Chapter 4+5

Question 1

What are the five activities in detailed estimates?

Answer 1

1. Development of construction methods
2. Preparation of the constitution scheduled
3. Quantity takeoffs
4. Estimation of costs
5. Assessment of risk contingency

Question 2

What WBS stands for?

Answer 2

Work Breakdown Structure

Question 3

What WBS is used for?

Answer 3

Used to organize tasks for reporting schedules and tracking costs

Question 4

What are the three essential elements to produce an accurate detailed estimate?

Answer 4

1) Quantity take off - Determines the quantity of work
2) Productivity
3) Unit cost

Question 5

What if the plans are drawn in metric units and all your pricing information is in English units? (Quantity take-off)

Answer 5

Complete the takeoff using the units of the plans, metric units, and later convert all units to English units for pricing

Question 6

What is the order of measurement? Depth, length,width

Answer 6

Length X width X height

Question 7

How many decimal places are used for QTO?

Answer 7

2

Question 8

How QTO is taken, gross/net in place? explain

Answer 8

Net - quantities are calculated using the sizes and dimensions indicated on the drawings with no adjustments to the values obtained for waste factors and suchlike

Question 9

QTO What is an assembly?

Answer 9

A component of the work that can be considered separately from the other parts of the work

Question 10

Consider the perimeter foundation wall as an assembly in the estimate for a house - which items would it include for QTO?

Answer 10

1. Forms (sides)
2. Forms (openings and blackouts)
3. The concrete
4. Reinforcing steel
5. Rubbed finish on the exposed concrete surface

Question 11

Why use assemblies in QTO?

Answer 11

Avoiding repetition - Assembly is evaluated only once while the same dimensions are shared by a number of items within the assembly

Question 12

List the 5 price categories

Answer 12

1) Labour
2) Equipment
3) Materials
4) Subcontracts
5) General expenses

Question 13

What are the risks for a contractor in a lump-sum contract?

Answer 13

1) Takeoff quantities are too low
2) Productivity does not meet anticipated productivity
3) Subs or Material suppliers fail to meet obligations

Question 14

What are the two main approaches for pricing labour and equipment?

Answer 14

1) Use of unit prices - applied to listed takeoff quantities
2) Use of productivity rates - |Convert takeoff quantities into labour-hour| then applies wage rates and equipment rates to the total hours to estimate prices.

Question 15

What are labour and equipment pricing risk factors:

Answer 15

1) Productivity of labour or equipment is difficult to evaluate/anticipate
2) Hourly rate of labour or cost of equipment can fluctuate

Question 16

What are the 2 groups productivity of equipment & labour are influenced by?

Answer 16

1) Job factors
- Weather conditions
- Access to and around the site
- Distance from materials and equipment sources

2) Labour and management factors
- Quality of job supervision
- Quality of labour
- Experience in similar projects in the past (learning curve)

Question 17

Is it better to buy or rent equipment?

Answer 17

Buying is justified only when the investment promises NET BENEFITS in compression with renting or investing the cash elsewhere

Question 18

What do you need to know while calculating depression?

Answer 18

1) Asset’s initial cost (Present value)
2) Useful life
3) Salvage value
4) Depreciation model

Question 19

What are the 3 depreciation models?

Answer 19

1) Straight-line - Allocated equally per year over the useful life of the asset
2) Declining - balance - Annual depreciation amounts decline as the asset gets older
3) Production or use - Depreciation value in a specific year depends on asset use in that year