2.2 Estimating Processes & Practices - final

Question 1

1

How to select the appropriate estimate methodologies to be used?

Answer 1

1

To make this selection, it is important to properly evaluate the level of scope information upon which the estimate is based, to fully understand the intended purpose of the estimate, and to establish the format for estimate presentation.

Question 2

1

Whih are the Estimating Processes & Practices?

Answer 2

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Planning the Estimate
Estimating Methodologies
Quantification
Costing

Pricing
Estimate Conditioning
Risk Evaluation and
Contingency Determination
Estimate Documentation
Estimate Reconciliation
Estimate Review and
Validation
Estimate Reporting
Estimate Closeout

Question 3

1

Planning the Estimate

Answer 3

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is to prepare a plan to go forward. The major steps are to:

Determine the purpose of the estimate
Determine the needs of the stakeholders
Determine the scope
Identify responsibilities
Prepare a timeline.

Question 4

1

Which is one of the mayot major part of planning the estimate?

Answer 4

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Transferring the estimate to the cost control phase needs to be a major part of the plan. This generally means developing the code of accounts and/or work breakdown structure that will be used for the project.

Question 5

1

DEFINITION PHASE

Answer 5

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An early phase in the project life cycle when the scope is defined.

Question 6

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PROJECT DEFINITION

Answer 6

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Process of exploring thoroughly all aspects of proposed project and to explore relations between required performance, development time and cost.

Question 7

1

PROJECT PLAN

Answer 7

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The primary document for project activities. It covers the project from initiation through completion

Question 8

1

Professional judgment is essential regardless of the estimating methodology utilized. However, Can the professional judgment of an experienced estimator or estimating team stand alone as an estimating method for conceptual estimates when little scope development has taken place?

Answer 8

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NO

the professional judgment of an experienced estimator or estimating team cannot stand alone as an estimating method for conceptual estimates when little scope development has taken place

Question 9

1

What are the drivers to select the estimating methodology?

Answer 9

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The selection of estimating methodologies depends on the level of scope definition, the time available to prepare the estimate, the purpose of the estimate, and the resources and tools available for the estimating effort.

Question 10

1

PARAMETRIC ESTIMATE

Answer 10

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In estimating practice, describes estimating algorithms or cost estimating relationships that are highly probabilistic in nature (i.e., the parameters or quantification inputs to the algorithm tend to be abstractions of the scope). Typical parametric algorithms include, but are not limited to, factoring techniques, gross unit costs, and cost models

Question 11

1

Take‐off

Answer 11

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specific type of quantification that is a measurement and listing of quantities of materials from drawings in order to support the estimate costing process and/or to support the material procurement process

Question 12

1

CONSTRUCTABILITY

Answer 12

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A system (process) for achieving optimum integration of construction knowledge in the construction process, balancing various project and environmental constraints to achieve maximization of project goals and performance

Question 13

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What is Bill of material (BOM)

Answer 13

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A bill of materials (BOM) is a detailed quantity take‐off produced in order to facilitate procurement for a project or product.

Question 14

1

What is costing?

Answer 14

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the application of cost and resources to a quantified scope.”

Question 15

1

BURDEN

Answer 15

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In construction, the cost of maintaining an office with staff other than operating personnel. Also includes federal, state and local taxes, fringe benefits and other union contract obligations. In manufacturing, burden sometimes denotes overhead

Question 16

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LABOR BURDEN

Answer 16

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Fringe benefits plus taxes and insurances the employer is required to pay by law based on labor payroll, on behalf of or for the benefit of labor.

Question 17

1

Overhead cost

Answer 17

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A cost or expense inherent in the performing of an operation, (e.g., engineering, construction, operating, or manufacturing) which cannot be charged to or identified with a part of the work, product or asset and, therefore, must be allocated on some arbitrary base believed to be equitable, or handled as a business expense independent of the volume of production.

Question 18

1

BID SECURITY

Answer 18

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Security is provided in connection with the submittal of a bid to guarantee that the bidder, if awarded or offered the contract, will execute the contract and perform the work.

Question 19

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BOND, BID

Answer 19

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A bond that guarantees the bidder will enter into a contract on the basis of the bid.

Question 20

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CONTRACT DOCUMENTS

Answer 20

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The agreement, addenda (which pertain to the contract documents), contractor’s bid (including documentation accompanying the bid and any post-bid documentation submitted prior to the notice of award) when attached as an exhibit to the agreement, the bonds, the general conditions, the supplementary conditions, the specifications and the drawings as the same are more specifically identified in the agreement, together with all amendments, modifications and supplements issued pursuant to the general conditions on or after the effective date of the agreement

Question 21

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FRONT END LOADING (FEL).

Answer 21

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Defining the project scope and plans in a way that assures the best practical level of definition is achieved as needed to support a project decision gate.

Question 22

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How can an estimate be condicioned

Answer 22

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Estimates may be conditioned by factoring, modifying escalation, making specific changes to recognize specific conditions, or by a multitude of other means of adjustment.

Conditioning an estimate involves making adjustments to the estimate to suit a specific purpose or to meet certain requirements that have been listed in the general and special conditions in the contract.

Question 23

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A Performance Bond is:

Answer 23

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A guarantee that the project will be completed on the terms of the contract

A guarantee that the project will perform as defined in the contract

A guarantee that the project will be performed per all conditions of the contract

Question 24

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ACCURACY RANGE

Answer 24

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An expression of an estimate’s predicted closeness to final actual costs or time. Typically expressed as high/low percentages by which actual results will be over and under the estimate along with the confidence interval these percentages represent

Question 25

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Why the documentation of the estimate is important?

Answer 25

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Documentation of the cost estimate is critical because it provides an accurate audit of the project cost history and becomes the basis for change management and dispute resolution.

Question 26

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The essential steps in review of an estimate include?

Answer 26

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Review of the Basis of Estimate (BOE).

Thorough review of the estimate documents to assure all addenda, drawings, quotes, and other items have been included.

Perform random checks of quantity take‐offs, wage rates, unit pricing, etc.

Validation of the estimate, comparing the cost against other project baselines and performing “sanity checks” of the components and total of the estimate.