CC Estimating and Bidding 2

Question 1

When a general contractor includes a subcontractor's price in a bid without the subcontractor's consent, this is known as:

Accepted Answer

Bid shopping

Answer

Bid peddling

Answer

Bid rigging

Answer

Bid listing

Question 2

Which cost is considered a 'direct cost' in construction estimating?

Accepted Answer

Labor to install drywall

Answer

Office manager's salary

Answer

Advertising expenses

Answer

Company vehicle insurance

Question 3

What is the purpose of an addendum issued during the bidding period?

Accepted Answer

To modify or clarify the bidding documents before bids are submitted

Answer

To notify contractors the project has been awarded

Answer

To request additional pricing from the lowest bidder

Answer

To extend the contractor's license

Question 4

The 'unit price' method of bidding is most commonly used when:

Accepted Answer

The quantity of work is uncertain but the type of work is known

Answer

The project scope is completely defined

Answer

The contractor wants to guarantee a fixed price

Answer

The owner wants to negotiate the contract price

Question 5

A contractor submitting the lowest bid on a public project is typically awarded the contract unless:

Accepted Answer

The bid is unreasonably low or the contractor is not responsible

Answer

Another contractor protests the award

Answer

The owner prefers a different contractor

Answer

The bid bond is less than 5%

Question 6

What does 'markup' represent in a contractor's bid?

Accepted Answer

The amount added to direct costs to cover overhead and profit

Answer

The total cost of materials only

Answer

The cost of bonding and insurance

Answer

The subcontractor's portion of the bid

Question 7

In a lump-sum contract, the contractor agrees to:

Accepted Answer

Complete the defined scope of work for a fixed total price

Answer

Be paid based on time and materials used

Answer

Share any cost savings with the owner

Answer

Bill the owner monthly based on progress