Estimating Flashcards
When preparing a bid, a contractor must consider
profit, overhead, labor and mateiral, and evaluate the effect of unexpected delays on costs
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if you place an advertisement which offers a home improvement service for $95 and have no intention of signing a contract for that low of a price this is
a misdemeanor and cause for disciplinary action
a cotractor signs a home improvement contract and accepts a down payment, but never shows up to do the work. what is the fine
contracotr is subjected to a penalty of $100-$5000 and or one year in jail
you are bidding on a state college job and the work involves new construction. you decide to use subcontractors to do some of the work. you do not however submit the names of any subcontractors
you will be responsible for completing the whole contract yourself
a contractor finds a 12” discrepancy on a set of drawings for an office building. the contractor should
contact the architect or designer
when preparing a bid, which of the following is normally the most difficult to estimate
labor
if a contractors bilingual salesperson makes a presentation to a customer in spanish, the home solicitation contract must also be
written in spanish
the homeowner has drawn plans for the job that you are bidding on and the dimensions on the plans are not accurate. you should
notify the homeowner that you cannot bid until proper corrections are made
every contractor and estimator considers cost estimating a challenge
due to weather, location, number of employees, and each job is different
you have prepared a bid which enables you to make a profit, however fthe customer cannot afford it. what should you do
do not change your bid unless the scope of the job is reduced
what is job costing?
-it assists you in defining costs for future bidding
-assures that cost estimates will be accurate
-it assists you with the labor and material costs
if you are doing a complete package bid including all phases of the new house so that you can give the customer a price that will be complete and you forgot to charge for one phase, what should you do
do all of the phases including the one that you forgot to charge for regardless if it means that you will have to absorb the loss
the benefit of using job cost cards is
to keep accurate costs records for bidding in the future
labor costs can be established by
taking the hours from the detailed job cost time cards from past jobs
how do you prepare a bid accurately
factor in effects of the unexpected cost of delays
job costing is helpful in
determining the profit or loss on the job
you would not include which of the following in a bid
possible legal fees
the reason for standardizing bidding with your company is that it
guarantees the accurancy of cost estimates
you know if you are bidding correctly when
the job and estimated costs correspond
what is the best way to access the job that you are bidding on
you inspect the job
what is the most difficult item to estimate
labor
a contractor should include material, labor and direct costs, permits, profit and ____ when bidding on a home improvement contract
overhead costs
in order to ensure no errors in the bid, you should
double check the bid prior to submitting it
what does direct labor consist of
actual cost of the labor payroll
when bidding a job, it is alright to
double check your estimate
job costs cards do not provide any benefit in
keeping cost records that are accurate for bookkeeping
what is the usual procedure for the contractor if changes have been made to the original construction documents after the project has been issued and work has commenced
the contractor should have a signed change order for the additional costs
the most important element of a contract between the parties involved is
mutual agreement
which of the following generally summarizes the work and closeout of the project
general requirements
on large jobs, the person usually in charge for guaranteeing that the project drawings are in accordance with the building codes and local ordinances is
the architect/ engineer
when a contractor agrees to fulfill work or services for a given labor rate per hour and a 15% profit on the cost of materials, this is called a
cost plus fee contract
the two basic types of construction contracts are
competitive bid and negotiated
construction estimating is the analysis of all the elements in the cost of a project. which of the following is the best description of this
material, labor, equipment, job and company overhead and profit
once the documents for a construction projects are completed, bids taken, the contract issued and ____ then the contractor can commence construction
the contract is signed
the purpose of an addendum to the bidding and construction documents is
to make changes to the documents prior to the contractor being awarded the contract
which of the following is awarded the contract, when the construction documents state a lump sum bid
low bid
which of the following is ussually awarded a building construciton contract
the low bidder
when working with construction contracts which of the following best depicts front end loading
the practice of contractors overpricing items of work in the beginning of the job
the term “time is of the essence in this agreement” is best described by which of the following
specified completion dates must be met
a competative bid contract is
a lump sum and unit price contract
do most construction contracts allow the owner to change work durring construction
Yes, if the contractor is compensated
Construction estimating is best defined by which of the following
