Managing Construction 11

Question 1

The basis calculation for ROI is:

Answer 1

ANNUALIZED PROFIT / WORKING CAPITAL DOLLARS REQUIRED

Question 2

The jobs that require a GC to build with his own money are:

Answer 2

jobs THAT HAVE RISK AND TAKE AWAY FROM ROI.

Question 3

What are DIGITIZERS used for?

Answer 3

Bidding. They are computer programs that can measure/count quantities quickly.

Question 4

What is MARKUP?

Answer 4

PROFIT PERCENTAGE AS A FACTOR OF COST.

Question 5

What is MARGIN?

Answer 5

The use of a profit percentage that is a factor of revenue.

Question 6

COST is the basis for the MARKUP calculation. If you have a cost of $100 and you want a 10% profit:

Answer 6

then 100 x 0.10 = 10.

Question 7

REVENUE is the basis for the PROFIT MARGIN CALCULATION. To calculate margin:

Answer 7

1. take the 1 and subtract the percentage desired (1-10).
2. divide the remainder into the cost (100 / 0.9). Our $100 cost divided by 0.9 is $111.11. The $11.11 of profit is exactly 10% of 111.11.

Question 8

The biggest opportunity to beat the schedule and budget is:

Answer 8

in PRE CONSTRUCTION PLANNING.

Question 9

Superior contractors have their MAJOR BUSINESS PROCESSES:

Answer 9

mapped out in writing and understood by all employees. This results in fewer missteps.

Question 10

Superior contractors require field managers to

Answer 10

plan weekly, IN WRITING.