Managing Construction 9

Question 1

Contractors who use bidding models give themselves the best opportunity to win consistently because:

Answer 1

you can never predict what will happen on one project, but you can predict on a group of 100 projects.

Question 2

Contractors can take three envelopes to a bid opening:

Answer 2

1. One to submit if there are more than six bidders.
2. One if there are less than six bidders.
3. One if there are no other bidders.
   THIS BASIC SYSTEM CAN NET ADDITIONAL PROFITS WITHOUT OPENING THE TOOLBOX.

Question 3

Profit dollars are added to each bid as:

Answer 3

the numbers of competitors decreases.

Question 4

The three FUNCTIONS a contractor must perform well or face bankrupcy are:

Answer 4

1. AQUIRE WORK
2. BUILD WORK
3. KEEP TRACK

Question 5

The secret to winning with the three functions of AQUIRE WORK - BUILD WORK - KEEP TRACK is:

Answer 5

to perform each of those faster than your competition.

Question 6

Making sure you are bidding your production rates is CRITICAL. The only way to do this is from:

Answer 6

analyzing your accounting records.

Question 7

General Conditions are:

Answer 7

The amount of NON DIRECT field costs to build the job, such as job trailers, tool boxes, etc.

Question 8

What are OVERHEAD COSTS?

Answer 8

The amount of OFFICE COST to build the job

Question 9

What is PROFIT MARGIN?

Answer 9

The markup for the RISK and RETURN a contractor believes he deserves.

Question 10

The PROFIT is:

Answer 10

the added dollar amount of what both the client and the contractor will accept. IT IS GOOD TO HAVE A WALK AWAY NUMBER.