Ch6. Operations Management Flashcards
The ________________method is frequently used for larger and more complex construction projects.
Critical path
The number of hours to complete a project are identified and listed in a _______ as part of the critical path method.
Node
Contractors should visit the jobsite _______ to keep the subcontractors informed of the job’s progress and to check on what materials must be ordered for the next phase of construction.
Daily
All contractor’s license qualifiers, including
______ and ______, are by law required to exercise “direct supervision and
control.”
RME and RMO
The proper size of inventory is at a __________.
Minimum
Existing inventory should be _________ on a regular basis and before adjusting levels in the bookkeeping.
Counted
Lower inventory levels reduce space and storage requirements as well as increase ________________.
Working capital
A _______________ guarantees both job completion and payment of all labor and materials.
Contract bond
Bonds are usually obtained through ___________________ who represent bonding companies.
Insurance angents
In the ____________ process, a contractor identifies the expenses associated with a project.
Estimating
After an estimate is calculated, the contractor develops and submits a ______
to the client.
Bid
Labor, such as for a field superintendent, is considered a _______ cost.
Direct
The ____________________ estimating method is considered the most accurate but is also very time consuming.
Stick by stick
_______ is usually the most difficult item to estimate.
Labor
Although usually the largest single catogory in a bid, ____________ can be fairly accurately determined.
Materials
Accounting, and office rent are considered _____________________.
Company overhead
To increase ________, you must reduce your job expenses and/or increase what you charge a customer.
Profit
The formula for calculating percentage of overhead is:
Overhead Percent =__________÷ __________
Annual overhead ÷ annual income (gross revenue)
The formula for calculating selling price is:
Selling Price = ________+__________+________
Estimated job cost + company overhead + profit
Job costs are $9,520, overhead is 22%, and profit is 10%. What is the selling price?
14,000
___________ are funds that are withheld until lien periods have expired and the project has been completed free of defects.
Retentions
_______ specifications are the most common reason for losing a bid.
Vague
When bidding, _________ is the most important item to consider.
Profit
If you are bidding correctly, your job costs should be almost the _________ as your estimated cost.
Same
___________ are the primary source of labor data and are helpful when monitoring and analyzing labor costs.
Time cards
