Estimating and Pricing

Question 1

What is overhead?

Answer 1

Money that must be spent by a company each month but does not directly contribute to the completion of their end product.

Question 2

What is fixed overhead?

Answer 2

Money that your company must spend every month like Rent, Leases, etc.

Question 3

Does fixed overhead vary depending on your company’s revenue?

Answer 3

No

Question 4

What is variable overhead?

Answer 4

Costs that fluctuate from mouth to mouth in relation to sales.

Question 5

How are variable expenses normally calculated?

Answer 5

Based on an estimate of total yearly expenses

Question 6

What is a primary cause of inaccurate job estimates?

Answer 6

Not giving consideration to working conditions.

Question 7

What must you familiarize yourself with and must be carefully studied when compiling a job take-off?

Answer 7

Plans and specifications

Question 8

What are four ways to price labour when estimating?

Answer 8

Dollars per hour, dollars per unit or length installed, dollars per piece of work installed

Question 9

What is contingency?

Answer 9

Extra time needed for unforeseen work delays.

Question 10

What two factors can affect the amount of contingency for a job?

Answer 10

Size of the job and work conditions.

Question 11

An estimate is define as?

Answer 11

An accurate project costing of material and labour

Question 12

What type of estimating for large jobs usually begins with three to four years in advance of the actual start of the project?

Answer 12

Rough Order of Magnitude (ROM) estimating

Question 13

What must be completed after the Rough Order of Magnitude (ROM) estimate is entered?

Answer 13

Risk assessment factors

Question 14

What nine activities are normally used for the development of an estimating schedule?

Answer 14

Project scope statement, work schedule breakdown structure,resources plan, quality plan, risk plan, budget and procurement plan, communication plan, and review cost estimate

Question 15

What are the two basic techniques for putting an estimate together?

Answer 15

Top down estimate and bottom up estimate

Question 16

When pricing out a job, what are the two categories of pricing?

Answer 16

Preliminary estimates and detailed estimates

Question 17

When putting together a complete estimate for the sheet metal portion of the contract, what are the ten major tasks that need to be listed?

Answer 17

Air handling equipment, ductwork, special labour, fans, round/oval HVAC, roof equipment, filters, sheet metal specialties, end of bid factors, and mark-up

Question 18

What are the three requirements to include in a detailed estimate?

Answer 18

A task list, material take off, and pricing sheets for each task item plus labour

Question 19

What is the best way to differentiate between ducts on a set of prints?

Answer 19

Use a color code for the various types of ducts

Question 20

It is common practice to submit an un-priced copy of your bid proposal and your proposal letter to the general contractor three to four days before the bid closing date. True or False?

Answer 20

True

Question 21

What is the most reliable and best type of estimate?

Answer 21

The detailed estimate

Question 22

When you are calculating a job and you wish to make a 10 percent profit, you add 10 percent to the selling price. True or False?

Answer 22

False

Question 23

Describe project costing or estimating?

Answer 23

The process for determining a price for a customer or for tending a bid for a project.

Question 24

What is the purpose for estimating in the sheet metal industry?

Answer 24

To layout the project into a series of tasks.

Question 25

What is the most common method for cost estimating?

Answer 25

Bottom-up estimating

Question 26

Describe bottom-up estimating?

Answer 26

It involves estimating each of the individual work items, tasks, or activities. The sums of this list leads to a project total price.

Question 27

Describe top-down estimates?

Answer 27

They use the actual cost of previous or similar projects on the basis for estimating the cost of the current project.

Question 28

What is commonplace to estimate the cost of ductwork in the HVAC industry?

Answer 28

To estimate the cost of ductwork by the lineal foot.

Question 29

What is the most accurate and precise method available for estimating ductwork or labour for contractors?

Answer 29

Estimating by the piece

Question 30

What is more likely to produce a price that accurately forecasts the actual costs of building a construction project?

Answer 30

A detailed estimate

Question 31

What are the two methods on which labour hours are based?

Answer 31

The price per piece method, which is more accurate of the two, and the pounds (Lbs) per hour method.

Question 32

What do you need to apply if the work you are estimating does not follow the specified normal work conditions?

Answer 32

You may need to apply a correction factor

Question 33

No man-hour estimate fits all jobs because every construction project is unique. True or False?

Answer 33

True

Question 34

There is no absolute way to eliminate all errors when making man-hour estimates? True or False

Answer 34

True

Question 35

What is a quotation call list?

Answer 35

It is an organized written guide for notifying equipment suppliers and subcontractors that you want quotations from them on the project being bid.

Question 36

Describe general expenses?

Answer 36

Refers o the general overhead costs that occur at the jobsite.

Question 37

How are equipment costs calculated?

Answer 37

Equipment costs are multiplied by the length of time they will be required and are entered as a one-time expense.

Question 38

What are proposals?

Answer 38

They are the selling document of the project you are bidding on.