Duration - Answer -work hours required per crew size
Activity labor cost - Answer -duration x hourly crew labor cost
Steps to prepare a detailed estimate - Answer -1. scope of work
2. materials quantity takeoff
3. cost of materials
4. cost of labor
5. cost of owned and rented equipment
6. cost of specialty work
7. taxes, bonds, insurance
8. project contingency
9. determine reasonable profit
Total direct costs - Answer -multiply quantities of each of the components by material,
labor and equipment unit costs
, Type of summary sheets - Answer -Lump-sum bid
Unit price bid
Lump sum bid - Answer --quantity survey totals and their units
-material unit prices and extensions
-labor unit prices and extensions
-equipment costs for entire project computed separately
UNIT Price Bid - Answer --one summary sheet per pay item
-each summary sheet includes several different work categories
-columns for materials labor, equipment, and subcontracts
Why recap sheets - Answer -- organization
- summarize entire project on single sheet
- allows for easy adjustments
What does unbalanced bidding apply to? - Answer -unit bidding
What is front end loading - Answer -Raises prices for items that occur early in the
project and reduces prices for pay items that occur later in the project
What does unbalanced bidding allow for - Answer -taking advantage of expected
mistakes in owners (engineers) estimate
Disadvantages of unbalanced bidding - Answer --changes can have an unrealistic
impact on the pricing
-Unrealistic unit prices can adversely affect the owner's or A/E's decision
- bid can be rejected if thought to be unfair or unresponsive
Direct cost - Answer --can be assigned directly to work items -cause and effect
relationship
-disappears if a work item is eliminated
Indirect cost - Answer --can be assigned indirectly to work items
-remains if a work item is eliminated
Direct cost examples - Answer -Basic wages
Indirect cost examples - Answer --taxes and insurance
-social security
health and welfare funds
Owning costs - Answer --Depreciation
-interest
-insurance
-taxes
