Managing Construction 8

Question 1

the THREE phases of the construction business are:

Answer 1

a. AQUIRE WORK
b. BUILD WORK
c. KEEP TRACK

Question 2

The KEY factor to winning profitable jobs is:

Answer 2

THE NUMBER OF QUALIFIED LEADS

Question 3

How do you determine what bid is qualified?

Answer 3

1. They have a deadline
2. They are the decision makers
3. They have funds to build
4. They have a need
5. They let you build a personal relationship
6. They have an identifiable want: make the client look good to his boss, his wife, etc, and you will win.

Question 4

You should be able to receive a decent price for your work if:

Answer 4

you find and cultivate dozens of qualified bids.

Question 5

Financially successful contractors win less than:

Answer 5

20% of their bids

Question 6

The labor content

of a project directly affects overhead costs because:

Answer 6

field labor causes companies to hire office support personnel.

Question 7

Knowing how to allocate OH can make the difference in:

Answer 7

taking projects cheap or with the appropriate amount of OH. A company’s cost has to be recovered: otherwise it pays for finishing a project.

Question 8

OH allocation depends on several factors, the most important of which is:

Answer 8

an accurate budget.

Question 9

An accurate budget, besides the overall numbers, must delineate:

Answer 9

1. LABOR
2. MATERIAL
3. SUBCONTRACT
4. EQUIPMENT CONTENT

Question 10

When negotiating a bid, a contractor must assess what three items?

Answer 10

1. The speed required
2. The price requested
3. The quality or scope demanded.
   FURNISHING ALL THREE LEADS TO BANKRUPTCY, PROVIDING TWO OF THE THREE MAKES FOR A REASONABLE AGREEMENT.