Estimating and Pricing Flashcards
What is overhead?
Money that must be spent by a company each month but does not directly contribute to the completion of their end product.
What is fixed overhead?
Money that your company must spend every month like Rent, Leases, etc.
Does fixed overhead vary depending on your company’s revenue?
No
What is variable overhead?
Costs that fluctuate from mouth to mouth in relation to sales.
How are variable expenses normally calculated?
Based on an estimate of total yearly expenses
What is a primary cause of inaccurate job estimates?
Not giving consideration to working conditions.
What must you familiarize yourself with and must be carefully studied when compiling a job take-off?
Plans and specifications
What are four ways to price labour when estimating?
Dollars per hour, dollars per unit or length installed, dollars per piece of work installed
What is contingency?
Extra time needed for unforeseen work delays.
What two factors can affect the amount of contingency for a job?
Size of the job and work conditions.
An estimate is define as?
An accurate project costing of material and labour
What type of estimating for large jobs usually begins with three to four years in advance of the actual start of the project?
Rough Order of Magnitude (ROM) estimating
What must be completed after the Rough Order of Magnitude (ROM) estimate is entered?
Risk assessment factors
What nine activities are normally used for the development of an estimating schedule?
Project scope statement, work schedule breakdown structure,resources plan, quality plan, risk plan, budget and procurement plan, communication plan, and review cost estimate
What are the two basic techniques for putting an estimate together?
Top down estimate and bottom up estimate
When pricing out a job, what are the two categories of pricing?
Preliminary estimates and detailed estimates
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?
Air handling equipment, ductwork, special labour, fans, round/oval HVAC, roof equipment, filters, sheet metal specialties, end of bid factors, and mark-up
What are the three requirements to include in a detailed estimate?
A task list, material take off, and pricing sheets for each task item plus labour
What is the best way to differentiate between ducts on a set of prints?
Use a color code for the various types of ducts
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?
True
What is the most reliable and best type of estimate?
The detailed estimate
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?
False
Describe project costing or estimating?
The process for determining a price for a customer or for tending a bid for a project.
What is the purpose for estimating in the sheet metal industry?
To layout the project into a series of tasks.
What is the most common method for cost estimating?
Bottom-up estimating
Describe bottom-up estimating?
It involves estimating each of the individual work items, tasks, or activities. The sums of this list leads to a project total price.
Describe top-down estimates?
They use the actual cost of previous or similar projects on the basis for estimating the cost of the current project.
What is commonplace to estimate the cost of ductwork in the HVAC industry?
To estimate the cost of ductwork by the lineal foot.
What is the most accurate and precise method available for estimating ductwork or labour for contractors?
Estimating by the piece
What is more likely to produce a price that accurately forecasts the actual costs of building a construction project?
A detailed estimate
What are the two methods on which labour hours are based?
The price per piece method, which is more accurate of the two, and the pounds (Lbs) per hour method.
What do you need to apply if the work you are estimating does not follow the specified normal work conditions?
You may need to apply a correction factor
No man-hour estimate fits all jobs because every construction project is unique. True or False?
True
There is no absolute way to eliminate all errors when making man-hour estimates? True or False
True
What is a quotation call list?
It is an organized written guide for notifying equipment suppliers and subcontractors that you want quotations from them on the project being bid.
Describe general expenses?
Refers o the general overhead costs that occur at the jobsite.
How are equipment costs calculated?
Equipment costs are multiplied by the length of time they will be required and are entered as a one-time expense.
What are proposals?
They are the selling document of the project you are bidding on.
