Estimating and Bidding Processes Flashcards
7 cards from real CPE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Estimating and Bidding Processes flashcards as text
In the CPE body of knowledge, what does 'direct cost' refer to in a construction estimate?
Answer: Costs directly attributable to specific work items such as labor, materials, and equipment
Direct costs are those that can be specifically and exclusively attributed to a defined scope item, including labor, materials, and equipment.
What is a 'guaranteed maximum price' (GMP) contract?
Answer: A cost-reimbursable contract with a cap above which the contractor absorbs additional costs
A GMP contract reimburses the contractor for actual costs up to an agreed ceiling, with any overrun above the GMP absorbed by the contractor.
Which estimating technique is most appropriate during the early conceptual phase when minimal project details are available?
Answer: Parametric estimating
Parametric estimating uses statistical relationships (cost per square foot, cost per unit) to produce early-phase cost estimates when detailed design data is unavailable.
What is the purpose of a 'schedule of values' submitted by a contractor?
Answer: To allocate the contract price to specific work items for progress payment purposes
A schedule of values breaks the contract sum into line items so the owner and contractor can track progress and calculate periodic payment applications.
Which of the following is an example of an 'allowance' in a construction bid?
Answer: A set dollar amount included for owner-selected finish hardware not yet specified
Allowances are predetermined dollar amounts included in the bid for items whose final selection or quantity has not yet been determined by the owner.
When a contractor receives an invitation to bid, what is the first step in evaluating whether to submit a bid?
Answer: Perform a bid/no-bid decision analysis evaluating project fit, competition, and profitability potential
The bid/no-bid decision analyzes factors such as project type, location, competition, bonding capacity, and profitability before committing estimating resources.
What is the role of a 'quantity surveyor' or 'take-off specialist' in the estimating process?
Answer: To measure and quantify materials and work items from drawings and specifications
A quantity surveyor performs detailed takeoffs by measuring work items from contract documents to establish accurate quantity inputs for pricing.