analyzing all elements involved in the cost of a building construciton project
which of the following person is hired as a full time employee by the contractor preparing materials lists, labor units and other costs for the project that the firm has bid on
estimator
when a contractor is submitting a competitive bid on a construction project a ____ is necessary
set of construction documents
after a material takeoff, the unit prices are generally put in and the material prices extend to reach a complete cost of material for the job. generally, the next step in the estimate is
to figure the labor units (generally in hrs)
who should be contacted if the working drawings are unclear durring the process of takeoff and bidding
the architect
a lump sum contract is best described by which of the folloowing
one in which the contractor agrees to perform specific work or services in place of a fixed amount of money
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the first step in determining an accurate cost of a construction project iss
making a complete material takeoff
a contractors gross profit for a project is determined by which of the following
amount of contract - direct costs - indirect costs gross profit
it is the ____ responsibility for the subcontractors work in a standard building construction contract
general contractors
the two basic types of construction contracts are
competitive bid and negotiated
eevery contractor and estimator consideres cost estimating a challenge
-due to weatehr location, proper numbers of emloyees and otehr problems
-because each job is different therby making it difficult to make a takeoff, assignment of labor units and the pricing of construction costs uniform
____ shows all bids recieved with teh name of each contractor and the amount of each bid
a bid opening report
items which must be included in the bid are costs for permits, borrowed funds and additional insurace and other fees which are all considered ____ costs
indirect
which of the following should be charged to individual jobs and not be included in direct labor estimates
supervision
when preparing an estimate and the cost of labor and materials are known but the total estimate is not known, you should use ____ to calculate overhead and profit to arrive at the total price
the mark up equation
if mistakes happen and all of those bidding did not receive identical bidders documents, it is sufficient cause to have bids cancelled and the entire project
re-bid
when preparing an estimate, there are times when a contingency factor might be neccessary. what is a contingency factor
an estimated value figured into a bid that allows for unexpected delays and costs
upon competion and acceptance of the job or upon final payment, the owner may request ____ from the contractor
a waiver and release
which of the following is not a good practice when bidding on a job
figuring out how to beat the competition
If the second lowest bidder challenges the bid and the low bidder is non-responsive, the contention of an award may result in potential:
-litigation
-forfeiture of the award
-advertising the contract again
When preparing an estimate, in what category would you consider equipment and general maintenance
indirect costs
which of the following includes all payrool taxes, insurance and employees’ benefits assessed against the labor payroll
direct labor burden
on a public works job, the prime contractor has ____ after receipt of bids, to submit requested subcontractor information
24 hours
to provide a good accurate bid, the contractor must ____ the construction process on paper
plan
after receiving all bids, what is the phase of elevation of bids called
bid opening phase
when preparing an estimate, which of the following would you factor into the cost of doing the job
cost of performance bond
when preparing a bid for a contract, which of the following is most difficult to calculate
labor
contract ____ generally exceed the profits and represnt a claim of the working capital
retentions
when preparing an estimate, general administration, office help and bad debts are considered an
overhead cost
which of the following is essential to the continuation of business and must be included in all bids
profit
mike has reviewed plans and specification for a remodeling job for an architect and would like to bid the job. what is his next step
walk the jobsite
in order to provide a good accurate bid, it is neccessary for the contractor to carefuly review the job through ____ inspection
on the site
durring bidding time when contracts are updated with change orders, all contract bidders will be mailed the updates by
certified mail with a return receipt requested form
if you have lost practically every bid that you have placed in the past 3 months, which of the following is most likely the reason
you are trying to make more profit than is realistic
what is considered a cost management system
a computer record of all costs of previous jobs
work classification calculated provides information on bids for
labor
____ should be charged to individual jobs and should not be included in direct labor estimates
supervision
overhead and profit are added to the job estimate using ____ based on the total job estimate
a mark up percent
____ must not be taken in material cost estimates unless the contractor is certain that sufficient funds are available
cash discounts
____ bid is one that meets all of the requirements specified in the notice inviting bids and instructions to bidders
responsive
how can a contractor make sure that they will receive progressive payments on time
have the owner open a third party escrow account
