Estimating

Question 1

What is direct cost?

Answer 1

Any cost that can be associated with a discrete physical part of a construction project

Question 2

What is indirect cost?

Answer 2

Any cost that cannot be associated with a discrete physical part of a construction project

Question 3

What are the six levels of estimating?

Answer 3

1) Conceptual Estimate for Feasibility Studies
2) Estimate to Evaluate Alternative Designs
3) Owner’s/Engineers Estimate
4) Contractor’s Bid Estimate
5) Alternative Construction Methods Estimate
6) Change Order or Claims Estimate

Question 4

What are the horizontal format items?

Answer 4

L (Labour)
RL (Repair and Service Labour)
PM (Permanent Materials)
EM (Expendable Materials)
S (Subs)
EOE (Equipment Operating Expense)
R (Rental, Depreciation, and Write-off)

Question 5

What are the vertical format items?

Answer 5

Direct Cost
Indirect Cost
Escalations
Interest
Contingency
Markup
Bond Fee

Question 6

Rank the horizontal format items in order from most risky to least risky

Answer 6

L, RL, O&M
EM
EOE, R
S, PM

Question 7

What are the three identified contingencies?

Answer 7

Productivity Hedge
Soft Subs
Special Risk Events

Question 8

What estimate is the most detailed?

Answer 8

Contractor’s Bid Estimate

Question 9

What are the three types of escalations?

Answer 9

Labour
Material
Equipment

Question 10

What is unidentified contingency covered in?

Answer 10

Markup

Question 11

What are the three methods for calculating markups?

Answer 11

1) Percent of total cost
2) Percent of labour
3) Broad based