Practice Test Geeks(CPI) Certified Professional Installer Practice Test
← All CPI Flashcard Decks

Project Estimation & Cost Bidding Flashcards

7 cards from real CPI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Project Estimation & Cost Bidding flashcards as text

  1. A CPI professional is estimating a project in a prevailing wage jurisdiction. What is the primary legal requirement this affects?

    Answer: Minimum hourly wages paid to workers on the project

    Prevailing wage laws mandate that workers on qualifying public projects be paid the area's established wage rate for their trade.

  2. Which estimating method involves breaking a project into its smallest components and pricing each one individually before summing them?

    Answer: Bottom-up estimating

    Bottom-up estimating prices every individual task or component, then aggregates the totals for the most accurate cost projection.

  3. An installer's bid includes a line item for 'mobilization costs.' What does this typically cover?

    Answer: Costs to transport equipment, personnel, and materials to the job site

    Mobilization costs cover everything required to get the crew, tools, and materials to the project site before work begins.

  4. What is the difference between a 'lump sum' contract and a 'cost-plus' contract for an installation project?

    Answer: Lump sum is a fixed total price; cost-plus reimburses actual costs plus a fee

    A lump sum contract carries more risk for the installer (fixed price regardless of actual costs), while cost-plus transfers cost risk to the owner.

  5. Why is it important for an installer to review the project specifications for material substitution clauses before submitting a bid?

    Answer: To determine if lower-cost equivalent materials can be used without violating contract terms

    Substitution clauses define whether the installer can use alternate materials, which can significantly affect material costs in the bid.

  6. When a project has a firm completion deadline with liquidated damages, how should this risk be reflected in the bid?

    Answer: Include a risk premium or adequate schedule contingency to account for potential penalties

    Liquidated damages represent a financial penalty for late completion, so the installer must price in schedule risk or buffers to protect profitability.

  7. What is the purpose of a 'bid bond' in the installation bidding process?

    Answer: To assure the project owner that the bidder will enter into the contract if awarded

    A bid bond guarantees that the winning bidder will sign the contract and provide required performance bonds, protecting the owner if they withdraw.